CAPACITY STUDY

Apparel Engineering Concept

 Method study
 Method Improvement
 Time Study
 Idle Time
 Creative Production Planning
 Factory Production Capacity
 Special Machine Production Capacity
 Continued…
 METHOD STUDY
The in-depth monitoring and analysis of the way an operator
performs its task is called method study.

The method study will guide you to select the right method to perform
any operation and then we can proceed for next operation as well to
find out the causes of delay in the
process of stitching.

 METHOD IMPROVEMENT

Once the method study is done, one looks for better ways to
save time and less effort by the operator. This could be done by
improving work motions / provide work aids like gauges ,
folders , attachments , trolleys , movers, tracks or machine
automation.
 TIME STUDY
The recording of time of each operators conducted by the
engineer is termed as time study. Once the time is
recorded, allowances for fatigue, machine delays ,
personal and other times are added .
This time is termed as SAM ( Standard Allowed Minutes)
or SMV ( Standard Minute Value ).
Time study calculates the standard minutes for any
specific operation and it is the average for one cycle of an
operation that we would measure over a typical day if we
had;
1. A skilled operators
2. Plenty of works
3. Workplace and machinery
4. Output with correct level of quality
5. Expected delays due to process
 IDLE TIME
During the course of production, it is observed that
operators are idle and wait for production , this idle
time is loss of time and production.
 CREATIVE PRODUCTION PLANNING

Creative production planning is use of various

techniques to assure that idle time is less or
eliminated .

more production in less time is key to success for

any manufacturing plant.
FACTORY PRODUCTION CAPACITY

Factory production capacity is derived from the resources available at the

manufacturing plant . It is calculated simply by the amount of machines
available and hours per day determined to work to be realistic ,
one has to determine the efficiency level of the operators and incorporate
the percentage to derive actual capacity.

Example : if a factory has 100 machines and working hours are 8 hours
per day and 26 days per month . the efficiency level of operators is
observed to be at 80% .

the production capacity available per month would be

calculated as below :

Available monthly production time capacity :

100 machines x 480 minutes x 80 / 100 = 38400 minutes / day.

38400 minutes x 26 days = 998400 minutes /month or 16640 hours/month.
SPECIAL MACHINE PRODUCTION CAPACITY
when planning for production , if any special operation is required within
the garment which requires special machine .i the output capacity for
those garments have to based upon special
machine production .

the management can then decide if those machines be worked overtime

or if required to meet shipment date or additional machines be purchased .

To calculate special machine capacity per month :

Example : the available machines are 10 , working hours /day :8 hours ,

operator’s efficiency level is 80% and for 26 days in a month
Special production capacity in time / month =

10 machines x 480 mins x 80 / 100 = 3840 mins / day

3840 mins x 26 days = 99840 mins / month or 1664 hours /month.
 Production Capacity
 Capacity:
 It refers to the potential productive capability(out
put) of a plant, machine ,or work center in a given
period of time
 Capacity is created from the availability of
resources such as machines, time(labor),space,
facility that requires capital investment by the firm
Capacity Measurement
It can be measured in units of out puts
may be expressed in terms of hours or
days

Factors affecting capacity:

 Space utilizations & limitations
 Equipment types, configurations & uses
 Size, skill of labor force
 Product variations
 Plant Capacity
Maximum capacity: Total hours available under
normal conditions in a given period of time for a
certain facility
Potential Capacity: Maximum capacity adjusted for
efficiency
Committed Capacity: Total hours previously
allocated for a production during certain period of
time
Available Capacity: Difference between potential
capacity & committed capacity for a certain period
of time
Required Capacity: SAH(Standard allowed hours)
necessary to produce a specified volume in a
certain period of time
Excess Capacity: Difference between potential
capacity & required capacity
 Design capacity: The capacity of a process as it is
designed
 Effective Capacity : The useful capacity of a process
after maintenance, change over, other stoppage &
loading accounted for.
 Utilization : The ratio of actual out put to its design
capacity

