Question

AE Manufacturing has 60 machine hours every day. AE Manufacturing two products, A and B. When changing over from producing product B to A, there is no change over time. When changing over from producing product A to B, it takes 8 machine hours. If the previous day ended with producing product B, what is the effective capacity when AE Manufacturing has the following schedule: product A, product B, product A.

		56 machine hours per day
		60 machine hours per day
		44 machine hours per day
		52 machine hours per day

Answer 1

Given values:

Design capacity = 60 machine hours per day

Time taken from product B to A = 0 machine hours

Time taken from product A to B = 8 machine hours

Production schedule = A — B — A

Solution:

Previous day ended with Product B. Since, there is 0 changing over time from B to A, the new day will immediately begin with producing product A.

Beginning = Product A, changeover time = 0

Product A to B, changeover time = 8 machine hours

Product B to A, changeover time = 0 machine hours

Effective capacity = Design capacity — Total Change over time

Effective capacity = 60 — (0 + 8 + 0) = 52

Effective capacity = 52 machine hours per day