What Are the Objectives, Principles and Types of Plant Layout
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Capacity planning
From Wikipedia, the free encyclopedia
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.
A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Demand for an organization 's capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Better utilization of existing capacity can be accomplished through improvements in overall equipment effectiveness (OEE). Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities.
Capacity is calculated: (number of machines or workers) × (number of shifts) × (utilization) × (efficiency).
The broad classes of capacity planning are lead strategy, lag strategy, match strategy, and adjustment strategy. * Lead strategy is adding capacity in anticipation of an increase in demand. Lead strategy is an aggressive strategy with the goal of luring customers away from the company 's competitors by improving the service level and reducing leadtime. It is also a strategy aimed at reducing stockout costs. A large capacity does not
Capacity planning
From Wikipedia, the free encyclopedia
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.
A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Demand for an organization 's capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Better utilization of existing capacity can be accomplished through improvements in overall equipment effectiveness (OEE). Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities.
Capacity is calculated: (number of machines or workers) × (number of shifts) × (utilization) × (efficiency).
The broad classes of capacity planning are lead strategy, lag strategy, match strategy, and adjustment strategy. * Lead strategy is adding capacity in anticipation of an increase in demand. Lead strategy is an aggressive strategy with the goal of luring customers away from the company 's competitors by improving the service level and reducing leadtime. It is also a strategy aimed at reducing stockout costs. A large capacity does not
References: [edit] 1. ^ "Terms & Definitions - Supply Chain Management". North Carolina State University. 2006. Retrieved 2008-10-26. 2. ^ Gunther, Neil J. (2007). Guerrilla Capacity Planning,. Springer. ISBN 3-540-26138-9. Capacity Requirement Planning (CRP) - It occurs at the level of MRP. It is the process of determining in detail amount of labour and machine resources needed to achieve the required production. - This process considers the lead time of operations and offsets the operations at work centers accordingly. ------------------------------------------------- Bibliography [edit] * Hill, Joyce (2006). Capacity Requirements Planning. * Krajewski, Lee J.; Ritzman, Larry P. (2005). Operations Management: Processes and Value Chains. Upper Saddle River, New Jersey: Prentice Hall. * Lazowska, Edward D. (1984). Quantitative System Performance. Prentice-Hall. ISBN 0-13-746975-6.