Q1

You are managing a group of 10 Electricians. These individuals undertake in-home servicing of
electrical systems and are called by telephone for either emergency or pre-arranged visits. They
charge a minimum call out fee that covers the first 15 minutes of their visit plus travelling time.
Beyond the first fifteen minutes they charge in minimum blocks of 15 minutes plus any materials
that might be necessary to carry out the job. The average call out takes 1 hour.

The workers usually are available for eight hours a day but with 2 coffee breaks of 15 minutes each
and a half hour lunch break, they actually work a 7-hour day. Taking time off and illness into account
reduces the electricians’ available time by 20%. This means the 7 hours per day is reduced to a 5
hour and 36-minute day (5.6 hours)

If actual work is only 200 hours billed in the week then (a) What is the capacity utilisation of the
team? (b) What is their efficiency?

Q2
Q3

An assembly line has a total of 8 hours available time in a shift. The employees working the shifts
have a half hour lunch break and two fifteen-minute tea breaks each shift. The machines also
require ten minutes per shift in basic maintenance. At the start of each working day, the supervisor
spends ten minutes talking to the staff and setting goals for the shift ahead. Calculate the available
time to work for the line and Takt time for 100 units per day.

Solution:

8 hours shift is 480 minutes.

Take away 30 minutes for lunch,

30 minutes for breaks (2x15 minutes)

10 minutes for a team briefing and 10 minutes for basic maintenance work;

The available time to work = 480 – 30 – 30 – 10 – 10 = 400 minutes

If output demand was for 100 units a day and you were running one shift, then the line would be
allowed to spend a maximum of four minutes to make a product in order to be able to keep up with
demand of 100 units per shift.

The takt or cycle time would be 4 minutes.

Q4
Q5

A VMX ltd. Company manufactures air coolers, and ceiling and table fans. The information provided
by the company on demand forecast for coming five years, machine capacity and labour
requirement is shown in table below. Calculate capacity utilization, machines required and operator
requirement for each year in future.

Demand forecast (no. of units)

Year 1 Year 2 Year 3 Year 4 Year 5

Air Coolers 13500 16300 18300 20700 23000

Ceiling fan 19000 21400 24700 28000 31400

Table fan 5500 7200 9000 10400 12700

Machine Capacity Number of machines Number of operators

available on each machine
(units per year per
machine)

Air Coolers 10000 3 4

Ceiling fan 15000 3 2

Table fan 10000 2 2

Solution

Year 1 Year 2 Year 3 Year 4 Year 5

13500 16300 18300 20700 23000

Demand

each machine
10000 10000 10000 10000 10000
capacity

Number of
machines 3 3 3 3 3
Air cooler
available

30000 30000 30000 30000 30000

total capacity

number of
operators on 4 4 4 4 4
each machine
 Capacity
0.45 0.54 0.61 0.69 0.77
utilization

% Capacity
45 54 61 69 77
utilization

machines
1.35 1.63 1.83 2.07 2.3
required

operators
5.4 6.52 7.32 8.28 9.2
required

Year 1 Year 2 Year 3 Year 4 Year 5

Demand 19000 21400 24700 28000 31400

each machine capacity 15000 15000 15000 15000 15000

Number of machines available 3 3 3 3 3

total capacity 45000 45000 45000 45000 45000

Ceiling Fan number of operators on each 2 2 2 2 2

machine

Capacity utilization 0.42 0.48 0.55 0.62 0.70

% Capacity utilization 42 48 55 62 70

machines required 1.27 1.43 1.65 1.87 2.09

operators required 2.53 2.85 3.29 3.73 4.19

Year 1 Year 2 Year 3 Year 4 Year 5

5500 7200 9000 10400 12700

Demand

Table fan
10000 10000 10000 10000 10000
each machine capacity

Number of machines available 2 2 2 2 2

 20000 20000 20000 20000 20000
total capacity

2 2 2 2 2
number of operators on each machine

Capacity utilization 0.28 0.36 0.45 0.52 0.64

% Capacity utilization 28 36 45 52 64

machines required 0.55 0.72 0.90 1.04 1.27

operators required 1.10 1.44 1.80 2.08 2.54

Q6

An Electronics India Ltd., company manufactures two products namely product X and product Y. The
marketing department of the company has provided the following data on sales forecast for the
coming five years, machine capacity and operator requirement.

Determine capacity utilization, number of machines and operators required to make sure that
demand forecast for the coming years are met.

Demand forecast (no. of units) Machine Number of Number of

Capacity machines operators
Year 1 Year 2 Year 3 Year 4 Year 5 available on each
(units per
machine
year)

Product X 16400 19500 21700 23500 25600 10000 4 3

Product Y 5550 6710 8270 9160 9840 5000 2 2

Year 1 Year 2 Year 3 Year 4 Year 5

Demand 16400 19500 21700 23500 25600

Product X
each machine capacity 10000 10000 10000 10000 10000
 Number of machines 4 4 4 4 4
available

total capacity 40000 40000 40000 40000 40000

number of operators on each 3 3 3 3 3

machine

Capacity utilization 0.41 0.49 0.54 0.59 0.64

% Capacity utilization 41 49 54 59 64

machines required 1.64 1.95 2.17 2.35 2.56

operators required 4.92 5.85 6.51 7.05 7.68

Q7