KNOWLEDGE PROVIDERS
JN FACTORY
 
  2. CALCULATE CAPACITY
HOME JN FACTORY INTRODUCTION
 
   
   
   
   
   
 
How many products can this factory produce?
Calculate via the cost.
Often the calculations are made as follows:

Available resources 5
Total available capacity per hour 60' * 5 = 300'
Time to produce one product (see figure 2.1.) 8' + 6' + 10' + 12' + 4' = 40'
Total products Produced per hours 300'/40'= 7.5
Table 1. Number of products in traditional approach

Calculate via the reality.

How many finished products can we get out of this factory per hour ?

Let's have a look at the factory in detail and ask yourself the question how much can each unit produce for example per hour ?

Resource Time per Part Parts per Hour
A 60' / 8' 7.5
B 60' / 6' 10
C 60' /10' 6
D 60' /12' 5
E 60' / 4' 15
Table 2. Parts per Hour in Traditional Approach

All resources, except D, can produce more than 5 pieces. But because of this resource D, we will never get more than 5 pieces per hour out of this factory!
 
In fact you have applied the same first two steps as in the MMM:
  • Step 1: What is the constraint of this MMM ?
    Resource D.
  • Step 2: How can we exploit this MMM to his full extent?
    By making the maximum use of Resource D. Only this will assure, that the JN-Factory produces a maximum of 5 products per hour.