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Numericals On Resource Utilization - Module-2 PDF

The document discusses resource utilization and provides examples of calculating utilization for various resources. Utilization is defined as the percentage of available resources that are used or demanded. Several problems are presented that demonstrate calculating utilization for resources like seats at a movie theater, labor at a call center, and chefs and ovens at a restaurant. The key steps shown are defining the demand rate and availability of the resource and using the utilization formula.

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NEERAJ N RCBS
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191 views24 pages

Numericals On Resource Utilization - Module-2 PDF

The document discusses resource utilization and provides examples of calculating utilization for various resources. Utilization is defined as the percentage of available resources that are used or demanded. Several problems are presented that demonstrate calculating utilization for resources like seats at a movie theater, labor at a call center, and chefs and ovens at a restaurant. The key steps shown are defining the demand rate and availability of the resource and using the utilization formula.

Uploaded by

NEERAJ N RCBS
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NUMERICAL ON RESOURCE

UTILIZATION
Process Design and Resource Utilization

Utilization (U) =
(Resources Demanded or Used/Resource Availability) * 100

Utilization (U) =
(Demand Rate/(Service Rate * Number of Servers)) * 100
Problem-1

• If a resource is used 40 hours per week and is


available for use 50 hours per week, how much is the
resource utilized?
Problem-1: Solution
Given:
• Resource Demanded = 40 hours per week
• Resource Availability = 50 hours per week

• Resource Utilization = U = ????

Resource Utilized
= (Resources Demanded/Resource Availability)*100
= (40 hours per week/50 hours per week)*100
= 80%
Problem-2

• Consider a multiplex movie theatre with 3,000 total seats that is


open 7 days a week from noon to midnight, and 12 hours per day.
The theatre sold 1,400 seats this week. What is the seat
utilization at this theatre?
Problem-2: Solution

Given:
• Resource Demanded = 1,400 seats
𝑠𝑒𝑎𝑡𝑠 12 ℎ𝑜𝑢𝑟𝑠/𝑑𝑎𝑦
• Resource Availability = 3000 × 7 𝑑𝑎𝑦𝑠 ×
𝑑𝑎𝑦 24 ℎ𝑜𝑢𝑟𝑠/𝑑𝑎𝑦

= 10,500 seats
• Seat Utilization = U = ???
U = Resource Demanded/Resource Availability
= (1400 seats/10500 seats )*100
= 13.3 %
Problem-3

• A telephone call center receives 30 calls per hour between 7:00 to


8:00 A.M. and the call center has two service providers on duty,
each of whom can handle 20 calls per hour. How much is the
labour utilization?
Problem-3: Solution

Given:
• Demand Rate = 30 calls per hour
• Number of servers = 2
• Service Rate = 20 calls per hour
• Labour Utilization = ?????

• Labour Utilization = (Demand Rate/(Service Rate * Number of Servers))*100


= (30 calls per hour/(20 calls per hour * 2))*100
= 75%
Problem-4

• A telephone call center receives 30 calls per hour between 7:00 to


8:00 A.M. and the call center has one service providers on duty,
each of whom can handle 20 calls per hour. How much is the
labour utilization?
Problem-4: Solution

Given:
• Demand Rate = 30 calls per hour
• Number of servers = 1
• Service Rate = 20 calls per hour
• Labour Utilization = ?????

• Labour Utilization = (Demand Rate/(Service Rate * Number of Servers))*100


= (30 calls per hour/(20 calls per hour * 1))*100
= 150%
Problem-5

• What would be the maximum demand a telephone call center can


handle if the target utilization was 80 percent, the call center has
two service providers on duty between 7 and 8 A.M., each of
whom can handle 20 calls per hour ?
Problem-5: Solution

Given:
• Demand Rate = ????
• Number of servers = 2
• Service Rate = 20 calls per hour
• Labour Utilization = 80%

• Labour Utilization = (Demand Rate/(Service Rate * Number of Servers))*100


80 = (Demand Rate/(20 calls per hour * 2))*100
Demand Rate = (80/100)*(20 calls per hour * 2) = 32 calls per hour
Problem-6
Problem-6: Solution
Problem-7

??????
Problem-7: Solution
Problem-7: Solution

Resource Utilization
= (20 orders per hour/((60 minutes per hour/12 minutes per order) * 1 chef)) * 100
= 400%

If Resource Utilization is 100 %, how many chefs required?


100 = (20 orders per hour/((60 minutes per hour/12 minutes per order) * Number of
chefs)) * 100
Number of Chefs = 20 orders per hour/5 orders per hour
= 4 chefs
Problem-7: Solution

Revised Resource Utilization


Resource: CHEFS

Resource Utilization (Activity #1)


= (20 orders per hour/((60 minutes per hour/1 minutes per order) * 4 chefs)) * 100
= 8.33 %

Resource Utilization (Activity #2)


= (20 orders per hour/((60 minutes per hour/4 minutes per order) * 4 chefs)) * 100
= 33.33 %
Problem-7: Solution

Revised Resource Utilization


Resource Utilization (Activity #3)
= (20 orders per hour/((60 minutes per hour/12 minutes per order) * 4 chefs)) * 100
= 100 %

Resource Utilization (Activity #5)


= (20 orders per hour/((60 minutes per hour/3 minutes per order) * 4 chefs)) * 100
= 25 %
Problem-7: Solution

Revised Resource Utilization


Problem-7: Solution
Revised Resource Utilization
Resource: OVENS
Resource Utilization (Activity #4)
= (20 orders per hour/((60 minutes per hour/10 minutes per order) * 2 ovens)) * 100
= 166.66 %
If Resource Utilization is 100%, determine how many ovens required.
Resource Utilization = (20 orders per hour/((60 minutes per hour/10 minutes per order) * Number of
ovens)) * 100
100 = (20 orders per hour/((60 minutes per hour/10 minutes per order) * Number of ovens)) * 100
Number of Ovens = (20 orders per hour/(60 minutes per hour/10 minutes per order)
= 3.33 ovens ~ 4 ovens
Problem-7: Solution

Revised Resource Utilization (Activity #4)


= (20 orders per hour/((60 minutes per hour/10 minutes per order) * 4
ovens)) * 100
= 83.33 %
Problem-7: Solution

Revised Resource Utilization


References

• Mahadevan, B. Operations Management: Theory and Practice, Pearson


Education, Second Edition.

• James R Evans and David A Collier, Operations Management : Concepts,


Techniques, and Applications, Cengage Learning.

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