Operations and Productivity pee ar kaaas anager, | ‘operations in service sector, Te Se snares fn Pay ele ea ‘social responsibil. @ Theoretical Questions, Explain. %m The transformation process in operations management is all about converting inputs into outputs. This can be done either through manufacturing or service processes. The goal of the transformation process js to add value to the information so that itis worth more than the sum of its parts. 2 [BU21 Fal. No. 1] Outline the six functions of operations manager. +s. Functions and Roles in Operations Management i. Planning and implementing manufacturing plants. fi, Managing projects. Planning information systems. iv, Helping to design and develop products and services. v. Managing inventory through the supply chain. vvi’ Managing delivery to customers in a timely manner. vii, Optimizing quality control. 3 Differentiate between production and productivity. [Pro employed in the system Tris expressed in WKS unit [is @ dimension, ess of CGS unitorin numbers _| number Scanned with CamScannernN 4 a ‘Avaric Saraswats Complete PU Soliton of Operations Management| (EI recs surest Conga PU sata ol pars agent 2020 Spring Q. No.1] The disruption on manufacturing caused by COVID-19 has severe operational, social and financlal consequences. It forcing manufacturers to rethink risk management ‘and contingency plans, workforce safety protocols, manufacturing operations and new ways of working opportunites, In this given context, how have the role of operation manager have been changed? Explain with considering the current ongoing issues and trend of operation system in Nepal. Operation manager have formed rapid response teams to gain a better understanding of their production’ demand changes, labor. support challenges and supply chain ecosystem constraints. Manufacturing leaders can concentrate on solving the isnmediate challenges required to keep the business as stable as possible, [2019 Spring Q No. 1] Whats operations management? zs According to Jay Heizer and Barry Render, "Operations management is the set 6. B [Description | 77 Production: = | of activities that creates:value in the form of goods and services by transforming inputs into outputs.” : 2 Operations management (OM) is the administration of business practices 0 create the highest level of efficiency possible within an organization. It is coficerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. oo eiciently 3 OS [2019 Spring @. No.6] Write two differences between production and productivity? a. Production is the process of converting raw material into final product whereas productivity is a measure of efficiency of production b. Production gives exact number of units of product produced, whereas productivity gives ratio of output to input. ‘This can be clear from the following table: _« THis the conversion of Input to|Itis desired output inputs employed inthe system This expressed in WKS unit or] Iisa dimension Tess number CGS unit or in numbers ~ = 1 a Utlity | The production is done to fulfil the|It is the management technique 10} ‘consumer requirement ._ | measure and improve the efficiency and effectiveness of production system 2019 Fall. No.2] Differentiate between production and productivity. Se 2019 Spring Q.No. 6: © - Scanned with CamScannerProduction and consumption at same place and time. Tow customer interaction. ‘, [2078 Spring Q No.4] Write any four trends of operation in Nepal ‘=. These are the four trends of operation in Nepal a. Quality focus . Use of technology and innovation ¢. Lean operation 4. Proper vendor selection “Jo. [2OIB Fall Q. No. 1] What are the objectives of operation management? vs. These are the objectives of operation management: a. Proper product and service design b. Quiality control c. Capacity and inventory management d, Best customer service 11. ring Q. No. 1] What are the ethical challenges faced by operations managers? : +». These are the ethical challenges faced by operations managers: a. Sustainability : b. Providing safe working environment 5 ¢. Producing qualitative and safe products 4. Addressing the interest of all the stakeholders e. Proper use of resources 12, [2017 Fall Q. No. 1] What do you mean by value added in operation function? w= A key objective for an Operations Management is the ability to increase the value-added during. the transformation process: Value-added is the difference between the cost of inputs and: the value or price-of outputs. This is ‘an indicator of the effectiveness of the operation. For this the cost of input should always be lower than value or price of output. 13, [2016 Fall Q. No. 4] Explain the concept of operations management. 2 See 2019 Spring Q. No.1 Scanned with CamScanner‘vents Saraswats A Conplte PU SOI cl Oparabons Manapement TN 1 [au2t Spring @. No. 12] Define operations management. Explain the major changing ‘operations environment you have observed, in the context of global pandemic situation due to COVID-19. z= Operation management involves the systematic direction and control of the process that transform resources (input) into finished goods or services for customers or clients (output). Major operational changing ar a: "Quality Focus: since most of the consumers are-being more aware about the products, most of the organization is focusing on producing qualitative products. Customer service used to be very Poor but slowly organizations are making their customer service better. Due to covid- 19 people are more conscious about their health and they always try fo get quality product. b. Use of Technology and Environment: 21st century saw a huge use of technology and innovation. Nepal is also using modern technology and innovation in production: process: This. has helped many organizations improve their “productivity and performance. The COVID-19 pandemic has forced millions of people to work from home, : making workers and corporations alike more dependent on the digital technology that has long enabled them to handle both personal and professional tasks from their smartphones, laptops, and personal computers. we Time Reduction: With the use of technology, the production tinie has been significantly reduced. Even distribution of final goods is more ; effective and efficient. 