Capacity

Question 1

What is capacity

Answer 1

Capacity in a static physical sense means the scale of an operation. It is the Maximum level of value added activity over a period of times which can be achieved under normal operating conditions

For example a restaurants capacity may be serving 1000 customers a week, whereas a football stadiums capacity may be holding 50,000 fans on a game day

Question 2

Measuring capacity

Answer 2

Should reflect ability of operation or process to supply demand

Question 3

Example of measuring capacity - inputs and outputs

Answer 3

E.g. hospital - inputs = beds available (value added activity)

Output measure = no. Of parties treated per week (op conditions - period of time)

Question 4

Example of capacity 2

Answer 4

E.g. airline - input = no. Of seasons available (value added activity)

Output = no. Of patients treated per week (operating conditions - per week)

Question 5

Types of capacity

Answer 5

PIED

P- Potential
I - Immediate
E - Effective
D-Design

Question 6

Types of capacity (PIED) - P

Answer 6

Potential = long term view and indicates the available capacity at hand which can be utilised to influence the planning of senr management e.g. we’re okay today but need twice as much capacity in two years

Question 7

Types of Capacity (PIED) - I

Answer 7

Immediate = max available capacity which can be utilised in short term, e.g. day to day basis

Question 8

Types of capacity (PIED) - E

Answer 8

Effective - part of the total available capacity which can actually be put into use, e.g. one machine broke down and we only have two

Question 9

Types of capacity (PIED) -D

Answer 9

Design = theoretical capacity of an operation that a designer had in mind, e.g. 50 batches a year