Capacity Planning I

Capacity PlanningCapacity Planning

Factory capacityFactory capacity

500 operators working 48 hour week.500 operators working 48 hour week. Work content of 30 minutes per garmentWork content of 30 minutes per garment Therefore capacity of Therefore capacity of 500 x 48x 60500 x 48x 60

3030

= 48000 garments per week= 48000 garments per week

DefinitionsDefinitions

““On –standard” : that time the operator On –standard” : that time the operator spends on “measured” work earning spends on “measured” work earning Standard Minutes.Standard Minutes.

““Off-standard” : that time the operator Off-standard” : that time the operator spends on “un-measured” work or spends on “un-measured” work or “measured” work that is classified as “off-“measured” work that is classified as “off-standard”. standard”.

Definitions- “Measured work”Definitions- “Measured work”

That work to which a standard measure (SMV, That work to which a standard measure (SMV, SAM) has been applied.SAM) has been applied.

Example of “measured work” that may be Example of “measured work” that may be classified as “off-standard”. An operator classified as “off-standard”. An operator may may whilst learning a new operation be taken off whilst learning a new operation be taken off standard for payment purposes but will still be standard for payment purposes but will still be contributing SMS as the operation they complete contributing SMS as the operation they complete will have SMV applied.will have SMV applied.

SMV/SAM?SMV/SAM?

Standard Minute Value (S.M.V.) is the time Standard Minute Value (S.M.V.) is the time allocated through work measurement for allocated through work measurement for an operation to be completed at a 100 an operation to be completed at a 100 rating.rating.

Standard Allocated (Allotted) Minute Standard Allocated (Allotted) Minute (S.A.M.) is an S.M.V. + any policy (S.A.M.) is an S.M.V. + any policy allowances added.allowances added.

Operator PerformanceOperator Performance

Primarily a measure of the effectiveness of Primarily a measure of the effectiveness of the individual operatorthe individual operator

= = SMs earned “on standard” SMs earned “on standard” x 100x 100

Time spent “on standard”Time spent “on standard”

Sometimes referred to as “Pay” performance Sometimes referred to as “Pay” performance as it is usually measured within an as it is usually measured within an incentive scheme.incentive scheme.

Operator utilisationOperator utilisation

A measure of how well the A measure of how well the supervisor manages to keep the supervisor manages to keep the operators “on-standard”operators “on-standard”

= = time “on-standardtime “on-standard x 100 x 100

time attendedtime attended

EfficiencyEfficiency

A measure of how well the A measure of how well the section/factory is run.section/factory is run.

= = SMs earned SMs earned x 100 x 100

time attended.time attended. A measure of both the operator A measure of both the operator

and the supervisorand the supervisor

EfficiencyEfficiency

Incorporates elements of operator Incorporates elements of operator performance & utilisation into the performance & utilisation into the single measure.single measure.

Absence/attendanceAbsence/attendance

= = total operator time attended total operator time attended x 100x 100

total contracted timetotal contracted time

= attendance. = attendance.

Measures - ExamplesMeasures - Examples

Section = 20 operators working 9 hour/540 Section = 20 operators working 9 hour/540 minute dayminute day

2 operators are absent all day2 operators are absent all day Attendance = Attendance = 18 x 540 18 x 540 x 100x 100 20 x 54020 x 540

= = 9720 9720 = 90% or 10% absence= 90% or 10% absence 1080010800

Measures- examplesMeasures- examples

An operator attends for 540 minutesAn operator attends for 540 minutes Produces 1500 pieces @ SMV of 0.30Produces 1500 pieces @ SMV of 0.30 Waits 60 minutes for workWaits 60 minutes for work Waits 20 minutes machine breakdownWaits 20 minutes machine breakdown

Measures- examplesMeasures- examples Sms produced = 1500 x 0.30 = Sms produced = 1500 x 0.30 =

450.450. Time “on-standard” = 540 – Time “on-standard” = 540 –

(60+20) = 460 minutes(60+20) = 460 minutes Performance = Performance = 450 450 x 100x 100 460460= 97.8 or 98%= 97.8 or 98%


Operator utilisationOperator utilisation

= = 460 460 x 100 = 85.2%x 100 = 85.2%

540540


Efficiency = Efficiency = 450 450 x 100x 100

540540

= 83%= 83%

Exercise- definitionsExercise- definitions

Attendance = 4800/5400 = 89% Attendance = 4800/5400 = 89% total sms earned = 3982.30total sms earned = 3982.30

Capacity planning - peopleCapacity planning - people

500 direct operators working 48 hours/week500 direct operators working 48 hours/week S.M.V. = 25 per garmentS.M.V. = 25 per garment Absence level of 8%Absence level of 8% Average efficiency of 85%Average efficiency of 85% Contracted timeContracted time

1.1. Calculate standard hour/minutes that can be Calculate standard hour/minutes that can be produced by operators.produced by operators.

