week 8 - 1 Flashcards
Load & Demand
What the customer demand creates load for a company.
A company will load its personnel/machinery to fulfil customer´s demand.
Demand
Willingness and ability to purchase a commodity or service
The quantity of a commodity or service wanted at a specified price and time
The requirement of work or the expenditure of a resource
Load
The quantity that can be carried out at one time by a specified means
Whatever is put in a ship or vehicle or airplane for conveyance: cargo
A burdensome or laborious responsibility
Capacity
Is the maximum possible output in a given time
in other words
capacity is the amount of goods a company can produce and/or service it can perform within a certain period of time.
Design Capacity
The theoretical maximum capacity of an operation.
In general, design capacity cannot be exceeded.
Effective Capacity
The potential capacity that can be achieved in a typical day.
Includes preventive maintenance and product changeovers.
Achieved Capacity
The operation achieved in a given day.
Includes unplanned events such as breakdowns and shortages
Utilization
The proportion of design capacity that is actually achieved.
Achieved capacity/design capacity
Efficiency
The proportion of effective capacity that is actually achieved.
achieved capacity/effective capacity
Capacity Management (The 4 V´s)
Volume
Variety
Variability
Variation
How 4v´s affect capacity
Fixed location Infrastructure Simultaneity Unpredictability Service Variety
Capacity leading
Expansionist ( Forecast/Future) increase capacity
Capacity lagging
Wait & See (Wait until you need and then buy)
