Capacity Planning

What are we going to do?

Schedule
‡ 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
‡ 500 operators working 48 hour week. ‡ Work content of 30 minutes per garment ‡ Therefore capacity of 500 x 48x 60 30 = 48000 garments per week!!!! Ok? Any problems?

Reasons for lost output
‡ 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!!

. ‡ ³Off-standard´ : that time the operator spends on ³un-measured´ work or ³measured´ work that is classified as ³offstandard´.Definitions ‡ ³On ±standard´ : that time the operator spends on ³measured´ work earning Standard Minutes.

An operator may be learning a new operation may be taken as off standard for payment purposes but will still be contributing SMs as the operation they complete will have SMV applied. ‡ Example of ³measured work´ that may be classified as ³off-standard´.Definitions. SAM) has been applied.³Measured work´ ‡ That work to which a standard measure (SMV. .

.Off standard time ‡ Should be reported on ³Labour 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.

.M. + any policy allowances added.V.) is the time allocated through work measurement for an operation to be completed at a 100 rating. ‡ Standard Allocated (Allotted) Minute (S.A.SMV/SAM? ‡ Standard Minute Value (S.) is an S.M.V.M.

Definitions: Operator Performance ‡ Primarily a measure of the effectiveness of the individual operator ‡ = SMs earned ³on standard´ x 100 Time spent ³on standard´ Sometimes referred to as ³Pay´ performance as it is usually measured within an incentive scheme. .

Definitions.operator utilisation ‡ A measure of how well the supervisor manages to keep the operators ³on-standard´ = time ³on-standard x 100 time attended .

‡ A measure of both the operator and the supervisor .Efficiency ‡ A measure of how well the section/factory is run. = SMs earned x 100 time attended.Definitions.

.Efficiency ‡ Incorporates elements of operator performance & utilisation into the single measure.Definitions.

‡ Absence =reverse = total .DefinitionsAbsence/attendance operator time attended x 100 total contracted time = attendance.

Operator performance Operator utilisation Section efficiency Off-standard time Absence (attendance) .Measures ± factor/section/operator ‡ ‡ ‡ ‡ ‡ ‡ Standard hours (minutes) produced.

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 .Measures .

examples ‡ ‡ ‡ ‡ An operator attends for 540 minutes Produces 1500 pieces @ SMV of 0.Measures.30 Waits 60 minutes for work Waits 20 minutes machine breakdown .

‡ Time ³on-standard´ = 540 ± (60+20) = 460 minutes ‡ Performance = 450 x 100 460 = 97.8 or 98% .Measures.30 = 450.examples ‡ Sms produced = 1500 x 0.

examples ‡ Operator utilisation = 460 x 100 = 85.2% 540 ‡ NOT ACCEPTABLE! .Measures.

Measures.examples ‡ Efficiency = 450 x 100 540 = 83% ‡ Borderline! .

Att mins Alison 540 540 Betty 540 480 charlie 540 0 Dorothy 540 540 Ethel Freda Gail Heather Irma June totals 540 540 540 540 540 540 540 540 540 540 540 540 op production SMV OffStd Perf Uti 1.37 30 0. 2 3 4 3 5 6 7 3 8 8 9 1000 1120 0 950 350 1070 1250 1200 880 600 600 1275 0.85 45 0.30 0.26 0.26 75 0.Exercise.26 0.definitions ‡ Section 1 Operator cont.85 30 0.21 0.40 30 0.38 30 Eff .45 15 0.23 0.

38 30 95 94 89. 1000 0.40 30 98 94 92.21 89 100 89 3 880 0.26 75 Ethel 540 540 5 1070 0.6 94.45 15 91.7 97 89.Exercise.2 Freda 540 540 6 1250 0.5 Betty 540 480 2 1120 0.26 Dorothy 540 540 4 950 0.3 3 350 0.23 66.85 30 100 94 94.definitions ‡ Section 1 Operator cont.7 83 .22 255 87.37 30 72.30 70 100 70 charlie 540 0 3 0 0. Att op production SMV OffStd Perf Uti Eff mins Alison 540 540 1.5 86 57.4 Irma 540 540 8 600 0.5 Gail 540 540 7 1200 0.4 June 540 540 9 1275 0.7 Totals 5400 4800 3.85 45 103 92 94.5 94 68.26 Heather 540 540 8 600 0.

definitions ‡ Attendance = 4800/5400 = 89% ‡ total sms earned = 3982.Exercise.30 .

Capacity planning ‡ ‡ ‡ ‡ ‡ ‡ Factory Department Section Machine Skill Restricting or defining factor .

Capacity planning ‡ 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 ‡ Information ‡ Information ‡ Information ‡ Obvious but where does it come from? ‡ How accurate is it? .

Work content. SAMs. SMVs ‡ Are they accurate? (can self correct in capacity planning) ‡ What operations do they cover? ‡ What operations are unmeasured or performed by indirect operators. Be clear! .

people ‡ How many garments can a given number of people produce? ‡ Number of operators ‡ SMV (Labour content) ‡ Absenteeism ‡ Efficiency/ inefficiency! .Capacity planning .

