EXCEL PRINTERS:A STARTUP COMPANY’S CAPACITY PLANNING

1. EXCEL PRINTERS:A STARTUP
COMPANY’S CAPACITY PLANNING
Presented By:-
Sheetal Verma

2. INTRODUCTION
• Kumar and Tripathi started “Excel Printers” with the monetary help from their
families
• They purchased printing equipment, consists of two high speed printers, operated by
one
• Two shifts per day and they worked alone on shift basis
• 30 minutes- lunch or dinner based on shifts
• 30 minutes-service time at the beginning of each shift
• Estimates of set up time are kept with each order
• 100%- machine efficiency

3. Continued...
• For growth of company they planned a new marketing initiative
• They gave the marketing responsibility to a small marketing consultancy
• They advertised with a message of new promotional incentives
• With these the order has been increased
• For completing the work orders requirements, they reviewed the orders and
discussed about determining the capacity of their operations and the current load on
their facility

4. Capacity Planning
• It is the process of determining the production capacity needed by an organization to
meet changing demands for its products.
• Capacity planning is an approach for determining the overall capacity level of capital
intensive resources, including facilities, equipment and overall labour force size
• Capacity- How much can be made?
Demand- How much does market require?
Forecast- How to match capacity with demand?
• Capacity has its own constraints which could be overcome through proper planning.
• Impacts ability to meet future demands

5. Steps for Capacity Planning
1. Estimate future capacity requirements
2. Evaluate existing capacity
3. Identify alternatives
4. Conduct financial analysis
5. Assess key qualitative issues
6. Select one alternative
7. Implement alternative chosen
8. Monitor results

6. Work order details
Work order number No. of copies Setup time Run time
10 500 5.2 0.08
20 1000 10.6 0.10
30 5000 3.4 0.12
40 10000 11.2 0.14
50 2000 15.3 0.10

7. Effective Working Hours
Company Partners Manoj Gautam
Working Shift 2 Day Shift 2 Night Shift
Working Hours 12 hrs. 12 hrs.
Working hrs. each shift 6 hrs. 6hrs.
Deductions:-
Servicing Time (2*30mins=1 hr) (2*30mins=1 hr)
Lunch/Dinner Break (30 mins.) (30 mins.)
Effective working Hours 12 hrs.- 1 hr 30 mins.= 10.5 hrs.12 hrs.- 1 hr30 mins.= 10.5 hrs.
Total Effective Hours 10.5 + 10.5 = 21 hrs.

8. Daily Capacity Calculation
Set up Time No. of Copies Run Time Total Time
5.2 mins. 500 0.08 mins. 5.2+500*0.08=45.2 mins.
10.6 mins. 1000 0.10 mins. 10.6+1000*0.10=110.6 mins.
3.4 mins. 5000 0.12 mins. 3.4+5000*0.12=603.4 mins.
11.2 mins. 10000 0.14 mins. 11.2+10000*0.14=1411.2 mins.
15.3 mins. 2000 0.10 mins. 15.3+2000*0.10=215.3 mins.
2385.7 mins.
Order Completion 2385.7 mins 18500 copies
Daily Capacity 1260 mins.(21*60) 9771 copies
No. of machines 2 9771*2 19542 copies
Under utilisation 19542-18500 1042

9. Thank You…