How to Calculate Production Capacity of a Factory ?

 

How to Calculate Production Capacity of a Factory ?

In garment Industry, “Production capacity” is one of the most important play role used for vendor source by the buyers. Buyer can easily understand the order capacity of the vendor. And, they allocate order proportionally to the vendor. So it is very important that marketing and planning personnel should aware about the production capacity of their production units. After read this article anyone can easily understand how to calculate the production capacity of a factory?

According to production planner express the capacity of a factory in terms of how many machines they have. And also calculate the production of a particular style produce in a day. Capacity of a factory is primarily expressed in terms of total machines factory have According to the style category, machine requirement can be change and daily average production output can also change.

A factory’s capacity is express in the terms of total minutes or hours or production per day.

• Factory capacity in hours
• SAM of a Product.
• Line efficiency (Average).

1. Calculation of a factory capacity (Hr):

Generally, need to know total machines of a factory & production runs of a day.

Let,

Total Number of machines=300

Production run of a day=10 hours

So, total factory capacity (in hours) = 300*10 hours = 3000 hours

2. Calculation of a Product Standard Average Minute (SAM):

According to industrial Engineer calculate SAM of a particular style.

Let,

The SAM of a particular style is 30 minutes.

3. Factory Average Efficiency%:

According to Industrial Engineering department can understand the historical data or calculate   average line efficiency.

Let,

The style average line efficiency is 70%.

Calculation of production capacity of a factory (Pcs):

Now, we can use following formula to calculate production capacity.

Production capacity (pcs) = {(Capacity in hours*60/product SAM)}*line efficiency

 Example: Let, a factory has 10 sewing lines and each line has 30 machines. Factory Production runs 10 hours per day. If factory is producing only one style (Shirt) of SAM 30 minutes and used daily production capacity at 70%.What is the production capacity of that factory?

Total machine=10 linesX30 Machines=300 Machines

Total Hour=300 Machines X 10 hours=3000 hours

Total Minutes=3000 hoursX60 Minutes=180000 Min. (1 hour=60 Minutes)

SAM=30 Minutes

Average line Efficiency=70%

Production capacity (pcs) = {(Capacity in hours*60/product SAM)}*line efficiency

= (3000*60/30
= 180000/30 min.
= 6000*0.70(Line efficiency)

=4200 pcs

So,Production Capacity of a day =4200 Pcs(shirt)

Please note that Production will vary according to the line efficiency and initial days production line efficiency is lower & it will faster when start full flow of production.