How to Calculate Factory Capacity?

How to Calculate Factory Capacity?
 
The most common question is how do we plan and calculate capacity when the company does multi style products?
The answer is - a factory capacity should be planned in a manner that it is independent of styling.
Hence production capacities for all styles have to be converted into a common unit of measurement, which is TIME.
 
The following parameters have to be calculated to ascertain the factory production capacity.
  • SMV for a garment - Standard Allowed Minutes for a garment
  • Factory efficiency Levels
 
A 200 machine factory employs 250 workers. Factory works 26 days in a month and 8 hours a shift.
 
 
 
L-1
L-2
L-3
L-4
L-5
L-6
L-7
Total
Style
A
B
C
E
F
G
H
 
SMV
5
10
8.5
4.5
7
18
15
68
No of Operators
21
25
23
20
19
36
32
250
No of Helpers
9
10
9
8
11
14
13
Avg. Product SMV
68/7 = 9.71
 
Avg. Monthly Efficiency
60%
 
 
Total Available Time (Min) = 250 x 26 x 8 x 60 = 3120000 min
 
                                            Available Time
Factory Capacity (Pcs) = -------------------------- X Avg. Efficiency
                                        Avg. Product SMV
           
                                     = (3120000/9.71) x 60%
                                      = 192791 Pcs/ Month