ability of product/part/system to perform its intended
function under a prescribed set of conditions
Failure = product/part/system does not perform as intended
Not operate at all
Strategic Capacity Planning for
Products and Services
Capacity is the upper limit or ceiling on the
load that an operating unit can handle.
The basic questions in capacity handling are:
What kind of capacity is needed?products
OM is mostly proactive not reactive
It involves structured planning activities
When do you need to forecast ?
Which methods are used for forecasting?
How do you measure the accuracy of a
Product and Service Design
When do you need to make a design ?
What are the phases of a design ?
What are the trends in design activity?
Activities of Design
Nothing wrong Everything is right
Translate customer wants and needs into
How do companies compete ?
Which strategies lead to
How is productivity measured?
How effectively an organization meets
the needs of customers relative to others
MRP and ERP
8,000-20,000 parts in a car
a modern jet aircraft contains more than
200,000 unique parts
Dependent vs. Independent Demand
Generated by customer
orders for finished pr
Management of Quality
If it aint broke,
dont fix it.
Just because it aint
broke doesnt mean
it cant be improved.
What is quality ?
Quality does not mean goodness
is the ability of a product or service to