Capacity Analysis Being able to analyze plant and equipment (capacity and automation) is essential to understanding how you and your competitors are supplying the market demand. There is often unmet demand in segments because compa- nies do not or cannot produce enough units. If you successfully analyze industry capacity, your team could bene from these shortfalls Each product has its own production line where you can set capacity and automation. Capacity represents the company's ability to produce units of its product. Think of capacity as your manufacturing plant. For each unit of capacity, there are two shifts of workers that can use your manufacturing plant to produce your products, which represents a first and second shift. So if your product has a capacity of 1000, this means you can produce up to 2000 units of your product. Automation represents the robot-to-worker ratio in your manufacturing plant. A higher ratio of robots will provide your company with a lower labor cost. However, this will increase the amount of time it takes your products to be updated. You will need: The Production Analysis report (page 4) of the FastTrack for Round 0 On the Production Analysis page, look at the table of products (the Andrews company is dis- played). The highlighted boxes (plus a little math!) are where you will find the information you need to complete the analysis. Size Primary Name Segment Units Unit Revision Sold Inventory Date Age Pfmn Material Labor Contr. 2nd Shift & Automation Dec.31 MTBF Coord Coord Price Cost Cost Marg. Overtime Next Round 3.1 21000 6.4 13.6 534.00 $16.17 $10.11 20% 63% Capacity Next Round Plant Utiliz. Able Low 1.200 87 11/21/2011 30 800 161% Production Costs Activity Use the table with page 4 of the FastTrack to complete the activity. Capacity Industry Production table First Shift Capacity First and Second Shift Capacity Automation Level Cost to Double Capacity Cost to Raise Automation to 10 Company Found under *Capacity Next Round" Capacity Next Round x2 (shift) Increasing capacity is $6 per unit with an adjustment for automation Increasing automation is per unit of capacity Found under "Automation Next Round" Industry Total the capacity of each product in that segment Total capacity of each product in that segment X2 Formula is: First Shift Capacity x [56 + (54 x automation level)| Example Input: 500 Formula is First Shift Capacity x [54x (10 - automation leven Example Input: 700 In the simulation, the input cells are in thousands ('000's), so an input of 1 is actually 1000 units. So, in the example, 500,000 units is inputted as 500 in the cell. This applies to dollar values as well. Capacity Analysis Cost to Double Capacity Cost to Raise Automation to 10.0 Product Name First Shift Capacity Company Industry First & Second Shift Capacity Automation Level Company Industry Cake