Strategic capacity planning

Ballpoint pens are in high demand in Bangladesh. The ballpoint pen sector, which accounts for a

large portion of Bangladesh's stationary market, is worth BDT 70 crores. The typical cost of

sanitary products on the market is around BDT 10. As a result, starting a fully-funded huge

corporation in this field in a developing country like Bangladesh, where competition is fierce,

will be challenging. It would be preferable if we began on a small scale and then grew as demand

for this product grew.

Manufacturing Process System

Bangladesh has a thriving stationary industry. Bangladesh produces the vast bulk of stationery

items. The stationary industry in Bangladesh is today particularly competitive and price

sensitive. To structure and create our manufacturing system, we will borrow ideas from well-

known brands like as Matador, Econo, GQ, and others. For us, this will be beneficial and

profitable. The most crucial elements for us to examine are our efficiency rate and design

capacity. We will not be able to maintain a high efficiency rate due to higher economies of scale

since we are in the early phases. Large businesses should aim for an efficiency rate of 80-90

percent. Because we are a modest organization, we can place our current efficiency rate at 60-70

percent. We'll get closer to the efficiency rate of the most successful businesses over time.

1. Operating Time/Day: The real work time for the company would be 6 hours, with a 50-

minute break. As a result, we will be open for about 5 hours and 10 minutes per day, or

310 minutes per day.

2. Design Capacity: Our daily design capacity will increase to 270 per day, with a monthly

design capacity of 8100 per month.

 3. Effective Capacity: Our effective capacity would be 210 units to maintain our usual

efficiency rate of around 6300 units per month.

4. Actual Output: We produce 1000 units every day, resulting in a monthly output of 30000

units.

5. Efficiency rate: We're going to assume a 65 percent efficiency rate.

6. Utilization rate: The utilization rate is expected to be around 61.89 percent, according to

our estimates.

Assembly line balancing

The work involved in making a ballpoint pen patch is divided into fourteen fundamental operatio

ns, each with a time estimate.

Total task time = 1.4+ 0.6 + 0.3+0.6+ 0.9+ 0.45+ 0.65 + 1.8+1.25+0.29+ 2.1 + 1.2 +1.2+ 0.4

= 13.14 minutes

Minimum cycle time = longest cycle time = 2.1 minute (bottleneck)

Maximum cycle time = sum of total task time = 13.14 minutes

We're arranging things so that the total operational time every day is 310 minutes, or 5 hours and

10 minutes. As a result, with a cycle duration of 2.1 minutes,

Output rate = operating time per day / cycle time

= 310 minutes per day/ 2.1 minute per unit

= 148 units per day

Therefore, cycle time = operating time per day/ desired output rate
 = 310 minutes per day/ 1000 units per day

= 0.31 minute per unit

The bare minimum of workstations in theory, Nmin = sum of total task time/ cycle time

=13.14 minutes per unit/2.1 minute per

unit per station

= 6.26 approximately 7 workstations