Snmek 1
Anglicky v odbornch pedmtech"Support of teaching technical subjects in EnglishTutorial: Business Academy
Topic: Fixed assets - capacity
Prepared by: Ing. Jana ustrov
Projekt Anglicky v odbornch pedmtech, CZ.1.07/1.3.09/04.0002je spolufinancovn Evropskm socilnm fondem a sttnm rozpotem esk republiky.
Capacity =the ability of company, business or services to create or provide a certain amount of products and services for a certain time under optimal conditionsProduction capacity = the companys ability to produce particular products for a certain time under optimal conditionsOptimal conditions = steady flow of quality material, continual energy supply, low morbidity, low failure rate, etc.
Capacity the basis of investment
3 data are needed:Capacity standard (for 1 machine, 1 car etc.)Capacitive standard time (time required for 1 product)Capacitive performance standard (maximum quantity that can be produced in a given time)
Number of equipment units (number of machines, cars..)
Usable time fund (maximum time that may be in operation)(number of days in the year public or day holiday, vacations) x number of hours per day = nominal time fund (NTF)NTF planned repairs, interruptions in production fund = usable time fund (in hours) (UTF)
Procedure for capacity calculation
Projected year has 365days. There are 114 days of leaves or holidays. The company plans to have 10 working days as company holiday, 110 hours for machine repairing. The company operates on 2 shifts e.g. 16 hours.
Solution:Number of working days= 365-114-10=241Nominal time fund= 241x16=3856 hUsable time fund= 3856-110=3 746 h
Note VTF can be easily identified from the planning calendarExample:
Sample of planning calendar
A. If the capacitive performance standard is givenCapacity = UTF x standard output capacity x number of units of equipmentExample: Manufacturer of soft drinks has 2 filling lines. Each of them is able to fill 700 bottles per hour. UTF is 3746 hours. Capacity: 3746x70= 2 622 200 per each line x 2= 5 244 400 bottles a year
B. If the capacitive standard time is givenCapacity =(UTF : capacitive standard time) x number of equipment unitsExample: Pottery kiln has UTF 1870 h a year. It is possible to put there 2 400 mugs that have been burnt for 6 hours. We have 2 kilns.Standard time for 1 mug= 6 : 2 400 = 0,0025 hCapacity: (1870 : 0,0025) x 2 = 1 496 000 mugs a year
Calculation of capacity
Capacity is almost never used at 100 %.Reasons:Unexpected failuresFluctuation in demandIncreased morbidityActual capacity use: Real production x 100 capacityPlanned use of capacity:Planned production x 100 capacityCapacity utilization
Extensive utilization coefficient= real production time in hours UTF It indicates whether the property has been in service all the time:Higher shift workingBetter organization of workFaster repairsMore consistent use of working timeOther coefficients of fixed assets use
2. Intensive utilization coefficient= real outputstandard capacityIt specifies how the machine parameters have been used. The increase can be achieved by following:To reduce the labour intensity of productsTo increase qualification3. Complex utilization coefficient= intensive utilization c. x extensive utilization c.Total capacity utilization is influenced by the time how long the device has been in service and how effectively its output has been used.
By the term capacity we understand the companys ability to create a particular number of products in a certain time.We calculate usable time fund (UTF) that from the number of days in the year we gradually deduct weekends, holidays, days of planned repairs and the days of estimated downtimes.The capacity is optimally utilized if it is used at 100%.Task 1: Find an error in each of the following statements
Search the Internet a planning calendar for the current year and determine the capacity based on these data:There are 3 production linesEach of them produces 300 products per hourCompany plans 10 days holiday plant shutdownEstimated repair time is 140 hoursIt operates on 2 shiftsTask 2:
Klnsk P., Mnch O. Ekonomika pro obchodn akademie a ostatn stedn koly . Praha: EDUKO nakladatelstv, s. r. o.,2008, ISBN 978-80-87204-03-0
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