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CAP PLANNING - Resource Usage Issues include Quality...

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© Nigel Slack and Michael Lewis 2003 Quality Performance objectives Dependability Supply Network Process Technology Development and Organization Speed Flexibility Cost Resource Usage Market Competitiveness Decision areas Issues covered in this chapter Issues include: When to change capacity How much to change capacity How to develop sites Capacity (change)
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© Nigel Slack and Michael Lewis 2003 Capacity Strategy Configuring Capacity Managing Capacity Change Type of Capacity Overall Level of Capacity Location of Capacity Issues in capacity strategy Timing of Change Magnitude of Change Location of changed capacity
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© Nigel Slack and Michael Lewis 2003 Forecast level of demand Competitor activity Uncertainty of future demand Required level of service Lead-time of capacity change Ability to cope with change Economies of scale Some factors influencing the timing of capacity change OPERATIONS RESOURCES MARKET REQUIREMENTS Overall level of capacity
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© Nigel Slack and Michael Lewis 2003 400 800 1200 1600 2000 2400 Volume (Units / week) Time Demand Capacity leads demand Capacity lags demand Capacity leading and capacity lagging strategies
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© Nigel Slack and Michael Lewis 2003 400 800 1200 1600 2000 2400 Volume (Units / week) Time Demand Smoothing with inventory means using the excess capacity of one period to produce inventory which can be used to supply the under capacity period
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© Nigel Slack and Michael Lewis 2003 400 800 1200 1600 2000 2400 Volume (Units / week) Time Demand The life cycle effect on capacity strategies Lead Smooth Lag
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© Nigel Slack and Michael Lewis 2003 Output Planned capacity Forecast demand Capacity increment 1 Capacity increment 2 Capacity increment 3 Capacity increment 4 Time Capacity planning with certain forecasts and capacity introduction
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© Nigel Slack and Michael Lewis 2003 Output Planned capacity Planned capacity increment 2 Capacity increment 1 Latest finish time Earliest finish time Time Upper forecast range Forecast demand Lower forecast range Planned lead-time X Y (a) Demand and lead-time uncertainties
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© Nigel Slack and Michael Lewis 2003 Output Actual capacity Planned capacity
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