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Name some examples of why effective capacity is less than design capacity. Name some examples of why actual output is often less than effective capacity.

Name some examples of why effective capacity is less than design capacity.
Name some examples of why actual output is often less than effective capacity.
Explain how an operations manager works to improve actual output (versus planned capacity).
Explain how an operations manager works to improve effective capacity.
Explain why managing capacity is critical to an operations manager's job.
Why is capacity planning for services more challenging than it is for goods production?
Calculate the efficiency and utilization for the following problems:
a. A houseboat builder has the facilities, labor and supplies to build 10 boats in a month. For January, he planned to build eight boats. His actual production was seven.
b. A trailer manufacturer developed her process to be able to produce six trailers in a day. For Monday, she scheduled the production of five trailers, but her production operation produced four.
c. An ice cream manufacturing company designed their production operations to make 22.5 gallons per hour. The production operation produces ice cream 24 hours a day and 30 days per month. In July, the operation plans to be shut down for two 24-hour periods for the Fourth of July and plans for 10 hours of type-change time over the month. They are planning for no maintenance hours because they scheduled those in June. During the month, they kept this planned schedule exactly, and in addition had 13 hours of equipment breakdowns and 21 hours of quality-related problems. Show your work and have the units on all of your numbers.
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