Production Planning and Control , PPC Capacity measurement

Wednesday, 20 January 2021 1
QAMAR MAQSOOD
BBA Hons , LLB , MS PROJECTS MANAGEMENT
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• Define Capacity
• Explain What is meant by ‘Capacity Planning’
• Describe the Types of Capacity Planning
• Explain Operations Scheduling and Workplace Planning
• Describe the Types of Operations Scheduling
• Explain What is Aggregate Planning
• Explain the Strategies of Aggregate Planning
• Explain Production Planning and Control
• Explain the Inventory Models
• Describe the Principles of Material Handling
• Explain Planning and Scheduling Maintenance
• Explain the Principles of World Class Manufacturing
• Describe World Class Manufacturing Techniques
Course Objectives

Introduction
“Capacity Would Be The Ability
Of A Given System To Produce
Output Within The Specific Time
Period”

Introduction
“Capacity Is Referred As Maximum Production
Capacity, Which Can Be Attained Within A Normal
Working Schedule”

Strategic Capacity Planning
Strategic Capacity Planning Is Utilized For Capital Intensive Resource
Like Plant, Machinery, Labor, Etc.
Capacity Planning Classification
classified into three main categories :
1-long range
2-medium rang
3-short range.

categories
Long range capacity of an
organization is dependent on various
other capacities like design capacity,
production capacity, sustainable
capacity and effective capacity

Categories of capacity
Design capacity is the maximum output possible as indicated by
equipment manufacturer under ideal working condition.

Production capacity is the maximum output possible from equipment
under normal working condition or day

Effective capacity is the optimum production level under pre-defined
job and work-schedules, normal machine breakdown, maintenance

Effective Categories of capacity
The management passed on instructions to its manufacturing plant that
they wanted at least an increase of 15% in the daily production level at the
plant.
The management hopes that this increased production levels would help
meet the current market demand and the company can make huge profits
from this situation if they succeed in meeting this surge in demand.

Medium Term Capacity:
The strategic capacity
planning undertaken by
organization for 2 to 3
Month of a time frame is
referred to as medium
term capacity planning.

Short Term Capacity:
The strategic planning
undertaken by organization
for a daily weekly or
quarterly time frame is
referred to as short term
capacity planning.

Goal of Capacity Planning
The ultimate goal of capacity planning is to meet the current and
future level of the requirement at a minimal wastage.

Factors Affecting Capacity Planning
There are several factors that affect the efficiency and effectiveness of
capacity planning such as follows:
Production Technology Product Line or Matrix
External Structure (such as policies, safety regulations etc.)
Operational Structure (such as scheduling, quality assurance etc.)
Human Capital (such as job design, compensation etc.)
Production Facility (such as layout, design, and location etc.)

Forecasting v/s Capacity Planning
There would be a scenario where
capacity planning done on a basis of
forecasting may not exactly match.
For example, there could be a scenario
where demand is more than production
capacity; in this situation, a company
needs to fulfill its requirement by buying
from outside. If demand is equal to
production capacity; company is in a
position to use its production capacity to
the fullest. If the demand is less than the
production capacity, company can
choose to reduce the production or
share it output with other
manufacturers.

Capacity Rate
• Capacity is the rate of productive capability of a facility.
• Capacity is usually expressed as volume of output per time period.
• It is the process of determining the necessary to meet the
production objectives.

Capacity Calculation:
To maintain a balance
between required
capacity and available
capacity
(number of machines & workers) × (number
of shifts) × (utilization) × (efficiency).
To identify and solve
capacity problem in a
timely manner to meet
consumer needs.

How To Capacity Measures?
• Volume of Produce New goods , Products , Items.

How to Measure Capacity?
• As a substitute, capacity can be expressed in terms of input.
A Class may express capacity in terms of the number of
students per session
• A Garments factory may express capacity in terms of
available labour hours and/or machine hours per week,
month, or year.
• General Motors Corporation can use “numbers of
automobiles per year.

This uses different inputs
mainly including 6M’s namely, man, material, machine, money, method and
management.:
Production by assembly: car,
television, furniture
Production by extraction or
separation.
6Ms for Production Capacity:

Types of Capacity:

Factors affecting Production Control

Capacity Management:

Capacity Calculation Formula:

Capacity Calculation:

Self Assessment Question

Production Planning and Control , PPC Capacity measurement

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