# Question & Answer: B) A computer repair service has a design capacity of 80 repairs per day. Its effective…..

B) A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day.

(1) State both formulas:

(2) Calculate both answers:

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(3) Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Why

## Expert Answer

Answer

Design capacity = 80 repairs per day

Effective Capacity = 64 repairs per day

Actual Output = 62 repairs per day

Answer 1.

Formula 1: Efficiency: (Actual Output / Effective Capacity ) * 100 %

It gives an idea about how well the system has been used in comparison to what is being available. In other words, helps to know design capacity of the system.

Formula 2: Utilization: (Actual Output / Design Capacity ) * 100 %

It signifies how well the system has been utilized or how operation is making use of its potential

Answer 2: Efficiency(Actual Output / Effective Capacity ) * 100

: (62/64) * 100% = 96.875%

Utilization: (Actual Output / Design Capacity ) * 100 %

: (62/80)*100% = 77.5%

Answer 3: As clearly shown that efficiency is higher compared to utilization. Hence manager should try to ensure:

1. Increasing utilization or

2. Increasing effective capacity so as to lower done efficiency

From the given options scheduling and balancing seem to be the options that can affect effective capacity. Hence should be investigated