3. Capacity Planning
Determining the long
term capacity needs
of an organization
Determining how
these needs will be
satisfied
4. Determination of Plant Capacity
Ǐ Design Capacity – Rate of output of goods or
services under full scale operating conditions
Ǐ System capacity – Maximum output of a
specific product that the system of workers
and equipments is capable of producing
14. Control Phase
Progress Reporting
Data regarding what is
happening with the job
collected
Corrective Action
Includes creating schedule
and capacity modifications
15.
16. R & D Planning is a ______ decision.
‽ Strategic
‽ Operational
‽ Tactical
‽ None
18. Dispatching is a major step of ____
phase
‽ Planning
‽ Action
‽ Production Control
‽ None
19. Planning phase has _____
‽ Pre – Planning, Active Planning and Post –
Planning
‽ Pre – Planning and Active Planning
‽ Pre – Planning and Post – Planning
‽ None of the above
20. _____ is the transition from planning
phase to action phase
‽ Dispatching
‽ Scheduling
‽ Materials Planning
‽ None of the above
Editor's Notes
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, design capacity is the maximum amount of work that an organization is capable of completing in a given period. Effective capacity is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing as a synonym for capacity management.
A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Demand for an organization's capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Better utilization of existing capacity can be accomplished through improvements in overall equipment effectiveness (OEE). Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities.
Capacity is calculated as (number of machines or workers) × (number of shifts) × (utilization) × (efficiency).