2.2. Calculate no. of garments produced.Calculate no. of garments produced.


500 operators x 48 hours = 24000 contracted 500 operators x 48 hours = 24000 contracted hourshours

24000 – 8% (1920 hours) absence = 22080 24000 – 8% (1920 hours) absence = 22080 attended hours (absence costs 40 operators)attended hours (absence costs 40 operators)

At efficiency of 85% std. hours produced = At efficiency of 85% std. hours produced = 22080 x 85% = 18768 std hrs.22080 x 85% = 18768 std hrs.

5232 hours lost to absence & inefficiency.= 5232 hours lost to absence & inefficiency.=

21.8% of original contracted hours21.8% of original contracted hours


18768 std hrs produced18768 std hrs produced S.M.V. = 25 mins. or 0.417 std. hrs.S.M.V. = 25 mins. or 0.417 std. hrs. Garment capacity = Garment capacity = 1876818768

0.4170.417

= 45007 garments.= 45007 garments.

Capacity planningCapacity planning

Under the same conditions how many Under the same conditions how many people are needed to produce 70000 people are needed to produce 70000 garments per week.?garments per week.?

70000 x 0.417 = 29190 standard hours 70000 x 0.417 = 29190 standard hours required.required.

Each operator will produce 39 hours @ Each operator will produce 39 hours @ 85% efficiency 85% efficiency

= 39 x 85% = 33.15 std. hrs/week= 39 x 85% = 33.15 std. hrs/week

Capacity planningCapacity planning

29190 standard hours required.29190 standard hours required. Each operator will produce 33.15 std. Each operator will produce 33.15 std.

hrs/weekhrs/week Number of operators = Number of operators = 2919029190

33.1533.15

= 880.54 people.= 880.54 people. + Absence of 8% = 880.54 +8%.= 951+ Absence of 8% = 880.54 +8%.= 951

Capacity planning-machinesCapacity planning-machines

Auto pocket set machineAuto pocket set machine S.M.V. 0.60S.M.V. 0.60 Efficiency = 95%Efficiency = 95% 15 machines available15 machines available 8.50 hour day8.50 hour day How many garments can they supply to How many garments can they supply to

sections?sections?


15 machines x 8.50 hours = 127.50 15 machines x 8.50 hours = 127.50 hours/day.hours/day.

@95% efficiency std. hrs produced = @95% efficiency std. hrs produced = 121.13 hrs121.13 hrs

SMV = 0.60 = 100 per hour at standardSMV = 0.60 = 100 per hour at standard Output = 100 x 121.13 = 12113 garmentsOutput = 100 x 121.13 = 12113 garments


Capacity must be increased to 25000 per Capacity must be increased to 25000 per day.day.

Each machine does 100 x 95% = 95 per Each machine does 100 x 95% = 95 per hour. 25000/95 = 263.15 hours. In 8.5 hour. 25000/95 = 263.15 hours. In 8.5 hour day = hour day = 31 machines31 machines


Each machine will produce 95 per hour Each machine will produce 95 per hour worked.worked.

25000/95 = 263.15 hours25000/95 = 263.15 hours 263.15 hours / 15 machines = 17.54 hrs 263.15 hours / 15 machines = 17.54 hrs

per machine per dayper machine per day 2 shifts2 shifts

Capacity planning- DepartmentCapacity planning- Department

Cutting room using semi-auto spreading Cutting room using semi-auto spreading machines and computerised cutting head.machines and computerised cutting head.

SMV for spreading = 0.1584 per metreSMV for spreading = 0.1584 per metre SMV for cutting = 0.050 per metreSMV for cutting = 0.050 per metre Average fabric content per gmt. = 90 cms.Average fabric content per gmt. = 90 cms. Standard working day= 8.50 hours (39 week)Standard working day= 8.50 hours (39 week) 3 spreading machines on 4 tables3 spreading machines on 4 tables 1 cutting machine.1 cutting machine. Department runs at 90% efficiency and 8% Department runs at 90% efficiency and 8%

absenceabsence

Capacity planning- Capacity planning- ExerciseExercise

How many people are needed to supply How many people are needed to supply the factory with 50000 garments per the factory with 50000 garments per week?week?

