Capacity Planning

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

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 offstandard.

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.

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.

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.

Operator utilisation
A measure of how well the
supervisor manages to keep the operators on-standard = time on-standard x 100 time attended

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

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

Absence/attendance
= total

operator time attended x 100 total contracted time = attendance.

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

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

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%

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

Measures- examples
Efficiency = 450 x 100
540
= 83%

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

Capacity planning - people

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

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

Capacity planning - people

18768 std hrs produced S.M.V. = 25 mins. or 0.417 std. hrs. Garment capacity = 18768
0.417 = 45007 garments.

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

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

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?

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

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

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

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

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.

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

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

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.

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

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

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?

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.

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)