Capacity Planing Flashcards
Explain the concept of capacity
The ability to do something a number of times in a given time
What is the aim of capacity planning
To match capacity with forecasted demand in the short medium and long run
What is production in capacity planning
The real output during the period
In capacity planning what is productivity
Production total or particular in relation to input
What is theoretical capacity
The amount that can be produced in a time during ideal circumstances as oposed to effective capacity wich is what can be reasonably expected
What is safety capacity
Capacity reserved for extreme circumstances such as demand surges
How is utilization calculated in capacity planning
Actual output/ theoretical capacity
How do you calculate efficiency in capacity planing
Actual output / Effectiveness
Should you base capacity planning decisions on effective or theoretical capacity
Effective
To satisfy customers in the long run effective capavity must be at least average demand
True
What is included in a workorder
Quantity to be produced, processing needed and resources required
What is a service work order
The order of a service where capacity is determined by the setup + processing time and the quantity ordered
What is the difference between a manufacturing and a service order
In a manufacturing order setup time ovcurs inly once while in a service order it is vounted for each unit processed
How do you calculate number of staff required for a project
Demand * ideal processing time divided by daily work hours of a person, the workdays in the period and the effective/ideal capacity multiplied with eachother
What are the four steps in the capacity planning process
Determine required capacity, identify imbalances, determine alternatives and evaluate which is the best
What is a capacity imbalance
Available - required
What are complimentary goods and services
Things that use the same resources but seasonal demand is out of phase with each other so you can reduce excess capacity
What is a level production strategy
When you produce average demand and dont care about fluctuations
How can you adjust short term capacity levels
You can add or share equipment, sell unused capacity, change labor schedules and skills and shift work to slack periods
What is the basic concept of the learning curve
That labor cost per unit decreases over time as the labor force learns. Decreases in labor cost reduces with units produced with a predictable exponential pattern
What is a p% learning curve
How many % of the previous time it took to produce another unit. So if you have an 80% learning curves the next unit is made 20% faster
What is the learning coefficient of a learning curve
Ln learning rate / ln 2, the exponent in the learning curve formula: time per unit=ax^c
When is a learning curve useful
When planing the time it will take to perform a number of repetitive tasks manually f.ex making a budget
In the learning curve formula what does a, x and c stamd for
a stands for the initial time, x stands for the attempt number and c stands for ln(p)/ln(2) where p is the p-procent learning curve aka the learning rate
When you have a list of outcomes and their probability in decimals how do you calculate the probable outcome
You add each likelyhood times its probability