4. Lean Operations: Lean manufacturing is built on the premise that reducing waste, eliminating redundancies, and operating with precision are key to succeeding in the marketplace. In this model, extra 4 inventory equals wasted resources. It assumes a supply chain that is always ony: always available, and always responsive. But as we're seeing, that assumption doesn’t always work. This new reality is a challenge to lean manufacturing. 2 [2021 Fall Q No. 11] Define operation management. Explain the ongoing operational environment in Nepal. aa The process of converting raw material to final products is known as operation system. : (i) —> Reson) —> (ars) Figure: Operation system Scanned with CamScannergE ‘Operations and Producti) LUA Ea Major operational changing in Nepal ‘a. Quality focus: since most of the consumers are being more aware about the products, most of the organization is focusing on producing qualitative products. Customer service used to be very poor but slowly organizations are making their customer service better. b. Use of technology and environment: 21+ century saw a huge use of technology and innovation. Nepal is also using modern technology and innovation in. production process, This has helped many organizations improve their productivity and performance. Time reduction: With the use of technology, the production time in Nepal has been significantly reduced, Even distribution of final goods is more effective and efficient. 1. Lean Operation: Organizations are more focused on customer with minimum use of resource. They are producing high volume of qualitative products and working on customer satisfaction. Just In Time (JIT): Organization are using JIT techniques to reduce ~ inventories and producing goods when there is a demand. So Nepalese organization are reducing wastes and cost of an organization." f. Being ethical: Nepalese. organizations are showing their interest. in lowering the environmental pollution and at the same time providing better environment for workers. 3. [2020 Fall Q. No. 11] Define operation; management. Explain the major changing operational environment in Nepal. = See 2021 sone No. 11 [2019 Spring Q. No. 14] What do you mean by Operations Management? Explain | eer ir operate management in detail, ‘= Operations management (OM) is the administration of business praiioes to create the highest level of efficiency possible.within an organization. It is concerned with converting materials and labor into goods and'services as efficiently as possible to maximize the profit of an organization. ‘Trends in operations management + Global Market trend + Operation strategy. + Total quality management +~ Flexibility + Time Reduiction + Technology. + Worker involvement + ‘Environmental issués + Supply chain management +—Lean production... - 1. Global Market Trend: Globalization of ‘business has ‘compelled different manufacturing company to have operation in many countries. This has resulted, increase in level of competition among the times. Scanned with CamScannerRavan Saraswats A Complele PU Solio of Operations Management ey Operation’ Strategy: Companies need long term: global strategies 1, survive in market place. More and more firms are recognizing the importance of operation strategy for overall success of their business, 3. Total Quality Management (TQM): TQM is a set of guiding principles thay represent the foundation of a continuously improving organization, ‘TOM approach has been adopted by many firm to achieve custom, satisfaction ,by continuous improving thé’ quality of goods ang services. a ‘4. Flexibility: The most successful production system will be those that are more flexible. Flexibility will be measured by the ability to adjust to change in product design, product mix, change in volume of demand, -change in technology etc. 5. Time Reduction: Reduction of manufacturing cycle and quick meet of market demand of product help to achieve the competitive advantage, When the companies can provide products at the same price, quality, quicker delivery. provide one firm competitive advantage over the other. & Technology: Advances in technology at rapid’ rate, like computers, robots, will increase the practice of automation, computerization. ‘Technological change in products and process can have great impact on competitiveness and quality. Worker Involvement: One of the'important elements of TQM is worker involvement: The recent trend is to’assign responsibility for decision \ making and problem solving to the lower level in the organization. 8 Environmental Issues: Today's operation managers are concerned more and. more with pollution control and waste disposal which are key issues in protection of environment and social responsibility. ‘Supply Chain Management: Proper supply chain will reduce overall cost (transportation, warehousing, distribution channel) of an organization. Good and healthy’ relation’ with different suppliers can contribute unique expertise. 