A regional bank training center has the physical ability to handle 1,300 participants. However, management personnel believe that only 1,100 participants can be handled effectively for most training sessions. The last training session, although forecasted to have 1,000 participants, resulted in the attendance of only 990 participants. Calculate the utilization and efficiency of the training facility.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Design capacity is the ability of the company to produce the quantity of goods and services within a particular period of time when the company have best condition to produce and when the company have unlimited resources. These resource's includes- Men, Machinery, Material etc. It shows the maximum capacity of the company to produce.
Effective capacity refers to the ability of the company to produce maximum quantity within a particular period of time to achieve in current production condition and current resources. It shows the real outcome capacity of the firm when the company produce within their own current condition of their production.
- In design capacity it is assume that the company will produce in best and ideal condition to produce goods and services while in Effective capacity it is assume that company will produce in current operating conditions.
- In design capacity it is assume that the company have unlimited resource's. It means these resource's include:- Men, Machinery, Material etc. While in Effective capacity, it is assume that company have the current resources only and does not have unlimited resources.
- Design capacity is theoretical concept while Effective capacity is real concept because they shows the real outcome of the company production.
Efficiency = Actual outputEffective capacity×100Effective capacity=Design capacity-allowance
Example of Design capacity:-Company current production is 1,000 breads in a day while as per design capacity the company can produce 10,000 breads in a single hour even if the company have unlimited manpower, unlimited production capacity. It means they can produce quantity they needs. They can increase their production to infinity by using their unlimited resources.
Example of Effective capacity:- In a Bus, if the number of seats are 60 then the maximum effective capacity of the bus is the seating capacity in the bus that is 60. The effective capacity is depend upon the availability of the seats, Design of seats, staff etc.
Question
A regional bank training center has the physical ability to handle 1,300 participants. However, management personnel believe that only 1,100 participants can be handled effectively for most training sessions. The last training session, although
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