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Capacity Analysis

Capacity Analysis

Being able to analyze plant and equipment $($capacity and automation$)$ is essential to understanding how you and your competitors are supplying the market demand. There is often unmet demand in segments because companies do not or cannot produce enough units. If you successfully analyze industry capacity, your team could benefit from these shortfalls.

Capacity iconEach product has its own production line where you can set capacity and automation. Capacity represents the company$$s ability to produce units of its product. Think of capacity as your manufacturing plant. For each unit of capacity, there are two shifts of workers that can use your manufacturing plant to produce your products, which represents a first and second shift. So if your product has a capacity of $1000,$ this means you can produce up to $2000$ units of your product.

Automation iconAutomation represents the robot$-$to$-$worker ratio in your manufacturing plant. A higher ratio of robots will provide your company with a lower labor cost. However, this will increase the amount of time it takes your products to be updated.

You will need:

The Production Analysis report $($page $4)$ of the FastTrack for Round $0$

On the Production Analysis page, look at the table of products $($the Andrews company is displayed$).$ The highlighted boxes $($plus a little math!$)$ are where you will find the information you need to complete the analysis.

Name Primary Segment Units Sold Unit Inventory Revision Date Age Dec$\mathrm{.}31$ MTBF Pfmn Coord Size Coord Price Material Cost Labor Cost Contr. Marg. $2$nd Shift & Overtime Automation Next Round Capacity Next Round Plant Utiliz.

Able Low $1,2008711/21/20113\mathrm{.}1210006\mathrm{.}413\mathrm{.}6$ $$34\mathrm{.}00$ $$16\mathrm{.}17$ $$10\mathrm{.}1120\%63\%3\mathrm{.}0800161\%$

Production Costs Activity

Use the table with page $4$ of the FastTrack to complete the activity.

Capacity$/$Industry Production table First Shift Capacity First and Second Shift Capacity Automation Level Cost to Double Capacity Cost to Raise Automation to $10$

Company Found under "Capacity Next Round" Capacity Next Round x $2($shifts$)$ Found under "Automation Next Round" Increasing capacity is $$6$ per unit with an adjustment for automation. Increasing automation is per unit of capacity

Industry Total the capacity of each product in that segment Total capacity of each product in that segment X $2$ Formula is:

First Shift Capacity x $[$$$6+($$$4$ x automation level$)]$ Example Input: $500$ Formula is:

First Shift Capacity x $[$$$4$ x $(10-$ automation level$)]$ Example Input: $700*$ In the simulation, the input cells are in thousands $(000$s$),$ so an input of $1$ is actually $1000$ units. So$,$ in the example, $500,000$ units is inputted as $500$ in the cell. This applies to dollar values as well.

Incomplete

Capacity Analysis

Product

Name First Shift

Capacity First & Second

Shift Capacity Automation

Level Cost to Double

Capacity Cost to Raise

Automation to $10\mathrm{.}0$

Company Industry Company Industry

Able