CAPACITY PLANNING

Understanding of capacity planning line factory section (attendance/efficiency) Operation breakdowns, independent and dependent processes, flow diagrams. Machine, equipment and manpower requirements. Line and production balancing. Production control Role of the supervisor

Factory capacity REASON FOR OUTLOSE Absenteeism Poor work methods (affects performance & efficiency) Low operator performance Poor operator utilisation Style change is not itself a cause of lost output, it can cause all or some of the above!! DEFINATION On standard : that time the operator spends on measured work earning Standard Minutes.

 Off-standard : that time the operator spends on unmeasured work or measured work that is classified as off-standard.

MEASURED WORK That work to which a standard measure (SMV, SAM) has been applied.

Example of measured work that may be classified as off-standard. An operator may whilst learning a new operation be taken off standard for payment purposes but will still be contributing SMS as the operation they complete will have SMV applied.

OFF STANDARD TIME Should be reported on Labour cost control sheet Waiting for work Machine breakdown Unmeasured work operation not yet allocated SMV. Sampling Repairs (not own) Paid average (for balancing) Under re-train Indirect work covering for supervisor

 Supervisor/manager should be targeted to stay within budget

SMV /SAV Standard Minute Value (S.M.V.) is the time allocated through work measurement for an operation to be completed at a 100 rating. Standard Allocated (Allotted) Minute (S.A.M.) is an S.M.V. + any policy allowances added. OPERATORS PERFORMANCE Primarily a measure of the effectiveness of the individual operator

= SMs earned on standard x 100 Time spent on standard

Sometimes referred to as Pay performance as it is usually measured within an incentive scheme.

OPERATORS ULTISATIONS A measure of how well the supervisor manages to keep the operators on-standard = time on-standard x 100 time attended

EFFECIENCY A measure of how well the section/factory is run. = SMs earned x 100

time attended. A measure of both the operator and the supervisor ABSENTEEISM /ATTENCE = total operator time attended x 100 total contracted time = attendance. Absence =reverse

MEASURES-FACTORS/SECTION/OPERATORS Standard hours (minutes) produced. Operator performance Operator utilisation Section efficiency Off-standard time Absence (attendance)

EXAMPLES Section = 20 operators working 9 hour/540 minute day 2 operators are absent all day

Attendance = 18 x 540 x 100 20 x 540

= 9720 = 90% or 10% absence 10800 EXAMPLES MEASURE An operator attends for 540 minutes Produces 1500 pieces @ SMV of 0.30 Waits 60 minutes for work Waits 20 minutes machine breakdown SOLUTIONS Sms produced = 1500 x 0.30 = 450. Time on-standard = 540 (60+20) = 460 minutes Performance = 450 x 100 460 = 97.8 or 98%

 Operator utilisation = 460 x 100 = 85.2% 540(NOT ACCEPTABLE )

Efficiency = 450 x 100 540

= 83% (BORDER LINE )

CAPACITY PLANNING Factory Department Section Machine Skill Restricting or defining factor

 What is the starting point? How many garments can a section produce? How many operators/machines do we need to produce a given number of garments? Same calculation just reversed INFORMATION Labour content (SMVs/SAMs/Std. hrs) Available operators Contracted hours Absenteeism levels Efficiency levels

CAPACITY PLANNING PEOPLE How many garments can a given number of people produce? Number of operators SMV (Labour content) Absenteeism Efficiency/ inefficiency

EXAMPLES 500 direct operators working 48 hours/week S.M.V. = 25 per garment Absence level of 8% Average efficiency of 85% Contracted time 1. Calculate standard hour/minutes that can be produced by operators. 2. Calculate how many garments that represents SOLUTION 500 operators x 48 hours = 24000 contracted hours 24000 8% (1920 hours) absence = 22080 attended hours (absence costs 40 operators) At efficiency of 85% std. hours produced = 22080 x 85% = 18768 std hrs. 5232 hours lost to absence & inefficiency.= 21.8% of original contracted hours .

18768 std hrs produced

S.M.V. = 25 mins. or 0.417 std. hrs.

Garment capacity = 18768 0.417

= 45007 garments

Under the same conditions how many people are need to produced 70000 garments per week.? 70000 x 0.417 = 29190 standard hours required. Each operator will produce 39 hours @ 85% efficiency = 39 x 85% = 33.15 std. hrs/week

29190 standard hours required. Each operator will produce 33.15 std. hrs/week

Number of operators = 29190 33.15

= 880.54 people. + Absence of 8% = 880.54 +8%.= 951

 Capacity planning is only as accurate as the information it is based upon! CAPACITY PLANING Limiting factors

People X

Machines? Department?

CAPACITY PLANING MACHINES Auto pocket set machine S.M.V. 0.60 Efficiency = 95% 15 machines available 8.50 hour day How many garments can they supply to sections?

SOLN.

 15 machines x 8.50 hours = 127.50 hours/day. @95% efficiency std. hrs produced = 121.13 hrs SMV = 0.60 = 100 per hour at standard Output = 100 x 121.13 = 12113 garments Absence ignored as decision taken to ensure absence cover (15 machines + 8* absence = 17 operators. 1 spare shared with pressing

Q .Capacity must be increased to 25000 per day.

Each machine does 100 x 95% = 95 per hour. 25000/95 = 263.15 hours. In 8.5 hour day = 31 machines

However machines cost $75000 each and have a six month delivery lead time. Try again!!! A : Each machine will produce 95 per hour worked. 25000/95 = 263.15 hours 263.15 hours / 15 machines = 17.54 per machine per day 2 shifts