3 A German car manufacturer defines ‘utilisation’ as the ratio of actual output for a process to its design capacity, where design capacity is the capacity of a process as it is designed to operate. However, it knows that it is rarely possible to achieve this theoretical level of capacity, which is why the company uses a measure that it calls ‘effective capacity’. This is the actual capacity of a process, once maintenance, changeover, other stoppages,and loading have been considered. The ratio of actual output for a process to its effective capacity is defined as its ‘efficiency’.

The company has a painting line with a design capacity of 100 square metres per minute and the line is operated 24 hours a day, 7 days a week (168 hours). Records for a week show the following lost time in production:

During this week, production was only 100 * 60 * (168 - 100) = 408,000 square metres per week. What is the painting line’s ‘utilisation’ and ‘efficiency’ according to the company’s definitions?

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1234 4 Product changeovers (set-ups) Regular maintenance No work scheduled 18 hours 12 hours 6 hours Quality sampling checks 8 hours 5690 Shift change times 8 hours Maintenance breakdown 16 hours 7 Quality failure investigation 12 hours 8 Paint stock-outs 6 hours 9 Labour shortages 6 hours 10 Waiting for paint 5 hours Total 100 hours