What is Capacity?
Capacity is the maximum tempo of output for a process. The operations manager must post the cognitive content to meet current and future train; otherwise, the makeup will miss opportunities for growth and profits.
Capacity plans are make at dickens distinct levels:
? Long term aptitude plan (it covers at least two years in future)
(E.g. investment in new facilities and equipments)
? Short term skill
(It covers week-to-week operation)
(E.g. it focuses on workforce size, overtime bud fetchs, inventories, etc)
Please bear in mind that too much capacity can be as agonizing as too little. Searching for the best balance can often be quite an bad affair and is one of the strategic decisions that the management must turnout successfully.
What are the questions that assume significance in this regard?
Questions to be considered
The relevant questions in this regard are:
? How much of dampen is needed to pass over variable, uncertain demand?
? Should we expand capacity before the demand is there or wait until demand is more certain?
Measures of capacity
There are two main methods of measuring capacity.
These are expressed as:
? rig measures (choice for high volume process)
? Input measures (choice for low volume fictile processes)
Output measures
Output measures are best utilized when the strong provides a relatively small number of standardized products and services, or when applied to individual process within the overall firm. Nissan ride Company states capacity at its Tennessee pose as 4, 50,000 vehicles per year. That plant produces only one type of vehicle, making capacity smooth to measure. However, many organizations produce more than one product or service. For example, a restaurant may be able to handle 50 sit-down or 100 take-out customers per hour. It might also handle 25 sit-down and 50 take-out...If you want to get a full essay, order it on our website: Orderessay
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