Question

Safed Soap Manufacturing operates its plants on all 7 days of the week with three 8-hour shifts

per day. The production line was designed to process the soaps at a rate of 360 per hour. What is
the designed capacity of the plant? Last week the production was 35,000 units. What was the
capacity utilization last week? If the effective capacity is 75% of the designed capacity, what was
the efficiency last week?

Answer 1

The designed capacity of the plant is 86,400 soaps per week (360 soaps/hour x 8 hours/shift x 3 shifts/day x 7 days/week). The capacity utilization last week was 40.5% (35,000 units / 86,400 units). The efficiency last week was 47.4% (35,000 units / (0.75 x 86,400 units)).

Step-by-step explanation: