Om

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refers to determining what kind of labor and equipment capacities are required and when they are required

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Capacity planning

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is the process of determining the production capacity needed by an organization to meet the changing demand for its products.

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Capacity planning

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-This is a theoretical number

-is the output that an operation can produce continuously, at a maximum rate without stopping for any shiftchangeovers, maintenance, or any other delays.

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Design capacity

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-This considers how the operation will run on a long-term basis

-This can also be known as available capacity

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Effective capacity

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This is the same as effective capacity but contains unplanned losses as well as planned ones. These could include poor workrate, absenteeism, or new staff training for example

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Actual capacity

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on capacity is a resource that is less capable, of increasing its throughput over the given time period, than other parts of the operation.

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Constraint

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is always constrained by the lowest-producing part of the process.

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Capacity

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was first proposed in 1986 by Goldratt. The theory is the practical results of Goldratt’s work on ‘how to think’. TOC is a philosophy that suggests that any system must have at least one constraint otherwise it would generate an infinite amount of output and that constraints generally determine the pace of an organization’s ability to achieve its goal which is profit

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Theory of constraints

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is the pattern of demand that repeats itself over a certain period of time, such as a week, a month, a quarter, or a year

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Seasonality of demand

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would involve running the operation at a uniformly highlevel of capacity availability

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Level capacity plan

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The opposite of a level capacity plan is one which attempts to match capacity closely to the varying levels of forecast demand.

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Chase demand plan

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The most obvious mechanism of demand management is to change demand through price.

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Manage demand plan

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THE TERM IS USED IN MANY SERVICE OPERATIONS TO MEAN TECHNIQUES THAT CAN BE USED TO ALLOCATE LIMITED RESOURCES,AMONG DIFFERENT CATEGORIES OF CUSTOMERS, SUCH AS BUSINESSOR LEISURE TRAVELERS.

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Yield management concept

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works on the basis that where the flow of consumers into a process is not regular then there will be an element of waiting involved where customers will have to queue.

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Queueing or waiting line management

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THE DILEMMA IN MANAGING THE CAPACITY OF A QUEUING SYSTEM IS HOW MANY SERVERS TO HAVE AVAILABLE AT ANY POINT IN TIME IN ORDER TO AVOID UNACCEPTABLY LONG QUEUING TIMES OR UNACCEPTABLY LOW UTILIZATION OF THE SERVERS.

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Balancing capacity and demand

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One of the most common tools used in evaluating the economic feasibility of a new enterprise or product

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Break-even analysis

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Seasonality of demand occurs over a year, but similar predictable variations in demand can also occur

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Weekly and daily demand functions

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measure is an increasingly popular methodof judging the effectiveness of operations equipment

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Overall equipment effectiveness

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Who proposed the Theory of constraints

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Eliyahu M. Goldratt

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the unit of measure can be either an input or an output to the process. The key is to take the most logical unit that reflects the ability of the operation to create its product or service.

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Measuring capacity

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are generally used for low volumes, flexible processes.

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Input measures of capacity

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counts the finished units from the process such as mobilephones produced in a day or cars manufactured per week.

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OUTPUT MEASURES OF CAPACITY

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Is the processes and methods used to transform tangible inputs and intangible inputs into goods or services.

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Production

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Are used in this process to create an output that is suitable for use or has exchange balue

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Resource

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Is the activity of managing the resources which are devoted to the creation and delivery of services and products.

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Operation managenent

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Is concerned with managing processes

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Operation management

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Uses the organizations resources to create outputs the fulfil defined market requirements.

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Operation management

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It is the activity or activities where the inputs are processed to produce an output.

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Transformation

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Segment of population

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Target market

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It measures the demand for a product/service and planning for the operations that aims to eliminate those surplus and shortage in a market

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Demand management

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Is gauging the demand for a product or service in the future

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Demand management

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Is the supply chain management process

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Demand management

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Larger number of components

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In make to stock

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Relatively small number of raw materials

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In Make to order

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Complete sub assemblies

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In assemble to order

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Is planning for quantity or scale output

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Capacity planning

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Effective capacity is also known as?

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Available capacity

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How its transforming resources are positioned relatively to each other; and how its various tasks are allocated to these transforming resources.

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Layout

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In some ways contradictions in terms, since the transformed resources do not move between the transforming resources.

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Fixed-position layout

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Similar resources or processes are located together

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Functional layout

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Is one where the transformed resources entering the operation are pre selected

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Cell layout

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Involves locating the transforming resources entirely for the convenience of the transformed resources

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Product layout

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Many operations either design themselves hybrid layouts

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Mixed layout

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Is best understood by distinguishing between the fixed-and variable cost elements of adopting each layout type

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Cost analysis

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Tends to increase as one moves from foxed position

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Fixed cost

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Per product or service tend to decrease

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Variable cost