Capacity utilization

save it for future reference – you might need to refer back to it as you are entering your company decisions. (1) Where are your company’s plants located? What is the capacity level at each plant? North America – 2,000,000 pairs Asia – 4,000,000 pairs Both plants can be operated at overtime to boost annual capacity by 20%, giving the

line. In contrary, the time-driven ABC approach does account for all the nuances of each product line. From the table can also be inferred that the practical capacity is not totally used since at the end there is a total of $28,288 of unused resources. Table 3 summarizes the capacity utilization of various resources. Table 3: Capacity Utilization Rates Note: For exact calculations please see the attached excel file. The significant shift in cost and profitability of flow controllers can be mainly

the bottleneck in the process.  The MRI machine and the time it takes perform a scan is the bottleneck of the process. Each scan can have different times associated with it depending on the type of scan that will be performed. This will limit the capacity of the overall process. For example, a scan without contrast will usually take 30 minutes. A scan that requires contrast will double that time to 60 minutes. According to exhibit # 2, in order to break even annually, the clinic will have to cover

of buildings, machinery, plant or furniture owned and used the assesee for the purpose of business and profession. * Two primary factors which have a decisive influence on the choice of make or buy are the cost and availability of production capacity. Facilities are made available and other things being equal cost consideration assumes primacy. If the cost of making an item in-house is going to be higher than the cost of acquiring it from an outside supplier, the choice is to buy it. On the other

to sustain the enormous production capacity and so as to fulfill the huge demand of the industry. Therefore, in order to be competitive and successful in this industry, the need for economies of scale is vital, since it contributes to greater revenues and sales volume of the company with a great proportion of saving in the costs. Also, the industry’s profitability is highly correlated to the company’s operating rate, which also refers to the capacity utilization rate of the company. The higher the

design and strategic capacity management. Capacity management is complex, and according to Chase, Jacobs, and Aquilano, “factors to be taken into account in selecting capacity additions include the likely effects of economies of scale, the effects of experience curves, the impact of changing facility focus and balance among production stages, and the degree of flexibility of facilities and the workforce.” In the case of Shouldice Hospital, determining whether to increase capacity is tricky. On one hand

Tesla Motors: SWOT Analysis Tesla Motors designs, develops, manufactures and sells high performance fully electric vehicles, advanced electric vehicle, powertrain components and stationary energy storage systems. Political, economic, socio-cultural and technological factors have influenced Tesla in complex ways since Tesla is a big player in the EV industry – one of the non-traditional automobile industry segments. The political factors have mostly favored Tesla since the government gives subsidies

Harvard Business School 9-694-065 Rev. March 17, 1995 Medical Products Company At the beginning of their three-day meeting in March 1990, Mr. Roberto Hausman, the president of the Disposable Devices Sector of the Medical Products Company (MPC), welcomed the group assembled around the conference table. This promises to be a very productive meeting. A window of opportunity has opened up for us, and it appears that we finally have a chance to resolve, once and for all, some of the issues

CASE ASSIGNMENT Faced with an overwhelmingly complex situation, Alan Mulally has been brought in as Ford Motor Company's new president and CEO. As diverse global dynamics confront the company and competitive pressures continue to build, he has the challenging task of improving Ford's brand image and returning the company to profitability. Mulally has invited your consulting firm to advise his management team on restoring the company's reputation and viability. Assigned to the project, you have

Case 1 1. We used operation time to calculate the utilization of various facilities. Calculation is as below. After analysing the calculated result, we found out that cardio equipment is over booked during peak hours in 2000 as per the five year growth trend, the gym membership is going to grow in future years. So in order to accommodate the future members the gym has to increase the capacity of the cardio equipment’s with 40%cushion capacity and the rest of the facilities which are nearing the