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 companies do not or cannot produce enough units. If you successfully analyze industry capacity, your team could benefit 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 Capstone Courier for Round 0

On the Production Analysis page, look at the table of products (the Andrews company is displayed below). The highlighted boxes (plus a little math!) are where you will find the information you need to complete the analysis.

2nd Shift & Over- time Price Name Able Acre Adam Aft Agape 0% Primary Segment Trad Low High Pfmn Size Unit Inven tory 189 39 40 78 62 Units Sold 999 1,763 366 358 314 Revision Date 11/21/2010 5/25/2009 4/18/2012 6/30/2011 5/25/2011 Age Dec.31 MTBF 3.1 17500 4.6 14000 1.7 23000 2.5 25000 2.6 19000 Pfmn Coord 5.5 3.0 8.0 9.4 4.0 Size Coord 14.5 $28.00 17.0 $21.00 12.0 $38.00 15.5 $33.00 11.0 $33.00 Material Cost $11.59 $7.81 $15.98 $15.87 $13.62 Labor Cost $7.49 $7.12 $8.57 $8.57 $8.57 Contr. Marg 29% 27% 33% 23% 30% Auto mation Next Round 4.0 5.0 3.0 3.0 3.0 Capacity Next Plant Round Utiliz. 1,800 66% 1,400 129% 900 45% 600 73% 600 63% 30% 0% 0% 0% 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 x 2 (shifts) 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 [$6+ ($4 x automation level) Example Input: 500 Formula is First Shift Capacity x [$4 X (10 - automation level)] 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 below 500,000 units is inputted as 500 in the cell. This applies to dollar values as well, Incomplete Capacity Analysis Product Segment Name First Shift Capacity First & Second Shift Capacity Company Industry Automation Level cast to Double Capacity Cost to Raise Automation to 10.0 Company Industry Traditional Baker Lowland Bead Bertarmace o Size The Rounalo Previous NEWS Andrews Baldwin Chester Digby Erie Ferris 0 1.000 1,500 2,000 - 2.500 3.000 3.500 4.000 4.500 5.000 Capacity O Production Production Informa Primary Segment Unit Units Inven Pimn Size Sold tory Revision Date Dec.31 MTBF Coord Coord Name 2nd Auto Shift & mation Capacity Labor Contr. = Over Next Next Cost Marg ime Round Round Material Cost Plant Price 516 189 39 Able Acre Adam Aft Agape Trad Low High Pfman Size 1.763 366 11/21/2017 5.2 4. 2016 4/19 2019 6/30/2018 5/25 2018 3, 17500 4.0 14000 1.7 28000 2 6 25000 14 5 $28.00 $11.59 97.49 17.0 $21.00 $7.81 $7.12 120 338.00 $15.98 $8.57 15 5 $30.00 $15.87 $8.57 110 333.00 $13.62 $8.57 2796 3396 23.98 3096 076 1 800 1-400 900 800 800 8890 12996 4598 720 639 094 2958 08 11:21 2017 5.24 2016 Baker Bead Bid Bold Buddy Trad LOW High Pflmn Size 999 1.780 368 058 214 SIAS 4 6 14000 1720000 2.5 25000 2 6 49000 14.5 528.00 $11.59 $7.49 17.052 1.00 120 GB8.00 $16.98 38.57 15.5 $33.00 $18.87 $8,57 $13.82 58.57 EEEE 1800 1.400 900 800 800 3850 28946 30% 8 80 2018 5.25. 2018 66% 1299 4526 73 % 6396 0940 Trad 189 11.2.2017 145 828 00 811 59 57.49 - 1.800 8686 1.400 129% PH |- 20 2nd Shift & Over- time Price Name Able Acre Adam Aft Agape 0% Primary Segment Trad Low High Pfmn Size Unit Inven tory 189 39 40 78 62 Units Sold 999 1,763 366 358 314 Revision Date 11/21/2010 5/25/2009 4/18/2012 6/30/2011 5/25/2011 Age Dec.31 MTBF 3.1 17500 4.6 14000 1.7 23000 2.5 25000 2.6 19000 Pfmn Coord 5.5 3.0 8.0 9.4 4.0 Size Coord 14.5 $28.00 17.0 $21.00 12.0 $38.00 15.5 $33.00 11.0 $33.00 Material Cost $11.59 $7.81 $15.98 $15.87 $13.62 Labor Cost $7.49 $7.12 $8.57 $8.57 $8.57 Contr. Marg 29% 27% 33% 23% 30% Auto mation Next Round 4.0 5.0 3.0 3.0 3.0 Capacity Next Plant Round Utiliz. 1,800 66% 1,400 129% 900 45% 600 73% 600 63% 30% 0% 0% 0% 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 x 2 (shifts) 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 [$6+ ($4 x automation level) Example Input: 500 Formula is First Shift Capacity x [$4 X (10 - automation level)] 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 below 500,000 units is inputted as 500 in the cell. This applies to dollar values as well, Incomplete Capacity Analysis Product Segment Name First Shift Capacity First & Second Shift Capacity Company Industry Automation Level cast to Double Capacity Cost to Raise Automation to 10.0 Company Industry Traditional Baker Lowland Bead Bertarmace o Size The Rounalo Previous NEWS Andrews Baldwin Chester Digby Erie Ferris 0 1.000 1,500 2,000 - 2.500 3.000 3.500 4.000 4.500 5.000 Capacity O Production Production Informa Primary Segment Unit Units Inven Pimn Size Sold tory Revision Date Dec.31 MTBF Coord Coord Name 2nd Auto Shift & mation Capacity Labor Contr. = Over Next Next Cost Marg ime Round Round Material Cost Plant Price 516 189 39 Able Acre Adam Aft Agape Trad Low High Pfman Size 1.763 366 11/21/2017 5.2 4. 2016 4/19 2019 6/30/2018 5/25 2018 3, 17500 4.0 14000 1.7 28000 2 6 25000 14 5 $28.00 $11.59 97.49 17.0 $21.00 $7.81 $7.12 120 338.00 $15.98 $8.57 15 5 $30.00 $15.87 $8.57 110 333.00 $13.62 $8.57 2796 3396 23.98 3096 076 1 800 1-400 900 800 800 8890 12996 4598 720 639 094 2958 08 11:21 2017 5.24 2016 Baker Bead Bid Bold Buddy Trad LOW High Pflmn Size 999 1.780 368 058 214 SIAS 4 6 14000 1720000 2.5 25000 2 6 49000 14.5 528.00 $11.59 $7.49 17.052 1.00 120 GB8.00 $16.98 38.57 15.5 $33.00 $18.87 $8,57 $13.82 58.57 EEEE 1800 1.400 900 800 800 3850 28946 30% 8 80 2018 5.25. 2018 66% 1299 4526 73 % 6396 0940 Trad 189 11.2.2017 145 828 00 811 59 57.49 - 1.800 8686 1.400 129% PH |- 20