In a job shop effective capacity is only 62 percent of desig

In a job shop, effective capacity is only 62 percent of design capacity, and actual output is 74 percent of effective output. What design capacity would be needed to achieve an actual output of 16 jobs per week? What is its effective capacity? The Design Capacity needed to achieve the required actual job outputs (round to whole number) The Effective Capacity needed to achieve the required actual job outputs (round to whole number)

Solution

A.

Efficiency = Actual output/Effective capacity

Actual output = 74% of Effective capacity

Effective capacoty = 62% of design capacoty

Now,

Actual output = 74%*62% of design capacity

design capacity = Actual output/(0.74*0.62)

Design capacity = 16 jobs per week/(0.74*0.62) = 34.87 = 35

Design Capacity = 35

B.

Effective capacity = 62% of design capacity

Effective Capacity = 0.62*35 = 21.7

Effective capacity = 22