A paper manufacturer runs its operation 24 hours a day and has three different p
ID: 396379 • Letter: A
Question
A paper manufacturer runs its operation 24 hours a day and has three different production lines making paper. Each line was installed at different times as the business grew. The business started with the first machine in 1995, the 2nd line was added in 2008, and the 3rd line was installed in 2016. Each line spends as much time processing as possible, but the time to switch between different paper types, clear jams, perform routine maintenance, etc. all reduce the amount of time each line is available. Due to technological advances between each lines installation the design capacity and actual processing time in a day is substantially different for each line . To better evaluate the performance of each line the plant manager collected the following statistics over the last 125 days of operation. Based on the information provided answer the following four questions.
64,625,000
A paper manufacturer runs its operation 24 hours a day and has three different production lines making paper. Each line was installed at different times as the business grew. The business started with the first machine in 1995, the 2nd line was added in 2008, and the 3rd line was installed in 2016. Each line spends as much time processing as possible, but the time to switch between different paper types, clear jams, perform routine maintenance, etc. all reduce the amount of time each line is available. Due to technological advances between each lines installation the design capacity and actual processing time in a day is substantially different for each line . To better evaluate the performance of each line the plant manager collected the following statistics over the last 125 days of operation. Based on the information provided answer the following four questions.
Production Line Design Capacity/Hour Hours Available/Day Output Over the 125 Days 1992 14000 18 29,925,000 1999 20000 20 46,000,000 2006 25000 2264,625,000
a. What is the Design Capacity for each line over the 125 day period? b. What is the Effective Capacity for each line over the 125 day period? c. What is the Efficiency of each line over the 125 day period? d. What is the Capacity Utilization of each line over the 125 day period?Explanation / Answer
a)
Design Capacity for each line over the 125 day period = Design capacity per hour * 24 hours * 125 days
Design capacity of Line 1992 = 14000*24*125 = 42,000,000
Design capacity of Line 1999 = 20000*24*125 = 60,000,000
Design capacity of Line 2006 = 25000*24*125 = 75,000,000
b) Effective capacity = Design capacity per hour * Hours available per day * 125 days
Effective capacity of Line 1992 = 14000*18*125 = 31,500,000
Effective capacity of Line 1999 = 20000*20*125 = 50,000,000
Effective capacity of Line 2006 = 25000*22*125 = 68,750,000
c) Efficiency = Actual Output / Effective capacity
Efficiency of Line 1992 = 29925000/31500000 = 95 %
Efficiency of Line 1999 = 46000000/50000000 = 92 %
Efficiency of Line 2006 = 64625000/68750000 = 94 %
d) Capacity utilization = Actual output / Design capacity
Capacity utilization of Line 1992 = 29925000/42000000 = 71.3 %
Capacity utilization of Line 1999 = 46000000/60000000 = 76.7 %
Capacity utilization of Line 2006 = 64625000/75000000 = 86.2 %
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