Question

Use the process information provided in the following table, when the sequence of flow is A → B (any machine can be used if available) → C → D (any machine can be used if available).

Operation	Number of Units of Equipment	Design Capacity (by equipment)	Planned Utilization (overall)
A	1	260 units/hr	87.5%
B	4	110, 100, 140, 90	83.0%
C	1	270 units/hr	65.0%
D	2	160, 115	70.0%

Calculate the maximum (design) capacity and effective capacity. (Round "Effective capacity" to 2 decimal places.)

Answer 1

Design Capacity is the maximum output of machine at best operating level including overtime but may be not practical. Effective Capacity is capacity or output of the machine under ordinary or normal conditions.

Operation	Number of Units of Equipment	Design Capacity (by equipment)	Total Design capacity	Planned Utilization (overall)	Planned utilization in Units (Design capacity * Planned unitization)
A	1	260 units/hr	260	87.5%	260 * 87.5% = 227.50
B	4	110, 100, 140, 90	110+100+140+90 = 440	83.0%	440 * 83% =365.20
C	1	270 units/hr	270	65.0%	270* 65% =117.50
D	2	160, 115	160 + 115 = 275	70.0%	275 *70% =192.50
Total			1,245		902.70

Therefore,

The design or maximum capacity = 260 + 440 + 270 + 275 = 1,245

Actual output (panned utilization = 902.70

Effective capacity = Actual output / Design capacity = 902.70 /1,245

= 0.7251 or 72.51%