Bus 630 Case Study

Capacity Practice Problems:

1) Given the following information, compute the efficiency, utilization and productivity of this repair department. Design (Maximum or peak) Capacity = 50 vehicles per day Effective Capacity = 40 vehicles per day Actual (Demonstrated) Output = 36 vehicles per day Labor actually used = 44 vehicles per day
Efficiency= Actual OutputEffective Capacity = 36 vehicles per day40 vehicles per day=90%
Utilization= Actual OutputDesign Capacity = 36 vehicles per day50 vehicles per day=72%
Productivity= Actual OutputLabor used = 36 vehicles per day44 vehicles per day=82%

2) A department works one 8-hour shift, 250 days per year. It has demand for the following products. How many pieces of equipment are needed to meet the demand? Product | Annual Demand | Processing time per unit | Total time needed | 1 | 400 | 5.0 hrs each | 2,000 hrs | 2 | 300 | 8.0 hrs each | 2,400 hrs | 3 | 700 | 2.0 hrs each | 1,400 hrs | | 1,400 | | 5,800 hrs |

Working one shift for 8 hrs/day, 250 days per year = 8 * 250 = 2,000 hours per year To meet the volume of 5,800 hrs: 5,800 hrs needed2,000 hrs per equipment=2.90 or 3 pcs of equipment

3) Using the data from #2, if a 20% capacity cushion is desired, how many pieces of equipment are needed?
5,800 hrs needed2,000 hrs*.80=3.65 or 4 pcs of equipment
4) Using the data below, if an area works two 8 hour shifts per day, for 250 days per year and a 25% capacity cushion is desired and set-ups are included, how many pieces of equipment are needed? Product | Annual Demand | Batch size | Set-up time per batch | Processing time per unit | Total Set-up time needed | Total Processingtime needed | Total time needed | 1 | 400 | 50 | 10 hrs | 5.0 hrs ea | 400/50 * 10 = 80hrs | 2,000 hrs | 2,080 hrs | 2 | 300 | 25 | 5 hrs | 8.0 hrs ea | 300/25 * 5 = 60hrs | 2,400 hrs | 2,460 hrs | 3 | 700 | 100 | 15 hrs | 2.0 hrs ea | 700/100 * 15 = 105hrs | 1,400 hrs | 1,505 hrs | | 1,400 | | | |