Capacity Planning
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE THESIES
In today’s competitive economic environment, customers do not just prefer but demand manufacturers to provide quality products in a timely fashion at competitive prices. To satisfy this requirement, manufacturers need to plan necessary and sufficient capacity to meet market demands. However, capacity planning is a very challenging task for many manufacturers. In Bangladesh now as well as the other industries ceramic industries need to compete to make better place in the market. Understanding and then building the infrastructure that provides the needed flexibility and speed requires an in-depth understanding of how capacity impacts your business. The impact of capacity management is felt throughout the organization, within every element of the supply chain. Supplier capacity can bring production to a standstill. Production capacity is equally important if the capacity is not great enough to meet peak demand periods and inventory building is not properly planned, customer demand will go unfilled. Distribution capacity, both storage and throughput, ensures delivery of the right product at the right time. Transportation connects all elements of the supply chain; as such its capacity issues are key influencing service levels and on-time delivery performance.
Manufacturers at the ceramic industries face the difficulty of planning resources for multiple products at the same time. Due to competition and the wide range of applications of a new technology, the Khadim ceramics Ltd. needs to produce a variety of generic or custom-made products to meet the requirements of its customers as well as the others. Such variety in products adds complexity to their supply chain. Different products might share common manufacturing processes or use common components. Because of the linkage between the products, you need to plan its capacity for producing multiple products together. However, finding the right level of
INTRODUCTION
1.1 BACKGROUND OF THE THESIES
In today’s competitive economic environment, customers do not just prefer but demand manufacturers to provide quality products in a timely fashion at competitive prices. To satisfy this requirement, manufacturers need to plan necessary and sufficient capacity to meet market demands. However, capacity planning is a very challenging task for many manufacturers. In Bangladesh now as well as the other industries ceramic industries need to compete to make better place in the market. Understanding and then building the infrastructure that provides the needed flexibility and speed requires an in-depth understanding of how capacity impacts your business. The impact of capacity management is felt throughout the organization, within every element of the supply chain. Supplier capacity can bring production to a standstill. Production capacity is equally important if the capacity is not great enough to meet peak demand periods and inventory building is not properly planned, customer demand will go unfilled. Distribution capacity, both storage and throughput, ensures delivery of the right product at the right time. Transportation connects all elements of the supply chain; as such its capacity issues are key influencing service levels and on-time delivery performance.
Manufacturers at the ceramic industries face the difficulty of planning resources for multiple products at the same time. Due to competition and the wide range of applications of a new technology, the Khadim ceramics Ltd. needs to produce a variety of generic or custom-made products to meet the requirements of its customers as well as the others. Such variety in products adds complexity to their supply chain. Different products might share common manufacturing processes or use common components. Because of the linkage between the products, you need to plan its capacity for producing multiple products together. However, finding the right level of