10. Lean Production: If operation management focus on lean production, high volume of qualitative products can be produced in right time for tight customers f 411, Ethical Production: many countries are focusing on production with minimal amount of environmental pollution and also providing safe environment for the workers. 5, [BOAT Fa. No. 12] O16 Fall @. Ho. 11] Whats operation management? Expat ‘major operational changing environment in Nepal? ws See 2021 Fall Q. No. 11 ™ ° Scanned with CamScannerOperations and Productivity [EONS 1. Differentiate between Production peration. v= The major difference between production and service operations are enlisted as follows: Production. operation produces| Service operation provides output output that is tangible in, nature. in| that s intangible in nature. Service other words, it produoes physical] output are difcult to identify can ‘products that can be held and seen. | only be experianoed. Consumer contact iS very low in| Consumer contact is a. key] production: operation. Consumers component of service operation. often are needed once the output| Their participation is frequent. is produced. Majority ~ of manufacturing Service operations are primarily | operation are capital. intensive. | labour intensive, Human resource Machineries and equipments form] and. their relationship with crucial aspects of the| consumer play a_rtical role in manufacturing work, service operations. In general, production operation| Service operations have more have a ‘standardized way of| opportunities to customize the producing goods. Goods. are| service they. provide. This is the normally produced: on’ factoy.| prime: reason, the uniformity of Hence, the uniformity of output is output through service operation is high. low. Ih production operation, the measurement of performance is easy. ‘Manufacturing: operation involve extensive use of inventory Production operations are easy to| Service operations are hard to patent. patent “and ‘hence are imitated easily. ‘2. Elaborate the roles of the operations manager. x. Operations function is about producing the right amount of a good or service, at the right time, of the right quality and at the right cost to meet customer requirements. Operations managers are responsible for ‘managing activities that are part of the production of goods and services. Role of the operations manager. can be divided in the following three categories: * the, Improving the. sae operations system Scanned with CamScannerWEED Atte satay A compet PU Sout f Operations Management| “The five main kinds of decision in each of above broad areas are related ‘a. processes by which goods and services are produced quality of goods or services ¢. quantity of goods or services (the capacity of operations) . stock of materials needed to produce goods or services fe. management of human resources. As the operations management being a subsystem of an organization an, organization it self-being the subsystem of industry and society, operations manager must work in coordination with these exter, environments to grasp the opportunity and minimize the threat. 3. Why s operations management $0 important? % All the activities of operations management can vary significantly), contribute to the success of any organization by using its resources effectively to produce goods and services in a way that satisfies it) customers. To-do this it must be creative, innovative and energetic in improving its processes, products and services. In fact, an effective operation can give four types of advantage to the business. a. It can reduce the costs of producing products and services and beingy efficient; b. It can increase revenue by increasing customer satisfaction through) ‘good quality and service; c. It-can reduce the amount. of investment (sometimes ‘called. capitaly éeniployed) that is necessary to produce the fequired type anid quantity, of products and services by increasing the effective capacity of the operation and by being innovative in how it uses its physical resources; - 4. It can provide the basis for future innovation by building a solid base » of operations skills and knowledge within the business. 4. Figure out the emerging role ofthe production and operations manager ‘The liberalization of the economy through privatization and globalization has resulted in significant changes in the business environment. Moving ‘with the changes in the business environment. is critical for any organization that wants to stay in the industry. The following are the + duties of the production and operations manager: 1. Participate in the company's strategic decision-making. 2. Pay more attention to technology management in the context of joint ventures between multinational corporations and domestic corporations. ER) Scanned with CamScanner= a Ena . Protect the environment by adhering to environmental and pollution standards established by the government on a regular basis. 4, Automate processes as needed by the company. 5, Reduce project implementation lag caused by increased competition. 6, Increase R&D efforts in the development of self-relevant new technologies. 