capacity planning
TRANSCRIPT
Capacity Planning
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 = 500 x 48x 60 = 48000 garments/week 30
Ok? Any problems?
Reasons for lost output• Absenteeism
• Poor work methods (affects performance & efficiency)
• Low operator performance
• Poor operator utilisation
• Style change (not only a cause of lost output itself, but can cause all or some of the above!!)
Definitions• On – Standard : Time the operator spends
on “measured” work, earning standard minutes (SM).
• Off – Standard : Time the operator spends on “un-measured” work or “measured” work that is classified as “off-standard”.
Definitions- “Measured work”• That work to which a standard measure
(SMV, SAM) has been applied.
• Example of “measured work” that may be classified as “off-standard”. An operator may whilst learning a new operation be taken off standard for payment purposes but will still be contributing SMS as the operation they complete will have SMV applied.
Off standard time
• Should be reported on “Labour cost control sheet”
• Waiting for work• Machine breakdown• Unmeasured work –
operation not yet allocated SMV.
• Sampling
• Repairs (not known)• Paid average (for
balancing)• Under re-train• Indirect work –
covering for supervisor
• Supervisor/manager should be targeted to stay within budget.
SMV/SAM?
• Standard Minute Value (S.M.V.) is the time allocated through work measurement for an operation to be completed at a 100 rating. (Basic Work Content)
• Standard Allocated (Allotted) Minute (S.A.M.) is an S.M.V. + any policy allowances added.
Definitions: Operator Performance
• Primarily a measure of the effectiveness of the individual operator
• SM’s earned “on standard” x 100 Time spent “on standard”
Sometimes referred to as “Pay” 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 “on – standard”
= time “on-standard” x 100
time attended
DefinitionsEfficiency
• A measure of how well the section/factory is run.
SM’s earned x 100 time attended.• A measure of both the operator and
the supervisor• Incorporates elements of operator
performance & utilisation into the single measure
Definitions Absence / attendance
total operator time attended x 100
total contracted time
= attendance.
• Absence = 1/attendance
Measures factor/section/operator
• Standard hours (minutes) produced.
• Operator performance
• Operator utilisation
• Section efficiency
• Off – standard time
• Absence (attendance)
MeasuresExamples
• 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 0.30
• Waits 60 minutes for work
• Waits 20 minutes machine breakdown
MeasuresExamples
• Sms produced = 1500 x 0.30 = 450.
• Time “on-standard” = 540 – (60+20) = 460 minutes
• Performance = 450 x 100 460= 97.8 or 98%
MeasuresExamples
• Operator Utilisation
= 460 x 100 = 85.2%
540
Not acceptable ?
MeasuresExamples
• Efficiency = 450 x 100
540
= 83%
Borderline ?
ExerciseSection 1Operator cont Att op. production SMV offStd Perf Uti Eff min minAlison 540 540 1. 1000 0.37 30 Betty 540 480 2 1120 0.30 charlie 540 0 3 0 0.26 Dorothy 540 540 4 950 0.23 3 350 0.26 75 Ethel 540 540 5 1070 0.45 15 Freda 540 540 6 1250 0.40 30 Gail 540 540 7 1200 0.21 3 880 0.26 Heather 540 540 8 600 0.85 30 Irma 540 540 8 600 0.85 45 June 540 540 9 1275 0.38 30 Totals
Exercise
• Section 1Operator cont. Att op production SMV OffStd Perf Uti Eff mins Alison 540 540 1. 1000 0.37 30 72.5 94 68.5Betty 540 480 2 1120 0.30 70 100 70charlie 540 0 3 0 0.26 Dorothy 540 540 4 950 0.23 66.5 86 57.3 3 350 0.26 75 Ethel 540 540 5 1070 0.45 15 91.7 97 89.2Freda 540 540 6 1250 0.40 30 98 94 92.5Gail 540 540 7 1200 0.21 89 100 89 3 880 0.26 Heather 540 540 8 600 0.85 30 100 94 94.4Irma 540 540 8 600 0.85 45 103 92 94.4 June 540 540 9 1275 0.38 30 95 94 89.7Totals 5400 4800 3.22 255 87.6 94.7 83
Exercise
• Attendance = 4800/5400 = 89%
• total sms earned = 3982.30
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!
Capacity planning - people
• How many garments can a given number of people produce?
• Number of operators
• SMV (Labour content)
• Absenteeism
• Efficiency/ inefficiency!
