Capacity Required ( Load )

↬ Generated by the priority planning system and involve translating priorities
↬ It is the sum of the required times for all the planned and actual orders to be run on the work center in a specified period.

Formula : Total standard time = setup time +( run time x number of unit)

Formula : capacity required = (actual time) (efficiency) (utilization)

Capacity required = Total standard time

Actual time= capacity required / (efficiency) (utilization)

Actual time =hours actually work

• EXAMPLE PROBLEM

A work center is to process 150 units of gear shaft SG 123 on work order 333.The setup time is 1.5 hours, and the run time is 0.2 hours per piece. What is the standard time needed to run the order?

Total standard time = setup time +( run time x number of unit)

= 1.5 + (150 x 0.2) = 31.5 hours

• EXAMPLE PROBLEM

In the previous problem, how much actual time will be needed to run the order if the work center has an efficiency of 120 % and a utilization of 80 % ?

capacity required = (actual time) (efficiency) (utilization)

Actual time= capacity required / (efficiency) (utilization)

=31.5 / (1.2 x 0.8 ) = 32.8 hours

The steps in calculating load are as follows :

a) Determine the standard hours of operation time for each planned and released order for each work center by time period.

b) Add all the standard hours together for each work center in each period. The result is the total required capacity ( load ) on that work center for each time period of the plan.

Credit by : Zulaikha