Technological innovations have transformed the most diverse work segments, and in industry, they stand out in the optimization of production capacity, supporting professionals in agility, resource savings, and the reduction of idle time.
According to Luiz Igreja, a specialist at Dassault Systèmes: “in the midst of the Digital Transformation era, organizations are facing several changes in the processes and work formats of their professionals.”
This is because, contrary to what many people think, innovation does not come to replace human labor; in fact, it comes to complement it and make it even more efficient.
However, to manage the industry effectively, organize the budget, and be able to act strategically in improving production, it is necessary first to know and analyze the factory’s production capacity.
What is production capacity?
Production capacity is the definition of the quantity of products your company can produce in a given period of time, taking into account available resources. But this does not mean that the higher the production capacity, the better the factory.
In fact, each company needs to understand the production capacity that best suits its demand, so that there is neither a shortage nor an excess of inventory. To give a clearer example:
- A production capacity lower than demand will mean delivery delays and poorly served customers;
- While having a production capacity superior to demand will result in idle machine and employee time, as well as stagnant inventory, factors that only bring losses to the factory.
Why know the factory’s production capacity?
Knowing the production capacity will assist in decision-making, because by knowing the quantity of products the factory can produce, it is possible to understand the business in a more globalized way and put a production plan into practice.
Furthermore, it facilitates inventory organization and management, as it allows better control of equipment and supplies, avoiding waste. It is worth remembering that excess inventory can result in misplacement and losses, especially when dealing with perishable products.
By knowing the industrial capacity, team and machine management is also facilitated, as it is possible to calculate how many people and equipment are needed to reach a certain amount of production within the month. This greatly facilitates achieving goals.
How to calculate the factory’s production capacity?
Various methods can be used to calculate the factory’s production capacity, but first, it is necessary to understand what the market demand is for your product, in order to estimate sales.
After having this information, it will be possible to calculate production capacity more simply. For this, we highlight some points that the factory needs to know:
Installed production capacity
Here we think hypothetically. One must consider the maximum production capacity if the factory works uninterruptedly, without taking into consideration factors that impact production, such as stoppages and defects.
Available production capacity
After understanding the installed capacity, the available capacity must be calculated. In this step, factors that impact productivity are also not considered, however, only the maximum capacity that the factory can produce during a work shift is considered.
Effective production capacity
This method considers predictable factors that can impact production, such as periodic equipment maintenance, vacations, or pauses for balance sheet audits.
Realized production capacity
Here, unpredictable factors in the effective production capacity are also considered, such as equipment misplacement, employee shortages, power outages, or other external impacts.
To be able to calculate the realized capacity effectively, it is necessary to analyze the factory’s production history.
How to improve the factory’s production capacity?
Many experts may point out ways to solve this with actions such as acquiring more equipment or creating an additional work shift. But check out the strategic step-by-step guide below to finally improve your company’s results:
Planning
Production planning is a primary factor for the organization of the production chain and the improvement of factory processes. This is because this activity will serve as the basis for the work, even before it begins.
During planning, it will be defined which demands must be carried out and at what time. Thus, creating a synchronized and collaborative workflow, eliminating bottlenecks and idle time. The process of the entire production chain can be greatly favored by this.
Result measurement
A production line can provide a lot of information, which, when analyzed, brings important data that can be applied to improving factory processes.
Therefore, calculating metrics like Return on Investment (ROI), for example, is an essential attitude to understand what is being positive for your business and what can improve.
Investment in innovation
The speed and automation achieved through the use of technology allow for quick decision-making for demands that are constantly changing. According to research by CNI, 74% of small, medium, and large Brazilian industries have already adopted at least one Industry 4.0 technology.
Following the measures to contain the COVID-19 pandemic and the need to digitize processes, adherence to technology has become even greater. Another CNI datum showed that among industries that incorporated four or more technologies, 71% managed to innovate during the pandemic.
Technology in process optimization
Manufacturing-specialized solutions enable various factory activities to be automated. An example is MES (Manufacturing Execution System) systems, which manage all shop floor activities digitally.
Meanwhile, production planning can be done with the support of an APS system, which allows planning while taking the factory’s production history into account. In this way, an overview of planned and unplanned stoppages that may occur is obtained, and deadline control becomes much more precise.
Now you know how technology can support the improvement of production capacity. Contact our specialists to learn more about Dassault Systèmes Manufacturing solutions.
*Signed by: Aloisio Arbegaus, Director of Teclógica.
