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Capacity Planning: Submitted To: Prof. Abhishek Jain

Capacity planning is a technique used to identify and measure the overall production capacity of an organization over a period of time. It is utilized to plan capital intensive resources like plants, machinery, and labor. There are three major capacity decisions - how much capacity to install, when to increase capacity, and how much to increase. Capacity planning is affected by factors like product/service type, manufacturing processes, facility availability, human skills, supply chain, and external policies. Measures of capacity include design capacity, production capacity, sustainable capacity, and effective capacity. Capacity planning can also be classified as long, medium, or short term depending on the time frame.

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Taruna Dandwani
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32 views

Capacity Planning: Submitted To: Prof. Abhishek Jain

Capacity planning is a technique used to identify and measure the overall production capacity of an organization over a period of time. It is utilized to plan capital intensive resources like plants, machinery, and labor. There are three major capacity decisions - how much capacity to install, when to increase capacity, and how much to increase. Capacity planning is affected by factors like product/service type, manufacturing processes, facility availability, human skills, supply chain, and external policies. Measures of capacity include design capacity, production capacity, sustainable capacity, and effective capacity. Capacity planning can also be classified as long, medium, or short term depending on the time frame.

Uploaded by

Taruna Dandwani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Capacity Planning

Submitted To:
Prof. Abhishek Jain

Submitted By:
Ms. Taruna Dandwani
Capacity
Capacity is defined as the ability to achieve,
store or produce.
For an organization, capacity would be the
ability of a given system to produce output
within the specific time period.
In operations management, capacity is referred
as an amount of the input resources available to
produce relative output over period of time.
Capacity planning
A technique used to identify and measure overall
capacity of production is referred to as capacity
planning.
Capacity planning is utilized for capital intensive
resource like plant, machinery, labor, etc.
Three major capacity decisions are:
i. How much capacity to be installed,
ii. When to increase capacity and
iii. How much to increase
Factors Affecting Capacity Planning

Product & Services factors: Type of product/services to


be provided
Process: The manufacturing process
Availability of Facilities: State of technology &
communications
Human factors: Skill & quality of workers
Supply factor: Timely & assured supply of inputs
External factors: Investors & government policies
Capacity Measures
Design capacity :- Maximum output possible as
indicated by equipment manufacturer under ideal
working condition.
Production capacity :- Maximum output possible from
equipment under normal working condition or day.
Sustainable capacity :- Maximum production level
achievable in realistic work condition and considering
normal machine breakdown, maintenance, etc.
Effective capacity :- Optimum production level under
pre-defined job and work-schedules, normal machine
breakdown, maintenance, etc.
Capacity Planning Classification
Long Term Capacity: Long range capacity of an
organization is dependent on various other capacities like
design capacity, production capacity and effective capacity.

Medium Term Capacity: The strategic capacity planning


undertaken by organization for 2 to 3 years of a time frame is
referred to as medium term capacity planning.

Short Term Capacity: The strategic planning undertaken by


organization for a daily weekly or quarterly time frame is
referred to as short term capacity planning.
THANK YOU

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