Capacity Analysis Capacity Analysis Being able to analyze plant and equipment (c
ID: 3067630 • Letter: C
Question
Capacity Analysis Capacity Analysis Being able to analyze plant and equipment (capacity and automation) is essential to understanding how you and your competitors are supplying the market demand. There is often unmet demand in segments because companies do not or cannot produce enough units. If you successfully analyze industry capacity, your team could benefit from these shortfalls. Each product has its own production line where you can set capacity and automation. Capacity represents the company's ability to produce units of its product. Think of capacity as your manufacturing plant. For each unit of capacity, there are two shifts of workers that can use your manufacturing plant to produce your products, which represents a first and second shift. So if your product has a capacity of 1000, this means you can produce up to 2000 units of your product. Automation represents the robot-to-worker ratio in your manufacturing plant. A higher ratio of robots will provide your company with a lower labor cost. However, this will increase the amount of time it takes your products to be updated You will need: The Production Analysis report (page 4) of the Capstone Courier for Round 0 On the Production Analysis page, look at the table of products (the Andrews company is displayed below). The highlighted boxes (plus a little math!) are where you will find the information you need to complete the analysis Shift Auto Material Labor Contr. Over- Next 4.0 & mation Capacity Unit PrimaryUnits Inven Pfmn Size Next Plant 189 39 11/21/2010 3.1 1750055 5.5 14.5 $28.00 $11.59 S7.49 3.07.0 $21.00 29% 27% 0% 30% Able Acre AdamPfmn 4.6 14000 1.723000 80 120 $38.00 $15.98 $8.57 33% 0% 2.5 25000 2.6 19000 4.0 11.0$33.00 $13.62 $8.57 30% 0% 1,800 66% 1,400 129% 900 45% 600 73% 600 63% $7.81 $7.12 Low High 366 358 314 4/18/2012 6/30/2011 5/25/2011 3.0 3.0 3.0 9.4 15.5 $33.00 $15.87 S8.57 23% 0% Agape SizeExplanation / Answer
Answer:
since, using given by your table, for the traditional segment is,
First shift capacity:Company is 1800 and Industry is 10800, i.e the total number of products in this segment is 6. The same can be derived by the data from the first and second shift capacity . company is 3600 and industry is 36400 .Here 6 times that of the company capacity.
The formula to calculate the industry capcity says ,that it is the total capacity of each product in that segment.
If we assume that, like the Traditional segment other segments also have 6 products,so the industry capacity can be calculated just by multiplying the comany capacity values by 6.
( If the number of products in diffent segments differs, then multiply, the comany capacity with the respective number of products in each segment to get the industry capacity).
segment product name first shift capacity first & second shift capacity company industry company industry traditional Able 1800 10800 3600 21600 low end Acre 1400 8400 2800 16800 high end Adam 900 5400 1800 10800 performance Aft 600 3600 1200 7200 size Agape 600 3600 1200 7200