10mins presentation video:

Introduction of group

Good Morning everyone, this is group 8 presenting on Capacity Planning. My group members are…

Reason of choosing the topic?

Capacity planning, an important element of manufacturing, refers to the process of matching production
capacity with sales demand. Apart from manufacturing, this discipline is applicable to virtually every
endeavour that faces constraints in meeting demand, and it includes service industries, retail and
commercial sales, IT, government agencies and many more. Capacity planning gives team leaders a better
look at their resources' availability and schedules. It can help you bridge the challenges of getting the
right people to allocate the job efficiently which in turn will improve the profitability of your company
and boost your chance of success. It helps an organization to maintain the required production cycle so
that it doesn’t lag behind in periods of high demands. So, if you have a business of certain products that
have a seasonal demand, use capacity planning to function as per the expected demands. Capacity
planning also helps your in gauging the downward trend so that you can stop the manufacturing process.

Let us now play the video that has been prepared by my team on Capacity Planning.
Play the video

This was the video that we have prepared. Hope you liked it.

Challenges faced-
Now coming to the challenges faced, the main challenge that we faced was incorporating the learnings of
the class into a video with time limit. The topic is vast, which made it difficult for us to choose which sub
topics to present in the video, so that it justifies the topic and captures its essence as a whole without
exceeding the time.

Lessons learnt from capacity planning?

So to summarize our learnings, we have learnt that there are four major considerations in capacity
planning:

1. Level of demand
2. Cost of production
3. Availability of funds
4. Management policy.

We learnt the concept of Capacity Planning, Design Capacity, Effective Capacity.

We also learnt about Actual Output- which is the level of output that is achieved actually. It cannot be
more than the sufficient capacity because of breakdowns in the machine, labor absenteeism, the
inconsistent supply of raw materials, abnormal delay in supply of equipment, power outage, etc.
We also learnt about the importance of Assessment Of Present Capacity . Output measure is allowed in
case of manufacturing firms such as automobile plant (number of vehicles), iron and steel plant (tons of
steel), brewery (barrels of beer), cannery (tons of processed foods), Power Company, (megawatts of
electricity), and a lot more. Service industry such as hospitals (number of beds), airports (number of
planes), cinemas (number of seats), restaurants (number of tables and chairs), university (number of
students), warehouse (spaces), and a lot more, can be used to measure capacity in terms of inputs, in order
to estimate future capacity needs.

We also learnt about the Evaluation of Alternatives. Different alternatives for capacity improvement or
reduction are calculated from economic, technical, and other standpoints. The reactions of staff and locals
should be considered during the evaluation to get the correct analysis. Some main evaluation techniques
include cost-benefit analysis, queuing theory, decision theory, and others. This is suitable in the Choice of
Suitable Course of Action, after carrying out the evaluation of different alternatives to increase or reduce
the capacity, the best alternative is now chosen.

This is all from Group 8. Thank you so much!