3. Differentiate between manufacturing operations and service operations. za These are the differences between manufacturing operations and service operations. ; Te yields tangible output fom | Tt produces intangible output. conversion process. They produce goods for local, | They generally provide services for national or international evel. local people. ‘Once order is received, there sno | Service generation 1s impossible need of customers participation in | without ‘participating customers in conversion process: the process. Most of the goods are transferable. | Services may not be tansferable, ‘and usually consumed. Bicyce, Books, TV. Hair Cuting, Consuting, Teach 6. Elaborate any four trends in operations management. Many recent trends in operations management are concerned with global competition and its impact on manufacturing firms. The following are some recent trends: 4. Global Market Place: - Business globalization has- driven many manufacturing companies to establish operations in multiple locations» where they can benefit economically. |. 2 Operations Strategy: More companies are realizing the relevance of operations strategy to their entire business success, as well as the need to link it to their overall business plan. Total Quality Management (Tam): Many businesses have used this strategy to attain customer satisfaction’ through a never-ending effort to improve the quality of goods and services. * Time Reduction: Reduction of manufacturing cycle time and speed to market for a new product provides competitive edge to a firm over other firms. When companies can provide products at the same price ‘and quality, quicker delivery provide one firm competitive edge over the other. ~ 7) What are the Scope of operations management? Operations management with the conversion of inputs into outputs, using physical resources so as to provide the desired utilities to the customer . Scanned with CamScanner1» Product Strategies HELEN Atiaice Saraswats A Complete PU Soliton of Operations Distinguish between the product design and service design. Describe about different stages of product development processes, % Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Ongoing operational environment in Nepal ‘Quality Focus: since most of the consumers are being more aware about the products, most of the organization is focusing on producing qualitative products. Customer service uséd to be very poor but slowly organizations are making their customer service better. b. Use of Technology and Environment: 2ist century saw a huge use of technology and innovation. Nepal is also using modern technology and innovation in production’ process. This has helped many Organizations improve their productivity and performance. © Time Reduction: With the use of technology, the production time in Nepal has been significantly reduced. Even distribution of final goods is more effective and efficient. 4. Lean Operation: Organizations are more focused on customer. with minimum use_of ‘resource. They are producing high volume of qualitative préducts and working on customer satisfaction. dust in Time (JT: Organization are using JIT techniques to reduce inventories and producing goods when there is a demand. So Nepalese organization are reducing wastes and cost of an organization. f. Being Ethical: Nepalese organizations are showing their interest in lowering the environmental pollution and at tie same time providing better environment for workers. 2 What do you mean by product strategies? Briefly explain product process matrix. A product strategy describes a company's strategic vision for its product offerings, including where the products are going, how they'll get there, and why they'll succeed. The product strategy enables you to focus.on a specific target market and feature set, instead of trying to be everything to ‘everyone. - Product Process Matrix See 2017 Spring Q. No. 13 Scanned with CamScanner2020 Fall Q. No. 15] What do you mean by process design? Also explain briefly about service process matrix with suitable figure. & Process Design Every company that makes a product or provides a service has a process. This process will make use of the company's resources to convert the primary inputs into some sort of output. Several essential criteria as like product variety, volume of output, level of Skilled manpower, expected duration etc, must be addressed while creating the actual process, particularly the number and sequencing of steps. - Process design is-concern with thé sequence of activities or operations required to achieve the product specifications. It is known fact that process - Scanned with CamScanner[BEEBE orc Sst A Cone PU Scion of Operations Management based design changes in a production system are Jong lasting than the, product based design changes. Service Process Matrix jinn lain The Service Process Matrix is a matrix that categorizes service industry businesses based on the features of their service processes. The degree tg which a client can intervene in the service process is referred to ayy customer interaction. . [2019 Spring Q. No. 11] [201 No. 11] Propare a flowchart and servic, blueprint forthe following. (5499) a) A hospital b) The registration process at a hotel. a. A Hospital Scanned with CamScanner"Product and Process Design TITUS MET J . The registration process at a hotel: Look for other Hospital 2019 No. 17 | [2017 Spring Q. No. 13] What do you mean by process strategies? Briefly explain product process matrix. A process strategy is an organization's approach to transforming resources itito goods and services. The objective is to create a. process that can produce offerings that meet customer requirements within cost and other managerial constraints. Four Process Strategies: 1. Process focus 2. Repetitive focus 3, Product focus 4. Mass customization Scanned with CamScannerEE ‘Advance Saraswats A Complete PU Solution