Process selection and capacity planning
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The document discusses capacity planning and outlines the key steps involved which are: defining capacity, determining capacity requirements, developing capacity alternatives, and evaluating capacity alternatives. It defines different types of capacity and how to measure it. Factors that determine effective capacity are also examined. Demand patterns and fluctuations are important to consider when determining short and long-term capacity requirements. Quantitative techniques like cost-volume analysis can be used to evaluate capacity alternatives from an economic standpoint.
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Capacity planning
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CAPACITY PLANNING
Contents of Presentation-
Capacity Planning:
- Meaning
- Forecasting
- Reasons
- Importance
- Examples
- Capacity Terminology
- Efficiency & Utilization
- Calculation of capacity Utilization
- Determinants of Effective Capacity
- Calculating Processing Requirements
- Capacity Planning Process
- Planning Over a Time Horizon
- Economies of Scale
- Optimal Rate of Output
-Capacity Planning Alternatives Evaluating Models
Cost Volume Analysis: Break-even Analysis
Decision Theory
Financial Analysis
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Capacity planning ppt
The document discusses capacity planning for products and services. It explains key concepts like capacity, effective capacity, and utilization. It also outlines factors to consider when developing capacity alternatives and approaches for evaluating alternatives, including cost-volume analysis, break-even analysis, financial analysis, and waiting-line analysis. The goal of capacity planning is to determine the appropriate level and timing of capacity to meet future demand in a cost-effective manner.
Capacity Planning
The document discusses capacity planning, which involves determining the production capacity needed by an organization to meet changing demand. It covers determining current and future capacity needs, identifying options to modify capacity, and addressing imbalances between demand and capacity. Short-term adjustments and long-term responses are discussed. Models like present value analysis, aggregate planning, and decision trees can be useful for capacity planning. Economies of scale and concepts like efficiency and utilization are also summarized.
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- Capacity Planning Process
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Capacity planning ppt
The document discusses capacity planning for products and services. It explains key concepts like capacity, effective capacity, and utilization. It also outlines factors to consider when developing capacity alternatives and approaches for evaluating alternatives, including cost-volume analysis, break-even analysis, financial analysis, and waiting-line analysis. The goal of capacity planning is to determine the appropriate level and timing of capacity to meet future demand in a cost-effective manner.
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Southwest Airlines is known for its efficient capacity planning process. They carefully forecast demand and calculate the optimal fleet size to meet demand. They use simulation models to determine the ideal capacity cushion to account for variability in demand. If simulations show demand will exceed capacity, Southwest will lease additional planes on a short-term basis to avoid turning customers away. This flexible approach has allowed Southwest to consistently meet demand while maximizing efficiency.
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The document discusses facility planning and capacity management. It covers estimating future capacity needs, analyzing sources to meet demand, and selecting expansion options. Key factors in facility location include transportation, resources, costs, and economic conditions at the national, regional, and local levels. Decision tools like break-even analysis and decision trees can help evaluate capacity and location alternatives.
Aggregate Production Planning (APP)
Aggregate Production Planning (APP) is a process that establishes a company-wide production plan to balance capacity and demand over an intermediate time horizon, typically 3 to 18 months in the future. APP expresses demand and production capacity in more general terms using product families rather than individual products. This allows planners more flexibility to deal with forecast uncertainty. The objective of APP is to minimize costs while meeting demand and utilizing resources effectively. Common APP strategies include maintaining a steady production rate and using inventory to absorb demand fluctuations (level strategy) or adjusting production levels to match fluctuating demand (chase strategy).
Capacity planning ppt @ bec doms
The document discusses various capacity planning concepts including defining capacity, capacity considerations, managing demand, capacity planning processes, and applying decision trees and net present value analysis to capacity decisions. It provides learning objectives on capacity related terms and explains approaches to matching capacity to demand such as adjusting staffing, equipment, production methods, or product redesign.
(capacity1).ppt
Capacity planning involves determining the production capacity needed to meet demand. It considers key questions like what type of capacity is required, how much is needed, and when more capacity will be required. Effective capacity planning can impact costs, responsiveness, and competitiveness. It requires accurately forecasting demand and understanding factors that determine capacity like facilities, processes, employees and policies. Strategies for matching capacity to demand include adjusting equipment, staffing, production methods, and using demand management tactics. Alternatives should be evaluated from economic and non-economic perspectives.
Ch11 strg.capacity mgt
Strategic capacity planning determines the overall capacity levels of facilities, equipment, and labor to meet production needs. It involves concepts like capacity utilization rates, best operating levels, experience curves, flexibility, and determining requirements through forecasting, balancing stages, and decision trees. The goal is to efficiently use existing capacity and appropriately size new capacity additions over time.
Ch11 strg.capacity+mgt
Strategic capacity planning involves determining the optimal capacity levels for facilities, equipment, and labor to meet production needs. It examines concepts like capacity utilization rates, best operating levels that minimize costs, experience curves that lower costs with more production, and flexibility. Determining capacity requirements involves forecasting demand, calculating resource needs, and projecting availability to maintain balance across production stages.
Facility Laout
The document discusses facility location and capacity planning for effective distribution of products and services to customers. It states that the location of production bases and warehouses, as well as their capacities, are crucial factors for achieving customer satisfaction and profits. The capacity of these facilities directly impacts costs - having too little capacity requires spending more on alternatives, while having excess unused capacity leads to higher overheads and losses. Many companies have successfully reduced distribution and transportation costs, which can be 10-25% of sales, by applying scientific methods like mathematical modeling and computer-based analysis to distribution problems. Capacity planning determines the needed production capacity over the long term based on changing demands and helps decide facility locations and characteristics. Different types of capacities are discussed as well as
capacity planning.pptx
The document discusses various concepts related to capacity planning including:
- Capacity is the ability to produce a certain level of output and can be measured in quantity and quality. Supply is the total goods available and demand is the amount consumers will purchase.
