Capacity Utilization of a Single Machine Multi Product Case in Make to Order Manufacturing Organization - A Case Study

Abstract

Capacity planning and control is done for setting the effective capacity of the operation so that it can easily and quickly respond to the demands placed upon it. The purpose of the study was to determine the capacity utilization for a single machine multiple product case in make to order manufacturing organization. The problem was reported in the CNC department as the organization was not able to fulfil the orders by their due dates. The mathematical model prepared was found to be the appropriate for solving this type of problem. Using information of the pre-requisites of model application, the data was collected. The data collected was analysed with the mathematical model. Results investigate significant improvement of 3% production rates and net profit of INR 2 Lacks per annum has been achieved. The results not only validated the model but also showed that the utilization of the machine was found less than as per the specifications of the machine.