Shop Fabrication

Member for

21 years 8 months

In order to do a total volume of work of 300,000 ID within 12 months you must produce an average of 300,000/12 = 25,000 ID/month.

Peak month is 40,000 that is equal to 40,000/25,000 = 1.60 or 60% above the average.

If there are no restriction as to the number of peak months then you can do it within 300,000/40,000 = 7.5 months. Can be during the first 7.5 months of the 12 months period or the last 7.5 months of the 12 month period.

I always target for as soon as possible, therefore I suggest keeping an availability for 40,000 ID per month until remaining volume of work is less than 40,000 there after keep the remaining (less than 40,000).

If everithing goes as soon as possible you will need 40,000 during the first 7 months and 20,000 on last month = 40,000x7 + 20,000 = 300,000.

I guess you do not want to be stopped on a productive month because you have not enough to cover maximum production, do not count on next months to be as productive to catch up, it might be you will not meet your 12 month target.

Member for

19 years 10 months

Hi Mirza

The answer relies on many factors.

1. Storage capacity at the welding site.

2. Number of different pipe types involved - particularly speciali bends and T's.

3. Delivery period from date of order release.

4. Frequency of design changes.

5. Productivity of the welders.

These can all be factored into a spreadsheet so that you have a "just in time" procurement system.

The same level of detail is difficult to establish on a barchart.

Best regards

Mike Testro