7/28/2019 Capacityplanning-Unsolved 7 Numericals

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Numerical :-

Capacity Planning -Operations Management

Q1 A manufacturing company has a product line actual output of the line is 500 units per shift

Workstation No A B C D E

Capacity/Shift 600 650 650 550 600

Calculate i) System capacity ii) Efficiency of the production line.

Q2 A company intends to buy a machine having the capacity to produce 1,70.000 goodparts per annum. The machine constitutes a part of the total product line. The system

efficiency of the product line is 85%.

i) Find the system capacity.

ii) If the time required to produce each part is 100 seconds & the machine works for2,000 hrs per year. If the utilization of the machine is 60% & the efficiency of the

machine is 90%, compute the output of the machine.

iii) Calculate the number of machines required?

Q3 The following activities constitute a work cycle

Sr. No. Activity Time (Min.)

1

23

4

Unloading

InspectionLoading job on machine table

Machine operation time

0.25

0.350.40

0.90

i) Find the total time, theoretical output obtained from the machine

ii) Calculate the no. of machines required to produce the 3- components

from the information given below.

Components A B C

1) Setup time

2) Operation time (min/piece)

3) Batch size

4) Production per month

25 minutes

1.75

350

2450

55 minutes

3.00

550

4400

45 minutes

2.10

575

2875In the above case if the machine efficiency is 85% & the operator

Efficiency is 75%, calculate the no. of machines required

Q4 A component can be processed on any of the 2-machines A & B The time & the

Cost details are given below. Compute the breakeven quantity for each of the two

Machines & state the decision rules

Particulars Machine A Machine B

1) Setup time (hrs)

2) Operation time (min/piece)

3) Setup Cost/Hr (Rs)4) Machine Cost/Hr (Hr)

4.5

4.0

35045

0,2

3.5

1525

Q5 A customers is processed through each of the three operations A, B, & C in sequence.

The process is designed to handle 100 customers a day. The average rate at which

Each operation can process the customers is shown in the figure below:

15 Customers/Hr 10 Customers/Hr 12 Customers/Hr

a) For 8-hrs day identify any bottlenecks in the process

b) What effect bottlenecks will have on overall output & other operations

c) If all processes are operated for 10 hrs / day, is there still a bottleneck ?

A B C

7/28/2019 Capacityplanning-Unsolved 7 Numericals

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Q6 An estimated demand per annum for a chemical is as follows :

Demand in Kgs(000) 100 110 120 130 140

Probability 0.10 0.2

0

0.30 0.30 0.10

i) If the capacity is set at 1,30,000 Kgs/annum, how much cushion is existing

ii) What is the probability of idle capacityiii) What is the capacity utilization of the plant at 1,30,000 Kgs/annum capacity

iv) If it is estimated that the lost business costs Rs 1,00,000 per thousand Kgs of

capacity, how much capacity to build to minimize the total cost? The cost to build

1,000Kgs of capacity is Rs 50,000.

Q7 Machine A & B are both capable of processing the product. The following information

is given

Particulars Machine A Machine B

Investment in RsInterest on capital invested

Hourly charges Rs ( Wages & Power)

Pieces produced / hourAnnual operating hrs

75,00010%

10

52,000

80,00015%

8

82,000

Which machine will give lower cost of production, if run for the whole year?If only 4,000 pieces are to be produced in a year, which machine would give

the lower cost per piece