Capacity Management Flashcards
What is capacity?
Scale is operation
What are the objectives of capacity planning and control?
- provide the appropriate amount of capacity at any point of time
What are the main objectives of planning and control?
- identity aggregate capita and demand
- have alternative capacity plans
- chose the ,ost appropriate plan
What happens when the nature of the output varies? And give an example
Input capacity is used instead
- hospital - input = number of beds available output= number of patients treated
- theatre - input = number of seats. Output = number of people entertained per week
What are the 6 causes of seasonality?
Climatic
Festival
Political
Behavioural
Financial
Social
What is at risk when demand uncertainties is high ?
- risks to service level that there will be an underprovision of capacity
How is availability rate measured ?
And when is it used?
When
- availability losses such as breakdown failures, change overs and set ups
Formula
Availability rate= total operating time /loading time
How is performance rate measured ? In oee
Speed losses
Net operating time/total operating time
How is quality rate measured? In oee
Valuable operating time/ net operating time
In capacity and demand, what are the two measurements used? And their formulas?
Efficiency
Actual output/effective capacity
Utilisation
Actual output/design capacity
What does oee stand for?
Operating equipment efffectiveness
In ways of reconciling capacity and demand
How do you cope with fluctuation in demand?
At level capacity
- absorb the demand
At chase demand
- adjunct output to match your demand
At demand management
- change the demand
In a situation that would no love absorbing demand how would you go about it?
To absorb demand you want to keep the output level
- have excess capacity - make to stock (finished goods or customer inventory
- have customers wait (in queues )
What steps would you take in order to adjective output to match demand
- Hire or fire workforce
- Get temp labour or lay people of
- You can get overtime or short time
- Subcontract or3rd party work
How would you change the demand
Change pattern of demand by
- developing alternative products or services