Capacity planning, del 3 Flashcards
(15 cards)
What are learning curves?
Learning curves is a concept where direct labor unit cost decreases in a predictable manner as the experience in producing the unit increases.
In other words, each additional unit takes less time to produce.
When are learning curves good to use?
When estimating labor-hours for repetitive work. - – Useful in computing capacity requirements in both the short- and long term.
Three assumptions of learning curves
The direct labor unit cost decreases with the number of units produced (arbetarna blir bättre)
The decreases in direct labor unit cost decrease with the number of units produced (förbättringarna I början ger större effekt än efter ett tag)
The rate of decrease follows a predictable (exponential) pattern (enligt en viss formel)
Vad är P-percent learning curve?
Characterizes a process in which the time of the 2xth unit is p percent of the time of the xth unit.
Learning curves exhibit a steep initial decline and then levels of as employees become more proficient in their tasks.
Formula for learning curves
What does everything mean?
Tn = T1*n^b
b = ln r / ln 2
Tn = production time for unit n
T1 = production tme for unit 1 (the first unit)
n = number on units produced
b = learning coefficient
r = learning rate
Short-term capacity management:
Adjusting short-term capacity levels –> Add or share equipment, sell unused capacity, change labor capacity and schedules, change labor skill mix, shift work to slack periods
Shifting and stimulating demand
What is demand management?
To steer demand in order to level out variation in capacity required. We can vary the price of goods or services, provide customers with information, advertising and promotion, add peripheral goods and/or services, provide reservations.
Vad menas med provide reservations?
Promise to provide a good or service at some future time and place
What is RMS?
Revenue Management system. Maximize revenue by analyze demand, optimize price, and stimulate demand.
What does RMS do?
Forecast demand
Allocate perishable assets across market segments
Decide when to overbook and by how much
Determine what price to charge different customer (price) classes
Describe one RMS strategy and its problem
Overbooking
The problem with overbooking is customers with bookings that do not show up. Even if the customers already paid, the problem is the opportunity cost. Kunde ha sålt ett säte till, eftersom det stod tomt.
The solution is to overbook available capacity.
Formula for overbooking
What does everything mean?
P (n < x) = ≤ u / (o + u)
P = probability
n = numer of booked customers that do not show up
x = number of overbookings (decision variable)
u = costs from underbooking
o = costs from overbooking,
What is the peak-load problem?
The problem is economically non-storable commodities whose demand varies periodically.
To meet demand at the peak requires the installation of capacity that is under-utilized over the remainder of the cycle.
Capacity is costly, idleness during off-peak creates a peak-load problem. Pricing can be used for mitigation.
How to solve peak-load problem?
By peak-load pricing
What is peak-load pricing?
Pricing of economically non-storable commodities, such as electricity, water, heating, train rides etc
