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Capacity Planning Powerpoint Presentation

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. It involves forecasting capacity requirements and determining the amount of labor and machine resources required for production. Capacity planning strategies include lead, lag, and match strategies. The lead strategy anticipates increases in demand, while the lag strategy responds to actual increases. The match strategy makes incremental modifications based on market conditions. Capacity decisions are important as they affect production time, customer responsiveness, operating costs, and competitive ability.

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Jee-Zald Villaflores
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2K views14 pages

Capacity Planning Powerpoint Presentation

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. It involves forecasting capacity requirements and determining the amount of labor and machine resources required for production. Capacity planning strategies include lead, lag, and match strategies. The lead strategy anticipates increases in demand, while the lag strategy responds to actual increases. The match strategy makes incremental modifications based on market conditions. Capacity decisions are important as they affect production time, customer responsiveness, operating costs, and competitive ability.

Uploaded by

Jee-Zald Villaflores
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CAPACITY PLANNING

Capacity Concepts Capacity Planning Capacity Strategies Importance of Capacity Decisions Forecasting Capacity Requirements

Jee-Zald A. Villaflores, C.E.

Capacity is the maximum amount of work that an organizations capable of completing in a given period of time. FORECAST are key inputs used to answer the questions of how much capacity is needed and when it is needed

Is the process of determining the

production capacity needed by an organization to meet changing demands for its products.

Minimize the DISCREPANCY Maintain enough production

o o o

Lead Strategy Lag Strategy Match Strategy

Lead Strategy

Anticipation of an increase in demand

Lag Strategy

Responds to actual increase in demand

Match Strategy

Incremental modifications to capacity based on changing conditions in the marketplace.

Capacity Decisions affect the production time, customer responsiveness, operating cost and company ability to compete

Refers to the process of determining in detail the amount of labor and machine resources required to accomplished the tasks of production.

The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning.

BUSINESS
AUTOMANUFACTURING OIL REFINERY

INPUTS
LABOR HOURS, MACHINE HOURS REFINERY SIZE NUMBER OF TABLES, SEATING CAPACITY NUMBER OF SEATS

OUTPUTS
NUMBER OF CARS PER SHIFT GALLONS OF FUEL PER DAY NUMBER OF MEALS PER DAY NUMBER OF TICKETS SOLD PER PERFORMANCE

RESTAURANT

THEATER

References:
Joseph, G. Monks, Theory and Problems of Operations Management, Tata McGraw-Hill Publishing Company Limited, 2nd Edition, 2004 S. Anil Kumar, N. Suresh Production and Operations Management, New Age international(P) Limited Publishers, 2nd Edition, 2008 Meredith, Jack R., and Scott M. Shafer Operations Management for MBAs. 2nd Edition. New York: John Wiley and Sons, Inc., 2002 Krajewski, Lee J.: Ritzman, Larry P. (2005) Operations Management: Processes and Vlaue Chains. Upper Saddle River, New Jersey: Prentice Hall Joseph, G. Monks, Operations Management, McGraw-Hill International, 3rd Edition.

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