Utilization (%)=Actual out put/Design Capacityx100

 Efficiency : The ratio of actual out put to its effective

capacity

Efficiency (%)=Actual out put/Effective Capacityx100

 Example 1:A garment manufacturer has a jacket
line is operated 168 hrs/week(24x7) with the
following production lost time.
1. Product change over (20hrs)
2. Regular preventive maintenance (16hrs)
3. No work scheduled (8hrs)
4. Quality sampling check (8hrs)
5. Shift change time(7Hrs)
6. Maintenance breakdown (18hrs)
7. Quality failure investigation (20Hrs)
8. Trim materials stock out(8hrs)
9. Labor shortage (6 Hrs)
10. Waiting for material (6 hrs)
Calculate the utilization & efficiency percentage.

 Answer:

Design capacity=24x7=168 hrs/week

The first five category added(unavoidable planned
occurrence) =59 hrs
The last five category added(avoidable un planned
activities) =58hrs
Actual out put(Hrs)=168-(59+58) =51hrs
Effective capacity=168-59=109n hrs

Utilization (%) =(51/168)*100=30%

Efficiency (%) =(51/109)*100=47%
 Managing Plant Capacity
 Routing ,loading & scheduling are systems often
referred to as shop floor control
 They involve the input of styles into the
production process & providing managers with
information necessary to make timely decisions
related to activities on sewing floor
 Lets say ABC garments company has 20 operators who work 8hours a day.
The plant has 90% efficiency level. Working shift is 8 hours a day in which 1
hour is mainly for lunch and tea time
break.
A Sale brings in order for 10000 units of style “a” that needs to be delivered in
10 days . The plant already has a committed capacity of 600 hours for the
10 days period. It was established that style “ a” has a production time of 5
SAM
Calculate required capacity & available capacity
So their potential capacity for next 10 days will be,
20 machines x 7 hours /day = 140 hours/day x 90% efficiency = 126
potential production hours /day.
Potential capacity for 10 days = 10 days x 126 hours = 1260 hours potential
capacity.

So their required capacity for 10000 units will be;

5 SAM /unit x 10000 units = 50,000 SAM or 833 SAH to complete the order.
Capacity required = 833 hours.

What is available capacity in the plant currently ?

Ans.
Available capacity = potential capacity – committed capacity
Available capacity = 1260 hours – 600 hours = 660 hours available
Lets say ABC garments company has 10 operators who work 8 hours a
day. The plant has 90% efficiency level. A customer brings an order for
6000 units of style “a” that needs to be delivered in 10 days . the plant
already has a committed capacity of 300 hours for the 10 days period.
Working shift is 8 hours a day in which 1 hour is mainly for lunch and tea
time break.It was established that style “ a” has a production time of 5 SAM.

calculate potential capacity, required capacity, available capacity

What factors should be considered in deciding whether to accept the order
or refuse?
What is the potential capacity of ABC garments company for the 10
working days ?

Ans. 10 machines x 7 hours /day = 70 hours/day x 90% efficiency = 63 potential

production hours /day.
Potential capacity for 10 days = 10 days x 63 hours = 630 hours
What is required capacity for the 6000 unit order ?
Ans. 5 SAM /unit x 6000 units = 30,000 SAM or 500 SAH to complete the order.
Capacity required = 500 hours.

What is available capacity in the plant currently ?

Ans. Available capacity = potential capacity – committed capacity

Available capacity = 630 hours – 300 hours = 330 hours available
Is available capacity adequate to accept the order ?

Ans. 330 hours of available capacity – 500 hours of required capacity = -170 hours

Capacity is not sufficient to accept order .

Require more time from buyer to accommodate the 170 hours .

Work overtime to cover the 170 hours.

