Review of the capacity’s Current Situation
The overall capacity utilization at EMC is at 92% which lies above the 80-85% normal threshold. The 92% arises from a range of processes for its production. The blanking machine category accounts for 75% while the plastic molding category accounts for 93%. Packaging, Packing and Assembly are almost 80%. On the other hand the finishing processes are near 88%.
The departments were operating at an hour shift of forty hours. Departments, on weekly basis often add overtime to maintain the orders. According to Bill, who manages the plant, a single shift cuts on additional fixed costs. A second shift would result to extra energy consumption, and more employees increasing the fixed costs of the company. More funds are needed to employ more employees and also train them. Employees are also entitled to 15% premium for each shift. The manager also prefers a capacity utilization of about 85% since the 92% is a little high. The production of plasti-brack takes places in some process.
To compute the capacity utilization in each process, Capacity utilization= M-Hr Capacity (annual Hrs)/M-Hrs Production
The following table shows the plasti-brack utilization in the various processes 2000 No. Mchn. M-Hr Capacity (annual Hrs) M-Hrs Production Utilization
Blanking 2 4000 3529.3 88.2%
Molding 4 8000 6886.8 86.1%
Assembly 8 160’00 15200.3 95.0%
Bulk Pack 1 2000 329.9 see below BULK PACK 17.9% 329.91
Shaving 5% off the estimated direct labor-hours in the predetermined overhead rate will result in an artificially high overhead rate. The artificially high predetermined overhead rate is likely to result in overapplied overhead for the year. The cumulative effect of overapplying the overhead throughout the year is all recognized in December when the balance in the Manufacturing Overhead account is closed out to Cost of Goods Sold. If the balance were closed out every month or every quarter, this effect would be
The plan will incooperate home and school. Drew and Sabrina expressed their main concerns regarding their expectations for Esmrel. For home both Drew and Sabrina agreed getting Esmrel involve in more activities would be good for him. Sabrina, Drew, and Esmrel discussed what type of activities Esmrel would enjoy engaging in and ways to implement those activites. They also worked on a schedule for Esmrel regarding his school work and establishing how assignments were going to be checked. For school Sabrina will be setting up a parent teacher conference with all Esmrel
Jonah tells them that they have hidden capacity because some of their thinking is incorrect. Some ways to increase capacity at the bottlenecks are not to have any down time within the bottlenecks, make sure they are only working on quality products so not to waste time, and relieve the workload by farming some work out to vendors. Jonah wants to know how much it cost when the bottlenecks (X and heat treat) machines are down. Lou says $32 per hour for the X machine and $21 per hour for heat treat. How much when the whole
There is a consensus among my sources that since the implementation of the NSFAD the number of new HIV/AIDS cases has decreased. Hughes and Stevens found that, “between 2000 and 2008, the number of cases of HIV reduced amongst drug users from 907 to 267 and the number of cases of AIDS reduced from 506 to 108” (1015). Hughes and Stevens rely on the IDT for their statistics, which only tracks new cases of HIV/AIDS for drug users in treatment (Laqueur 769). These statistics should be regarded as reliable because the independent EMCDDA points out on its website, “It (the IDT) plans, implements and coordinates drug demand reduction interventions, and collects, analyses and disseminates information on drug use and its responses” (EMCDDA). Essentially,
| * The problem is the new manufacturing system installed in the plant requires trained workers to successfully operate the machine and at the time the new section is scheduled to open only 4 out of 16 workers will have experience. * Having untrained workers will increase the rejection rate for output of production.
The above cost system was efficient during the 1980s because it split up overhead over three cost pools, adding an additional pool, which has machine hours as its cost driver. This proved efficient because “[w]ith increased usage of automated machines, direct labor run time no longer reflected the amount of processing being performed on parts, particularly when one operator was responsible for several machines.” Packet, pg. 7.
The corporation discussed in this paper is in the aerospace industry. We are a fortune 200 business. The company makes windows for airplanes. At the present time we are number one in the industry, but there is competition. The company has been in operation for 45 years. Currently we supply OEM and the aftermarket with windshields. In this paper when I refer to the product that we manufacture, I will use windshield and transparency interchangeably. We employee about 500 production employees. We operate using 3 eight hour shifts, with the majority of the production done on first shift. As of today we operate at about twenty percent overtime, due to the firm orders that we have plus our backlog. We have hundreds of item numbers that we manufacture,
powder product from an employee owned company. Ener-C uses real fruit powders along with mineral bound vitamin C instead of just ascorbic acid for a healthier product.
