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PRODUCTION AND OPERATIONS MANAGEMENT

PRODUCTION AND OPERATIONS MANAGEMENT. Ch. 8: Capacity Planning SUMMARY. BASIC POINTS. WILL WE BE CAPABLE OF SUPPLYING PRODUCTS/SERVICES AS DEMANDED? Meaning of capacity and utilization The planning process – Alternatives Capacity planning strategies Capacity decisions

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PRODUCTION AND OPERATIONS MANAGEMENT

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  1. PRODUCTION AND OPERATIONS MANAGEMENT Ch. 8: CapacityPlanning SUMMARY POM - J. Galván

  2. BASIC POINTS WILL WE BE CAPABLE OF SUPPLYING PRODUCTS/SERVICES AS DEMANDED? • Meaning of capacity and utilization • Theplanningprocess – Alternatives • Capacityplanningstrategies • Capacitydecisions • Matchingcapacitytodemand POM - J. Galván

  3. QUESTIONS • Whatiscapacity? Howisitmeasured? Discusstheprocess of capacityplanning. • Explainthestepsinvolved in capacityplanning. Howiscapacitychanged in longrun? • Management maychoosetobuild up capacity in anticipation of demandor in response todevelopingdemand. Cite theadvantages and disadvantages of bothapproaches. • Which of thefollowingis NOT a characteristicduringtheintroductoryphase of theproductlifecycle? • Research • Processmodification • Supplier develo pment • Capacityutilization • Themaximum output of a system in a givenperiodiscalledthe • Break-evenpoint • Designcapacity • Effectivecapacity • Efficiency POM - J. Galván

  4. QUESTIONS (II) • What would be the utilization of a car manufacturing plant, if 40 cars are produced in a day with a design capacity of 60 cars per day? • 67% • 20% • 100% • 150%

  5. LOW CAPACITY IS ALWAYS A PROBLEM POM - J. Galván

  6. …and be careful POM - J. Galván

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