THE PRODUCTION OUTPUT IN

INDUSTRIAL

MANUFACTURING: POISSON

REGRESSION

ABSTRACT

The purpose of these study is to see

the relation of using poisson

regression analysis on industry and on

how it can affect the possible total

production on the industry especially

on manufacturing ones. Also, it will be

a great help in determining what would

be the causes of bottle necks in the

production.

Mathematical Modelling

Poisson Regression

In statistics, Poisson regression is a form of regression analysis used to model count data and contingency tables. Poisson regression assumes the response variable Y has a Poisson distribution, and assumes the logarithm of its expected value can be modeled by a linear combination of unknown parameters. A Poisson regression model is sometimes known as a log-linear model, especially when used to model contingency tables.

Poisson regression models are generalized linear models with the logarithm as the (canonical) link function, and the Poisson distribution function as the assumed probability distribution of the response.

Company, KE TI Coatings, Inc. (KTCI) is a paint-manufacturing company formed in April 2007. Although it was a young company, it was formed and are managed by professionals who have earned solid experience in paint manufacturing in one of the top paint manufacturing in the Philippines prior to its cessation of operations in February 2007.

Driven by the need to continue the support to loyal customers who have relied on quality products that we have been previously serving for the past years, these KTCI incorporators harnessed their long years of experience in their respective fields of Technical, Manufacturing and sales and Manufacturing gained from their former company to form Ke Ti Coatings, Inc.

Application

It manufacture primarily decorative paints under their brand, Painter`s Choice. It also supply customer specific industrial paints. All of paints undergo stringer quality assurance processes to assure customers of quality paints.

The initial production capacity allows us to produce approximately 240,000 liters per month. And they are able to work on the most urgent paint needs due to the flexible production workforce.

We also provide before and after-sales technical service on project management accounts assuring you of our full support.

All these do at Ke Ti Coatings, customers come first.

Problem:The amount of production output of Ke Ti coatings incorporated is 3000 liters of paint in a day. The initial amount of the total production is 1500 liters in 5 hours of production. What would be the total amount of production in 72 hours?BY USING THE GENERAL FORMULA OF POISSON REGRESSION GIVEN:

Where;P = to the number of production output givenY = to the time required to produce the certain product.

From this equation, we can say that this relation is similar to the equation of exponential growth and decay.

𝑒𝑘 = (𝑝1

𝑝𝑜)1

𝑡1

𝑃 = 𝑝0(𝑝1𝑝𝑜)𝑡𝑡1

𝑡 = 𝑡1𝐿𝑛(

𝑝1𝑝𝑜)

𝐿𝑛(𝑝1𝑝𝑜)

Where;

P = amount of substance present at any time t.

Po = the initial amount of the substance.

t = time required

Solution:

Given;

P = 3000L/dayPo = 1500L @ To = 5 hours

Reqd.; the number of outputs after Ti = 72 hours. (since t is given, use eqn. number 3)

Substitute values to the equation;

𝑃 = 1500(3000

1500)725

P = 32,428,227 liters in 72 hours equivalent to 1,502 cans of paint.

Note. Variance of 2 cans was given with respect to the amount of excess and waste.

Summary, Conclusion

and Recommendations

Conclusion

We therefore conclude that it takes 72 hours to reach the amount required for the operational proceedings to produce 32 million Liters of paint.

Our computations justify that if they use the application of the differential equation, primarily on poisson regression analysis, they can obtain the right amount of substance needed to meet production standards.

Recommendations Give attention to the facilities of their

production layout because it can

affect the production rate.

To the owner of the company, use our

proposed layout so that the

production rate will increase.

EXECUTIVE SUMMARY The industrial engineering students finds the idea

and plan to make the KE TI Coatings Incorporated

production area to take a long term commitment in

improving their facility plan.

KE TI Coatings Incorporated primarily decorative

paints under their brand "Painter's Choice". Since their

parts undergo stringent quality assurance processes

to assure customers of quality paints. They also have

their Sales Technical Service on the project

management to make the customers feel their full

support and to be able to get the customer's value and

satisfaction.