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Started with a modest investment of Rs.5 Crore, the company presently is making revenue of Rs.70 crores annually. In order to gain better revenue the company management has decided to sell the paper produced directly to dealers and publishers. The company is having four paper machines in plant to achieve its targeted output of 18 tons a day. Because Delta Engineering is a medium scale paper manufacturing industry all its paper machines are semi automatic, where handling and feeding needs to be done manually thus leading to mechanical problems most of the time.

Despite smart machine scheduling they are unable to achieve the targeted output sometimes. This problem is primarily due to machine downtime. The management of the organization has given details of number of working hours of one machine, probable down time, productivity, the details of which are as follows. If a machine A works for 4 hours a day then the probability of it breaking down is 0.1 or 10%, if the machine works for 5 hours then the probability of it breaking down increases to 0.2 or 20%.

If the machine works for 6 hours a day then the probability of it breaking down increases to 0.3 or 30%. If the machine works for 8 Hours a day then its break down probability increases to 0.4% or 40%. Similarly the management has given the productivity of the machines in terms of tons of paper as follows. If the machine works for 4 hours a day then it will be able to produce 3 tons of paper a day, if it works for 5 hours a day then it will be to produce around 4 tons of paper a day. If the machine works for 6 hours a day then it will be able to produce around 5 tons of paper a day.

If the machine works 8 hours a day then it will be able to produce around 6 tons of paper a day. The management of Delta Engineering wants to find if there is a realistic relation between Machine work time and break down, also the management wants to understand if machine breakdowns really are the reason for its loss in