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Effective Capacity; Time Dependency; Utilization and Efficiency

1. 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. The manager would like to increase the number of repairs per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.

2. Compared to manufacturing, service requirements tend to be more time dependent, location dependent, and volatile. In addition, service quality is often directed observable by customers.

Please help on finding a recent article in a business magazine that describes how a service organization is struggling with one or more of these issues and make recommendations on what an organization needs to do to overcome these difficulties.

3. What are the utilization and the efficiency for each of these situations...
? a loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day
? a furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective.

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OPERATION MANAGEMENT: DESIGN CAPACITY AND UTILIZATION

1. "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. The manger would like to increase the number of repairs per day".
Factors that the manager investigate: quality problems, absenteeism, or scheduling and balancing

The computer repair shop must improve its effective capacity which is the maximum capacity that the shop can repair given its product mix, scheduling difficulties, and other possible situations. There is a wide gap between the design capacity (80) and effective capacity (64). Design capacity which is the maximum attainable output is 80. The company could have produced more if scheduling and balancing have been improved. Hence, there is a need to investigate these aspects.

Absenteeism may also be investigated because considering the company's resources, it should have repaired 64 computers but the actual output was only 62. This may mean that some of the company's resources (e.g. human resources) may not have been fully utilized.

2. "Compared to manufacturing, service requirements tend to be more time dependent, location dependent, and volatile. In addition, service quality is often directly observable by customers".

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Solution Summary

The solution discusses effective capacity, time dependency, and utilization and efficiency.

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