Over time work by the technicians may compromise the quality and the accuracy of the tests being conducted. It may affect the work-life balance of its employees. Similarly, the laboratory may need extra storage space to accommodate the extra input materials. Considering the cost-benefit of adding premium shift hours, the marginal increase in profit is not worth the effort.
The trading hours is 24 hours a day and 7 days a week. There are three shifts in a day. And in one shift 50 people are working in one place. This company is recruiting the staff throw the Australian staffing agency Pty ltd. Our company set up to two departments. 3D printing and Digital printing, 3D printing is very famous because we use the world fastest printer. And the digital printer takes a second to print. Our services are fast, quick, good quality. It is suitable to students or workers. We receive the data from the clients, and print it right away without having deposits. We receive employees and insert to be run on high speed inserting machines to create the works. The employees are processed in a pre-sort order ready to be sorted. For the products, we are going to seal it by hand which can protect the
These two bottlenecks constrained the whole process. Alex and his colleagues were happy to identify two "Hebie"s, NCX-10 and Heat Treatment Department, which bottlenecked a flow sufficient to meet demand and make money. So the only thing to do was to find more capacity. To increase the capacity of the plant was to increase the capacity of only the bottlenecks. To increase the capacity of bottlenecks did not mean to install new machine, but to find the hidden capacity. With the help of Jonah, Alex found the NCX-10 had 1-hour idle time, as the union contract stipulated that there must be a half-hour break after every four hours work. The hours lost in the breaks of NCX-10 were enormously expensive because the throughput for the entire plant had been lowered by the bottleneck. The problem of the second "Hebie", heat treat, was that they didn 't make the bottleneck work on the parts contributed to throughput and many products were unable to be shipped without the parts in pile for treatment. What was more, they only did most inspections prior to final assembly but never inspected the parts before bottleneck. It easily let defects go through bottleneck and lost time in the bottleneck could not be recovered. The cost of one hour lost in these two bottlenecks is the cost of an hour lost in the system, which is computed as the total expense of the system divided by
Although production needs are being met, improvements in productivity are always at the forefront of management’s thoughts. Doing more with less is a constant effort for middle management and hourly laborers. Over all the
In this way, the Philippine government has increased utilization of existing infrastructure by introducing morning and afternoon school shifts. However, when schools reach their full capacity they will now consider operating three shifts for the students: morning, afternoon and evening shifts. Moreover, the teachers have been given the opportunity to hold two or more teaching positions, thereby increasing their salaries. But sometimes they also considered the lacking of teachers, instructors, and professors as one of the reasons to implement the double shift system.
The figures provided in exhibit 1 and 4 needs to be tailored with the findings from Peggy Knight’s task force regarding Sippican’s overhead costs to define the amounts of each duration drivers. Assumption: 20 working days are used per month Machine-related expenses - Machine hours: 62 machines operate for 6 hours per shift. There are 2 shifts per day. Amount of driver = 62 machines * 6 hours * 20 days * 2 shifts = 14.880 machine hours Set-up labor - Set-up hours: 15 set-up workers working daily for 6 hours per shift. There are 2 shifts per day. Amount of driver = 15 set-up workers * 6 hours * 20 days * 2 shifts = 3.600 set-up hours Receiving and production control - Receiving hours: 4 employees working 6,5 hours a day. Amount of driver = 4 employees * 6,5 hours * 20 days = 520 receiving hours practically available
Due to this last potential issue, the ideal strategy that Stermon should adopt would be a combination of Option 2 (One cycle week) and Option 4 (Labor multi skilling). The Option 4 would definitively improve the effectiveness of the labor in the plant, and it would benefit the change over time reducing it. However, if we look at Saugoe’s notes about the combination of improvement plans we can appreciate that adopting Options 2 and 4 at the same time might cause a lot of discontent if people were asked to change over faster as well as performing multiple functions. Therefore we believe that going with option 2 alone is the best solution to Stermon’s problems.