capacity plan
CAPACITY PLANNING
Capacity planning:
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, "design capacity" is the maximum amount of work that an organization is capable of completing in a given period, "effective capacity" is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing as a synonym for Capacity Management.
Capacity Planning Classification:
Capacity planning based on the timeline is classified into three main categories long range, medium range and short range.
(a). Long Term Capacity:
Long range capacity of an organization is dependent on various other capacities like design capacity, production capacity, sustainable capacity and effective capacity. Design capacity is the maximum output possible as indicated by equipment manufacturer under ideal working condition.
Production capacity is the maximum output possible from equipment under normal working condition or day.
Sustainable capacity is the maximum production level achievable in realistic work condition and considering normal machine breakdown, maintenance, etc.
Effective capacity is the optimum production level under pre-defined job and work-schedules, normal machine breakdown, maintenance, etc.
(b). Medium Term Capacity:
The strategic capacity planning undertaken by organization for 2 to 3 years of a time frame is referred to as medium term capacity planning.
(c). Short Term Capacity:
The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning.
Goal of Capacity Planning:
The ultimate goal of capacity planning is to meet the current and future level of the requirement at a minimal wastage. The three types of capacity
Capacity planning:
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, "design capacity" is the maximum amount of work that an organization is capable of completing in a given period, "effective capacity" is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing as a synonym for Capacity Management.
Capacity Planning Classification:
Capacity planning based on the timeline is classified into three main categories long range, medium range and short range.
(a). Long Term Capacity:
Long range capacity of an organization is dependent on various other capacities like design capacity, production capacity, sustainable capacity and effective capacity. Design capacity is the maximum output possible as indicated by equipment manufacturer under ideal working condition.
Production capacity is the maximum output possible from equipment under normal working condition or day.
Sustainable capacity is the maximum production level achievable in realistic work condition and considering normal machine breakdown, maintenance, etc.
Effective capacity is the optimum production level under pre-defined job and work-schedules, normal machine breakdown, maintenance, etc.
(b). Medium Term Capacity:
The strategic capacity planning undertaken by organization for 2 to 3 years of a time frame is referred to as medium term capacity planning.
(c). Short Term Capacity:
The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning.
Goal of Capacity Planning:
The ultimate goal of capacity planning is to meet the current and future level of the requirement at a minimal wastage. The three types of capacity