Capacity planning - people
• 500 direct operators working 48 hours/week• S.M.V. = 25 per garment• Absence level of 8%• Average efficiency of 85%• Contracted time
1. Calculate standard hour/minutes that can be produced by operators.
2. Calculate how many garments that represents
Capacity planning - 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. hours produced = 22080 x 85% = 18768 std hrs.
• 5232 hours lost to absence & inefficiency.=
21.8% of original contracted hours
Capacity planning - people
• 18768 std hrs produced
• S.M.V. = 25 mins. or 0.417 std. hrs.
• Garment capacity = 18768
0.417
= 45007 garments.
Capacity planning
• Under the same conditions how many people are need to produced 70000 garments per week.?
• 70000 x 0.417 = 29190 standard hours required.
• Each operator will produce 39 hours @ 85% efficiency
= 39 x 85% = 33.15 std. hrs/week
Capacity planning
• 29190 standard hours required.
• Each operator will produce 33.15 std. hrs/week
• Number of operators = 29190
33.15
= 880.54 people.
• + Absence of 8% = 880.54 +8%.= 951
Capacity planning
• Capacity planning is only as accurate as the information it is based upon!
Capacity planning
• Limiting factors
• People X
• Machines?
• Department?
Capacity planning-machines
• Auto pocket set machine
• S.M.V. 0.60
• Efficiency = 95%
• 15 machines available
• 8.50 hour day
• How many garments can they supply to sections?
Capacity planning-machines
• 15 machines x 8.50 hours = 127.50 hours/day.• @95% efficiency std. hrs produced = 121.13 hrs• SMV = 0.60 = 100 per hour at standard• Output = 100 x 121.13 = 12113 garments• Absence ignored as decision taken to ensure
absence cover (15 machines + 8* absence = 17 operators. 1 spare shared with pressing
Capacity planning-machines
• Capacity must be increased to 25000 per day.
• Each machine does 100 x 95% = 95 per hour. 25000/95 = 263.15 hours. In 8.5 hour day = 31 machines
• However machines cost $75000 each and have a six month delivery lead time.
• Try again!!!
Capacity planning-machines
• Each machine will produce 95 per hour worked.
• 25000/95 = 263.15 hours
• 263.15 hours / 15 machines = 17.54 per machine per day
• 2 shifts
Capacity planning
• Limiting factors
• People X
• Machines X
• Department?
Capacity planning- Department
• Cutting room using semi-auto spreading machines and computerised cutting head.
• SMV for spreading = 0.1584 per metre• SMV for cutting = 0.050 per metre• Average fabric content per gmt. = 90 cms.• Standard working day= 8.50 hours (39 week)• 3 spreading machines on 4 tables• 1 cutting machine.• Department runs at 90% efficiency and 8%
absence
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 0.90 metres = 45000 metres to be cut each week.
• Each metre Smv = 0.1584 therefore 45000 x 0.1584 = 0.1584 x 45000
60
= 118.80 std.hrs required
@ 90% efficiency = 132 operated hours./ 3machines = 44 hour week
Capacity planning- cutting
• 50000 garments x 0.90 metres = 45000 metres to be cut each week.
• Each metre Smv. = 0.05 therefore 45000 x 0.05 = 0.05 x 45000
60
= 37.5 std.hrs required
@ 90% efficiency = 41.70 operated hours
Capacity planning –cutting room
• Spreading 132 hours needed over 3 machines• Cutting 41.70 hours needed.• Total operating hours = 173.9• Absence = 8% = 187.18 contracted hours
needed = 4.8 (5) people at 39 hour week.• 4 operators work 8.50 hours (when all
attending). 1 operator works 2 hours early
and through lunch break = 14 hour extra machine time per week. Helps on non-machine elements.
Capacity planning-spreading
• 24000 garments x 0.90 metres = 21600 metres to be cut each week.
• Each metre Smv = 0.1584 therefore 21600 x 0.1584 = 0.1584 x 21600
60
= 61.60 std.hrs required
@ 90% efficiency = 68.40 operated hours./ 3machines = 22.80 hour week
Capacity planning- cutting
• 24000 garments x 0.90 metres = 21600 metres to be cut each week.
• Each metre Smv = 0.05 therefore 21600 x 0.05 = 0.05 x 21600
60
= 18.0 std.hrs required
@ 90% efficiency = 20 operated hours
Capacity planning –cutting room
• Spreading 68.4 hours needed over 3 machines
• Cutting 20 hours needed.• Total operating hours = 84.4• Absence = 8% = 91.2 contracted hours
needed = 2.3 (3) people at 39 hour week.• 2 operators to be released.• Can 1 operator be redeployed for part of
the day?