Capacity_Planning_and_Management

Capacity_Planning_an - Capacity Planning and Management Click to edit Master subtitle style 1M a University 2008 2008 a-Michigan State Michigan

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a Michigan State University, 2004 - 1 - M Michigan State University, 2008 Click to edit Master subtitle style a Michigan State University, 2008 Capacity Planning and Management
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a Michigan State University, 2004 - 2 - M Michigan State University, 2008 Capacity is Simple-But Complex Every Resource and Every Activity and Process in the Supply Chain has a “Capacity” Machines Labor Land/Buildings Production lines Vehicles Etc. In general, “Capacity” is nothing more than the maximum output of a process or a resource in a period of time. However, sometimes it is thought of as the amount of a resource that is available (an input measure).
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a Michigan State University, 2004 - 3 - M Michigan State University, 2008 STRATEGIC CAPACITY DECISIONS Long term, Strategic Bus. Unit or divisional level planning Driven by the Long-term forecast and other strategic considerations Everything is variable – constrained only by resource availability and finances
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a Michigan State University, 2004 - 4 - M Michigan State University, 2008 Wait-and-See Strategy
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a Michigan State University, 2004 - 5 - M Michigan State University, 2008 Aggressive Expansion Strategy
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a Michigan State University, 2004 - 6 - M Michigan State University, 2008 Capacity Planning Concepts Maximum capacity (Theoretical or Design Capacity) is the maximum output rate that a process or facility can achieve under ideal conditions in the short term. Effective capacity is the output that a company or process can economically sustain under normal circumstances for an extended time period. Always les than maximum capacity.
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a Michigan State University, 2004 - 7 - M Michigan State University, 2008 Capacity Cushion Capacity cushion is the difference between the maximum capacity and the effective capacity, usually, but not always, stated as a percentage.
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a Michigan State University, 2004 - 8 - M Michigan State University, 2008 Strategic Capacity Planning The question to be answered is basically: “How much (or how many) of each resource will we need To answer the question, you have to consider how much needs to be produced and how much one resource can produce, The answer becomes more complicated when a resource is used to produce more than one type of thing. Then you have to consider switchover/setup times
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a Michigan State University, 2004 - 9 - M Michigan State University, 2008 A Simple Strategic Capacity Problem A copy shop estimates demand to be 20 million pages per year of copies. The store is open 3,000 hours per year. If each machine can copy 720 pages per hour and the store wants to maintain a 20% cushion, how many copy machines should the store have?
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This note was uploaded on 08/11/2009 for the course MSC 303 taught by Professor Cooper during the Spring '08 term at Michigan State University.

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Capacity_Planning_an - Capacity Planning and Management Click to edit Master subtitle style 1M a University 2008 2008 a-Michigan State Michigan

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