Introduction

Trans-European Plastics (TEP) is one of the largest manufacturers of plastic household in

Europe. They make a range of more than 500 plastic household items by using a batch
injection moulding. Those 500 products producing by its French factory are sold to
wholesaler and large retailers throughout Europe. The company dispatches orders within
24hours of receipts by using an international carrier. The manufacturing operation is based on
the batch production, employing 24 large injection moulding machines. The Planning and
Control office prepared a weekly production schedules, detailing the sequence of products to
be used, the timing of each production run and the quantity required for each batch. It takes
an average three (3) hours for the mould changes. It has been estimated the cost of 500 per
set up. Delivery reliability increased levels of finished goods inventory and failing
productivity is the thing that the Trans-European Plastic have to face. Failing productivity are
apparently resulting from split batches where only part of planned production batch is
produces to overcome immediate shortages. The backlog of work for planned stock
replenishment currently average two weeks and so all factory orders must be planned far in
advance. this is because of high demand for many products to minimize the total cost of set
ups and to maximize capacity utilization, all product have to be run in 20 hours. From
Monday to Friday, on three seven hour shift, which made 105 hours per week, for 50 weeks
per year; that is the time for the factory to operate. 15 hours on regular Saturday, it is already
considered as "Overtime". Basic Sunday, as always it is holiday where no production will be
made, allowing access to machines for routines and major overhauls.
This report containing three major sections which is manufacturing and operation, quality and
quality management and last but not least improvement and strategy. From the section of
manufacturing and operation, Trans-European plastics (TEP) had faced three major problems
which includes the causes and effects. Calculating the monthly production time which
required by Trans-European Plastics (TEP) for all their listed products and the process of
flow chart of TEP production also discovered in this manufacturing and operation section. y
While from the section of quality and quality management, Trans-European Plastics (TEP)
total failure cost as a percentage of total quality cost for each of five years and calculating the
prevention cost and appraisal cost of each total cost percentages during those five years.
Computing the quality sales indices and quality cost indices for each of the five years also
discovered in this section of quality and quality of management. From the section of
improvement and strategy, Trans-European Plastics (TEP) adapted an implementation of six
sigma breakthrough strategy for each section and also what are the strategy and action need
to be taken by Trans-European Plastics (TEP) if they needed to boost up the positioning in
the manufacturing industries.




Manufacturing and Operation
1. TEP had faced three major problems as stated in the text, critically discuss the factors
associated with the problems and provide the cause and effect analysis.
Trans-European Plastics (TEP) had faces three major problems such as declining in delivery
reliability, increased levels of finished goods inventory and failing productivity. The failing
productivity resulting from split-batches where only part of a planned production batch is
produces to overcome immediate shortages. The backlog of work for planned stock
replenishment currently average two weeks and so all factory orders must be planned far in
advance. This is because of the high demand for many products. However, all products are
planned for a minimum production run of 20 hours to minimize the total cost of set-ups and
to maximize the capacity utilization. The plastics industry in Europe is vast and contributes to
21.5% of the worlds total volume of plastics production and they provides employment to
about 1.6 million Europeans. In the past of 20 years, the plastics production trend has
increased around 5% annually. The plastics industry contributes significantly to the welfare
of Europe. Plastics drive innovation, improve quality of life, and facilitate resource efficiency
and climate protection. Due to the operation hours of the factory, they operates on three
seven-hours shifts, Monday to Friday; 105 hours per week and for 50 weeks per year. 15
hours on a Saturday is used for overtime where Sunday never be used for production which
allowing access to machines for routine and major overhauls. Machines are laid out in groups
so that each operator can be kept highly utilized, attending to at least four machines. Any
products can be made with any machines.

2. From the data given in Table 1, calculate monthly production time required by TEP for all
their listed products. Further discuss your finding.
Product
reference
number
Description Last 12
months
sales
(000s)
Physical
inventor
y 2 Jan
(000s)
Standard
moulding
rate
(items/hour)
Item
per
year
Item
per
month
Hour
per
month
016GH Storage bin large 10 0 240 1000
0
833.3
3
3.472
033KN Storage jar + lid 60 6 200 6600
0
5500 27.5
041GH 10 litre bucket 2200 360 300 2560
000
21333
3
711.11
062GD Grecian-style pot 40 15 180 5500
0
4583.
33
25.46
080BR Bathroom mirror 5 6 250 1100
0
916.6
7
3.67
101KN 1 litre jug 100 22 600 1220
00
10166
.67
16.94
126KN Pack (10) bag clips 200 80 2000 2800
00
23333
.33
11.67
143BB Baby path 50 1 90 5100
0
4250 47.22
169BB Baby potty 60 0 180 6000
0
5000 27.78
188BQ Barbecue table 10 8 120 1800
0
1500 12.5
232GD Garden bird bath 2 6 200 8000 666.6
7
3.33
261GH Broom head 60 22 400 8200
0
6833.
33
17.08
288KN Pack (10) clothes
pegs
10 17 1000 2700
0
2250 2.25
302BQ Barbecue salad
fork
5 12 400 1700
0
1416.
67
3.54
351GH Storage bin small 25 1 300 2600
0
2166.
67
7.22
382KN Round mixing
bowl
800 25 650 8250
00
68750 105.77
421KN Pasta jar 1 3 220 4000 333.3
3
1.515
444GH Wall hook 200 86 3000 2860
00
23833
.33
7.944
472GH Dustbin + lid 300 3 180 3030
00
25250 140.27
8
506BR Soap holder 10 9 400 1900
0
1583.
33
3.958

