1. Home
  2. MikesBikes Accounting
  3. Operations
  4. How Much Factory Capacity Do I Need?

How Much Factory Capacity Do I Need?

The factory capacity required to produce the target volumes of products can be determined using standard capacity units (SCU). The SCU required to produce each unit of your product can be found in the Product Summary report.

SCU required per bike MikesBikes Introduction

SCU required per unit varies per product type and may change if you have developed or modified your existing bike design. Check the Product Summary report for the SCU required to produce your products.

How much SCU do I need to produce my bikes?

From the Product Summary report (see image above), you will see that the RC_RockHopper bike requires 0.50 SCU to produce one unit.

However you also have to take your low factory efficiency into account.  You can see that you have 25% wastage, or 75% efficiency.

Total SCU required = Planned Production x SCU required per unit / Efficiency%

Example: the standard RC_Rockhopper design requires 0.5 SCU to produce one bike. If we plan to produce 500 units of our RC_Rockhopper bike then 500 units x 0.5 SCU per unit = 250 total SCU required for production.

However we also have to allow for the 25% wastage.

250 SCU / (0.75) = 333 SCU required for production, including wastage.

ie. you have 250 SCU of useful production time, and 25% or 83 SCU was lost to wastage.

You can reduce the amount of wastage in your factory by investing more in Efficiency.

Was this article helpful?

Related Articles

Need Support?
Can't find the answer you're looking for?
Contact Support