operational analysis of a select spinning mill - International ...

Graph 1
RAWMATERIAL CONSUMPTION AND PRODUCTION OF
SSMLTD UNIT-1 AND UNIT-2
In Lakh Kgs.
50
45
40
35
30
25
20
15
10
5
0
45.09
41.78
40.28
36.18 36.97 37.55
32.18
30.49
30.63
29.02 28.31
26.38 26.6
28.08
26.12 26.12
26.45 27.03
26.55
24.38
22.9
20.33
20.91 20.98
19.27 19.19 19.19
19.25
18 17.52
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
YEAR
S1.Production S1.Rawmaterial S2.Production S2.Raw- material
Table .2
Coefficients:
Standard
Parameter Estimate Error Statistic P-Value
CONSTANT -18.4159 1.76891 -10.4109 0.0000
Raw material consumption 0.673339 0.0197851 34.0326 0.0000
Yield 27.1733 1.84076 14.762 0.0000
The fitted multiple regression models involving the explanatory variables are given
below:
PRODUCTION = -18.4159 + 0.673339*RAW MATERIAL CONSUMPTION +
27.1733*YIELD.
From the model it is observed that there is a positive relationship between yarn
production and raw material consumption. It shows that yarn production would increase by 0.67
units, if the raw material consumption increases by 1 unit assuming the yield remains the same.
It also shows that there is a positive relationship between yield and yarn production. That is
the yarn production would increase by 27 units if the yield increases by 1 unit assuming the
consumption remains the same.
T
6