A company that manufactures soft drinks wants to assess the capacity performance of its production line. The
Question:
A company that manufactures soft drinks wants to assess the capacity performance of its production line. The system has a design capacity of 100,000 bottles per 8-hour shift. Due to maintenance requirements and the changeover of equipment needed to produce different flavors of the soft drinks, the effective capacity of the system is 80,000 bottles per 8-hour shift. Nonetheless, during the past month, the production line’s average actual output was only 72,000 bottles per 8-hour shift. Compute the production line’s capacity utilization and capacity efficiency measures for this time period. If the plant manager wants further improvement in these measures, what are some actions that he should take?
Step by Step Answer:
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto