c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? This is not necessarily true If the design capacity is relatively high the utilization could be low even though the efficiency was
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- In an eff ort to increase capacity in Work Center 111 forweek 13, Yankee Machine Shop has authorized overtime. Th ework center will be staff ed 12 hours per day for six days. Becauseof the additional stress on the three machines, it is expected thatthe utilization rate will drop to 85 percent. Th e effi ciency rate isexpected to fall to 80 percent.(a) Calculate the capacity available in Work Center 111 forweek 13.(b) Will this plan provide suffi cient capacity to completethe orders given in Problem 23? If not, what do yourecommend be done?1. A 32,000-seat baseball stadium is used 17 times for games, concerts, and graduation ceremonies. Each event averages five hours and assumes the stadium is full for each event. The stadium is available 365 days a year from 7 am to midnight. (Notice: the focus is stadium “seat” utilization). a. What is stadium (seat) utilization using Equation 7.1 (pg 146)? (Show your calculations) b. If in the above scenario, the utilization was 75% during the 17 events, but there were 2 additional events that garnered 100% utilization, would this be an increase or decrease in overall utilization from the result in “a”? (Show calculations) c. As an Operations Manager how would you improve utilization at the stadium? Provide at least three optional improvement plans with details. EQUATION 7.1 is : UTILIZATION (U) = Resources used / resources avaliable EQUATION 7.2 is: UTILIZATION (U) = Demand Rate / [Service Rate * Number of Servers]Determine the utilization and the efficiency for each of these situations:a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day.c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.
- 31 please help me please!A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 19,200 units output each month. However, it has an absolute maximum output capability of 23,000 units per month, and can produce as little 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 13,280 units ir October, what is the capacity utilization rate in October for this factory? Note: Round your answer to 1 decimal place.1. A washing machine manufacturer works on 8 hours shift in a year (assume 2021 calendar) excluding Saturday and Sunday. Demand estimates for the number of washing machine that could be sold next year are shown below: Demand (units) 2000 4000 5000 Processing Time (std time hrs) 3.0 5.0 6.0 (a) Assuming the firm produces on an expected value basis, what is the annual production capacity of one machine in standard hours? (b) What capacity is required to meet 170% percent of expected demand?Easy-Tech Soft ware Corporation is evaluating theproduction of a new soft ware product to compete with thepopular word processing soft ware currently available. Annualfi xed costs of producing the item are estimated at $150,000, andthe variable cost is $10 per unit. Th e current selling price of theitem is $35 per unit, and the annual sales volume is estimated at50,000 units.(a) Easy-Tech is considering adding new equipment thatwould improve soft ware quality. Th e negative aspect ofthis new equipment would be an increase in both fi xedand variable costs. Annual fi xed costs would increase by$50,000 and variable costs by $3. However, marketingexpects the better-quality product to increase demandto 70,000 units. Should Easy-Tech purchase this newequipment and keep the price of their product the same?Explain your reasoning.(b) Another option being considered by Easy-Tech is theincrease in the selling price to $40 per unit to off set theadditional equipment costs. However, this increase…
- Any increase in efficiency also increase utilization,although the upper limit in effeciency100%.What can be done to achieve still higher level of utilization.Discuss ..what is the role of technology in capacity planning and utilization?What volume (units) of output would the two alternatives yield the same profit? "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?"
- CASE 3: Which of the following capacity assessment criteria is the infertility specialist likely questioning? Mary's ability to give clear reasoning for her decision Mary's ability to make a choice consistent with her expressed goals and values Mary's ability to understand relevant medical information including the risks and benefits associated with her decisionWould you say that system with higher efficiency ratios rather than other systems will have higher utilization ratios than those other systems. Provide a clear explanation.3. Capacity decisions often determine capital requirements and therefore a large portion of fixed cost. Capacity also determines whether demand will be satisfied or whether facilities will be idle. As student with background and full understanding of Operations Management, explain the three (3) categorized definitions of capacities in relation to design, effective and actual capacities and give three (3) capacities expansion choices to managers with regard to the proposed capacity decision.