Calculating Capacity

Calculating Capacity

Capacity Planning and Calculation play a very important role in whole MRP-II cycle. Here is the example to calculate capacity as per availab... 12:14 PM

Capacity Planning and Calculation play a very important role in whole MRP-II cycle. Here is the example to calculate capacity as per available machines, labors and hours.

An Example

•Simple, near perfect world
1 machine, no labor or material constraints
•Annual demand 1.2 million units
•Rated equipment capacity :
300 units per hour

Assumptions

Enough capacity?

How much annual capacity ?

DAYS

  365

 -100  weekends

  265

   -15  holidays

  250 “regular” days

HOURS

     8         gross time / shift

    -1         breaks

     7         productive time

   x3         # shifts

   21         net hours / day

250 days/year x  21 hours/day = 5250 hours/year

5250 hours/year X 300 units per hour = 1.575 mm

Capacity utilization = 1.2 / 1.575 mm = 76%