V.people ‡ ‡ ‡ ‡ ‡ 1.M. 2. Calculate how many garments that represents . 500 direct operators working 48 hours/week S.Capacity planning . = 25 per garment Absence level of 8% Average efficiency of 85% Contracted time Calculate standard hour/minutes that can be produced by operators.

people ‡ 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.8% of original contracted hours . ‡ 5232 hours lost to absence & inefficiency.= 21. hours produced = 22080 x 85% = 18768 std hrs.Capacity planning .

. or 0.417 std. ‡ Garment capacity = 18768 0.people ‡ 18768 std hrs produced ‡ S. = 25 mins.V. hrs.417 = 45007 garments.M.Capacity planning .

417 = 29190 standard hours required.15 std.Capacity planning ‡ Under the same conditions how many people are need to produced 70000 garments per week. hrs/week .? ‡ 70000 x 0. ‡ Each operator will produce 39 hours @ 85% efficiency = 39 x 85% = 33.

= 951 .54 +8%.Capacity planning ‡ 29190 standard hours required.15 = 880. ‡ + Absence of 8% = 880.15 std. ‡ Each operator will produce 33.54 people. hrs/week ‡ Number of operators = 29190 33.

Capacity planning ‡ Capacity planning is only as accurate as the information it is based upon! .

Capacity planning ‡ ‡ ‡ ‡ Limiting factors People X Machines? Department? .

M. 0.V.50 hour day How many garments can they supply to sections? .60 Efficiency = 95% 15 machines available 8.Capacity planning-machines ‡ ‡ ‡ ‡ ‡ ‡ Auto pocket set machine S.

13 = 12113 garments Absence ignored as decision taken to ensure absence cover (15 machines + 8* absence = 17 operators.50 hours = 127.13 hrs SMV = 0. hrs produced = 121.Capacity planning-machines ‡ ‡ ‡ ‡ ‡ 15 machines x 8.50 hours/day.60 = 100 per hour at standard Output = 100 x 121. @95% efficiency std. 1 spare shared with pressing .

In 8.Capacity planning-machines ‡ Capacity must be increased to 25000 per day. ‡ Try again!!! . 25000/95 = 263.5 hour day = 31 machines ‡ However machines cost $75000 each and have a six month delivery lead time. ‡ Each machine does 100 x 95% = 95 per hour.15 hours.

15 hours / 15 machines = 17.Capacity planning-machines ‡ Each machine will produce 95 per hour worked.54 per machine per day ‡ 2 shifts .15 hours ‡ 263. ‡ 25000/95 = 263.

Capacity planning ‡ ‡ ‡ ‡ Limiting factors People X Machines X Department? .

1584 per metre ‡ SMV for cutting = 0.050 per metre ‡ Average fabric content per gmt. ‡ Department runs at 90% efficiency and 8% absence .50 hours (39 week) ‡ 3 spreading machines on 4 tables ‡ 1 cutting machine.Capacity planning. = 90 cms. ‡ Standard working day= 8. ‡ SMV for spreading = 0.Department ‡ Cutting room using semi-auto spreading machines and computerised cutting head.

.Capacity planning.Exercise ‡ How many people are needed to supply the factory with 50000 garments per week? ‡ What is machine requirement for 50000 garments per week? ‡ What do you recommend if production cut to 24000 garments per week? ‡ All operators are able to use both spread and cut equipment.

Capacity planning-spreading ‡ 50000 garments x 0. ‡ Each metre Smv = 0.1584 x 45000 60 = 118.80 std./ 3machines = 44 hour week .1584 therefore 45000 x 0.1584 = 0.90 metres = 45000 metres to be cut each week.hrs required @ 90% efficiency = 132 operated hours.

05 therefore 45000 x 0.05 x 45000 60 = 37.cutting ‡ 50000 garments x 0. = 0.Capacity planning.5 std.70 operated hours . ‡ Each metre Smv.05 = 0.90 metres = 45000 metres to be cut each week.hrs required @ 90% efficiency = 41.

70 hours needed. ‡ ‡ ‡ ‡ .18 contracted hours needed = 4. ‡ 4 operators work 8.8 (5) people at 39 hour week.Capacity planning ±cutting room Spreading 132 hours needed over 3 machines Cutting 41. 1 operator works 2 hours early and through lunch break = 14 hour extra machine time per week. Total operating hours = 173. Helps on non-machine elements.9 Absence = 8% = 187.50 hours (when all attending).

Capacity planning-spreading ‡ 24000 garments x 0.40 operated hours.1584 therefore 21600 x 0.hrs required @ 90% efficiency = 68.1584 = 0./ 3machines = 22.80 hour week .60 std. ‡ Each metre Smv = 0.1584 x 21600 60 = 61.90 metres = 21600 metres to be cut each week.

0 std. ‡ Each metre Smv = 0.hrs required @ 90% efficiency = 20 operated hours .90 metres = 21600 metres to be cut each week.05 = 0.cutting ‡ 24000 garments x 0.05 therefore 21600 x 0.05 x 21600 60 = 18.Capacity planning.

3 (3) people at 39 hour week.4 hours needed over 3 machines ‡ Cutting 20 hours needed. ‡ Total operating hours = 84.2 contracted hours needed = 2. ‡ Can 1 operator be redeployed for part of the day? .Capacity planning ±cutting room ‡ Spreading 68.4 ‡ Absence = 8% = 91. ‡ 2 operators to be released.

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