Production reserve

Production reserve
See also
Just in time Uniformity of production Pipelined production Muda mura muri Determining the length of the production cycle Cost avoidance Production cycle Continuous process Nested production Inventory reserve

Reserve capacity (Rc) is the difference between the size of the calculated capacity (Cc) and achieved the size of production in the enterprise (Pr).

Rc = Cc – Pr [unit production]

The presence of reserves is required because of risk of economic processes. The size of the reserves must be subject to optimization containing maintenance costs and changing market demand. Knowledge of production capacity is necessary to determine the increase in production (not requiring additional investments), and for the determination of improving the efficiency of investment processes.

Intensive Reserve

They can be used by:

• reduce machine time per unit of the product
• reduce the participation of auxiliary time and other components in general time of operation
• elimination of non-productive run of machines

Extensive Reserve

Extensive reserves are connected with idle operation of machinery and equipment

• Downtime – device idle time due to lack of workers or during refurbishment, * Whole shift downtime - caused by prolonged preparatory time of machinery and equipment.
• Loss - breaks due to lengthy repairs, accidents, lack of materials, and other organizational issues
• Breaks during the work day - regular break for employees to reduce fatigue. Some downtime due to the fault of the worker: the absence of work, being late to work, early finishing of work.

Production capacity

Production capacity refers to the maximum amount of goods or services that a production system can produce within a given period of time. It is often measured in terms of output per unit of time, such as units per hour, units per day, or units per month. Production capacity can be influenced by a variety of factors, including:

• Equipment and machinery: The type, condition, and capacity of the equipment and machinery used in the production process can affect the overall production capacity.
• Labor: The number and skill level of the workers involved in the production process can affect the overall production capacity.
• Materials and supplies: The availability and quality of the materials and supplies used in the production process can affect the overall production capacity.
• Production process: The efficiency and effectiveness of the production process, including the design of the production line, can affect the overall production capacity.
• Maintenance: The maintenance schedule and effectiveness of maintenance can affect the overall production capacity.
• Market demand: The level of market demand for the goods or services being produced can affect the overall production capacity.
• Government regulations: Compliance with government regulations such as safety, environment, labor laws, and taxes can affect the overall production capacity.

Production capacity can be increased by investing in new equipment and machinery, hiring more workers, improving the efficiency and effectiveness of the production process, and increasing market demand. The production capacity can be measured by using performance indicators such as capacity utilization rate, production yield, and efficiency.

References

• Kleindorfer, P. R., Singhal, K., & Wassenhove, L. N. (2005). Sustainable operations management. Production and operations management, 14(4), 482-492.