IPASJ International Journal of Management (IIJM

)
A Publisher for Research Motivation........

Volume 1, Issue 6, December 2013

Web Site: http://www.ipasj.org/IIJM/IIJM.htm Email: editoriijm@ipasj.org ISSN 2321-645X

The Use of Theiles Rule in Modelling of Machines Performance in Manufacturing Industry
1

Adedoyin Salami .I., 2Okeniyi,O.M., and Alabi Risikat.A3
Dept. Business Administration Kwara State Polytechnic Ilorin,Nigeria.

1 2 3

Dept. Mathematics and Statistics Federal Polytechnic Offa,Kwara State,Nigeria.

Dept. Leisure and Tourism/Hospitality Management Kwara State Polytechnic Ilorin,Nigeria.

ABSTRACT
Theil statistic can reasonably be assumed to give results that also track the (unobserved) evolution of inequality within industries. While the evolution of inequality in manufacturing earnings cannot be taken as per se indicating the larger movements of inequality in household incomes, including those outside the manufacturing sector An attempt to control word economy by industrialized nation of the world generated the idea of total quality management for every manufacturer products .Raw materials have been the major production requirement from the time immemorial. It is quite obvious that without raw materials there will be no production in any form. The modern plastic industry has developed to a great extent out of research to substitutes to rubber and some metal products. In fact, the use of plastic products has largely replace any item in this world presently. This research focuses on the use of non-parametric statistics in quality control on the usage of raw materials in production of plastic.Therefore this research,use the theiles rule in modelling the machines performance in manufacturing industry to determined linear equation on the products and defective items, theile’s method is use to obtain the regression equation Y = -40.236 + 0.0182X and from the result obtain it was discovered that about 2% of the materials contribute to the defectives product of the company ,we thereby concluded that company should use the quality materials to avoid defective item .

Keywords: conformance , measure , variability, Raw materials ,modelling.

1. INTRODUCTION
Quality is now beyond conformance to specification as a measure of evaluation and continuously striving to decrease the variability about the target value to make more uniform. Initially, there was competition between the American and Japan on the concept of quality originally. America dominated the world with their industrial and domestic product but instead for America to make use of the intelligent people that were bestowed upon the nation in order to ensure high degree of accuracy, uniformity and total quality for their products they did not because of the non-challant attitude of the nation and manufactures towards the reaching of those people [3]. Year-to-year economy-wide measures of income distribution, such as the Gini coefficient, are rarely available for long periods except in a few developed countries, and as a result few analyses of year-to-year changes in inequality exist[4]. But wage and earnings data by industrial sectors are readily available for many countries over long time frames. This paper proposes the application of the betweengroup component of the Theil index to data on wages, earnings and employment by industrial classification, in order to measure the evolution of wage or earnings inequality through time. We provide formal criteria under which such a between-group Theil statistic can reasonably be assumed to give results that also track the (unobserved) evolution of inequality within industries. While the evolution of inequality in manufacturing earnings cannot be taken as per se indicating the larger movements of inequality in household incomes, including those outside the manufacturing sector, we argue on theoretical grounds that the two will rarely move in opposite directions. We conclude with an empirical application to the case of Brazil, an important developing country for which economy-wide Gini coefficients are scarce, but for which a between-industries [1]. Theil statistic may be computed on a monthly basis as far back as 1976 This research takes quality into consideration. An attempt to control word economy by industrialized nation of the world generated the idea of total quality management for every manufacturer products.[2].Raw materials have been the major production requirement from the time immemorial. It is quite obvious that without raw materials there will be no production in any form. This research focuses on the use of non-parametric statistics in quality control on the usage of raw materials in production of plastic.

2. METHODOLOGY
Simple Linear Regression (Theil’ Rule) Y =  + xi + ei Y =  + xi

Volume 1, Issue 6, December 2013

Page 1

IPASJ International Journal of Management (IIJM)
A Publisher for Research Motivation........

