Question: ABC bakery has a plant in Germany processing its cupcake and wants to better understand its capability. Determine the design capacity, utilization and efficiency for

ABC bakery has a plant in Germany processing its cupcake and wants to better understand its capability. Determine the design capacity, utilization and efficiency for this plant when producing this cupcake.

The plant has the capacity to produce 2,000 pcs cupcake per eight-hour shift, with 3-shifts per day, 6 days a week. The plant does not operate the full eight hour: the employees have a two 10-minutes snack break and a 30 minutes lunch break per shift. One hour is dedicated for the set-up time which is done once a week during the first shift. A 15-minutes daily operation meeting is done per shift.

The plant usually produces 120.000 pcs cupcake per month.

  1. What is the design capacity of ABC Bakery?
  2. What is the effective capacity in ABC Bakery? As a percent?
  3. What is the efficiency?
  4. What is the utilization?

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