Location Flashcards
1
Q
What does location answer?
A
- of the work that must be done
- Where will each job be done
- Who will do it
- How many locations will we need
- How big each location will be
- How we will balance using ppl vs equipment
- Economies of scale or product variety
2
Q
Location answers two important questions:
A
- How will I manage capacity?
- How will I manage operational configurations?
3
Q
What is capacity?
A
- How much work can be done in some period of time?
4
Q
What are the three metrics for capacity?
A
- Design Capacity
- Effective Capacity
- Utilized Capacity
5
Q
Design Capacity
A
Max amount of output that a process is designed to make in some period of time
6
Q
Effective Capacity
A
Expected amount of work that a process can do in some period of time
7
Q
Utilized Capacity
A
Actual amount of work that a process does in some period of time
8
Q
What are the two types of capacity expansion strategies?
A
Capacity lead strategies: aggressive
Capacity lag strategy: conservative