Volume 1, Issue 6, December 2013
If the assumption is hold on ordinary least square then

Web Site: http://www.ipasj.org/IIJM/IIJM.htm Email: editoriijm@ipasj.org ISSN 2321-645X

 

S xy S xx

 = y - x If the assumption is not hold, rank correlation is used.  = median (ij). ij = Yj - Yi Xj - Xi Theil’s Procedure  Estimate the slope of the line by the median of all slope joining pairs of point with different X values ie for point ( Xi , Yi ) and ( Xj , Yj ) obtain ij = Yj - Yi Xj - Xi  Obtain the n (n-1) of ij 2  obtain  = median of bij   = median ( yij) -  median of (xi)). Y =  +  Xi  = y1 + bx1  = y2 + bx2
; ; n

= y n + bx n  = median (i)

3. DATA PRESENTATION
The data used in this research work shows the average number of item produced and the number of scraps generated during the process by 25 selected machines in march 2013 being shown in table 1 below. Table 1:Average Number Of Items Produced With The Average Number Of Scraps From 25 Selected Machines For 25 Days In March 2013. Days Number Of Items Number Of Produced (“000”) Scraps Produced 1 2880 19 2 3268 12 3 2980 13 4 2940 15 5 3204 14 6 2960 20 7 3040 13 8 3424 14 9 3600 21 10 3060 16 11 3012 16 12 2392 16 13 2692 15 14 3124 18 15 3132 16 16 2486 14 17 3144 19 18 2732 13 19 2512 10 20 3208 15 21 3188 24 22 2832 13 23 2492 15

Volume 1, Issue 6, December 2013

Page 2

IPASJ International Journal of Management (IIJM)
A Publisher for Research Motivation........

Volume 1, Issue 6, December 2013
24 3144 25 3312 Source: OK Plast Limited iloron Nigeria

Web Site: http://www.ipasj.org/IIJM/IIJM.htm Email: editoriijm@ipasj.org ISSN 2321-645X
15 11

4. ANALYSIS OF DATA
Linear regression using theil’s rule The following data shows the average number of items produced and scraps generated from 25 selected machines for 5 days in may where “X” represents the number of items produced in thousand (000) and “W” represents the number of scraps produced while M1, M2, M3, M4….M25 represents the respective machines in production floor. Table 2.:Shows the average number of items produced and scraps generated from 25 selected machines for 5 days in may 2880 3268 2980 2940 3204 X 19 12 13 15 14 Y Rank of x = 2880, 2940, 2980, 3204, 3268 Median ( Xi) = 2980 Rank of y = 12, 13, 14, 15, 19 Median (Yi) = 14 number of bij

n ( n  1) 5(5  1)   10 2 2
b2,4 b2,5 b3,4 b3,5 b4,5

bij = Yj - Yi Xj - Xi b1,2 b1,3 b1,4 b1,5 b2,3 b1,2 = 13 – 12 2940 – 2880 =0.0167 b1,3 = 14 – 12 2980 – 2880 =0.0400 b1,4 = 15 – 12 3204 -2880 =0.0278 b1,5 = 19 – 12 3268 –2880 =0.0181 b2,3 = 14 –13 2980 - 2940 = 0.025 b2,4 = 15 – 13 3204 – 2940 = 0.0076 b2,5 = 19 – 13 3269 - 2940 = 0.0183 b3,4 = 19 – 14 3204- 2980 = 0.0045

b3,5 = 15 – 14 3268- 2980 = 0.0174 b4,5 = 19 – 15 3268-3204 = 0.0625 Rank of bij Rbij = 0.0045,0.0076,0.0167,0.0174,0.0181 ,0.0183,0.0256,0.0278,0.049,0.0625

Volume 1, Issue 6, December 2013

Page 3

IPASJ International Journal of Management (IIJM)
A Publisher for Research Motivation........

Volume 1, Issue 6, December 2013
Median  = 0.0181+0.0183 2  = 0.0182  = median (Y) -  ( median (X)  = 14 – 0.0182 ( 2980 )  = -40.236 Y = -40.236 + 0.0182X

Web Site: http://www.ipasj.org/IIJM/IIJM.htm Email: editoriijm@ipasj.org ISSN 2321-645X

5. CONCLUSION
For the linear regression (theil’s rule), the fitted model equation is equal to Y = -40.236 + 0.0182xi .this implied that about 2% of the good product contribute to the defectives

6. RECOMMENDATION
With respect to the above conclusion on the test and analysis made, I hereby suggest to the management to maintain the standard or improve on their current methods of production to in order to acquire better quality products .I also suggest to the management to introduce the use of automated process monitoring devices to enhance the periodic recordings of their production for easier detection of errors. Finally, I recommend for the management to employ the use of statisticians for better planning to attain a greater height in quality production.

