Question

Total Quality management is an advanced manufacturing philosophy to tackle the issue on variation in volume in today’s volatile supply chains. Appraise the statement.

            Al Jabel LLC are facing an issue of volume variation in orders. To handle the situation the operation manager checked the details of its one of the bottleneck machine and found that designed capacity of the machine is 725 pieces per day. While the effective capacity calculated as 690 pieces per day. He found that the average production of last week was 660 pieces per day. Support the manager to calculate the utilization and efficiency of the machine?

Answer 1

Design Capacity = 725 pieces per day

Effective capacity = 690 pieces

Actual Output = 660 pieces per day

Utilization = = = 0.9103 = 91.03%

Efficiency = =   = 0.9565 = 95.65%

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