strategy
what are we moving towards, where are we going ( normal a 5 year plan)
all organization must be thinking into the future and where they want to be.
true
Capacity Planning
how much a company can handle (ex IUS building, class size, parking lot)
the investment in things that would effect are output
Capacity
the upper limit or ceiling on the load that operating unit can handle
Delimans excited do to compasity
- it takes time its not emedited
if we have more capacity then demand
if you have more demand then capacity
we lose money
lose market share
Capacity vs Load
- is a rate at which work is drawn from the system
- is the volume of work in the system (how much we are dumping into the system)
Ex Funnel
strategic capacity planninng GOAL
to achieve a match between the long term supply capabilities of an organization and the predicted level of long term demand
capacity planning questions
what kind of capacity is needed?
How much is needed to match demand?
When is it needed?
a no constraint already has extra capacity
sometime paying a premium to fix a constraint can pay off in the long run
true
Acutal output
the rate of output actually achieved
it cannot exceed effective capacity
design and effective capacity
effeciency- is always larger by %
- the maximum output rate or service capacity an operation, process , or facility is disgned for
- design capacity minus allowance such as time, and maintenance
capacity buffers (cushion)
extra capacity to offset demand uncertainty
capacity cushion = 100% Utilization
-time
service capacity planning challenges
the need to be near customers
the i anbility to store service
demand management strategies
strategies used to offset capacity limitations and that are intended to achieve a closer match between supply and demand
in House or Outsource and factor to consider
Organization must always ask decide whether to produce a good or servie itself or outsource ( make or buy discsions)
-is it a constraint
-available capacity
expertise
quality considerations
developing capacity alternatives things that can be done to enhance capacity management
design flexibility into system
take stage of life cycle into account
take a "big picture" approach
design capacity
effective capacity
the maxium designed service capacity or output rate
design capacity minus allowance such as personal time, equipment maintenance, delays due to scheduling problems, and changing the mix of products
Efficiency=
Utilization=
Actual output/effective capacity
Actual outputs/design capacity
cost volume analysis
focuses on the relationship between cost, revenue, and volume of output
Break Even Point (BEP)
The volume of output at which total cost and total revenue are equal