An Application of Linear Programming in the Pottery Industry

Abstract

This thesis is concerned with an investigation carried out at the Worcester Royal Porcelain Company, the objective of the investigation being to maximise the contribution obtained from the production of porcelain ware. The general situation, problems and recent developments are considered and reference made to the Board of Trade Working Party Report (Pottery) 1946. Production processes are discussed and the reasons stated why it was decided that the problem could best be tackled by using the Linear Programming technique. The compilation of the card index system, the method of assembling data to be processed, production restraints and assumptions are all described prior to the formation of programmes. After defining a five stage plan based on the results of the first series of programmes, possible areas of sensitivity to restraints were determined and three groups of programmes processed to determine the effect on Contribution when production resources and sales restraints were modified in conjunction with increased glost kiln capacity. The effect of increased production on the marginal Cost per unit is then established and also the resulting over-recovery of overheads that will occur through the system employed. The method of recording glost kiln performance, its inadequacies and Management information requirements are defined to enable a Data Processing System to be developed. How the Data Processing System meets the needs of the levels of Management involved is detailed and the processing of data is diagramatically illustrated. The final chapter discusses the changes that have been made by the Management of the Worcester Royal Porcelain Company in Company policy, production methods and resources since the initial report in April 1966 and in conclusion, attention is drawn to the need for an efficient system of production control.