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How to calculate the production capacity of a factory?

author:Lean consulting teacher Liu Zhi

Production capacity (capacity) is an important issue for all enterprises and at all levels of the enterprise. Production capacity refers to the maximum amount that a unit can handle at full capacity.

The unit of work here can be a factory, a department, a machine, or an individual worker. When calculating production capacity, it is important to grasp the following:

How to calculate the production capacity of a factory?

Determine the unit of calculation for production capacity

Due to the wide range of types of enterprises, the products and production processes of different enterprises are very different, and the unit of measurement of the production capacity of the enterprise must be determined before calculating the production capacity.

(1) Inputs and outputs

Production capacity is closely related to input and output, and different enterprises can choose input or output as the unit of measurement of production capacity according to their own nature and other circumstances.

When an enterprise uses output as a unit of measurement, it needs to consider how many types of products the enterprise produces, and if there is only one main product, it can use that product as the unit of measurement; If you produce multiple products, it is difficult to use the output of one product as a unit of measurement as a whole, so the representative product measurement method can be used. Select the product that represents the professional direction of the enterprise and the product with the largest product of output and working hours quota as the representative product, and other products can be converted to the representative product by the conversion factor. The formula for calculating Ki is as follows:

Ki=ti/to

where: Ki - the conversion factor of the product i;

TI - the time quota of the I product;

to – represents the time quota of the product.

Sometimes the accuracy of the enterprise to calculate the production capacity with the output is not high, and the production capacity can not be well reflected, so the input can be used as the unit of measurement, such as the total number of equipment, installed capacity, etc.

(2) The raw material processing volume is used as the unit of measurement

Some enterprises use a single fixed raw material to produce a variety of products, and it is appropriate to use the number of raw materials processed annually as the unit of measurement of production capacity. The production characteristics of such enterprises are often decomposable, that is, the use of one main raw material to decompose and manufacture a variety of products.

How to calculate the production capacity of a factory?

Identify factors that affect production capacity

(1) Product factors

Product design has a huge impact on production capacity. If a similar product is produced, the operating system has a greater capacity to produce such a product than a subsequent product. In general, the closer the output, the more likely it is that the production methods and materials will be standardized, allowing for greater production capacity. In addition, the specific product mix of the design must also be considered, as different products have different yields.

(2) Personnel factors

The tasks that make up a job, the types of people involved in the activity, and the training, skills and experience required to carry out a task have a significant impact on potential and actual outputs. In addition, there is a direct correlation between the motivation, absenteeism and rollover of the personnel involved and the production capacity.

(3) Facility factors

The design of the production facility, including the size of the building and the space left for expansion, was also a key factor. Site factors, including transportation costs, proximity to the market, labor supply, energy, and room for expansion, are also important factors. Similarly, the layout of the workspace determines whether the production job can be carried out smoothly.

(4) Process factors

Product process design is an obvious factor in determining production capacity, and whether the process design is reasonable affects product quality. If the product quality is not up to standard, it will increase product inspection and rework, which will lead to a decrease in production.

(5) Operational factors

Scheduling problems caused by the contradiction of different equipment production capacity or work requirements of an organization, the decision to reserve inventory, the delay of shipment, the desirability of the raw materials and components purchased, and the quality inspection and process control all have an impact on the effective production capacity.

(6) Other factors

Product standards, especially minimum product quality standards, can limit the options available to managers to increase and use production capacity, for example, when companies often reduce effective production capacity in order to meet product and equipment pollution standards.

How to calculate the production capacity of a factory?

Calculate the production capacity of batch processing enterprises

In this type of enterprise, the organization of the production department adopts the principle of process specialization, and there is a long interval between the feeding and output of the product and the obvious periodicity. The calculation of their production capacity is closely related to the principle of process specialization, and the division of workshops and teams.

(1) Calculate the capacity of a single equipment

Since the processed parts are not a single variety, the number can reach hundreds or thousands. The shape and size of all parts are different, the process steps of processing are also different, and the length of processing time is different, so it can not be calculated by output, but can only be calculated by using the effective processing time that the equipment can provide, which is called machine time. The calculation formula is as follows:

He=Ho×η=Ho(1-θ)=Fo-S

Among them: Ho - annual system working hours;

η - equipment system, working time plan, utilization rate;

θ - equipment planned repair downtime rate;

S – Planned downtime for equipment repairs.

(2) Calculate the capacity of the team

The workshop team is the smallest production unit, and each team is equipped with a certain number of equipment with the same processing technology, but their performance and ability are not necessarily the same. Therefore, the calculation of team production capacity starts from a single equipment, and then integrates the production capacity of these equipment.

If the processing technical parameters of all the equipment in the team are not very different, the sum of the time of all the equipment is the production capacity of the team. If the technical parameters are very different, then it is necessary to count the machine time of the equipment with different parameters separately, and focus on whether the equipment processing capacity of some large workpieces can meet the production requirements.

(3) Determine the workshop capacity

Since the processing object of the team is parts, their capacity should be measured in machine hours, and for the workshop, its production object is often the number of products or parts, so its production capacity should be measured in output. The conversion between man-hours and output is relatively simple.

(4) Determine the production capacity of the factory

The production capacity of the factory can be determined according to the capacity of the main production workshop, and the workshop with insufficient capacity can be solved by adjustment measures.

How to calculate the production capacity of a factory?

Calculate the production capacity of an assembly line enterprise

(1) Calculate the production capacity of the assembly line

The production capacity of the assembly line depends on the production capacity of the equipment in each process, so it is calculated from a single machine. The calculation formula is as follows:

M单=He/ti

Where: M single - the production capacity of a single equipment;

He - the effective working time (hours) of the planning period (year) of a single equipment;

TI - the time quota (hours/piece) for a single product to be processed on this equipment.

If the process is undertaken by one device, the production capacity of a single device is the process capacity. When the process is undertaken by N sets of equipment, the process production capacity is M single × N.

(2) Determine the production capacity of the workshop

If it is a manufacturing workshop, it has both parts processing lines and component assembly lines, and its production capacity should be determined by the capacity of the assembly line. Even if there are individual parts that have a processing capacity lower than the assembly line capacity, they should be determined according to this principle.

If it is a parts processing workshop, each part has a special production line, and all parts are for the company's products, then the production capacity of the workshop should depend on the capacity of the production line with the smallest production capacity.

(3) Determine the production capacity of the enterprise

Due to the large difference between the processing objects and processing technology between the workshops, the performance of the selected equipment is very different, and the production capacity is inconsistent, therefore, the production capacity of the basic production workshop is usually determined by the leading production link. When the production capacity of the basic production workshop and the auxiliary production department are inconsistent, the enterprise should be determined by the production capacity of the basic production workshop.

Calculating production capacity is a necessary step to do a good job in production capacity planning, and it is also a problem that enterprises must pay attention to. By calculating the production capacity of the enterprise, it is not only possible to know the actual capacity of the enterprise, so that it is well known, but also to find the bottleneck part and excess links of the production process, and provide basic information for the scientific and reasonable planning of production capacity.

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