Sara James Bakery has a plant for processing Deluxe breakfast rolls and wants to better understand its capability. Determine the design capacity, utilization, and efficiency for this plant when producing this Deluxe roll. Last week, the facility produced $148,000$ rolls. The effective capacity is $175,000$ rolls. The production line operates seven days per week, with three eight$-$hour shifts per day. The line was designed to process the nut$-$filled, cinnamon$-$flavoured Deluxe roll at a rate of $1,200$ per hour. The firm first computes the design capacity and then uses Equation $($S$7-1)$ to determine utilization and Equation $($S$7-2)$ to determine efficiency.

Solution

Design capacity $=(1200$ x $24$hr$)$ x $7=201600$ rolls$/$week

Utilization $=148000/201600=0\mathrm{.}734173\mathrm{.}4\%$

Efficiency $=148000/175000=0\mathrm{.}845784\mathrm{.}6\%$

Learning Exercise

If the actual output is $150,000,$ what is the efficiency?

Efficiency $=150000/175000=0\mathrm{.}857185\mathrm{.}7\%$