Determining Capacity Available and Formula
measurement =Demonstrated (measured) capacity is figured from historical data .
calculation = calculated or rated capacity is based on available time, utilization, and efficiency.
Available time
The available time is the number of hours a work center can be used.
Formula : Available time = number of machines x number of hours x number of days.
EXAMPLE PROBLEM.
A work center has 3 machines and is operated for 8 hours a day.5 days a week. What is the available time?
Answer:
Available time= 3x8x5=120 hours per week.
Utilization
The available time is the maximum hours we can expect from the work center.
Formula : Utilizations = hours actually worked x 100 %/ Available hours
EXAMPLE PROBLEM.
A work center is available 120 hours But actually produced goods for 100 hours. What is the utilization of the work center?
Answer:
Utilization=100/120 x 100 % = 83.3 %
Efficiency
The workers might be working at a faster or slower pace than the standard working pace.
Formula : Efficiency= actual rate of production / standard rate of production x 100%
EXAMPLE PROBLEM
A work center produces 120 units a shift. The standard for that item is 100 units a shift. What is the efficiency of the work center?
Answer:
Efficiency = I20 / 100 x 100 % = 120 %
Rated capacity is calculated by taking into account the work center utilization and efficiency:
Formula : Rated capacity = available time x utilization x efficiency
EXAMPLE PROBLEM
A work center consists of 4 machines and is operated 8 hours per day for 5 days a week . Historically , the utilization has been 85 % and the efficiency 110 % , what is the rated capacity?
Answer:
Available time= 4 x 8 x 5 =160 hours per week
Rated capacity =160 x 0.85 x 1.10= 149.6 standard hours
Credit by: Akmal
Credit by: Akmal
Comments
1) Q: hello, may i ask a question. what is the causes of an unavoidable delays for work center utilization?
A: The cause of an unavoidable delays for work center utilization are machine breakdowns, absenteeism, and lack of materials.
2) Q: Can i ask some question, what are the factors that causes the work center can be efficiency ?
A: The factors that causes the work center can be efficiency are efficient, trained and expert workers.