Capacity is a factories ability to produce items explained as follows, consider a factory that has a capacity of 10,000 " machine hours" in each 40 hour week. This factory should be capable of producing 10,000 "standard hours of work" during a 40-hour week. The actual volume of product that the factory can produce will depend on:
Management is the process of getting tasks done through the use of people. Through management decisions, our team will have one of the leading coffee shops within the BizCafe simulation. Within the management aspect of the company, we must first look at human capital, which are the skills, values, and overall output of an employee and the price at which these facets are worth. The managers of The Grind must delegate tasks through the serving staff of our company. The servers are the face of The Grind, meaning that it will be the servers who will interact to build strong customer relations with the guests of The Grind. However, there should be an efficient number of servers working on the clock at any given time throughout the day; The Grind should strive to always be properly staffed. If the shop is understaffed, customers will experience longer wait times, rushed customer interactions, and an overall subordinate experience; however, if the shop is overstaffed, each individual employee is most likely to give less production, and more importantly, our shop’s payroll will be out of proportion, meaning we will be spending too much money on labor. Wages also effect overall production from the employees. If we pay our servers too little, compared to the competition, we are likely to see less production, unhappy employees, and a large turnover rate. On the other hand, if we pay our servers too much, we risk blowing our weekly labor cap if our sales do not exceed the
The production manager for the Softy soft drink company is considering the production of 2 kinds of soft drinks: regular and diet. Two of her resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint?
Only in the stitching section there are inventories between different groups’ work. If the company still keeps each batch’s size as 100 pairs, the average work load for each worker in work group 1 now is 25 pairs, but in work group 2 is only 20 pairs which means that there will be 5 pairs of shoes as inventories from work shop 1 to work shop 2 in the stitching section.
Determining capacity is a very important of company day to day operations as it considers whether the amount of work that a company is putting out is capable of meeting supply and demand. Management must make correct decisions that consider product mix issues, whether or not processes and capacity can be improved without adding risky staffing or machinery investments, how to avoid bottleneck areas and whether quality is at expected consumer standards (Vonderembse & White, 2013).
The order currently has 13 monks working to produce coffee for sale and has a production capacity of 540 pounds per day. The company is sustainable because the monks have a specific goal in mind and all are on the same page when trying to reach the goal to purchase Irma Lake Ranch. I selected this problem because although the company makes great sales, sales will not be enough to purchase the land. Mystic Monk Coffee company does not effectively advertise itself and will need to improve advertisement to increase sales. Creating a great marketing plan could boost sales and profits substantially.
Say we have identified the bottleneck machine of a production process. List at least four things suggested in the book that will result in a greater throughput without actually expanding the physical capacity of the machine.
It takes a day out with the Boy Scots for Alex to discover one of his biggest problems at the plant – bottlenecks. A bottleneck is any resource whose capacity is less than the demand placed upon it and thus limiting the throughput. A nonbottleneck is a resource whose capacity is greater than the demand paced upon it and thus will contain idle time. A capacity constrained resource (CCR) is one whose utilization is close to capacity and could be a bottleneck if not scheduled carefully.
Capacity planning is a necessary function of an organization to ensure that the highest rate of output is reached through the current processes taking place within an organization. These strategically defined processes must have the ability to provide flexibility to meet future capacity demand, whether due to opportunity growth or adjustments to make decreases to maximize profits. “Capacity decisions related to a process need to be made in light of the role the process plays within the organization and the supply chain as a whole, because changing the capacity of a
For our Gemba project, we decided to analyze the order fulfillment procedure for Cup of Joe, a coffee shop located in the Lennox Town Center. In order to capture the establishment’s peak hours of business, we primarily visited during the hours of 9:00am-12:00pm. We focused our attention on orders for baked goods, coffee, and espresso drinks, as these products are the shop’s main source of revenue and reputation. On several separate mornings we were able to observe an average of 125 orders over three hours (a takt time of 1.44 minutes). In the evening, there were often less than a dozen orders every hour. Since every order is slightly different, we have described the average order and the steps in the process that are consistent in almost every situation. We have identified multiple areas for improvement, which are referenced in the sections entitled analysis and recommendations.