Capacity Planning and Control

Question 1

capacity

Answer 1

the maximum level of value added activity that an operation, or process or facility is capable of over a period of time

Question 2

capacity plan affects (4)

Answer 2

costs
revenue
working capital
service level

Question 3

steps of capacity planning and control

Answer 3

Step 1: measure aggregate demand and capacity
Step 2: Identify the alternative capacity plans
Step 3: Choose the most appropriate capacity plan

Question 4

demand fluctuations

Answer 4

seasonality:
- climatic
- festive
- behavioural
- political
can be weekly and daily

Question 5

Overall equipment effectiveness (OEE)

Answer 5

measure of effectiveness of how operations equipment is used based on: time, quality, speed

Question 6

OEE =

Answer 6

availability rate x performance rate x quality rate

Question 7

alternative capacity plan (3)

Answer 7

1. level capacity plan
2. chase demand plan
3. demand management

Question 8

level capacity plan

Answer 8

ignores demand and keep activities constant

Question 9

chase demand plan

Answer 9

adjust capacity to reflect the fluctuations in demand (hire-fire, part time staff, sub-contracting)

Question 10

demand management

Answer 10

attempt to change demand to fit capacity availability (Change through prices)

Question 11

queuing management (3)

Answer 11

rejecting, balking, reneging