BA 101 Lecture 8: BA 101 – Lecture 8

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Business 101 Lecture 9 Capacity Automation & CM
Labor Costs:
Everything is based on HOW MANY sensors you want to make (now and in the future)
o Capacity
How many sensors you can make one shift at regular hours; how ‘big’
your factory is
o Overtime
Workers work extra hours at a higher wage
o Automation
Mix between machines and human labor
Factory has 900 units of capacity
- You want 1500 units of capacity
o You have to physically add onto your building (build an extension)
o People labor is more expensive per unit than machine labor per unit
Labor + material
o When you use machines, you don’t have to ‘pay’ them anything
- When you had 900 units of capacity, you had a combination of machinery and labor
(level 3)
- Levels represent the combination of machinery and labor
- The closer the level it is to 1, the combination is made mostly of people
- The closer the level it is to 10, the combination is made mostly of machines
- The 900 units of capacity and the new 600 unit capacity has to be the same level
- How much does it cost to put machinery in the new space to make it the same level as the
900 unit storage
- How much does it cost to add capacity
Capacity:
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Document Summary

Business 101 lecture 9 capacity automation & cm. When you had 900 units of capacity, you had a combination of machinery and labor (level 3) Levels represent the combination of machinery and labor. The closer the level it is to 1, the combination is made mostly of people. The closer the level it is to 10, the combination is made mostly of machines. The 900 units of capacity and the new 600 unit capacity has to be the same level. How much does it cost to put machinery in the new space to make it the same level as the. How much does it cost to add capacity. Capacity: how many sensors your factory can make during one shift at regular hours. It describes how big" your factory is what it is capable of doing in one shift during one year: capacity is different than the number of products that the factory is able to produce.

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