Ch. 4 Capacity Mgt Flashcards
Types of capacity …
Adjustment capacity- making small changes to capacity levels as req. By demand changes
External factors affecting cap.
•Govt regulations.
•Suppliers capabilities
Internal factors
•product and service design, personnel jobs, plant layout and process flow, equipment capabilities and maintenance, materials mgt. , quality control, mgt capabilities
Adjusting demand
Patterns to max. capacity utilizatio, yielding high Rev.
Demand controlled by price structures. Relevant for services that have high fixed cost and low VC
Capacity strategies
Proactive-large cap Used by auto dealers bc there is high opportunity cost(low profit) of not meetings demand, competiting on service, unreadable resources
Reactive(small) they don’t want excess capacity, willing to have people leave Walmart superstore
Combine: they don’t want too much excess, or too many people leaving and they are willing to have some excess capacity and some cust. Leaving
Facility layout
Process layout > process function
Used where the flow of mat. differs depending on cust. Order. Designing it has to be carried out by transportation cost or by qualitative criteria like safety
Product layout > steps
Production/assembly line balancing
A method that aims to assign tasks to workstations within a given cycle time with min. Idle time
Nt min. No of station
T total work per unit
C req cycle time
Na possible working time
Cycle time = available time/ demand
