University of Business & Technology
Engineering College
IE 451
Production Planning and
Control
Dr. Ashraf Hassan
Industrial Engineering Department
CAPACITY PLANNING
Capacity Planning
Basic questions:
1. What kind of capacity is needed?
2. How much is needed?
3. When is needed?
Affects ability to meet future demands
Affects operating costs
Determines initial cost
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Measuring capacity
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Defining capacity
Design capacity: max output attained
Effective capacity: max possible o/p
Efficiency = actual o/p/eff capacity
Utilization = actual o/p/design capacity
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EX (1)
Given the following information, compute the efficiency and the
utilization of the vehicle repair department:
Design capacity = 50 trucks per day
Effective capacity = 40 trucks per day
Actual output = 36 trucks per day
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Compared to the effective capacity of 40 units
per day, 36 units per day looks pretty good.
However, compared to the design capacity of
50 units per day, 36 units per day is much less
impressive although probably more
meaningful.
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EX (2)
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Bottleneck operation
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EX (3)
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Computation of equipment
requirements
EX (4)
A department works one 8-hour shift, 250
days a year, and has these figures for usage of
a machine that is currently being considered:
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Working one 8-hour shift 250 days a year
provides an annual capacity of 8 250 2,000
hours per year. Consequently, three of these
machines would be needed to handle the
required volume:
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EX (5)
An Automobile equipment supplier wishes to
install a sufficient number of ovens to produce
400,000 good castings per year. The baking
operation takes 2 min per casting, but the oven
output is typically 6% defective. How many
ovens will be required if each one is available
for 1,800 hours of capacity per year.
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EX (6)
Silver valley smelting is considering the
expansion of a production process by adding
more 1-ton-capacity furnaces. Each batch (1
ton) of ore must undergo 30 minutes of
furnace time, including load and unload
operations. However the furnace is used only
80 percent of the time due to power
restrictions in other parts of the system. The
required output for the new layout is to be 16
tons/shift (8 hours). Plant efficiency is
estimated at 50% of system capacity.
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(a) Determine the number of furnaces
required (b) Estimate the percentage of time
the furnaces will be idle.
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(a) Required system capacity = Actual O/P / SE
= 16 (t/shift) / 0.5
= 32 (t/shift) / 0.8 (8 hr/shift)
= 5 (t/ hr)
furnace capacity = 1 t / 0.5 hr = 2 (t/ hr)
No of furnaces required = 5 (t/ hr) / 2 (t/ hr) =2.5
= 3 furnaces
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SOLVED
(a) Required system capacity = 5 (t/ hr)
Act. furnace capacity = 3 t / 0.5 hr = 6 (t/ hr)
percentage of time the furnaces will be idle = (6-
5) / 6 = 17%
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EX (7)
A printing house must determine how many
digital processors are required to maintain an
output of 200 good prints per hour. The set-up
and exposure can theoretically be done in 2
minutes per print, but operators are on the
average only 90% efficient, and in addition, 5%
of the prints must be scrapped and redone. Also,
the processors can be utilized only 70% of the
time. (a) What is the required system capacity in
prints per hour? (b) What average output per
hour can be expected from each processor? (c)
How many processors are required?
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Required system capacity = good output/ SE
= 200 / 0.95
= 210.5 print / hr
output / hr = 60 (min/hr) / 2 (min/print) (0.7)
(0.9) = 18.9 print / hr
No of processors required = (210.5 print / hr) /
(18.9 print / hr) = 11.14 = 12
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QUIZ
QUIZ 3
NEXT WEEK
Essay questions: problems
On sheet # 2
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SHEET # 2
THANK YOU VERY MUCH
