Capacity Plannng and Location Analysis / Process Selection and Layout

Question 1

What are the 2 types of information for capacity?

Answer 1

• Amount of available capacity.
• Effectiveness of capacity use.

Question 2

2 types of capacity

Answer 2

• Effective capacity - maximum out rate that can be sustained under normal conditions
• Design Capacity - maximum output rate that can be achieved by the faclity under ideal conditions.

Question 3

Capacity Utilization

Answer 3

Measures how much of the available capacity (%) is actually being used.

Question 4

What are the steps involved in capacity planning?

Answer 4

1. Identify Capacity Requirements
2. Develop Capacity Alternatives
3. Evaluate Capacity Alternatives

Question 5

Factrs involved in selecting an ideal location

Answer 5

• Proximity to sources of supply
• Proximity to customers
• Proximity to source of labor
• Community Considerations
• Site Considerations
• Quality of Life issues

Question 6

Factor Rating

Answer 6

Can be used to evaluate multiple alternatives based on a number of selected factors.

Question 7

Load-Distance model

Answer 7

A procedure for evaluatig location alternatives based on distance.

Question 8

Rectangular distance

Answer 8

The shortest distance between 2 points measured by using only north-south and east-west movements.

Question 9

Center of Gravity Approach

Answer 9

Requires the analyst to find the center of gravity of the geographic area being considered for an alternative site.

Question 10

Transporation Method

Answer 10

• solve specific location problems
• evaluate the cost impact of adding potential location sites to the network of existing facilities
• evaluate adding multiple new sites or completely redesigning the network

Question 11

Repetitive Operations vs Intermittent Operations

Answer 11

• Repetitive Operations - used to produce one or a few standardized products in high volume
• Intermittent Operations - used to produce a variety of products with different processing requirements in lower volumes.

Question 12

Batch Process

Answer 12

Used to make small quantities based on product specifications.

Question 13

Project Process

Answer 13

Used to make one-of-a-kind products exactly to customer specifications.

Question 14

Line Process

Answer 14

Produce a large volume of standardized products to mass production.

Question 15

Continuous Process

Answer 15

Operates continuously to produce a high volume of a fully standardized product.

Question 16

Process Performance Metrics

Answer 16

Throughput Time: Average amount of time product takes to move through the system
Process Velocity: A measure of wasted time in the system
Productivity: A measure of how well a company uses its resources
Utilization: The proportion of time a resource is actually used
Efficiency: Measures performance relative to a standard

Question 17

4 Facility Layouts

Answer 17

• Process Layouts - Layouts the group resources based on similar processes or functions
• Product Layouts - arrange resources in sequence to allow for an effective buildup of the product.
• Hybrid Layouts - combination of process and product layouts.
• Groug Technology - hybri layouts that create groups based on similar processing requirements.