Online Class Exercise Video

Let’s take an example… we have a
company who is making bottles and bangs and this company is planning to make
60,000 bottles and hundred thousand bags for one process which is Paul’s. The
second process which is called Newman’s… they are planning to make 70 thousand
bottles and two hundred thousand banks and we have for the five years the
planning and for this company first thing that we want to do is when we see
something like this and since the bottles and bottles are the same and the
bags and bags are the same for both Paul’s and Newman’s.
I’m going to make sure that I take the total so I’m going to calculate the
total the total of Pail’s bottles is going to be equal to sixty thousand plus
seventy five thousand and the total for bags is going to be equal to one hundred
thousand plus two hundred thousand I am simply going to copy and paste for the
rest rest of the years so now I have the number of bottles to be produced per
year and number of bags to be produced per year. I want to find whether my
capacity resources are good enough for meeting this planned production. I have for the bottles two operators and
three machines each machine is capable of producing 150 thousand bottles
similarly I have three operators for making bags and I have five machines
each capable of producing 250 thousand bags so let’s look at the Bottles first.
okay. I want to find out what is the available capacity the available
capacity is basically how many bottles that I can produce and how many bottles
that I want to produce I want to produce 135,000 bottles
okay but how many bottles I can produce I can actually produce with three
machines with 150,000 each I can produce three times 150,000 which is four
hundred and fifty thousand bottles that is my total available capacity. My
available capacity for the first year is going to be equal
to how many bottles that I have that I can that I’m planning to make one
hundred and thirty-five thousand this is what I’m planning to make over how many
bottles that I can produce that is four hundred fifty thousand that is about
point three so my available available capacity is 30% which is 0.3.
My machine usage is going to be for one machine I can do 0.3 which is the 30%
available capacity for three machines. I’m going to be three times point three
which is point nine see this 135,000 over 450 thousand gives you the
available capacity okay but I can produce that in with them within one
machine how because 135,000 is less than hundred and fifty thousand and that’s
the reason I have I can use three machines and make it as point nine. The
percentage capacity utilized is what I need to calculate next what is my
percentage capacity utilized it is going to be the same as the available capacity
but that is in percentage the machine requirement is going to be point nine. Machine usage is exactly by Machine
requirement okay and my labor requirement is if I have two operators
per machine then that is going to be twice or two times the Machine
requirement which is one point eight. I’m going to highlight all these numbers and
I’m going to copy and paste and that is going to be my problem… what is my
problem here? I forgot to use my absolute reference! That is my problem.Let’s do
that so for the available capacity the absolute reference should be on which
number the number which is going to be this this is my number which is constant
which is F 17 so I’m going to make this as an absolute number by Machine usage
be 1/8 is be 1/8 that is fine but b-17 which is the 3 is going to be constant
so b-17 should be absolute reference my percentage capacity utilized is going to
be simply the one that has point three so no problems at all I’m not going this
is going to change so it’s fine the Machine requirement is going to be the
same the labor requirement however has to change simply because I’m using this
constant 2 which is going to be B 15 so my B 15 has to be absolute now if I
highlight this copy and paste! This I should be fine! so my capacity utilization rate is 77%
is 77% let me make sure that I am I is so many scientists it’s my sunny seventh
to set let’s do the same thing for bags the number of operators is three the
total available capacity is five machines 250,000 each my so my total
available capacity of five machines is going to be five times
250,000 which is going to be 1,250,000 my available capacity
is going to be for the bags is going to be 300,000 divided by 1 million 250,000
that is 0.24 my total machine usage is going to be point to four times the
number of machines which is one point two zero my percentage capacity utilized
is going to be the available capacity my machine requirements is going to be the
machine usage my labor requirement is machine requirement times the available
capacity oh sorry sorry sorry the number of capita number of operators let’s make
these n seventeen to be absolute the J 50 the j17 to be absolute this is fine
this is fine and for the labor requirements the number of operators
which is j15 has to be obscene absolute now i can copy and paste. I should get
the numbers so my percentage capacity utilized the utilization rate is 94
percent so it is 77 percent for my barrels and 94 percent for my bags. It
has not exceeded my capacity that means my company is good… this company is good
for.. production planning. So, I can meet my
demand with my capacity that is the answer. I would like you to use the OCE 4
which is in your blackboard and practice this and understand… what is
this available capacity… what is the total available capacity… which is this…
and what is the capacity that is needed so that you can find the utilization
rate and this is what you need to know in this chapter.

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