CHAPTER 5 Flashcards
The maximum designed service capacity or
output rate.
Design capacity
Design capacity minus allowances such as
personal time, equipment maintenance,
delays due to scheduling problems, and
changing the mix of products.
Effective capacity
is the ratio of actual output to effective
capacity.
Efficiency
is the ratio of actual output to design
capacity.
Capacity utilization
The upper limit or ceiling on the load that an
operating unit can handle
Capacity
The design of facilities, including size and
provision for expansion, is key.
Facilities
Product or service design can have a
tremendous influence on capacity
Product and Service Factors.
The quantity capability of a process is an
obvious determinant of capacity
Process Factors.
The tasks that make up a job, the variety of
activities involved, and the training, skill, and
experience required to perform a job all have
an impact on the potential and actual output.
Human Factors.
Management policy can affect capacity by
allowing or not allowing capacity options such
as overtime or second or third shifts.
Policy Factors.
Scheduling problems may occur when an
organization has differences in equipment
capabilities among alternative pieces of
equipment or differences in job requirements
Operational Factors.
Supply chain factors must be taken into
account in capacity planning if substantial
capacity changes are involved
Supply Chain Factors.
Product standards, especially minimum
quality and performance standards, can
restrict management’s options for increasing
and using capacity.
External Factors.
cannot exceed effective capacity and is often
less because of machine breakdowns,
absenteeism, shortages of materials, and
quality problems, as well as factors that are
outside the control of the operations
managers.
Actual output
Environment in which relevant parameters
have known values.
Certainty