Working:
Storage bin large
i) Item per year (Last 12 months sales plus with physical inventory 2 Jan),
10000 + 0 = 10000
ii) Item per month (Item per year divided by 12 months),
10000/12 months = 833.33
iii) Hour per month (Item per month divided by the standard moulding rate),
833.33/240 = 3.472

Barbecue Table
i) Item per year (Last 12 months sales plus with physical inventory 2 Jan),
10000 + 8 = 18000
ii) Item per month (Item per year divided by 12 months),
18000/12 months = 1500
iii) Hour per month (Item per month divided by the standard moulding rate),
1500/120 = 12.5
The working hours per month,
(105 hours + 15 hours) x 4 weeks = 480 hours per month.
(105hours x 24 machines) = 2520 hours per week (machines)
maximum number of plastics per week,
(2520/23) = 110
Trans-European Plastics (TEP) are able to offer a full range of household plastics which
appeals to most European tastes. But based on the table above, many receive several
deliveries for each order, spread over many weeks which increases their administrative and
handling cost and haulage costs. Which sometimes the shortfall is only small and clothes
pegs has the lower value items.

3. Construct a process design of TEP production. Briefly explain the stages involved.





Process design of Trans-European Plastics production

The production of plastics can be divided into four categories such as acquiring the raw
material or monomers, synthesizing the basic polymer, compounding the polymer into a
material that can be used for fabrication and shaping the plastic into its final form. Plastic is
made using a variety of chemical and refining processes that turn single molecules called
monomers into long chains called polymers. The polymers can be shaped into whatever the
end product is. The basic steps or procedure for making plastics are the same as other plastics
steps. The main types of raw materials used to make plastic are fossil products such as natural
gas. Though it can also be made from other things. These contain compounds which called
hydrocarbons which can be used to make monomers to make plastic. it usually done by
Production of Plastics
RAW Materials Synthesis of the Polymer
Additives
Shaping and Finishing
cracking in the hydrocarbons. By either heated to extreme temperatures or chemically treated
to break them into monomers such as styrene. Once the monomers are extracted, they have to
be chemically treated to make them bond together and form long polymer chains. Firstly, the
monomers are mixed with another chemical that acts as a catalyst which causes them to
combine with each other forming a resin. Then, monomers are processed to combine them
with each other and release a by product such as water. During the process, there are different
types of monomers are usually mixed together to form resin with other characteristics. At
times, they also can be mixed with flame retardants or plasticizers to increase the polymer's
flexibility, which make the end product less brittle. The chemical additives can be used in the
production of achieve characteristics which includes the antioxidants to protect the polymer
from degradation by oxygen, ultraviolet stabilizers to protect against weathering, lubricants to
reduce friction problems, pigments to give the plastic colour and antistatic. For the shaping
and finishing, compression molding is one of the oldest methods used for converting
polymers into useful materials. It uses pressure to force the plastics into a certain shapes. One
half of a two piece mold is filled with plastic and then the two halves of the mold are bought
together and the plastic is melted under high pressure. Extrusion is a method used for shaping
plastics. Where a device called an extruder, forces softened plastic through a shaped die from
which it may emerge in almost any form including tube and flat sheet. Constant pressure
provided by the driving force is supplied by a screw. All of the extrusion products have a
regular cross section, where a variation method is extrusion blow molding in which a plastic
tube produced by extrusion is sealed around a blowing tube and expanded to the shaped of a
mold with compressed air. Injection molding involves one or more extruders which force
melted plastic into a cold mold where it is allowed to set to the shaped. Other methods also
exist for shaping and finishing plastic which produces plastic sheets and transfer molding in
which softened plastic is forced by ram into a mold. The results can be sold in liquid form or
ground into pellets and then can be sold to plastic manufacturing companies.



References
http://www.studymode.com/essays/Tep-Case-Study-916488.html
http://sangu.edu.ge/books/eko/Slack-Operations%20management%20%205e.pdf
http://www.bignerds.com/papers/66065/Case-Study-Trans-European-Plastics-Tep-1/
http://www.wisegeek.org/how-is-plastic-made.htm