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Practical capacity in terms of machine hours computation

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Practical capacity and machine hours: Calla Manufacturing Company has 40 machines in its factory. The machines run for two shifts each day, with 30 workers per shift. Allowing for machine maintenance and break time for machine operators, each machine can be used for production for an average of 6.5 hours per shift. Assuming the factory operates for an average of 22 days per month, what is Calla's practical capacity number of machine hours per month?

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Solution Summary

The solution gives step by step computation of practical capacity in terms of machine hours.

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Practical capacity is the capacity that allows for normal operating interruptions like the machine maintenance, break time etc.
Usage of one machine per shift = 6.5 hours
Usage of one ...

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