OmLec07a+-+Capacity+Analysis.ppt

OmLec07a+-+Capacity+Analysis.ppt - MJ Armstrong OPER 2P51...

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Capacity Analysis Ch 7 Supplement: Read 297-306, 317, 323-324. Self-test 1, 2 3. Problems 12, 14. Exclude: break-even, EMV Change: definition of “efficiency”. MJ Armstrong OPER 2P51 Operations Management 1
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Design (theoretical) capacity Maximum possible output rate. If we produce exactly what the designers had assumed, if everything works perfectly, etc. Example: suppose campus buildings have design capacity of 6000 graduates per year: If every seat in every room is filled every period. If all students are full time undergraduates doing 4 year degrees who never fail, withdraw, or take extra courses. We can't realistically expect to achieve this. MJ Armstrong 2
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Effective (practical) capacity Maximum feasible output rate after taking into account known limitations and needs. Typical product mix, average equipment availability, required customer service levels, maximum waiting times, etc. Example: university may have an effective capacity of 4800 graduates per year. Given an average mix of full time & part time, graduate & undergraduate, & degree specialties. MJ Armstrong 3
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Actual output Rate actually served or produced. After breakdowns, bad weather, illness, poor quality, inexperience, and other random variations. Example: campus may actually graduate 4200 students in a particular year. Some students withdraw or fail, some classes are not completely full, etc. Normally: Design capacity > Effective capacity > Output. MJ Armstrong 4
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Utilization rate How well we are using capacity; ideally 100%. A measure of efficiency.
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