Read the Instruction carefully and answer the following

question
Base on your understanding or opinion answer the following questions.
1. Provide and discuss some examples of economies and
diseconomies of scale in a college environment.
Economies of Scale:
These are the advantages obtained in increase the cash flow or in other
words cash advantages obtained due to expansion of the current
operations.
In a college environment economy of scale can be experienced by the
following ways:
1. Increasing the departments in the college
2. Increasing the student intakes for any academic year
3. By getting the university status and branching into various streams of
education.
Diseconomies of Scale:
These are the cost dis-advantages that are encountered by the
organization after expansion.
The diseconomies of scale in the college environment are as follows:
1. Coordination problems can occur when the college branches out into a
number of departments.
2. Poor communication - When the college operated in various other
locations with branches then there are chances of poor communication
happening among each other

2. Briefly describe a business you are familiar with and explain how it
might use each of the five ways to adjust its short-term capacity
levels.

The capacity of an operation is the maximum level of value-added activity over a

period of time that the process can achieve under normal operating conditions. In
the short term, capacity planning concerns issues of scheduling, labor shifts, and
balancing resource capacities. The goal of short-term capacity planning is to
handle unexpected shifts in demand in an efficient economic manner. The time
frame for short-term planning is frequently only a few days but may run as long as
six months.
I just want to give an example of a hospital. Here are the five ways to adjust short-
term capacity levels.

• Add or share equipment- a group of several hospitals might be set up in

which each hospital focuses on a particular specialty and shares
services
• Sell unused capacity- hospital chains often develop partnership
arrangements to accommodate their guest when they are overbooked
• Change labor capacity and schedules- Overtime, outsourcing, temporary
employees, and extra shifts are general ways of increasing capacity.
Adjusting workforce schedules to better match with demand patterns is
another.
• Change labor skill mix- Hiring the right staff that can learn quickly and
adjust to changing job requirements and cross-training them to perform
different tasks provides the flexibility to meet fluctuating demand. It is
common for employees to cover each other’s shifts depending on the
demands of the position.
• Shift work for slack periods- hospital employees prepare bills and
perform other paperwork at night, when check-in and check-out activity
is light. This allows more time during the daytime hours to service
hospital guest.

Read the Instruction carefully and answer the following

question

What do you think?

What other capacity issues should airlines consider in addition to the number of
seats on a plane? (Think of your own experiences.)

In many respects, the industry's search for greater profitability has been to the
detriment of passenger comfort.

For investors, the lower the unit costs the better. For airlines, an effective way to
reach that target is to stuff more seats into each plane. In addition, airlines have
become much more disciplined when it comes to flooding the market with
additional flights. The capacity discipline along with a greater number of seats per
plane has resulted in full planes with less room for individual passengers.