Capacity utilization

Chapter 6 | Capacity Planning | | TRUE/FALSE 1. Capacity is the maximum rate of output of a process. Answer: True Reference: Introduction Difficulty: Easy Keywords: capacity, maximum output rate 2. Capacity decisions should be made separate from strategic decisions. Answer: False Reference: Introduction Difficulty: Moderate Keywords: capacity decision, strategic decisions 3. Capacity can be expressed by output or input measures

with HPL’s largest retail customer. 3) Sensitivity analysis reveals interesting factors, however. Note in the additional tabs: • Ramping up capacity utilization to 85% in 3 years instead of the projected 5 years yields a full 2% IRR increase. • If aggressive marketing can capture secondary demand from competitors and increase capacity utilization from 85% to 95% in years 4 through 10, IRR is increased to 14.8%. • The project is very sensitive to unit selling price. If expected annual growth

A new product introduced by company always impacts its existing products of same or similar category. Cannibalization in economics is defined as “The negative impact of a company 's new product on the sales performance of its existing related products. Market cannibalization refers to a situation where a new product "eats" up the sales and demand of an existing product.” (Investopedia). The energy bars are one of the best selling products of HPC. The introduction of the new Energy Gel product will

Capacity consequences If improvements related to subcontractors are realized by DANDOY, then their engagement into daily operations of firm becomes more favourable meaning higher capacity flexibility and agility for DANDOY can be achieved. 9.3.3. Managerial implications The managerial aspect within COULD-BE 3 has the largest impact, among all

Production capacity of system at continuous 100% utilization (minutes) i.         Production capacity = minutes per day / CT of system ii.       Production capacity = 480 / 0.5 = 960 units per day @ continuous 100% utilization e.        Production capacity utilization = monthly production / monthly production capacity i.         Current monthly production is 16,000 (given in case) ii.       Total monthly capacity = 19,200 (920 per day * 20 days per month) iii.     Production utilization = 16,000

days per week = 450 beds utilized 450 beds utilized / 630 availble beds = 71.43% The hospital is currently utilizing 71.43% of their beds, this is actually an ideal operating point. To increase its rate of utilization might decrease the service quality. 2.) Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) Check-in Day Monday Tuesday

times are those that are over utilized, or those that show capacity utilizations greater than 100 percent. The only over utilized resource are the Physicians, who are being over utilized by 21 percent. The other major resources are still underutilized. In order to alleviate the long wait times, the clinic either needs to hire more physicians at an additional cost of $55,000 each, or the clinic needs to find ways to increase the utilization of the nurse practitioners to reduce the burden carried by

Time (days) | 0.815 | 0.052 | 1.056 | 0.058 | WIP inventory (shirts) | 11760 | 1980 | 9060 | 48 | Production Capacity (shirts/day) | 960 | 960 | 720 | 123.07 | Capacity Utilization | 83.33 | 93.75 | 111.11 | 81.25 | Direct Labour Content (min/shirt) | 26.51 | 26.45 | 26.51 | 26.01 | Direct Labour Utilization | 69.04 | 76.22 | 90.17 | 33.87 |

OPERATIONS MANAGEMENT DONNER COMPANY SUBMITTED TO PROF. JANAT SHAH PREPARED BY: ABHISHEK PRASAD BURJOR DADACHANJI ROHIT GOEL JAYARAMA HOLLA 0511147 0511160 0511178 0512005 VISHAL AGGRAWAL 0511196 Donner Company Group 07 2 Donner Company TABLE OF CONTENTS Exhibit A........................................................................................................................25 Exhibit B..................................................................

materials. By-products from Philippines plant could be directly used, chicken and beef could be got from their other divisions. So investment won’t be a high amount for expanding plant capacity, which is about $250,000. Besides, they have smooth and mature channel to distribute the new products. The excess capacity is only about 1728 tons on current production. Moreover, the line is only support for can with 90g package, to add a new line for the other package, there will be a one-time cost of $20