Learning curves : the time required to perform a task decreases with increasing repetitions LC applicatons : Manpower planning and scheduling Negotiated purchasing Pricing new products Budgeting, purchasing, and inventory planning Capacity Planning Every time the cumulative output doubles, the time per unit will decrease by a constant percentage, assuming the learning curve is pertinent.--- In which of these activities would learning curves be least usefu l- assembly-line scheduling---- Once production is underway and the learning curve effect is occurring, successive changes made to the production process will cause the time per unit to :scallop effect---- which of the following managerial activities would learning curves probably be the least useful ?location anylisis CAPACITY Capacity is the upper limit or ceiling on the load that an operating unit can handle. Capacity effects Impacts ability to meet future demands, Affects operating costs, Major determinant of initial costs, Involves long-term commitment, affects competitiveness, Affects ease of management Design capacity-maximum obtainable output Effective capacity-Maximum capacity given product mix, scheduling difficulties, and other doses of reality. Actual output-rate of output actually achieved--cannot exceed effective capacity. Efficency = actual output/effective capacity Utilization = actual output/design capacity Determinents of effective capacity- FacilitiesProducts or services ,Processes, uman considerations,Operations External forces Developing capacity alternatives-Design flexibility into systems, Take a “big picture” approach to capacity changes, Prepare to deal with capacity “chunks” capacity Attempt to smooth out capacity requirements, Identify the optimal operating level Minimum cost Need to be near customers
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