of Operations Menagerment Volume Product Process matrix: Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product.) The format by which a facility is arranged are defined by the general pattern of work flow. Product process matrix consist of five basic structures ss c ‘a. Project: the product remained in the fixed location b. Work-center: similar equipment or functions are grouped together such as all drilling machines in one area Manufacturing cell: is a dedicated area where products that are similar in processing requirements are produced z d. Assembly line: work processes are arranged according to the progressive, steps (parts) fe. Continuous process: simi discrete Diagrammatic representation of ‘product process matrix is given below: ilar as assembly line but process is continuous not ‘Standardization High ‘Standardized Commodity Pr = oduct §___roduct Volume §—§ Scanned with CamScannerProduct and Process Design 2018 Fall 16] Write down distinguish between the product design and service design. Describe about different stages of product development prv esses. za These are the distinguish between the product design and service design It ‘refers to transforming new, | It service design. It begins with the innovative and effective ideas into a | choice of a service strategy, which product through process. determines the nature and focus of : service and target. Ts objecve isto satsty customer to | lis objectives are fo meet customer the maximum at minimum cost. needs in most relevant way. The issues of product design are | The key issues of service design are Robust, Modular design, CAD, CAM. | degree of customer contact, and degree of variation in service. {tis tangible in nature Itis net tangible. To make sure the product objective | There are variable requirement, this can be achieved within cost margin | create a need for robust design that the market will bear. with accommodate a range of input and output. Product Evaluation and improvement Brief Explanation + Need Identifiation: Once product idea is emerged, it must be analyzed * that the product fulfill consumer need or not. + Advance Product Planning (Feasibity Study): Product planning need the preliminary study of market. Creating alternative concept for product establishing design criteria, estimating logistic. Scanned with CamScanner_ © Advance Design: Basic and applied researchers investigate ‘ec feasibility and identify in greater detail the trade off in produg, design. «Detailed Engineering Design: This process typically involves analysis experimentation and data collection to find design that meet severa design objectives so, the product can be produced at intended cost and volumes. + Product Process Design and Development: Working with the defiled product design, engineers and manufacturing specialist prepare plans for material acquisition, production, _ warehousing a transportation and distribution. + Product Evaluation and Improvement: Most product are continually reevaluated for improvement ‘possibilities throughout their lives, Field performance and failure data, technical breakthrough in material and equipment and formal research all are used to monitor, analyze and redesign product. - + Product Use and Support: It considers the support system that might educate user on specific application’ for the product, provides ) warranty and repair services. s '. [2017 Fall Q. No, 10] What do you mean by value streaming mapping? 23. Value stream mapping is a lean manufacturing tool that seeks to map the process from suppliers to customer and highlighting the flows of products ~ and information and identifying delays and non-value adding process. It is not just about creating one map but is about discovering where we actually are today with a current value stream map and using the team to create an ideal state value streaming map as a target to aim for whilst creating a series of future state maps to work towards on the journey: Value stream mapping is a lean manufacturing tool that seeks to map the process from supplier tool that seeks to map the process from suppler t customer, highlighting the flow of product and information and identifying delays and non value adding process. It is a top level view of the company rather than a detailed look at an individual process within if, but this map is a real eye opener for top management. Scanned with CamScannerPrati ad Pros ee: agonal eee ‘of value streaming mapping 211.00 : | says 3 8 4 4 seconds | —~] 40 seconds f—] 15 seconds 20 soconds 20 seconds . -Nonwalue aed time = 28 days ‘Value-addéd te = 140 seconds ! 9, [2017 Spring . No. 176] Write note on any two ofthe following 4. Service Blueprinting Service blueprint is a picture or map that accurately portrays the service system so that different people involved in providing it can understand and deal with it objectively regardless of their individual point of view. It is particularly useful at design and redesign stage of service development. Basically it provides a way to break the service into logical components and to depict the steps or tasks in the processes, the means by which they are execated ard evidence of the service as consumer experiences it, Service blueprinting is a tool for simultaneously depicting the service © < process, the-points of customer contact, and the evidence of service - from the customeér’s point of view. Scanned with CamScanner[HEI Avance Saraswats A Complete PU Soltn of Operations Management Points of Basically the Components of Service Blueprint are as Follows_______—_—— Customer Actions: It