Deck 5: Capacity Management

Question 1

A work center consists of 3 machines each working a 16-hour day for 5 days a week. What is the weekly available time?

Answer 1

Available time: It can be defined as the number of hours that could be used in a workstation. It depends upon the number of working machines, allocated workforce, and hours of operation in a week.
Consider the following information in the workstation:
Number of machines = 3 machines
Each machine works (hours per day) =16 hours a day
Number of working days in a week = 5 working days in a week.
Calculate the weekly available time taken by all three machines using the following formula: …… (1)
Substitute the values in the equation (1) Therefore, the weekly available time for a work center, consisting 3 machines, 16 daily hours and 5 working days a week is 240 hours per week.

Question 2

What are the responsibilities of capacity management?

Answer 2

Capacity is the rate of work that can be carried out in a particular time period. Capacity is the ability of an employee or labor, appliance, work center, plant, or business to produce output for a particular time period.
Capacity management is the authority for deciding the ability required to accomplish the preference plans along with providing, examining and controlling the ability so the preference plan can be fulfilled.
Responsibilities of capacity management :
(1) Capacity management is responsible for confirming the capacity management tools and procedures for efficient automation work.
(2) Capacity management has drawn up capacity plans related to every stage of service decided.
(3) Capacity management is responsible for managing and justifying demand for products and services.
(4) Capacity management should act as a proficient and consultant on all capacity and performance issues and requirements.

Question 3

The work center in problem is utilized 75% of the time. What are the hours per week actually worked?

Answer 3

Calculate hours per week actually worked:
Utilization is the percentage of time that work place is active and matched up to the available time. Utilization is a scale of how exclusively a resource is being used to manufacture goods and services.
Analysis:
In a work station there are 4 machines. Each machine works for 16 hours a day. There are 5 working days in a week. The utilization of time is 75 percent. Using formula of utilization, estimate hours per week actually worked. From problem 1:
In a work station, there are 4 machines. Each machine works 16 hours per day. There are 5 working days in a week. Calculate the weekly hours taken by all four machines. Following formula is used to calculate available time. By substituting the values, Substitute, 75 percent as utilization and 320 as hours available per week. We have to calculate hours per week actually worked. …… (Divided by 100 both side) …… (Cross multiplication) Conclusion:
If the utilization capacity of 4 machines is 75 percent and total hours available is 320 hours per week, then actual worked hours per week is 240 hours per week.

Question 4

What is capacity planning?

Question 5

If the efficiency of the work center in problem 5.1 is 120%, what is the rated capacity of the work center?

Question 6

Describe the three steps of capacity planning.

Question 7

A work center consisting of 7 machines is operated 16 hours a day for a 5-day week. Utilization is 80%, and efficiency is 110%. What is the rated weekly capacity in standard hours?

Question 8

Relate the three levels of priority planning to capacity planning. Describe each level in terms of the detail and the time horizons used.

Question 9

A work center consists of 4 machines working 8 hours a day for a 5-day week. If the utilization is 80% and the efficiency is 90%, what is the rated capacity of the work center?

Question 10

What is capacity requirements planning? At what level of the priority planning process does it occur?

Question 11

Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. What is the demonstrated capacity of the work center?

Question 12

What are the inputs to the CRP process? Where is this information obtained?

Question 13

In an 11-week period, a work center produces 1050 standard hours of work. What is the measured capacity of the work center?

Question 14

Describe each of the following and the information they contain.
a. Open order.
b. Routing.
c. Work center.

Question 15

In 1 week, a work center produces 75 standard hours of work. The hours scheduled are 80, and 72 hours are actually worked. Calculate the utilization and efficiency of the work center.

Question 16

What is a shop calendar? Why is it needed?

Question 17

A work center consisting of 3 machines operates 40 hours a week. In a 4-week period, it actually worked 355 hours and produced 475 standard hours of work. Calculate the utilization and efficiency of the work center. What is the demonstrated weekly capacity of the work center?

Question 18

In which file would you find the following information?
a. A scheduled receipt.
b. A planned receipt.
c. Efficiency and utilization.
d. Sequence of operations on a part.

Question 19

A firm wishes to determine the efficiency and utilization of a work center composed of 5 machines each working 16 hours per day for 5 days a week. A study undertaken by the materials management department found that over the past 50 weeks the work center was actually working for 16,000 hours, and work performed was 15,200 standard hours. Calculate the utilization, efficiency, and demonstrated weekly capacity.

Question 20

Define capacity available.What are the four factors that affect it?

Question 21

How many standard hours are needed to run an order of 200 pieces if the setup time is 1.3 hours and the run time 0.3 hours per piece? How many actual hours are needed at the work center if the efficiency is 130% and the utilization is 70%?

Question 22

Why is standard time usually used to measure capacity?

Question 23

How many standard hours are needed to run an order of 500 pieces if the setup time is 2.0 hours and the run time 0.3 hours per piece? How many actual hours are needed at the work center if the efficiency is 110% and the utilization is 85%?

Question 24

What are rated capacity, utilization, and efficiency? How are they related?

Question 25

A work center has the following open and planned orders for week 4. Calculate the total standard time required (load).

Question 26

What is measured or demonstrated capacity? How is it different from rated capacity?

Question 27

A work center has the following open and planned orders for week 4. Calculate the total standard time required (load).

Question 28

What is load?

Question 29

Using the information in the following route file, open order file, and MRP planned orders, calculate the load on the work center. Open Orders for parts Planned Orders for parts Load report

Question 30

What is a work center load report? What information does it contain?

Question 31

Complete the following load report and suggest possible courses of action.

Question 32

What is a schedule?

Question 33

Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 150. Assume orders start at the beginning of a day and finish at the end of a day.

Question 34

Describe the process of back scheduling.

Question 35

Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 200. Assume orders start at the beginning of a day and finish at the end of a day.

Question 36

What are the two ways of balancing capacity available and load? Which is preferred? Why?

Question 37

What are some of the ways capacity available can be altered in the short run?

Question 38

Why is feedback necessary in a control system?

Question 39

What might be some of the problems in scheduling rated capacity too closely to the load?

Question 40

How is safety capacity used?

Question 41

Discuss the nature and probable sources of the problem.

Question 42

Examine the rough-cut capacity situation using the data Jason gathered. Discuss the results and how they are linked to the problems identified in question 1.

Question 43

Use the information and your knowledge of the situation to develop a complete plan for Jason to use in the future. Part of this plan should be to build and demonstrate the approach to master scheduling for the data given in the case