Capacity Planning

Schedule
Understanding of capacity planning line factory section (attendance/efficiency) Operation breakdowns, independent and dependent processes, flow diagrams. Machine, equipment and manpower requirements. Line and production balancing. Production control Role of the supervisor

Factory capacity
500 operators working 48 hour week. Work content of 30 minutes per garment Therefore

capacity = 500 x 48x 60 = 48000 garments/week 30

Ok? Any problems?

Reasons for lost output

Absenteeism Poor work methods (affects performance & efficiency) Low operator performance Poor operator utilisation Style change (not only a cause of lost output itself, but can cause all or some of the above!!)

Definitions
On Standard : Time the operator spends on measured work, earning standard minutes (SM).

Off Standard : Time the operator spends on un-measured work or measured work that is classified as off-standard.

Definitions- Measured work

That work to which a standard measure (SMV, SAM) has been applied. Example of measured work that may be classified as off-standard. An operator may whilst learning a new operation be taken off standard for payment purposes but will still be contributing SMS as the operation they complete will have SMV applied.

Off standard time

Should be reported on Labour cost control sheet Waiting for work Machine breakdown Unmeasured work operation not yet allocated SMV. Sampling Repairs (not known) Paid average (for balancing) Under re-train Indirect work covering for supervisor Supervisor/manager should be targeted to stay within budget.

SMV/SAM?
Standard Minute Value (S.M.V.) is the time allocated through work measurement for an operation to be completed at a 100 rating. (Basic Work Content) Standard Allocated (Allotted) Minute (S.A.M.) is an S.M.V. + any policy allowances added.

Definitions: Operator Performance

Primarily a measure of the effectiveness of the individual operator SMs earned on standard x 100 Time spent on standard

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

Definitions Operator Utilisation A measure of how well the supervisor manages to keep the operators on standard
= time on-standard x 100 time attended

Definitions Efficiency
A measure of how well the section/factory is run. SMs earned x 100 time attended. A measure of both the operator and the supervisor Incorporates elements of operator performance & utilisation into the single measure

Definitions Absence / attendance

total operator time attended x 100 total contracted time = attendance. Absence = 1/attendance

Measures factor/section/operator
Standard hours (minutes) produced. Operator performance Operator utilisation Section efficiency Off standard time Absence (attendance)

Measures Examples
Section = 20 operators working 9 hour/540 minute day 2 operators are absent all day Attendance = 18 x 540 x 100 20 x 540 = 9720 10800 = 90% (or) 10% absence

Measures Examples
An operator attends for 540 minutes Produces 1500 pieces @ SMV of 0.30 Waits 60 minutes for work Waits 20 minutes machine breakdown

Measures Examples
Sms produced = 1500 x 0.30 = 450. Time on-standard = 540 (60+20) = 460 minutes Performance = 450 x 100 460 = 97.8 or 98%

Measures Examples Operator Utilisation = 460 x 100 = 85.2% 540 Not acceptable ?

Measures Examples

Efficiency = 450 x 100 540 = 83% Borderline ?

Exercise
Section 1 Operator cont Att op. production SMV offStd Perf Uti min min Alison 540 540 1. 1000 0.37 30 Betty 540 480 2 1120 0.30 charlie 540 0 3 0 0.26 Dorothy 540 540 4 950 0.23 3 350 0.26 75 Ethel 540 540 5 1070 0.45 15 Freda 540 540 6 1250 0.40 30 Gail 540 540 7 1200 0.21 3 880 0.26 Heather 540 540 8 600 0.85 30 Irma 540 540 8 600 0.85 45 June 540 540 9 1275 0.38 30 Totals Eff

Exercise
Section 1
Operator cont. Att op production SMV OffStd Perf Uti Eff mins Alison 540 540 1. 1000 0.37 30 72.5 94 68.5 Betty 540 480 2 1120 0.30 70 100 70 charlie 540 0 3 0 0.26 Dorothy 540 540 4 950 0.23 66.5 86 57.3 3 350 0.26 75 Ethel 540 540 5 1070 0.45 15 91.7 97 89.2 Freda 540 540 6 1250 0.40 30 98 94 92.5 Gail 540 540 7 1200 0.21 89 100 89 3 880 0.26 Heather 540 540 8 600 0.85 30 100 94 94.4 Irma 540 540 8 600 0.85 45 103 92 94.4 June 540 540 9 1275 0.38 30 95 94 89.7 Totals 5400 4800 3.22 255 87.6 94.7 83

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

Capacity planning
Factory Department Section Machine Skill Restricting or defining factor

Capacity planning
What is the starting point? How many garments can a section produce? How many operators/machines do we need to produce a given number of garments? Same calculation just reversed!

Information!!
Labour content (SMVs/SAMs/Std. hrs) Available operators Contracted hours Absenteeism levels Efficiency levels

Capacity planning Information Information Information Obvious but where does it come from? How accurate is it?

Work content. SAMs, SMVs

Are they accurate? (can self correct in capacity planning) What operations do they cover? What operations are unmeasured or performed by indirect operators. Be clear!