- Capacity planning is a long-term strategic decision that establishes a firm's production levels and affects costs, lead times, and competitiveness.
- Capacity can be measured by output or input and planning involves long, medium, and short-range horizons. Determinants of capacity include facilities, product design, processes, human factors and more.
Chapter 06
Capacity planning involves determining the maximum output rate of a process and ensuring there is enough capacity to meet future demand. It is done both in the long-term, through capacity timing and sizing strategies, and short-term through constraint management. A systematic approach to capacity planning involves estimating future capacity requirements, identifying gaps between requirements and available capacity, developing alternative plans to address gaps, and evaluating alternatives both qualitatively and quantitatively. Tools like waiting line models, simulation, and decision trees can help with complex capacity planning problems.
Chap04
The document discusses several topics related to capacity strategy including:
- Issues around capacity levels, number and location of sites, and managing capacity changes.
- Factors that influence the overall level of capacity such as demand forecasts, capital availability, and economies of scale.
- Questions around who should be involved in decisions regarding number and capacity of sites, site locations, and task allocation.
- Performance measures and competitive objectives impacted by capacity strategy decisions.
Capacity planning
The document discusses capacity planning, including defining capacity, measures of capacity like capacity utilization and efficiency. It provides an example of calculating the daily capacity of a copy shop and projecting its load. It also discusses strategies for capacity expansion and the process of capacity planning.
Capacity Planning 091025030548 Phpapp01
The document outlines key concepts in capacity planning including estimating future capacity requirements, determining capacity needed based on demand forecasts and production parameters, analyzing make-or-buy options, and considering timing and sizing of capacity expansions. It provides examples of calculating capacity needs for multiple products/services and determining the break-even point between making or buying additional capacity.
3. capacity planning
Capacity planning involves determining the production capacity needed to meet demand. It considers the design capacity, effective capacity, and actual capacity of production units. Forecasting helps determine how much capacity is needed and when. Capacity decisions are strategic as they impact costs, competitiveness, and long-term planning. Efficiency and utilization rates show the relationship between actual output and design/effective capacities. Cost-volume analysis examines the relationship between costs, revenues, volume, and profits to aid capacity planning.
Capacity planning
Capacity Planning, Objectives, Needs, Factors determining capacity planning
Capacity Planning decisions, strategies for modifying capacity, economies of scale.
Aggregate Planning for industrial engineering
Aggregate planning involves determining a company's production capacity needs. Capacity planning establishes the optimal output rate for facilities and involves strategic decisions about capital investments. Measuring capacity depends on the type of business and inputs or outputs. Effective capacity is the maximum output under normal conditions, while design capacity is the maximum under ideal conditions. Capacity utilization compares actual output to capacity to measure effectiveness. When determining optimal capacity levels, companies consider economies and diseconomies of scale. Timing capacity changes and maintaining flexibility are also important planning decisions.
mid Chapter 4- capacity planning.ppt
This document discusses capacity planning concepts. It defines capacity as the maximum output rate of a process or system. Capacity planning involves determining the appropriate level of capacity needed to meet demand both long-term and short-term. It discusses factors to consider like capacity cushions and expansion strategies. The document provides methods to estimate capacity requirements, identify gaps between requirements and current capacity, and evaluate alternatives to address gaps.
5 Capacity Planning [Autosaved].pptx
The document discusses capacity planning and management. It defines capacity as the maximum load an operating unit can handle. Effective strategic capacity planning aims to match long-term supply capabilities with predicted demand. Organizations do capacity planning due to changes in demand, technology, products, the environment, or competitive forces. Capacity planning should be a proactive strategy that involves identifying future requirements, evaluating existing capacity gaps, identifying alternatives, analyzing alternatives financially and qualitatively, and selecting and implementing the best alternative.
Capacity planning
This document discusses capacity planning. It defines capacity as the maximum production a plant can produce in a given time period. Capacity planning is important to meet future demands and avoid missed growth opportunities. It can be done at long and short term levels. Factors like demand, available capacity, bottlenecks, economies of scale, and forecasting are considered in capacity planning. The goal is to size and time capacity expansion efficiently based on a company's specific needs and constraints.
(CAPACITY PLANNIG)
Capacity planning involves determining the production capacity needed to meet demand. Key questions in capacity planning include determining the type, amount, timing, and location of capacity required. Maintaining the proper balance between capacity and demand is important to control costs and ensure customer needs are met. Various strategies such as incremental expansion, outsourcing, and demand management can be used to match capacity with fluctuating demand levels over time.
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Process selection and capacity planning
- 1. PROCESS SELECTION AND CAPACITY PLANNING
- 5. Measures of Capacity Business Inputs Outputs Auto manufacturing Labor hours, machine hours Number of cars per shift Steel mill Furnace size Tons of steel per day Oil refinery Refinery size Gallons of fuel per day Farming Number of ha , number of cows Bushels of grain per ha per year, litres of milk per day Restaurant Number of tables, seating capacity Number of meals served per day Theater Number of seats Number of tickets sold per performance Retail sales Square feet of floor space Revenue generated per day
- 8. C. Factors that determine effective capacity
- 10. Some possible demand patterns Growth Decline Cyclical
- 13. Example of seasonal demand patterns Period Items Year Milk sales, toy sales, airline traffic, clothing, vacations, tourism, power usage, petrol consumption, sports and recreation, education Month Welfare and social security checks, bank transactions Week Retail sales, restaurant meals, automobile traffic, automotive rentals, hotel registrations Day Telephone calls, power usage, automobile traffic, public transportation, classroom utilization, retail sales, restaurant meals