**Capacity Analysis Being able to analyze plant and equipment (capacity and automation) is essential to understanding…**

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## Question “Capacity Analysis Being able to analyze plant and equipment (capacity and automation) is essential to understanding…”

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**

FastTrack 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.

Production Costs Activity

Use the table below with page 4 of the FastTrack to complete the

activity.

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) | Found under “Automation Next Round” | Increasing capacity is $6 per unit with an adjustment for automation. | Increasing automation is per unit of capacity |

Industry | Total the capacity of each product in that segment | Total capacity of each product in that segment X 2 | 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 Name | First Shift Capacity | First & Second Shift Capacity | Automation Level | Cost to Double Capacity | Cost to Raise Automation to 10.0 | ||

Company | Industry | Company | Industry | ||||

## Answer

As the table shows, traditional segment has 1800 employees and 10800 industry. The total product in the market can be calculated using data from second shift capacity. The company capacity is 3600, while the industry capacity is 36400. It is the capacity of all products in a segment. This formula calculates the industry capacity.

Assuming that the traditional segment has 6 products, the industry capacity can be calculated by multiplying the company’s capacity rules.

Segment | Name of the product | Capacity for the first shift | First and second shift | ||

Company | industry | Company | industry | ||

Traditional | Able | 10800 | 10800 | 3600 | 21600 |

Low end | Acre | 1400 | 8400 | 2800 | 16800 |

High end | Adam | 900 | 5400 | 1800 | 10800 |

Performance | Aft | 600 | 3600 | 1200 | 7200 |

Size | Agape | 600 | 3600 | 1200 | 7200 |

Notice: If there are different product categories, multiply the company capacity by the relevant number of products for each segment to calculate the industry capacity.

## Conclusion

Above is the solution for “**Capacity Analysis Being able to analyze plant and equipment (capacity and automation) is essential to understanding…**“. We hope that you find a good answer and gain the knowledge about this topic of **business**.