What is machine requirement for 50000 What is machine requirement for 50000 garments per week?garments per week?

What do you recommend if production cut What do you recommend if production cut to 24000 garments per week?to 24000 garments per week?

All operators are able to use both spread All operators are able to use both spread and cut equipment.and cut equipment.

Capacity planning-spreadingCapacity planning-spreading

50000 garments x 0.90 metres = 45000 50000 garments x 0.90 metres = 45000 metres to be cut each week.metres to be cut each week.

Each metre Smv = 0.1584 therefore 45000 Each metre Smv = 0.1584 therefore 45000 x 0.1584 = x 0.1584 = 0.1584 x 450000.1584 x 45000

6060

= 118.80 std.hrs required= 118.80 std.hrs required

@ 90% efficiency = 132 operated hours./ @ 90% efficiency = 132 operated hours./ 3machines = 44 hour week3machines = 44 hour week

Capacity planning- cuttingCapacity planning- cutting


Each metre Smv. = 0.05 therefore 45000 x Each metre Smv. = 0.05 therefore 45000 x 0.05 = 0.05 = 0.05 x 450000.05 x 45000

6060


@ 90% efficiency = 41.70 operated hours@ 90% efficiency = 41.70 operated hours

Capacity planning –cutting roomCapacity planning –cutting room

Spreading 132 hours needed over 3 machinesSpreading 132 hours needed over 3 machines Cutting 41.70 hours needed.Cutting 41.70 hours needed. Total operating hours = 173.9Total operating hours = 173.9 Absence = 8% = 187.18 contracted hours Absence = 8% = 187.18 contracted hours

needed = 4.8 (5) people at 39 hour week.needed = 4.8 (5) people at 39 hour week. 4 operators work 8.50 hours (when all 4 operators work 8.50 hours (when all

attending). 1 operator works 2 hours earlyattending). 1 operator works 2 hours early

and through lunch break = 14 hour extra machine and through lunch break = 14 hour extra machine time per week. Helps on non-machine elements.time per week. Helps on non-machine elements.

Capacity planning-spreadingCapacity planning-spreading


Each metre Smv = 0.1584 therefore 21600 Each metre Smv = 0.1584 therefore 21600 x 0.1584 = x 0.1584 = 0.1584 x 216000.1584 x 21600

6060


@ 90% efficiency = 68.40 operated hours./ @ 90% efficiency = 68.40 operated hours./ 3machines = 22.80 hour week3machines = 22.80 hour week

Capacity planning- cuttingCapacity planning- cutting


Each metre Smv = 0.05 therefore 21600 x Each metre Smv = 0.05 therefore 21600 x 0.05 = 0.05 = 0.05 x 216000.05 x 21600

6060


@ 90% efficiency = 20 operated hours@ 90% efficiency = 20 operated hours

Capacity planning –cutting roomCapacity planning –cutting room

Spreading 68.4 hours needed over 3 Spreading 68.4 hours needed over 3 machinesmachines

Cutting 20 hours needed.Cutting 20 hours needed. Total operating hours = 84.4Total operating hours = 84.4 Absence = 8% = 91.2 contracted hours Absence = 8% = 91.2 contracted hours

needed = 2.3 (3) people at 39 hour week.needed = 2.3 (3) people at 39 hour week. 2 operators to be released.2 operators to be released. Can 1 operator be redeployed for part of Can 1 operator be redeployed for part of

the day?the day?

FloaterFloater

Floaters generally can perform all Floaters generally can perform all operations but at much lower efficiency. operations but at much lower efficiency. They should not be allocated to any They should not be allocated to any specific operation in any line plan. They specific operation in any line plan. They are available to handle unforeseen are available to handle unforeseen circumstances. circumstances.

Pitch TimePitch Time

Pitch time is the theoretical operation time, Pitch time is the theoretical operation time, each operator should take for a planned each operator should take for a planned balanced line. It is calculated as:-balanced line. It is calculated as:-

=(SAM value of style)/ (No of operator =(SAM value of style)/ (No of operator required to meet the target)required to meet the target)

Capacity Planning I

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