Capacity

Capacity - StrategicCapacityManagement Timedimension

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1 Strategic Capacity Management Time dimension Determine capacity requirements Decision trees  Capacity planning in service  
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2 What is Capacity? If you plan to open a restaurant on campus, you  must decide how many customers it should be  able to serve. In particular, Kitchen Tables Employees Capacity is the amount of output that a system is  capable of achieving over a specific period of time.  It often refers to an  upper  limit on the rate of  output.
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3 Capacity measures  An appliance manufacturer produces both  refrigerators and freezers. Its capacity is 100  units per day. What if thousands of products are involved? Availability of inputs – a certain number of beds in a  hospital, a certain number of machine hours available  in a plant, a certain number of seats and a certain  number of standing room in a bus  The capacity of a PC maker is $30 million a year
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4 Business  Inputs Outputs Auto manufacturing Labor and machine hours No. of cars per shift Steel mill Furnace size Tons of steel per day  Oil refinery Refinery size Gallons of fuel per day  Farming Number of acres, cows Bushels of grain per acre  per year, gallons of milk per  day Restaurant Number of tables, seating  capacity No. of meals served per  day Theater  Number of seats No. of tickets sold per  performance Retail sales Square feet of floor space Revenue generated per  day Measures of capacity
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5 Time dimension Long range Greater than one year. Productive resources such as 
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Capacity - StrategicCapacityManagement Timedimension

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