Numerical :Capacity Planning -Operations Management Q1 A manufacturing company has a product line actual output of the line is 500

units per shift Workstation No Capacity/Shift A 600 B 650 C 650 D 550 E 600

Calculate i) System capacity ii) Efficiency of the production line.

Q2 A company intends to buy a machine having the capacity to produce 1,70.000 good parts per annum. The machine constitutes a part of the total product line. The system efficiency of the product line is 85%. i) Find the system capacity. ii) If the time required to produce each part is 100 seconds & the machine works for 2,000 hrs per year. If the utilization of the machine is 60% & the efficiency of the machine is 90%, compute the output of the machine. iii) Calculate the number of machines required? Q3 The following activities constitute a work cycle Sr. No. 1 2 3 4 Activity Unloading Inspection Loading job on machine table Machine operation time Time (Min.) 0.25 0.35 0.40 0.90

i) Find the total time, theoretical output obtained from the machine ii) Calculate the no. of machines required to produce the 3- components from the information given below. Components A B C 1) Setup time 25 minutes 55 minutes 45 minutes 2) Operation time (min/piece) 1.75 3.00 2.10 3) Batch size 350 550 575 4) Production per month 2450 4400 2875 In the above case if the machine efficiency is 85% & the operator Efficiency is 75%, calculate the no. of machines required Q4 A component can be processed on any of the 2-machines A & B The time & the Cost details are given below. Compute the breakeven quantity for each of the two Machines & state the decision rules Particulars Machine A Machine B 1) Setup time (hrs) 4.5 0,2 2) Operation time (min/piece) 4.0 3.5 3) Setup Cost/Hr (Rs) 350 15 4) Machine Cost/Hr (Hr) 45 25 Q5 A customers is processed through each of the three operations A, B, & C in sequence. The process is designed to handle 100 customers a day. The average rate at which Each operation can process the customers is shown in the figure below:

A
15 Customers/Hr

B
10 Customers/Hr

C
12 Customers/Hr

a) For 8-hrs day identify any bottlenecks in the process b) What effect bottlenecks will have on overall output & other operations c) If all processes are operated for 10 hrs / day, is there still a bottleneck ?

Q6 An estimated demand per annum for a chemical is as follows : Demand in Kgs(000) Probability 100 0.10 110 0.2 0 120 0.30 130 0.30 140 0.10

i) If the capacity is set at 1,30,000 Kgs/annum, how much cushion is existing ii) What is the probability of idle capacity iii) What is the capacity utilization of the plant at 1,30,000 Kgs/annum capacity iv) If it is estimated that the lost business costs Rs 1,00,000 per thousand Kgs of capacity, how much capacity to build to minimize the total cost? The cost to build 1,000Kgs of capacity is Rs 50,000. Q7 Machine A & B are both capable of processing the product. The following information is given Particulars Machine A Machine B Investment in Rs 75,000 80,000 Interest on capital invested 10% 15% Hourly charges Rs ( Wages & Power) 10 8 Pieces produced / hour 5 8 Annual operating hrs 2,000 2,000 Which machine will give lower cost of production, if run for the whole year? If only 4,000 pieces are to be produced in a year, which machine would give the lower cost per piece