Capacity Utlization Audit Program

Capacity Utilization Audit ProgramSUBJECT:10-15-93 40.0Page1 of 840.0 COSTS RELATED TTo establish the method for collecting , maintaining, and analyzing quality cost data to achieve continuousimprovement through the Atlas Steel Company.APPLICATIONPertains to all quality costs connected with preventing and correcting nonconforming materials. The data is to beDaily/Weekly Production Management ReportMonthly Production Management SummaryQuarterly Production Management SummaryDowntime SummaryDaily/Weekly Transportation ReportWeekly/Monthly Transportation SummaryDEFINITIONS¾ Normal ¾Available Hours ¾ Total direct labor hours available for coil or sheet processing; including downtime - but not vacation, absenteeism, holidays, tardiness, or leaving early.Productivity ¾( )= x Available Hours ( )Utilization ¾produce a coil or sheet vs the total hours worked. Percentage indicator measuring the amount of time an operations associate was used to 4.5input100output Hours Earned Percentage indicator that measures the output (earned hours) vs input (available hours). 4.4training, meetings and abnormal rework 4.3handling).Quantity accepted x standard hours (a pre-determined standard of performance for processing or material multiplied by the standard labor hour (Hrs/Ton).Hours earned by producing an acceptable product as measured by operator inspection and Earned Hours 4.2Rework. Direct labor hours or time spent processing coils or sheets, ...