CAPACITY PLANNING

- Hitesh Raviya

Dwayne D.Strategies for Matching Capacity and Demand • Shifting Demand to Match Capacity • Adjusting Capacity to Meet Demand  . Gremler .

Gremler .Strategies for Shifting Demand to Match Capacity Demand Too High Shift Demand Demand Too Low • Use signage to communicate busy days and times • Offer incentives to customers for usage during non-peak times • Take care of loyal or regular customers first • Advertise peak usage times and benefits of non-peak use • Charge full price for the service-no discounts • Use sales and advertising to increase business from current market segments • Modify the service offering to appeal to new market segments • Offer discounts or price reductions • Modify hours of operation • Bring the service to the customer  .Dwayne D.

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Strategies for Adjusting Capacity to Match Demand Demand Too High Adjust Capacity Demand Too Low Perform maintenance renovations Schedule vacations Schedule employee training Lay off employees • Stretch time. facilities and equipment • Cross-train employees • Hire part-time employees • Request overtime work from employees • Rent or share facilities • Rent or share equipment • Subcontract or outsource activities • • • •  . Gremler . labor.Dwayne D.

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Steps for Capacity Planning • • • • • • • • Estimate future capacity requirements Evaluate existing capacity Identify alternatives Conduct financial analysis Assess key qualitative issues Select one alternative Implement alternative chosen Monitor results .

Developing Capacity Alternatives • Design flexibility into systems • Take stage of life cycle into account • Take a “big picture” approach to capacity changes • Prepare to deal with capacity “chunks(large amount)” • Attempt to smooth out capacity requirements • Identify the optimal operating level .

STEPS • Determine the demand • Determine the aggregate demand • Transform the aggregate demand for each time period • Identify company policies • Determine unit costs • Develop alternative resource plans • Select the resource plan .

.MATERIAL REQUIREMENTS PLANNING • COMPUTER BASED INFORMATION SYYSTEM FOR ORDERING AND SCHEDULING OF DEPENDENT DEMAND INVENTORIES.

OBJECTIVES • TO IMPROVE CUSTOMER SERVICE • TO REDUCE INVENTORY COSTS REDUCING INVENTORY LEVELS BY • TO IMPROVE PLANT OPERATING EFFICIENCY BY BETTER USE OF PRODUCTIVE RESOURCES .

PURPOSE • CONTROL INVENTORY LEVELS • ASSIGN OPERATING PRIORITIES • ASSIGN CAPACITY TO LOAD PRODUCTION SYSTEM. .

ADVANTAGES • • • • • • REDUCED INVENTORY REDUCED IDLE TIME REDUCED SET UP TIME ABILITY TO CHANGE THE MASTER PRODUCTION SCHEDULE BETTER CUSTOMER SERVICE .

DISADVANTAGES: • LACK OF TOP MANAGEMENT COMMITMENT • PROBLEMS EVALUATING MRP SOFTWARE • IT DOESN’T AUTOMATICALLY CHECK STATUS OF ORDERS AND EXPEDITE THEM. .

Thus it displays the components directly needed to make the assembly or sub-assembly .BILLS OF MATERIAL LISTS ALL OF THE SUBASSEMBLIES PARTS. AND RAW MATERIALS THAT GO INTO A PARENT ASSEMBLY SHOWING THE QUANTITIES REQUIRED. TYPES: • SINGLE –LEVEL BOM : that displays the assembly or sub-assembly with only one level of children.

although they are rarely used in the workplace .• MULTI-LEVEL BOM : that displays the highest-level item closest to the left margin and the components used in that item indented more to the right • MULTI-LEVEL INDENTED BOM : It can also be visually represented by a product structure tree.

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