This article is intended for students. 

The teams need to decide how many kayaks to produce each year. Each team must determine the production capacity (in %) based on the theoretical capacity, which is in turn based on the number of rotomoulding ovens.

It is not realistic to try to run the plant at 100% of theoretical capacity in regular time, because there will always be production stoppages caused by breakdowns, inadequate training or simply incompetence on the part of the operators. To meet production targets, the workers would have to put in some overtime.

 

To avoid paying for overtime, the teams can either reduce their production targets or try to increase productivity by: improving plant maintenance or increasing training, among other efficiency measures. 

Keep in mind that overtime is not bad in itself. If your team thinks it can successfully sell most of the kayaks produced in overtime, doing so may be profitable. 

Bear in mind that when you invest in new rotomoulding ovens, productivity will tend to drop in the first year because new equipment requires a break-in period. Training is essential to shorten the learning curve of employees assigned to operate new equipment.