References
[1]. Brabazon. T., (2000): “A connectivist approach to index modelling in financing markets”, In Proceedings, Coil / EvoNet Summer School. University of Limerick. [2]. Salvatore,I. and G. Damiana, C. (2005): “Functional principal component analysis of financial time series”, [3].Mark O. And Afolabi, O. O. (2007): “Predicting Stock Prices Using a Hybrid Kohonen Self Organizing Map (SOM)”, Proceedings of the 40th Hawaii International Conference on System Sciences, IEEE. [4]. Huixin, K., Jinghua H. and Hao, S. (2007): “Statistics Analysis in Investigation and Research”, Beijing: Beijing Broadcast University Press, 465-484.. AUTHOR Dr Adedoyin Salami I. was born on July 17th 1964 in Babaloma, Ifelodun Local Government Area of kwara state in Nigeria. He obtained his Higher School Certificate(H.S,C) from Kwara state polytechnic Ilorin in 1982, Bachelor of Science (B.Sc) Economics from University of Ilorin in 1986, Certificate in Computing from Kwara State Polytechnic, Ilorin in 1992 , Master in Business Administration from University of Ilorin in 1997, Master in Management Science(M. Sc) from University of Ilorin in 2003, Post Graduate Diploma in Education from National Teacher’s Institute in 2008 and Ph.D Business Administration Ph.D from University of Ilorin in 2012 all in Nigeria. He is a lecturer in the Department of Business Administration since 1991 up to date. He is Acting Head of Department, Department of Business Administration in 2000-2003.He is a member of several committee in the polytechnic and currently is Chief Lecturer and Director, Institute of Finance and Management Studies, Kwara state polytechnic Ilorin from 2010 till date .He Attended many workshops and seminar. He has many journal both national and international to his credit. Okeniyi Okeyemi.M . was born on December 26th 1968 in Offa ,Offa Local Government Area of kwara state in Nigeria. He obtained his National Diploma in Statistic from Federal polytechnic Bida in 1988, Bachelor of Science (B.Sc) in Statistics from University of Ilorin in 1993, Master of Science in Statistics from University of Ilorin in 2001 and Post Graduate Diploma in Education from National Teacher’s Institute in 2007 all in Nigeria. He is a lecturer in the Department of Mathematics/Statistics from 2005 up to date. He is the Examination Officer 2006-2011,Part-Time coordinator 20112012,ND Project Coordinator2012-2013 all in Department of Mathematics/Statistics Federal polytechnic Offa .Presently he is Acting Head of Department, Department of Mathematics/Statistics Federal polytechnic Offa 2013 to date Alabi Risikat .A.. was born on November 16th 1959 in Ifelodun Local Government Area of kwara state in Nigeria. She obtained her National Diploma and Higher Natiomal Diplomal in Hotel and Catering Management from kwara state polytechnic Ilorin in 1981 and 1984respectively. She obtained Post Graduate Diploma in Public Relations from kwara state polytechnic Ilorin in 1996, Master in Business Administration (MBA) from Ondo State University Ado Ekiti in 2005, Bachelor of Science (B.Sc) Home and Hotel Management from Olabisi Onabanjo University in 2007,Technical Teacher Certificate(TTC) from Federal College of

Volume 1, Issue 6, December 2013

Page 4

IPASJ International Journal of Management (IIJM)
A Publisher for Research Motivation........

Volume 1, Issue 6, December 2013

Web Site: http://www.ipasj.org/IIJM/IIJM.htm Email: editoriijm@ipasj.org ISSN 2321-645X

Education Akoka Lagos state in 2007and Master of Science (Msc) from Olabisi Onabanjo University in 2010 all in Nigeria. She is a lecturer in the Department of Hospitality Management kwara state polytechnic Ilorin since 1995 up to date. She is the Examination Officer 2008-2010 in the Department of Hospitality Management kwara state polytechnic Ilorin, Assistant Chief Examination Officer Institute of Basic and Applied Science 2009/2010.She is a member of several committee in the polytechnic and and She is a member of four Professional bodies,(MNHCI,MWITTED,MHATMAN and MNIM).Currently She is the Head of Department Leisure & Tourism Management, Kwara state polytechnic Ilorin from 2010 till date .She Attended many workshops and seminar. She has many journal both national and international to her credit.

Volume 1, Issue 6, December 2013

Page 5

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.