Problem 1

A manufacturing company which is designed to produce 7000 machine parts per day could prod
6000 due to the breakdown of an important equipment.
(a) What is the utilization?
(b) In the same company if the effective capacity is 6500 and only 4500 parts could be produced
due to material delay and employee absence, what is the efficiency?

Actual output 6000

Actual output
Design capacity 7000 Utilization=
Utilization, % 85.7142857 Design capacity

Actual output 4500 Actual output

Effective capacity 6500 Efficiency=
Effective capacity
Efficiency, % 69.2307692
arts per day could produce

parts could be produced

output
capacity
Problem 2

A work center containing 4 machines of equal capability

operates two shifts per day of 8 hours each and 5 days per
week. If the work center has an efficiency of 95% what is the
expected output in hours per week?

No. of machines 4
Shifts per day 2 expected output=no. of mcn*shift
Hours per day 8
Days per week 5
Efficiency 0.95
Expected output 304
output=no. of mcn*shifts per day*hours per day*days per week*efficiency
Problem 3

Under ideal conditions, a service station at Fast Drive can serve 6 cars per hour. T
and the efficiency of a Fast Drive service station are known to be 5.5 and 0.88 resp
minimum number of service stations Fast Drive needs to set up so as to meet an a
demand of 200 cars per 8-hour day?

Cars serviced per hour 6

Working hours per day 8
Effective capacity per hour 5.5
Efficiency 0.88
Ideal capacity per 8-hour day 48 working hours per day * car serv
Actual ouput per hour 4.84 actual output per hour = effectiv
Actual output per 8-hour day 38.72 actual output per 8 hour day = 8*
Expected demand per 8 hours 200
Therefore no. of service stations required 5.165289 therfore no. of service station re
No. of service stations roundedup
 serve 6 cars per hour. The effective capacity
n to be 5.5 and 0.88 respectively. What is the
set up so as to meet an anticipated service

working hours per day * car servised per hour

actual output per hour = effective capacity per hour * efficiency
actual output per 8 hour day = 8* actual utput per hour

therfore no. of service station required = expct demand per 8 hour/ actual output per 8 hour day
Problem 4

A lab manager is trying to decide which machine to buy, Type X or Type Y. Both can be op
hours a day, 250 days a year. Either machine can be used to perform two types of chemical
and C2. Type X machine costs $15000 and Type Y costs $11000 each, The following data
Which machine should be selected?

Machine X Machine Y
Annual Processing time for Processing time for
Analysis type
demand X Y
C1 1200 1 2
C2 900 3 2

Hours per day 8

Days per year 250
Available capacity 2000
Machine X Machine Y
Capacity required
Machines required
Machines required
rounded up
Cost per machine
Total cost of
machines
Select Machine X
Type Y. Both can be operated 8
two types of chemical analysis C1
h, The following data is available.
 Look Well is a beauty parlor where four persons can be attended to at a time. During the wed
season, the parlor operates from 9 AM to 6 PM on all the week days, with a lunch break of on
hour. Simple makeup takes 20 minutes and special makeup requires 40 minutes. During two
consecutive weeks the number of simple and special makeup done were 200 and 160 in wee
one, and 210 and 140 respectively in week 2. In which week the facility made better utilizatio

Person served at a time 4

Operating hours 8
Service capacity available, hours 32 Service capacity available, hours = op
Service capacity available, min 1920 32*60
Time for each simple makeup, min 20
Time for each special makeup, min 40
Service capacity for week 13440 7* service capacity available, min
WEEK 1 WEEK 2
Number of simple makeup done 200 210
Number of special makeup done 160 140
Total time consumed, min 10400 9800 total time consumed = 200*20+16
Utilization 0.77381 0.72917 Utilization = total time consumed,
 time. During the wedding
th a lunch break of one
minutes. During two
e 200 and 160 in week
made better utilization?

available, hours = operating hours * person served at a time

vailable, min

consumed = 200*20+160*40 and 210*20+140*20

n = total time consumed, min / service capacity for week