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PRODUCTION CAPACITY : PLANNING
AND CONTROL
Presented By:
Garima Punj [4131005]
Sonali Garwal [4131031]
PRODUCTION CAPACITY
Capacity Planning
 Determining the long
term capacity needs
of an organization
 Determining how
these needs will be
satisfied
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
Strategies of Capacity Planning
PLANNING AND CONTROL
Planning Decisions
Strategic
Decisions
(Top – Level)
Tactical Decisions
(Middle – Level)
Operational Decisions
(Lower – Level)
Strategic Decisions
Warehouse Location
Building a new plant
Mergers and Acquisitions
New Product Planning
Social Responsibility Planning
R & D Planning
Tactical Decisions
Pricing a Product
Budget Analysis
Short-term Forecasting
Plant Layout
Reward System Design
Make or Buy Analysis
Negotiations
Operational Decisions
Production
Scheduling
Inventory Control
Daily Operator
Scheduling
Order Entry
Machine Loading
Phases of Planning and Control
Planning
Action
Control
Planning Phase
Pre-Planning
• Product Development and
Design
• Demand Forecasting
• Order Writing
• Master Scheduling
• MRP
Active Planning
• Process Planning and
Routing
• Material Planning
• Tools Planning
• Loading
• Scheduling
Action Phase
Dispatching includes:
Job Order
Store Issue
Order
Tool Order
Time Ticket
Inspection Order
Move Order
Control Phase
Progress Reporting
Data regarding what is
happening with the job
collected
Corrective Action
Includes creating schedule
and capacity modifications
R & D Planning is a ______ decision.
‽ Strategic
‽ Operational
‽ Tactical
‽ None
Production Planning and Control has
______ phases
‽ Two
‽ Three
‽ Four
‽ None
Dispatching is a major step of ____
phase
‽ Planning
‽ Action
‽ Production Control
‽ None
Planning phase has _____
‽ Pre – Planning, Active Planning and Post –
Planning
‽ Pre – Planning and Active Planning
‽ Pre – Planning and Post – Planning
‽ None of the above
_____ is the transition from planning
phase to action phase
‽ Dispatching
‽ Scheduling
‽ Materials Planning
‽ None of the above
Production capacity – planning and control

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Production capacity – planning and control

Editor's Notes

  1. 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).