Capacity-Planning-I.ppt

capacity panning for Apparel industry.

1. Capacity Planning

2. Factory capacity
•500 operators working 48 hour week.
•Work content of 30 minutes per garment
•Therefore capacity of 500 x 48x 60
30
= 48000 garments per week

3. Definitions
•“On –standard” : that time the operator spends on
“measured” work earning Standard Minutes.
•“Off-standard” : that time the operator spends on
“un-measured” work or “measured” work that is
classified as “off-standard”.

4. Definitions-“Measured work”
•That work to which a standard measure (SMV,
SAM) has been applied.
•Example of “measured work” that may be
classified as “off-standard”. An operator may
whilst learning a new operation be taken off
standard for payment purposes but will still be
contributing SMS as the operation they complete
will have SMV applied.

5. SMV/SAM?
•Standard Minute Value (S.M.V.) is the time allocated
through work measurement for an operation to be
completed at a 100 rating.
•Standard Allocated (Allotted) Minute (S.A.M.) is an
S.M.V. + any policy allowances added.

6. Operator Performance
•Primarily a measure of the effectiveness of the individual
operator
•= SMs earned “on standard” x 100
Time spent “on standard”
Sometimes referred to as “Pay” performance as it is usually
measured within an incentive scheme.

7. Operator utilisation
•A measure of how well the
supervisor manages to keep the
operators “on-standard”
= time “on-standardx 100
time attended

8. Efficiency
•A measure of how well the
section/factory is run.
= SMs earned x 100
time attended.
•A measure of both the operator
and the supervisor

9. Efficiency
•Incorporates elements of
operator performance &
utilisation into the single
measure.

10. Absence/attendance
= total operator time attended x
100
total contracted time
= attendance.

11. Measures -Examples
•Section = 20 operators working 9 hour/540 minute
day
•2 operators are absent all day
•Attendance = 18 x 540 x 100
20 x 540
= 9720 = 90% or 10% absence
10800

12. Measures-examples
•An operator attends for 540 minutes
•Produces 1500 pieces @ SMV of 0.30
•Waits 60 minutes for work
•Waits 20 minutes machine breakdown
Find
•SAM produced?
•On standard time?
•Performance?
•Utilization?
•Efficiency?

13. Measures-examples
•Sms produced = 1500 x 0.30 = 450.
•Time “on-standard” = 540 –(60+20)
= 460 minutes
•Performance = 450 x 100
460
= 97.8 or 98%

14. Measures-examples
•Operator utilisation
= 460 x 100 = 85.2%
540

15. Measures-examples
•Efficiency = 450 x 100
540
= 83%

16. Exercise-definitions
•Attendance = 4800/5400 = 89%
•total sms earned = 3982.30

17. Capacity planning -people
•500 direct operators working 48 hours/week
•S.M.V. = 25 per garment
•Absence level of 8%
•Average efficiency of 85%
•Contracted time 540
1.Calculate standard hour/minutes that can be
produced by operators.
2.Calculate no. of garments produced.

18. Capacity planning -people
•500 operators x 48 hours = 24000 contracted
hours
•24000 –8% (1920 hours) absence = 22080
attended hours (absence costs 40 operators)
•At efficiency of 85% std. hours produced =
22080 x 85% = 18768 std hrs.
•5232 hours lost to absence & inefficiency.=
21.8% of original contracted hours

19. Capacity planning -people
•18768 std hrs produced
•S.M.V. = 25 mins. or 0.417 std. hrs.
•Garment capacity = 18768
0.417
= 45007 garments.

20. Capacity planning
•Under the same conditions how many people are
needed to produce 70000 garments per week.?
•70000 x 0.417 = 29190 standard hours required.
•Each operator will produce 39 hours @ 85%
efficiency
= 39 x 85% = 33.15 std. hrs/week

21. Capacity planning
•29190 standard hours required.
•Each operator will produce 33.15 std. hrs/week
•Number of operators = 29190
33.15
= 880.54 people.
•+ Absence of 8% = 880.54 +8%.= 951

22. Capacity planning-machines
•Auto pocket set machine
•S.M.V. 0.60
•Efficiency = 95%
•15 machines available
•8.50 hour day
•How many garments can they supply to sections?

