1) A metal processing firm wishes to install sufficient automatic

moulders to produce 2,50,000 good castings per year. The

moulding operation takes 1.5 minutes per casting, but its
output is typically about 3% defective. How many moulders will
be required if each one is available for 2000 hour of capacity
per year?

Solution:

100 – 3% defective = 97%

Actual good output required = 2,50,000 ÷ 0.97 = 2,57,732 units/year

Required system capacity (RSC) = Actual good output required ÷

System efficiency

RSC = 2,57,732 units/year ÷ 2000 hours per year

= 129 units/hour

Individual machine capacity = 60 min/hour ÷ 1.5 min/unit

= 40 units – machine/hour

No. of machine required = 129 units/hour ÷ 40 units/machine/hour

= 3.2 machine

= 3 or 4 moulder required.
2) An automobile component manufacturer has the plan of buying
a moulding machine which can manufacture 1,70,000 good
parts per year. The moulding machine is a part of a product
line. The system efficiency of the product line is 85%.
a) What is required system capacity?
b) Asume, that it takes 100 seconds to mould each part and the
plant operates 2000 hours per year. If the moulding
machines are used only 60% of the time and are 90%
efficient, what is the actual output of the moulding machine
per hour?
c) How many moulding machines would be required?

Solution:

a) System capacity = Actual ouput/year ÷ System efficiency

= 1,70,000 ÷ 0.85
= 2,00,000 Moulds/year
= 2,00,000 ÷ 2000 = 100 moulds/hour
b) Output per hour = unit capacity x % utilization x efficiency

Unit capacity = 3600 sec ÷ 100 sec per mould

= 36 mould per hour
Output per hour = 36 x 0.6 x 0.9 = 19.44 (say 20 moulds)

c) No. of moulding machines required = system capacity ÷

output per hour
= 100 ÷ 20 = 5 machines
 3) Calculate the capacity requirement per week for a company,
which uses an MRP system. Actual capacity requirement and
forecasted demand are given in tables 1 & 2. Company plans to
adjust capacity when the cumulative deviation exceeds 1/3 of
the forecasted average demand per week. Would this system
necessitate any adjustment?

Table 1 – Actual capacity requirement

Week 1 Week 2 Week 3 Week 4 Week 5
560 550 635 765 695

Table 2 – Forecasted demand

Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8 9 10
620 580 425 735 630 645 695 560 630 480

Solution:
Average forecast =
= 620+580+425+735+630+645+695+560+630+480 ÷ 10

= 600

Deviation tables:

Week 1 Week 2 Week 3 Week 4 Week 5

Planned 600 600 600 600 600
Actual 560 550 635 765 695
Deviation -40 -50 35 165 95

Therefore cumulative actual deviation =

= ((-40) + (-50) + 35 + 165 +95) = 205

 Permissible cumulative deviation = 1/3 x Average forecast
demand
= 1/3 x 600
= 200
The cumulative actual deviation is greater than the permissible
cumulative deviation.
(ie) 205 > 200

Thus the adjustment is necessary.

Solve:

4) Calculate the capacity requirement per week for a company,

which uses an MRP system. Actual capacity requirement and
forecasted demand are given in tables 1 & 2. Company plans to
adjust capacity when the cumulative deviation exceeds 1/4 of
the forecasted average demand per week. Would this system
necessitate any adjustment?

Table 1 – Actual capacity requirement

Week 1 Week 2 Week 3 Week 4 Week 5
285 460 350 210 315

Table 2 – Forecasted demand

Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8 9 10
200 180 125 465 270 230 280 310 230 190
 5) The following activities constitute a work cycle.
i) Find the total time, theoretical output obtained
from the machine.
ii) Calculate the number of machines required to
produce the three components from the
information given below.
S. No. Activity Time (min)
1. Unloading 0.25
2. Inspection 0.35
Loading job on machine
3. 0.40
table
4. Machine operation time 0.90

S.No Components A B C
1. Setup time per batch 25 min 55 min 45 min
2. Operation time 1.75 3.0 2.1
(min/piece)
3. Batch size 350 550 575
4. Production per month 2450 4400 2875

Solution:
i) Total cycle time (T) = 0.25+0.35+0.40+0.90 = 1.90 min
ii) Output of the machine

Output machine capacity = 60 min/hour ÷ 1.9 min/unit

= 31.5 units 31 units

iii) Number of machines required

Assume that the plant works on the single shift basis per day
of 8 hours each.
 The total time required for the processing the components is given by

Total time required = Setup time + Operation time

For component A,

Total time required = Setup time + Operation time

= [(Production quantity ÷ Batch size) x Setup time] +

[Production quantity x Operation time]

= [(2450÷350) x (25÷60)] + [2450 x (1.75÷ 60)]

= 74.374 hrs

For component B,

= [(4400÷550) x (55÷60)] + [4400 x (3÷ 60)]

= 227.33 hrs

For component C,

= [(2875÷575) x (45÷60)] + [2875 x (2.1÷ 60)]

= 104.375 hrs

Total time (hrs) required to process all the three components

= 74.374 + 227.33 + 104.375 = 406.079 hrs per month

Total number of hours available (assuming 25 working days) per

month

= 8 x 25 = 200 hrs.

Therefore number of machines required =

= Total number of machine hours required ÷ Total number of hours available
 = 406.079 ÷ 200 = 2.030 2 machines

Assuming a machine efficiency of 85% and operator efficiency of

75%, the number of machines required is:

Total hours required per month = 406.079 ÷ (0.85x0.75) = 636.98 hrs

Number of machines required = 636.98 ÷ 200 = 3.18 4 machines