Increase more machines and operators .
Find way to increase efficiency level to 100 % .
Try to eliminate idle time within production to decrease throughput time .
Assess the performance of individual operators.
 Overall equipment effectiveness
The overall equipment effectiveness (OEE) is a method of judging the
effectiveness of operations equipments

It is based on three aspects of performance

 The time that equipment is available to operate

 The quality of the product or service it produces
 The speed or through put rate of the equipment

OEE= a x q x p

(a= availability rate, q=quality rate, p=performance rate)

 Example: In a typical 7 days period ,planning
department programs a particular machine to work
for 150 hrs-its loading time. Change over & set up
time average takes 10hours. Break down failures
average 5hrs/week & during the period when the
M/c is running,5hrs is idle it averages 90% of its
rated speed, subsequently 3% of the parts are
found to be defective.

Calculate the OEE (%) as per above constraints

 Ans: Maximum time available=7x24=168hrs
Loading Time = 150 hrs
Availability losses=10+5=15hrs
So total operating time =150-15 =135 hrs
Speed losses=5hrs(Idle) +(135-5)*10% of remaining
time=5+13=18hrs
Net operating time =Total operating time-speed
losses =135-18=117hrs
Quality Losses=117x.03(error rate)=3.51 hrs
So valuable operating time=117-3.51=113.49hrs
Therefore
availability rate :a%=Total operating time/loading
time=135/150*100=90%
Performance rate :p%=net operating time/total operating
time*100=117/135*100=86.67%
Quality rate :q%=valuable operating time/net operating
time *100=113.49/117*100=97%
OEE= a x p x q (%)=75.6%
 Factory Capacity
 Ex : 500 operators working for 48 hrs /week ,
work content of the garment is 30minutes
calculate the factory capacity

Ans. =(500*48*60)/30=48000garments/week
 SMV/SAM ?
 Standard Minute Value (SMV) is the time
allocated through work measurement for an
operation to be completed at 100% rating

 Standard Allocated(Allowed) Minute(SAM) is an

SMV + any policy allowances added
 Measured work
 The work to which a standard measure
(SMV,SAM) has been applied
 Example: An operator may learning a new
operation still contributing to SM as the operation
they complete will have SMV applied

Note: it may be classified as off standard time

 Unmeasured work
 The work to which a standard measure
(SMV,SAM) has not been applied
 Example: An operator not contributing to
SM .
Contract Time
“On-standard” & “Off-standard time”
 Types of “off -standard time”
 Waiting for work
 Machine breakdown
 Un measured work-operator not yet allocated SMV
 Sampling
 Repair(Not own)
 Under re train
 Indirect work (Covering for supervisor)

Note : It should be reported on labor cost control sheet.

Supervisors / managers should be targeted to stay
within budget
 Reasons for lost output
 Absenteeism
 Poor work method
 Low operator performance
 Poor operator utilization
 Style change is not itself a cause of lost output. It
can cause all or some of the above
 Types of Measures
 Standard hours(minutes) produced
 Operator performance
 Operator utilization
 Efficiency
 Off-standard time
 Absence and Attendance
 Standard hours(minutes) produced
 Example:

1500 garments produced with work content .30SM

with 60 minutes waiting time & 20 minutes down
time

Ans:
SMs produced =1500x.30=450 SM
Operator’s performance
Operator performance

Primarily it is a measure of the effectiveness of

the individual operator

(SMs earned on standard/Time spent on

standard)* 100
Time “On-standard” =540-(60+20)=460 minutes
Performance=(450/460)*100= 97.8%

Sometimes it is referred to as “pay” performance

as it is usually measured within an incentive
scheme
 Operator Utilization
 A measure of how well the supervisor manages
to keep the operators “on standard”

 Utilization (%) = (Time on standard/Time attended)*100

=(460/540)*100=85.2%
Efficiency
 Absence and Attendance
Attendance=(Total operator time attended/total
contracted time)*100
Absence =reverse of Attendance

Example

Section=20 operators working 9 hrs/540 minutes a

day .two operators are absent all day
Attendance(%)=(18x540)/(20x540) * 100 =90%
(or 10% Absence)