23. Capacity planning-machines
•15 machines x 8.50 hours = 127.50 hours/day.
•@95% efficiency std. hrs produced = 121.13 hrs
•SMV = 0.60 = 100 per hour at standard
•Output = 100 x 121.13 = 12113 garments

24. Capacity planning-machines
•Capacity must be increased to 25000 per day.
•Each machine does 100 x 95% = 95 per hour.
25000/95 = 263.15 hours. In 8.5 hour day = 31
machines

25. Capacity planning-machines
•Each machine will produce 95 per hour worked.
•25000/95 = 263.15 hours
•263.15 hours / 15 machines = 17.54 hrs per machine
per day
•2 shifts

26. Capacity planning-Department
•Cutting room using semi-auto spreading machines
and computerised cutting head.
•SMV for spreading = 0.1584 per metre
•SMV for cutting = 0.050 per metre
•Average fabric content per gmt. = 90 cms.
•Standard working day= 8.50 hours (39 week)
•3 spreading machines on 4 tables
•1 cutting machine.
•Department runs at 90% efficiency and 8% absence

27. Capacity planning-Exercise
•How many people are needed to supply the factory
with 50000 garments per week?
•What is machine requirement for 50000 garments per
week?
•What do you recommend if production cut to 24000
garments per week?
•All operators are able to use both spread and cut
equipment.

28. Capacity planning-spreading
•50000 garments x 0.90 metres = 45000 metres to be
cut each week.
•Each metre Smv= 0.1584 therefore 45000 x 0.1584
= 0.1584 x 45000
60
= 118.80 std.hrs required
@ 90% efficiency = 132 operated hours./ 3machines =
44 hour week

29. Capacity planning-cutting
•50000 garments x 0.90 metres = 45000 metres to be
cut each week.
•Each metre Smv. = 0.05 therefore 45000 x 0.05 =
0.05 x 45000
60
= 37.5 std.hrs required
@ 90% efficiency = 41.70 operated hours

30. Capacity planning –cutting room
•Spreading 132 hours needed over 3 machines
•Cutting 41.70 hours needed.
•Total operating hours = 173.9
•Absence = 8% = 187.18 contracted hours needed = 4.8
(5) people at 39 hour week.
•4 operators work 8.50 hours (when all attending). 1
operator works 2 hours early
and through lunch break = 14 hour extra machine time per
week. Helps on non-machine elements.

31. Capacity planning-spreading
•24000 garments x 0.90 metres = 21600 metres to be
cut each week.
•Each metre Smv = 0.1584 therefore 21600 x 0.1584
= 0.1584 x 21600
60
= 61.60 std.hrs required
@ 90% efficiency = 68.40 operated hours./ 3machines
= 22.80 hour week

32. Capacity planning-cutting
•24000 garments x 0.90 metres = 21600 metres to be
cut each week.
•Each metre Smv = 0.05 therefore 21600 x 0.05 =
0.05 x 21600
60
= 18.0 std.hrs required
@ 90% efficiency = 20 operated hours

33. Capacity planning –cutting room
•Spreading 68.4 hours needed over 3 machines
•Cutting 20 hours needed.
•Total operating hours = 84.4
•Absence = 8% = 91.2 contracted hours needed = 2.3
(3) people at 39 hour week.
•2 operators to be released.
•Can 1 operator be redeployed for part of the day?

34. Floater
Floaters generally can perform all operations but at
much lower efficiency. They should not be allocated
to any specific operation in any line plan. They are
available to handle unforeseen circumstances.

35. Pitch Time
Pitch time is the theoretical operation time, each
operator should take for a planned balanced line. It is
calculated as:-
=(SAM value of style)/ (No of operator required to
meet the target)