Capacity Analysis and

Planning
Estimating Requirements
Compiled by:
Alex J. Ruiz-Torres, Ph.D.
Multiple Sources + Jacobs & Chase (2018)
• Objectives and Importance
• Information used
• Estimating Resources
• Estimating Max Output
• Estimating Utilization
• Equations
Objectives and Importance
2
Objectives and Importance
Objectives

• Estimate the number of resources needed to meet

demand.
• Estimate maximum output of a process.
• Determine expected resource utilization.
• Evaluate alternative configurations of resources.

3
Objectives and Importance
Importance
• Having more resources than needed is an
unnecessary expense.
• Having less resources that needed will result in lost
sales and unhappy customers.

4
Information used
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Information used
• Product/Service demand: quantity required/ number
of customers.
• Standard time: amount of time required by an
activity/task based on system data (observations).
• Operation time: time dedicated to tasks per
resource.

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Estimating Resources
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Estimating Resources
Amazon … new AI drone How many drones
delivery system in San Juan. are needed?

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Estimating Resources
Information
load box
Demand: 250 deliveries/day in drone

Standard time
Average time to complete the process drone Average
= 27 minutes delivers time =
27 min
Operation time drone
Work hours per drone per day returns to
base
= 12 hours = (60  12) = 720 minutes
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Estimating Resources
How much work time is needed to satisfy the
demand?
– Demand = 250 units per day.
– Each delivery takes on average 27 minutes.
Total work time required
= demand  time per product(service)
= 250 deliveries  27 min/delivery
= 6,750 minutes
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Estimating Resources
•How
  many drones are needed?
Each drone operates for 720 minutes/ day

Number of drones required

= =
= 9.375 drones
10 drones

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Estimating Max Output
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Estimating Max Output
Max Output is estimated based on a given number of
resources.
What is the total work time available given a fleet of 10
drones?
Total work time available
= time available per drone  number of drones
= 720 min/drone  10 drones
= 7,200 min
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Estimating Max Output
•What
  is the maximum output for the 10 drone
fleet?
Max Output = =
= = 266.67 deliveries
= 266 deliveries per day

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Estimating Utilization
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Estimating Utilization
•How
  busy will the drones be with a demand of 250
deliveries/day?
– Utilization =
=
= 93.75% Total work time required
= 250 deliveries  27 min/delivery
= 6,750 min
Total work time available
= 10 drones  720 min/drone
= 7,200 min

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Equations
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Equations

Problem data (inputs)

dq = Demand per product (service) q
sq = Standard time per product (service) q
a = Time available per resource

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Equations
Problem data (inputs)
q = deliveries

Based on a time scale of 1 day.

dq = 250 deliveries/day
sq = 27 min/delivery
a = 720 min/ drone
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Equations
Outputs/ Results
TR = Total work time required to meet demand
=  for all q (dq × sq)
N = Number of resources = TR/a
x = ceiling function: 2.01 = 3; 2.30 = 3; 2.99 = 3; 2.00 = 2
TA = Total work time available from all resources = N  a
U = Utilization = TR / TA
Oq = Max output if all available time is dedicated to q = TA / s q

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Equations
dq = 250 deliveries
sq = 27 min/delivery q = deliveries
a = 720 min/ drone

Outputs/ Results
TR = dq × sq = 250  27 = 6,750 min
N = TR / a = 6,750 / 720  = 9.375 = 10 drones
TA = N  a = 10 drones  720 min/ drone = 7,200 min
Oq = TA / sq = 7,200 / 27 min/ drone = 266
deliveries
U = TR / TA = 6,750 min / 7,200 min = 93.8%
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