IDS 355 Study Guide

*The goal of the study guide is to help everyone prepare for the Final Exam. My goal is to cover everything in the study guide. I will only cover some of the questions in this study guide, but please let me know if you have any questions.* (I WILL CREATE VIDEOS GUIDING VIEWERS TO HELP GUIDE YOU ON SOLVING THE PROBLEMS AND TO EXPLAIN THE CONCEPTS.) CH 7S: 1. Define Capacity (From the book): 2. After defining capacity, define it in your own words. 3. Define Design Capacity and Effective Capacity (From the book). 4. After defining Design Capacity and Effective Capacity, define it in your own words. NOTE: -We have two formulas, -Utilization= Actual Output/ Design Capacity -Efficiency= Actual Output/ Effective Capacity Efficiency: (There is no definition of efficiency from the book, but according to Google:) Efficiency is the ability to achieve an end goal with little to no waste, effort, or energy. (In other words, Efficiency is solving a goal but also wasting as few resources as possible.) -It is also important to note that it is difficult (If not impossible), to achieve 100% efficiency, as there are many factors (Such as materials used, workers and their performance, mistakes occurring during a work day, etc. That can be very difficult to improve/ control fully). PRACTICE PROBLEM: -Amy Xia’s plant was designed to produce 7,000 hammers per day but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers. What is the utilization? -Solution: 85.71% -Home Depot has an effective capacity of 6,500 but has made only 4,500 hammers per day because of material delays, employee absences, and other problems. What is its efficiency? -Solution: 69.23% NOTE: -The formula for Expected Output (The Expected Output to potentially produce in the future) (Keep in mind that this Expected Output is theoretical), is: -Expected Output: Effective Capacity * Efficiency PRACTICE QUESTION: -If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual (planned) output? -Solution: 5720 Units. ADDITIONAL PRACTICE PROBLEMS: (Try it on your own): 1. The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of the three departments, are shown: -Compute the expected production for the next quarter for each department. -BOTTLE-NECK ANALYSIS: 1. Define Bottleneck (from the book): 2. After defining bottleneck, define it in your own words: 3. Define Bottleneck time (From the book, and in your own words): 4. Define Throughput time (From the book, and in your own words):