Capacity
Measurement
SESSION FOUR
Measuring
Capacity
• Input Capacity Measure
• Output Capacity Measure
Designed vs Effective Capacity
• Designed capacity, defined as ‘the maximum output of a process under ideal
conditions.
• Effective capacity, defined as ‘maximum output that can be realistically
expected under normal conditions.
• It can be considered that effective capacity is less than designed capacity, due
to set-up times, breakdowns, stoppages, maintenance, and so on.
• However, by distinguishing between designed capacity and effective capacity, it
can be established the difference between utilization and efficiency.
Utilization vs Efficiency
• Utilization is the ratio of actual output to designed capacity.
• Efficiency is the ratio of output to effective capacity.
• 𝑈𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 =
• 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
𝐴𝑐𝑡𝑢𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝐷𝑒𝑠𝑖𝑔𝑛 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
𝐴𝑐𝑡𝑢𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡
𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
Problem .1
• Suppose the photographic paper manufacturer has a coating line with a design capacity of 200
square metres per minute, and the line is operated on a 24-hour day, 7 days per week (168
hours per week) basis. Design capacity is 200 × 60 × 24 × 7 = 2.016 million square metres per
week. The records for a week’s production show the following lost production time:
• During this week the actual output was only 582,000 square metres. The first five categories of
lost production occur as a consequence of reasonably unavoidable, planned occurrences and
amount to a total of 59 hours. The last five categories are unplanned, and avoidable, losses and
amount to 58 hours.
Answer .1
Design capacity = 168 hours per week
Effective capacity = 168 − 59 = 109 hrs
Actual output = 168 − 59 − 58 = 51 hrs
51
𝑈𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 =
= 0.304(30%)
168
51
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
= 0.468(47%)
109
Problem .2
• The staff training center at a large regional hospital provides training sessions in CPR to
all employees. Assume the capacity of this training system was designed to be 1,800
employees per year. Since the training center was first put in use, the program has
become more complex, so that 1,400, now, represents the most employees that can be
trained per year. In the past year, 1,350employees were trained. Calculate the efficiency
and utilization of the system
1350
𝑈𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 =
= 75%
1800
1350
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
= 96.4%
1400
Problem .3
• An executive conference center has the physical ability to handle 1,100 participants.
However, conference management personnel believe only 1,000 participants can be
handled effectively for most events. The last event, although forecasted to have
1,000participants, resulted in the attendance of only 950 participants. What are the
utilization and efficiency of the conference facility.
Design capacity = 1,100 participants
Effective capacity = 1,000 participants
Actual output = 950 participant
950
𝑈𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 =
= 86.4%
1100
950
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
= 95%
1000
Problem .4
• A fleet repair facility has the capacity to repair 800 trucks per month. However, due to
scheduled maintenance of their equipment, management feels they can repair no more
than 600 trucks per month. Last month, two of the employees were absent several days
each and only 400 trucks were repaired. What are the utilization and efficiency of the
repair shop?
Design capacity = 800 trucks
Effective capacity = 600 trucks
Actual output = 400 trucks
400
= 50%
800
400
𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 =
= 67%
600
𝑈𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 =
Assignment Problem
• A newspaper printer has a press capable of printing 37 papers s minute and the press is operated for
15 hours a day, 6 days a week. Design capacity is 199,800 papers per week. The following is a record
of the week’s activities:
• During the week, the actual output was only 124,320 papers, the first three items were planned
delays, the fourth was unplanned delay. Based on a design capacity of 90 hours in the week and
measures in hours, calculate the following:
1. Effective Capacity
2. Actual Output
3. Utilization
4. Efficiency
1. Changing paper rolls
6 hrs
2. Re-inking plates
5 hrs
3. Shift change
3 hrs
4. Printer breakdown
20 hrs
Thank You…,