Production Costs Activity Use the table below with page 4 of the Courier to complete the activity. First and Second First Shift Capacity Found under Company "Capacity Next Round" Shift Capacity Capacity Next Round x 2 (shifts) Industry Total the capacity of each product in that segment Total capacity of each product in that segment X 2 Automation Level Cost to Double Capacity Found under "Automation Next Round" Increasing capacity is $6 per unit with an adjustment for automation. Formula is: First Shift Capacity x [$6 + ($4 x automation level)] Example Input: 500 Cost to Raise Automation to 10 Increasing automation is per unit of capacity Formula is: First Shift Capacity x [$4 x (10 - automation level)] Example Input: 700 *In the simulation, the input cells are in thousands ('000's), so an input of 1 is actually 1000 units. So, in the example below 500,000 units is inputted as 500 in the cell. This applies to dollar values as well. Incomplete Capacity Analysis Product Segment Name First Shift Capacity First & Second Shift Capacity Automation Level Cost to Double Capacity Cost to Raise Automation to 10.0 Company Industry Company Industry Traditional Fast Low End Feat High End Fist Performance Foam Size Fume Capacity Analysis Being able to analyze plant and equipment (capacity and automation) is essential to understanding how you and your competitors are supplying the market demand. There is often unmet demand in segments because companies do not or cannot produce enough units. If you successfully analyze industry capacity, your team could benefit from these shortfalls. B- I Each product has its own production line where you can set capacity and automation. Capacity represents the company's ability to produce units of its product. Think of capacity as your manufacturing plant. For each unit of capacity, there are two shifts of workers that can use your manufacturing plant to produce your products, which represents a first and second shift. So if your product has a capacity of 1000, this means you can produce up to 2000 units of your product. Automation represents the robot-to-worker ratio in your manufacturing plant. A higher ratio of robots will provide your company with a lower labor cost. However, this will increase the amount of time it takes your products to be updated. You will need: ⚫ The Production Analysis report (page 4) of the Capstone Courier for Round 0 On the Production Analysis page, look at the table of products (the Andrews company is displayed below). The highlighted boxes (plus a little math!) are where you will find the information you need to complete the analysis. 2nd Shift Primary Units Name Segment Sold Unit Inven tory & Revision Date Age Dec.31 Pfmn Able Trad 999 189 11/21/2010 3.1 17500 MTBF Coord 5.5 Size Coord Price Material 14.5 $28.00 Labor Cost Cost $11.59 $7.49 Contr. Over- Auto mation Next Capacity Next Plant Marg time Round Round Utiliz 29% 0% 4.0 1,800 66% Acre Low 1,763 39 5/25/2009 4.6 14000 3.0 17.0 $21.00 $7.81 $7.12 27% 30% 5.0 1,400 129% Adam High 366 40 4/18/2012 1.7 23000 8.0 12.0 $38.00 $15.98 $8.57 33% 0% 3.0 900 45% Aft Pfmn 358 78 6/30/2011 2.5 25000 9.4 Agape Size 314 62 5/25/2011 2.6 19000 4.0 15.5 $33.00 11.0 $33.00 $15.87 $8.57 23% 0% 3.0 600 73% $13.62 $8.57 30% 0% 3.0 600 63%