Capacity Planning practice problems 1 and 2.

1. The following problem uses the Capacity Planning using Overall Factors (CPOF) method. This is the least
complex of the methods presented.
In this problem, you’ll start with a set of factors. Then, a change will be made to the process that will
require a change to the factors.
A company makes leather and fabric seats for an auto manufacturer. Standard labor hours are 1.2 for
the leather and 1.0 for the fabric.
The seats are made in two work centers, sewing and assembly. The current factors are 55% for sewing
and 45% for assembly.
Here is the master schedule for the next six weeks.
Week 1 2 3 4 5 6
Leather 15 20 18 21 15 13
Fabric 65 60 62 59 65 67
a. Using the CPOF method, calculate the total hours for each work center for each week.
b. Because leather is a natural product, there are variations in the grain from one piece to the next.
This affects the color after the leather is dyed. It has been decided to inspect the incoming dyed
leather in order to match pieces to get the most consistent color for each seat.
This inspection will add six minutes of process time to the total time needed for each leather
seat. It has been decided to add the inspection step to the assembly work center.
Because of this added time in assembly, the work center factors will have to be slightly adjusted
so that this extra time appears in the assembly work center.
Determine what these new factors should be and calculate the revised hours for each work
center using the same master schedule as in part a.

2. The following problem uses the capacity bill method.
A furniture manufacturer makes a bookcase from two end panels and four shelves. The fabrication of
these parts is as follows:
End Panel
Operation Sequence Machine Center
Run time per piece Setup Time
1 Saw 5 minutes 0.6 hour
2 Planer 3 minutes 0.3 hour
3 Router 4 minutes 0.8 hour
Shelves
Operation Sequence Machine Center
Run time per piece Setup Time
1 Saw 4 minutes 0.5 hour
2 Molder 5 minutes 1.3 hour
3 Router 5 minutes 0.7 hour
4 Sander 1 minute 0.1 hour
The master schedule for the next three weeks is 35, 50, and 40 bookcases respectively.
A setup is performed at each machine center for both parts each week.
Calculate the total hours required at each machine center (don’t forget to include the setup time) for
the next three weeks to support the master schedule.