How to complete the table using the production analysis

Assignment Help Business Management

Reference no: EM13934130

Capacity Analysis

Capacity analysis 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, you team could benefit from these shortfalls.

You will need:

• The Production Analysis report (page 4) of the Capstone Courier for Round 0

Each product has its own production line where you can set capacity and automation. Balancing the costs of increasing capacity and automation against future sales of that product is key to managing the Production department.

The activity walks you through finding the information you need to calculate the industry capacity levels and the costs involved in increasing automation and capacity.

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.

													2nd
Name			Unit										Stilt	Auto triton	Capacity
	Primary	Units	Inven		Age		Pfmn	Size		Material	Labor	Contr.	Over-	Next	Next	Plant
	Segment	Sold	for	Revision Date	Dec.31	MTBF	Cooed	Cooed	Price	Cost	Cost	Marx.	time	Round	Round	Utikz.
Able	Trad	999	189	11/21/2010	3.1	17500	5.5	14.5	528.00	$11.59	S7.49	29%	0%	4.0	1.800	66%
Acre	Low	1.763	39	5125/2009	46	14000	3.0	17.0	$21.00	S7.81	S7.12	27%	30%	5.0	1.400	129%
Adam	High	366	40	4/1812012	1.7	23000	8.0	12.0	538.00	$15.98	58.57	33%	0%	3.0	900	45%
Aft	Pfmn	358	78	6/3012011	2.5	25000	9.4	15.5	$33.00	S15.87	$8.57	23%	0%	3.0	600	73%
Agape	Size	314	62	5125/2011	2.6	19000	4.0	11.0	$33.00	S13.62	$8.57	30%	0%	3.0	600	63%

Production Costs Activity

In the table below, the first two sections have two columns - Company and Industry - for each segment. These are for the raw plant capacity and the maximum capacity of each product and segment.
Automation Level is the product line automation and the last two sections are to calculate the costs of plant improvements, in this case doubling capacity and maximizing automation.

How to complete the table using the Production Analysis page of the Courier

	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	Found under "Automation Next Round"	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

Incomplete

Capacity Analysis
Segment	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
Traditional
Low End
High End
Performance
Size

Reference no: EM13934130

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