chapter 2 bmgt 25

Question 1

Forecasts are key inputs used to answer the questions of how much is needed and when is it needed.
Manufacturing system management strategy takes into consideration input requirements, process transfer, and production. Corporations conduct capability preparation by considering the forecasts and long-term planning.

Answer 1

CAPACITY PLANNING

Question 2

_________ is defined as being able to obtain, store, or create. Capacity for an organization will be the ability of a given system to achieve output within the specified time frame.
Management capacity in operations considers the amount of the available input resources for generating total production over time. Terms of capability are commonly referred as maximum production capacity and can be met within a regular period of operation.

Answer 2

Capacity

Question 3

Capacity Planning Strategies (3)

Answer 3

1. Lead Strategy
2. lag strategy
3. match strategy

Question 4

________________It is the most aggressive of the three approaches to capacity planning. Company is increasing its manufacturing capacity ahead of expected demand increases. Some businesses use the Lead Strategy as a means to convince consumers to shun away from competitors, especially when a competitor is vulnerable to shortages when demand increases.

Answer 4

Lead Strategy

Question 5

________________ responds to actual increases in demand by boosting capacity after the operation is running at full steam. Time it takes to ramp up production can result in the loss of customers to the competition.

Answer 5

Lag Strategy

Question 6

_______________ It is the middle road between the Lead and Lag Strategies. It emphasizes small, incremental modifications to capacity based on changing conditions in the marketplace. This strategy takes more efforts for Operations Management and is challenging to accomplish.

Answer 6

Match Strategy

Question 7

_______________is the first step in determining whether an organization will produce more or new products.

Answer 7

Capacity planning

Question 8

_______________ planning factors:
* Sufficient capacity is required to meet the customers demand in time.
* Capacity affects the cost efficiency of operations.
* Capacity affects the scheduling system.
* Capacity creation requires an investment.

Answer 8

capacity

Question 9

Measurement of Capacity Planning
Manufacturing capacity can be expressed in number of units of output per period.

Answer 9

Design capacity

Question 10

_______________: System capacity is the maximum output of the particular product or product mix that can be generated as an integrated whole by the workers and machines system. Because of the limitation of product mix, quality specification, breakdowns, device performance is less than design capability or at best - equivalent. The actual situation usually ends as less because of several factors influencing production such as actual demand, downtime due to machine/equipment failure, unforeseen worker absenteeism.

Answer 10

Effective capacity