Ch6 - Chapter 6. Capacity Planning Planning Long-Term...

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Chapter 6. Capacity Planning Planning Long-Term Capacity Capacity Timing and Sizing Strategies A Systematic Approach to LT Capacity Decisions
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Capacity The throughput, or the number of The throughput, or the number of units a facility can hold, receive, units a facility can hold, receive, store, or produce in a period of time store, or produce in a period of time Determines fixed costs Determines fixed costs Determines if demand will be Determines if demand will be satisfied satisfied Three time horizons Three time horizons
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Modify capacity Modify capacity Use capacity Use capacity Planning Over a Time Horizon Intermediate- Intermediate- range range planning planning Subcontract Add personnel Add equipment Build or use inventory Add shifts Short-range Short-range planning planning Schedule jobs Schedule personnel Allocate machinery * Long-range Long-range planning planning Add facilities Add long lead time equipment * * * Limited options exist Limited options exist
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Capacity planning (long-term) Economies and diseconomies of scale Capacity timing and sizing strategies Systematic approach to capacity decisions Constraint management (short-term) Theory of constraints Identification and management of bottlenecks Product mix decisions using bottlenecks Managing constraints in a line process Capacity management
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Measures of Capacity Utilization Measures of Capacity Utilization Output measures of capacity Input measures of capacity Utilization Utilization = × 100% Average output rate Maximum capacity
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Assume this chart represents the hourly output capacity of a 6 machine assembly line. Assume this chart
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This note was uploaded on 06/06/2011 for the course MGSC 395 taught by Professor Zimmer during the Spring '10 term at South Carolina.

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Ch6 - Chapter 6. Capacity Planning Planning Long-Term...

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