Capacity Planning and Control Flashcards Preview

Operations > Capacity Planning and Control > Flashcards

Flashcards in Capacity Planning and Control Deck (11)
Loading flashcards...
1

capacity

the maximum level of value added activity that an operation, or process or facility is capable of over a period of time

2

capacity plan affects (4)

costs
revenue
working capital
service level

3

steps of capacity planning and control

Step 1: measure aggregate demand and capacity
Step 2: Identify the alternative capacity plans
Step 3: Choose the most appropriate capacity plan

4

demand fluctuations

seasonality:
- climatic
- festive
- behavioural
- political
can be weekly and daily

5

Overall equipment effectiveness (OEE)

measure of effectiveness of how operations equipment is used based on: time, quality, speed

6

OEE =

availability rate x performance rate x quality rate

7

alternative capacity plan (3)

1. level capacity plan
2. chase demand plan
3. demand management

8

level capacity plan

ignores demand and keep activities constant

9

chase demand plan

adjust capacity to reflect the fluctuations in demand (hire-fire, part time staff, sub-contracting)

10

demand management

attempt to change demand to fit capacity availability (Change through prices)

11

queuing management (3)

rejecting, balking, reneging