Day 27 Capacity Planning & Product Quality

Day 27 Capacity Planning & Product Quality - Capacity...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Capacity Planning &  Product Quality Day 27
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Capacity Planning & Quality MikesBikes Decisions Useful Operations Mgmt  Concepts Total capacity  Theoretical or Design capacity Efficiency expenditure Efficiency Effective capacity Actual output Quality level of production Affected in MB by design  capacity
Background image of page 2
Capacity Planning  Capacity planning involves determining the  maximum quantity of product (i.e., bikes) your  factory can produce. With capacity planning you are essentially  answering the question:  Can the facility, process, or equipment accommodate new  goods and services and adapt to changing demand for  existing goods and services?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Capacity planning in MB Typical capacity issues to address include: What kind of capacity is needed?  depends on the type of product (in MB we use SCUs for bikes) SCUs = standard capacity units Road = 1.0 SCU; mountain = 0.5 SCU; youth = 0.25 SCU How much is needed?  Try to plan long term (three products / bikes in your product line?) calculating capacity requirements  When it is needed?  MB new product launch is rollover # 4 forecasting to meet customer demand
Background image of page 4
Why is capacity planning important ? Impacts ability to meet future  requirements  (demand; est. lost sales; delivery  index) Relationship between capacity and  operating costs  (efficiency / wastage costs;  overhead costs) Initial cost of capacity  (commitment of  resources)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/06/2012 for the course ECON 111 taught by Professor Risnit during the Spring '11 term at SUNY Suffolk.

Page1 / 19

Day 27 Capacity Planning & Product Quality - Capacity...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online