Question

A plant has ten machines and currently operates two 8-hr shift per day, 5 days per week, 50 weeks per year. the ten machines produce the same part each at a rate of 30 pc/hr. (a) determine annual production capacity of this plant. (b) if the plant were to operate three 8-hr shifts per day, 6 days per week, 51 weeks per year, determine the annual percentage increase in plant capacity

Answer 1

Answer:

  83.6%

Explanation:

(a)

On its current schedule, the plant can theoretically produce ...

  (30 pc/h/machine)(10 machine)(8 h/shift)(2 shift/day)(5 day/wk)(50 wk/yr)

  = (30)(10)(8)(2)(5)(50) pc/yr = 1,200,000 pc/yr

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(b)

On the proposed schedule, this production becomes ...

  (30 pc/mach)(10 mach)(8 h/sh)(3 sh/da)(6 da/wk)(51 wk/yr)

  = (30)(10)(8)(3)(6)(51) pc/yr = 2,203,200 pc/yr

The increase in capacity is ...

  (2,203,200/1,200,000 -1) × 100% = 83.6% . . . capacity increase

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Additional comment

The number of parts per shift did not change. Only the number of shifts per year changed. It went up by a factor of (3/2)(6/5)(51/50) = 1.836. Hence the 83.6% increase in capacity.

We have to assume that maintenance and repair are done as effectvely as before in the reduced down time that each machine has.