OPERATIONS

EXECUTIVE SUMMARY
ROLE
KEY ISSUES
TIMING
EXTERNAL SIZE-UP
INTERNAL SIZE-UP
QUANTITATIVE
PROCESS MAP
CALCULATE CAPACITY
DETERMINE DEMAND/OUTPUT RATE
CALCULATE CAPACITY UTILIZATION
IDENTIFY BOTTLENECK
EVALUATE OPTIONS

Cost/Benefit Analysis Calculate cost associated and calculate increased

sales
Pros/Cons

RECOMMENDATION
ACTION PLAN (Timing)
RISKS / CONTINGENCIES

Important Points

Important to reach a fit between marketing/corporate strategy and operating

strategy
Excess capacity (low utilization rate) to build flexibility into the process to
deal with contingencies
Bottleneck determines the capacity of the process
Batch size affects throughput time = wait time + process time +
transportation time

Remain Flexible volume flexibility by using a capacity cushion

Pick List Solutions:

Cross-trained workforce
Increase Capacity
o Extra shifts
o Reconfigure process
o Add/Change equipment