IAF 716 capacity planning ST 12-01-02

IAF 716 capacity planning ST 12-01-02 - CapacityPlanning...

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Capacity Planning Dr. Rama Srivastava Office: C2010 Email: rama.srivastava@senecac.on.ca
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What is capacity  Productive capacity, generally measured in physical units, refers either to the maximum output rate for products or services or to the amounts of key resources available in each operating period.
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Capacity Planning Capacity is the ability to hold, receive, store or accommodate raw materials & finished products, customers etc. Strategic capacity planning is an approach for determining the overall capacity level of capital intensive resources, including facilities, equipment and overall labour size. Capacity used is the rate of output actually achieved . The best operating level is the capacity for which the process was designed Capacity utilization rate= capacity used/ best operating level
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Capacity Decisions Rated capacity is theoretical Effective capacity includes efficiency and utilization Capacity utilization- percentage of available time spent working Capacity efficiency- how well a machine or worker performs compared to a standard output level Capacity load- standard hours of work assigned to a facility Capacity load percent- ratio of load to capacity
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Dimensions of demand Effects on capacity requirements Quantity How much capacity is required? Timing When should capacity be available/ added Quality What type of capacity is required Location Where should it be installed
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What is capacity planning Capacity planning is the process of establishing the output rate that may be needed at a facility Capacity is generally purchased in ‘chunks’ not as a ‘whole’. How much and when to spend capital for additional facility & equipment are Strategic issues Workforce & inventory levels, use of equipment are Tactical issues
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Measuring Capacity Examples There is no one best way to measure capacity. Output measures like cars per day are easier to understand
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This note was uploaded on 02/01/2012 for the course IAF ACC540 taught by Professor Tayler during the Spring '11 term at Seneca.

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IAF 716 capacity planning ST 12-01-02 - CapacityPlanning...

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