A computer repair service has a design capacity of 80 repairs per day Its effective capacity however

QUESTION:

A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. The manager would like to increase the number of repairs per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.


ANSWER:

Efficiency is very high, but utilization is not. The implication is that the potential for increasing output by improving efficiency is quite limited, whereas the potential for doing so by improving the effective capacity is much greater. Of the factors listed, scheduling and balancing are in the category of factors that affect effective capacity, so they would have the higher potential to be investigated for potential improvements.