M should be calculated for each yea

M should be calculated for each year in the time horizon. The processing time, p, depends on the process and methods selected to do the work. The denominator is the total number of hours, N, available for the year from one unit of capacity (an employee or machine), multiplied by a proportion that accounts for the desired capacity cushion, C. The proportion is simply 1.0 - C>100, where C is converted from a percent to a proportion by dividing by 100. For example, a 20 percent capacity cushion means that 1.0 - C>100 = 0.80.Setups may be involved if multiple products are being manufactured. Setup time is the timerequired to change a process or an operation from making one service or product to making another. The total setup time is found by dividing the number of units forecast per year, D, by the number of units made in each lot, Q, (number of units processed between setups), which gives the number of setups per year, and then multiplying by the time per setup, s. For example, if the annual demand is 1,200 units and the average lot size is 100, there are 1,200>100 = 12 setups per year. Accounting for both processing and setup times for multiple services (products), we get