includes steps, choices, activities and interactions) that customer performs in the process of purchasing, consuming and evaluating the service. © Onstage Contact Employee Actions: Steps activities that the contact employees performs that are visible to the customer. Backstage Contact Employee Actions: steps an activities that occur behind the scene to support onstage activities. Support Process: It covers the internal services, steps and interactions that take place to support the contact employees in delivering the j service. Basically these are the steps for preparing service blueprint: identity the cenit tho process to be) customer or ‘blue printed. ‘customer segment Service blueprints are a tool for holistic analysis & visualization from 8 customer perspective, yet integrating the entire provider's structure & to the customer's delight. 10, [2046 Fall Q. No. 16] What factors you will be considered before choosing the best capacity decis 1s Following are the key factors to be considered before selecting the best capacity decision. Scanned with CamScannerProduct an Prose Dein a Facites: The design of faculties, including size and provision for expansion is key vocational factor such 5 transportation costs, distance, to market labour supply, energy Source are important, b. Product and Service Factor: Product or service design can have a tremendous influence on capacity. For eg restaurants that offer a limited menu can usually prepare and serve meats at faster rate than restaurant with expensive meats. Process Factor: Productivity also affects capacity... Process improvements that increase quality and productivity can result in increased capacity. 4. Human Factor: The tasks that make up a job the variety of activities involved and the training, skill, and experience required to perform a job all have impact on potential and actual output. e Policy Factor: Management policy can affect capacity by allowing or not allowing capacity option as overtime or second or third shift. {Operational Factor’ Scheduling problem may occur when an organization has’ differences in equipment capability among alternatives pieces of equipment or differences in job requirement. ‘Supply Chain Factor: It must be taken into account in capacity planning it substantial capacity changes are involved key question is that what impact will change have on suppliers, transportation, distribution if capacity is increased or decreased. fh. Extemal Factors: Product standard, especially minimum quality and performance standard can restrict managements option for increasing and using capacity. : Or Consideration for Best capacity Decision ‘There are four special consideration for best capacity decision: a. Forecast Demand Accurately: An accurate forecaster is vital for the capacity decision. Long-term capacity needs required forecasting over a time horizon and then converting those forecast into capacity requirement short term capacity needs are less concerned with cycle or tend that with seasonal variation and other.variation from average. b. Irregular Variation and Perhaps the Most Troublesome: It is: difficult or impossible to predict. They are created by such diverse force as major equipments, breakdowns that disrupt the formal routines. The link between marketing and operation is crucial to realistic determination of capacity requirements. Scanned with CamScannerWHEE ‘Mévarce Sarasnatts A Conpiets PU sotton of Operations Menagement Understand the Technology and Capacity: The technology may dictate they capacity increment. The operation manager is held responsible for the technology and corrects the capacity increment. Automation and computer operated machinery have revolution the manufacturing and service industries. However those machines and equipment are very expensive. So the consequences of making a mistake can be very costly for the firm. | Find the Optimum Operating Size (Volume}: Production units typically have an ideal or optimal level of operation in terms of unit cost or output. At the idea level, cost per unit is lowest for that production unit. The following figure illustrate these concepts. Y Min. Avg. Cost Average per unit oO Rate of Output puild for Change: In this changing world, Operation manager build) flexibility into the facility and equipment. They evaluate sensitivity of| the decision by testing several revenue projections on the both upside and downside for potential risk. : @ Numerical Questions, =. _ Actual Output 4. Efcdency = Ffectve Capacly n «ation = -Aclvity output 2. Utlzation = 75a Capacity [2019 Fall Q. No. 6][2017 FallQ. No.9] The design capacity for engine repair in ott company is 80 enginesiday. The effective capacity is 40 engines/day and the actual ‘output is 36 enginesiday. Calculate the utilization and efficiency of the operation. the efficiency for next month is expected to be 82%, What is the expected outputs? = Scanned with CamScanneraR © Prat nt Pres en OEE aon We know a _ Actual output Efficiency = Effective capacity 36 = 79709 = 90% And og _— Actual output P % Utilization = peeed capacity = # = 0.45 = 45% Ifefficiency is bi then i _ Actual output Efficiency = fective capacity Actual output 0.82 SS dO So, actual output = 0.82% 40 32.8 engines per day 2018 Fall Q Material delays have routinely limited production of household sinks fo 400 units per day. If the plant ‘efficiency is 80%, what is the effective capacity? We know oe 2 Ss Actual out Efficiency = Effective capacity - Actual output Effective capacity = ae __ 400 units per day 08 = 500 units per day Qq0 Scanned with CamScanner