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##### Contrast design capacity and effective capacity

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Question;DeVry Chicago BSOP 334 Week 6 Homework;Chapter;5: Discussion and Review Questions: 1, 2, 6, 11, & 15 (p. 208), Problem 13;(p. 210);1. Contrast;design capacity and effective capacity.;2. List and;briefly explain three factors that may inhibit capacity utilization.;6. Why is it;important to adopt a big-picture approach to capacity planning?;15. Why is;capacity planning for services more challenging than it is for goods;production?;13. The;following diagram shows a 4-step process that begins with Operation 1 and ends;with Operation 4. The rates shown in each box represent the effective capacity;of that operation.;a. Determine;the capacity of this process. (11 units/hr);b. Which;action would yield the greatest increase in process capacity: (1) increase the;capacity of Operation 1 by 15 percent, (2) increase the capacity of Operation 2;by 10 percent, or (3) increase the capacity of Operation 3 by 10 percent?******************************************************************* DeVry Chicago BSOP 334 Week 6 LabChapter 5: Problems 1 & 3 (pp. 208-209);1. Determine the utilization and the efficiency for each of;these situations;a. A loan processing operation that processes;an average of 7 loans per day. The;operation has a design capacity of 10;loans per day and an effective;capacity of 8 loans per day.;b. A furnace repair team that services an;average of four furnaces a day if the design capacity is six furnaces a day and;the effective capacity is five furnaces a day.;c. Would you say that systems that have higher;efficiency ratios than other systems will always have higher utilization ratios;than those other systems? Explain.;3. A producer of pottery is considering the addition of a;new plant to absorb the backlog of demand that now exists. The primary location;being considered will have fixed costs of \$9,200 per month and variable costs;of 70 cents per unit produced. Each item is sold to retailers at a price that;averages 90 cents.;a. What volume per month is required in order to;break even?;b. What profit would be realized on a monthly;volume of 61,000 units? 87,000 units?;c. What;volume is needed to obtain a profit of \$16,000 per month?;d. What volume is needed to provide a revenue of;\$23,000 per month?;e. Plot the total cost and total revenue lines.;Chapter 12: Problems 15 & 16 (pp. 547-548);15. A company that manufactures paving;material for driveways and parking lots expects the following demand for its;product for the next four weeks;a. Determine the capacity;utilization for labor and machine for each of the four weeks.;Week;1;2;3;4;Labor Utilization;Machine Utilization;b. In;which weeks do you foresee a problem? What options would you suggest to resolve;any problems? What costs are relevant in making a decision on choosing an;option?;16. A company;produces two very similar products that go through a three-step sequence of;fabrication, assembly, and packaging. Each step requires one day for a lot to;be completely processed and moved to the next department. Processing;requirements for the departments (hours per unit) are;Department capacities are all 700;hours of labor and 500 hours of machine time, except Friday, when capacities;are 200 hours for both labor and machine time. The following production;schedule is for next week;a. Develop;a production schedule for each department that shows the capacity requirements;for each product and the total load for each day. Ignore changeover time.;b. Evaluate;the projected loading for the first three days of the week. Is the schedule;feasible? What do you suggest for balancing the load?

Paper#56213 | Written in 18-Jul-2015

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