Capacity planning - people

How many garments can a given number of people produce? Number of operators SMV (Labour content) Absenteeism Efficiency/ inefficiency!

Capacity planning - people

1. 500 direct operators working 48 hours/week S.M.V. = 25 per garment Absence level of 8% Average efficiency of 85% Contracted time Calculate standard hour/minutes that can be produced by operators. 2. Calculate how many garments that represents

Capacity planning - people

500 operators x 48 hours = 24000 contracted hours 24000 8% (1920 hours) absence = 22080 attended hours (absence costs 40 operators) At efficiency of 85% std. hours produced = 22080 x 85% = 18768 std hrs. 5232 hours lost to absence & inefficiency.= 21.8% of original contracted hours

Capacity planning - people

18768 std hrs produced S.M.V. = 25 mins. or 0.417 std. hrs. Garment capacity = 18768 0.417 = 45007 garments.

Capacity planning
Under the same conditions how many people are need to produced 70000 garments per week.?

70000 x 0.417 = 29190 standard hours required. Each operator will produce 39 hours @ 85% efficiency = 39 x 85% = 33.15 std. hrs/week

Capacity planning
29190 standard hours required. Each operator will produce 33.15 std. hrs/week Number of operators = 29190 33.15 = 880.54 people. + Absence of 8% = 880.54 +8%.= 951

Capacity planning
Capacity planning is only as accurate as the information it is based upon!

Capacity planning
Limiting factors People X Machines? Department?

Capacity planning-machines
Auto pocket set machine S.M.V. 0.60 Efficiency = 95% 15 machines available 8.50 hour day How many garments can they supply to sections?

Capacity planning-machines
15 machines x 8.50 hours = 127.50 hours/day. @95% efficiency std. hrs produced = 121.13 hrs SMV = 0.60 = 100 per hour at standard Output = 100 x 121.13 = 12113 garments Absence ignored as decision taken to ensure absence cover (15 machines + 8* absence = 17 operators. 1 spare shared with pressing

Capacity planning-machines
Capacity must be increased to 25000 per day. Each machine does 100 x 95% = 95 per hour. 25000/95 = 263.15 hours. In 8.5 hour day = 31 machines However machines cost $75000 each and have a six month delivery lead time. Try again!!!

Capacity planning-machines
Each machine will produce 95 per hour worked. 25000/95 = 263.15 hours 263.15 hours / 15 machines = 17.54 per machine per day 2 shifts

Capacity planning
Limiting factors People X Machines X Department?

Capacity planning- Department

Cutting room using semi-auto spreading machines and computerised cutting head. SMV for spreading = 0.1584 per metre SMV for cutting = 0.050 per metre Average fabric content per gmt. = 90 cms. Standard working day= 8.50 hours (39 week) 3 spreading machines on 4 tables 1 cutting machine. Department runs at 90% efficiency and 8% absence

Capacity planning- Exercise

How many people are needed to supply the factory with 50000 garments per week? What is machine requirement for 50000 garments per week? What do you recommend if production cut to 24000 garments per week? All operators are able to use both spread and cut equipment.

Capacity planning-spreading
50000 garments x 0.90 metres = 45000 metres to be cut each week. Each metre Smv = 0.1584 therefore 45000 x 0.1584 = 0.1584 x 45000 60 = 118.80 std.hrs required @ 90% efficiency = 132 operated hours./ 3machines = 44 hour week

Capacity planning- cutting

50000 garments x 0.90 metres = 45000 metres to be cut each week. Each metre Smv. = 0.05 therefore 45000 x 0.05 = 0.05 x 45000 60 = 37.5 std.hrs required @ 90% efficiency = 41.70 operated hours

Capacity planning cutting room

Spreading 132 hours needed over 3 machines Cutting 41.70 hours needed. Total operating hours = 173.9 Absence = 8% = 187.18 contracted hours needed = 4.8 (5) people at 39 hour week. 4 operators work 8.50 hours (when all attending). 1 operator works 2 hours early and through lunch break = 14 hour extra machine time per week. Helps on non-machine elements.

Capacity planning-spreading
24000 garments x 0.90 metres = 21600 metres to be cut each week. Each metre Smv = 0.1584 therefore 21600 x 0.1584 = 0.1584 x 21600 60 = 61.60 std.hrs required @ 90% efficiency = 68.40 operated hours./ 3machines = 22.80 hour week

Capacity planning- cutting

24000 garments x 0.90 metres = 21600 metres to be cut each week. Each metre Smv = 0.05 therefore 21600 x 0.05 = 0.05 x 21600 60 = 18.0 std.hrs required @ 90% efficiency = 20 operated hours

Capacity planning cutting room

Spreading 68.4 hours needed over 3 machines Cutting 20 hours needed. Total operating hours = 84.4 Absence = 8% = 91.2 contracted hours needed = 2.3 (3) people at 39 hour week. 2 operators to be released. Can 1 operator be redeployed for part of the day?