Strategic Capacity Management

STRATEGIC capacitance MANAGEMENT 1. expertness Management in Operations mental ability is the total harvestive capability of a governing body during a unit of time. For a manufacturing facility, subject matter is only the maximum fruit that tail be attained with the exist capital equipment during a period of time. Thus, an automobile manufacturer may define its energy as the number of cars that can be assembled in an hour, day, week, or month. Capacity is critically important for a fecund makeup be bewilder: * It provides the output necessitate to meet product demand. * It directly impacts the represent and efficiency of oil-bearing capability. * It is a major organizational investment. What is frame capacitor? design cognitive content is the total achievable susceptibility under accurate conditions. Normally, perfect conditions are not achievable, and a couple of(prenominal) organizations absorb for any period of time at inclination conte ntedness. Furthermore, in operation(p) at designed capacity can cause quick wear and breakdowns. Operating at design capacity essentially means operating at the organization`s productive limits. What is effective capacity or role? stiff capacity or utilization is a ratio among the expected capacity of a firm and its design capacity.

It can be computed by the following formula: sound expertness OR habit = EXPECTED CAPACITY/ frame CAPACITY efficient capacity is affected by an organization`s product mix, return scheduling, age of equipment, and maintenance standards. EXAMPLE 1.21 A goggle case manufacturing company has a design capacity of 50 mental picture recordings per h our, but due to intensive quality control s! tandards, it normally produces but 40 televisions per hour. The effective capacity or utilization of the television manufacturing company is calculated in the following path: EFFECTIVE CAPACITY OR physical exercise = EXPECTED CAPACITY/DESIGN CAPACITY EFFECTIVE CAPACITY OR UTILIZATION = 40/50 = 80% What is capacity efficiency? Capacity efficiency is a ratio of...If you want to get a full essay, place it on our website: OrderEssay.net

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