Suppose that Sara James reduces changeover time setup time by three fewer hours per week what will be the new values of utilization and efficiency. The manager of Sara James Bakery now needs to increase production of the increasingly popular Deluxe roll. To meet this demand, she will be adding a second production line. The second line has the same design capacity (201,600) and effective capacity (175,000) as the first line; however, new workers will be operating the second line. Quality problems and other inefficiencies stemming from the inexperienced workers are expected to reduce output on the second line to 130,000 (compared to 148,000 on the first). The utilization and efficiency were 73.4% and 84.6%, respectively, on the first line. Determine the new utilization and efficiency for the Deluxe roll operation after adding the second line.
APPROACH blacktriangleright  

First, determine the new design capacity, effective capacity, and actual output after adding the second line. Then, use Equation (S7-1) to determine utilization and Equation (S7-2) to determine efficiency.

Utilization = Actual output/Design capacity                       (S7-1)
Efficiency = Actual output/Effective capacity                    (S7-2)
 

Answer rating: 100% (QA)

SOLUTION The new utilization and efficiency for the Deluxe roll operation after adding the s... View the full answer