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Team 6 - Project Submission 2 - PA
Team 6 - Project Submission 2 - PA
Capacity Calculation
Capacity
Capacity
Process Labour Total
(Pairs/hour) utilisation
time
1. Cement and latex 2 0.138 435 66.9%
manufacturing
2. Sole pull manufacturing 3 0.227 264 40.61%
Total 1.7859
Process Analysis – Bata India Ltd.
1. Run time: Runtime refers to the time it takes to process an item at a process step.
2. Setup time: The amount of time it takes to setup or prepare before processing an
item or batch of items at a process step.
3. Bottleneck: The resource that limits the production or service delivery of a process.
From the above table we can see that capacity utilisation for stitching was very
low which was 28.62%. This step of stitching was the bottleneck for Bata India’s
shoe manufacturing process.
The capacity for the production was 650 pairs of shoes per day. But according to
the table in hour they were producing less amount of inventory.
According to the process, stitching and assembly were the main process of
manufacturing because all other semi-processed parts were assembled in the
stitching and assembly after which the production was completed.
Therefore, it was important for the company to produce all the parts in time so
that the stitching and assembly can work without any hassle.
4. Capacity: Capacity generally refers to the maximum number of items that can be
processed by a resource in a particular given time period.
Formula:
Capacity = Total available time / Time required to process a unit or batch
Total available time per day for production = 16 hours *60 minutes
=960 minutes per day
Number of units production in one batch= 50 pairs of shoes
Average Set up time for production of 1 pair of shoes = 0.4263 minutes/ pair of shoes
Average Set up time for production of 1 batch =0.4263*50 =21.13 minutes/batch
Average Run time for production of 1 pair of shoes = 1.3623 minutes/ pair of shoes
Average Run time for production of 1 batch = 68.115 minutes/batch
Total time for production (Setup time + Run time) = (21.13+68.115) = 89.245 minutes/batch
So that, number of pairs of shoes has been produced per day is,
=10.75 batches/day*50 pairs/batch=537 pairs/day
Bata India produced 10.75 batches per day in its one unit. One batch of Bata had 50 pairs of
shoes in it. So in total they used to produce 537.5 pairs of shoes per day which means 537 * 2
= 1074 number of shoes every single day.
5. Capacity utilisation: It generally refers to the ratio of the amount of the resource
used to the amount available in that particular time period.
As far as capacity utilisation was concerned, then the total number of pairs which Bata could
have produced was 650 but it was producing 537 pairs of shoes which gives us 82.61% of
capacity utilization, which is still not very bad for the company. But they can certainly
improve this in its near future.
6. Cycle time: It refers to the average amount of time that elapses between the
completion of successive items at a stage assuming that the process is operating at
capacity
Capacity for production of pairs of shoes are 537.5 pairs per day
Time available per day for production is =960 Minutes
From cycle time we can figure out that it takes 1.79 minutes for Bata India to produce 1 pair
of shoes per day. As the total time available for Bata India in a day was 960 minutes, it was
able to produce 537 pairs in a particular day.
7. Takt time: Takt time refers to the target time per unit as derived from customer
demand.
Calculating Takt time
Average demand of shoes pairs per day = 500 pairs
Number of working hours in day = 16 hours
Average working time daily= 16 hours= 960 minutes
Takt time= Amount of time available/units demanded per unit time
=960/500
=1.92 minutes/pair
Probable Solutions:
4. Quality control:
Quality control department should have tried to decrease the wastage of raw material and
should have reduced the defective products by increasing batch size and by hiring skilled
labourers which would have helped them to decrease the cost of production.