Your company\'s manufacturing facility uses work cells. Each cell has a design c

Question

Your company's manufacturing facility uses work cells. Each cell has a design capacity of 252 units per day and an effective capacity of 226 units per day; currently the average daily production is 197 units. The manager expects productivity improvements to increase output to 225 units per day. The current annual demand is 45500 units. Due to acquisitions and consolidating facilities, the forecasted demand in three years will be eight times the current demand. How many work cells should management expect to have to meet this future demand? (Assume 240 workdays per year)

Explanation / Answer

Actual output as per productivity improvements=225 units per day

240 working days per year

projected annual demand=45500*8=364000 units

Annual capacity per cell =225*240= 54000

Cells= 364000/54000= 6.74 cells or 7 cells

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