Académique Documents
Professionnel Documents
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Capacity Planning
Operations Corporate strategy
Strategy Model
Business strategy
Operations Strategy
Internal
Mission Functional strategies in
analysis
marketing, finance,
Distinctive engineering, human
Competence resources, and
information systems
External Objectives
analysis (cost, quality, flexibility, delivery)
Policies
(process, capacity,
inventory and quality systems)
Results
Capacity
Capacity Plans
To
Inputs 1 2 3
customers
200/hr 50/hr 200/hr
To
Inputs 1 2 3
customers
200/hr 200/hr 200/hr
To
Inputs 1 2 3
customers
200/hr 50/hr 200/hr
Capacity
increment
Time between
increments
Time
(a) Expansionist strategy
Capacity Strategies
Timing and Sizing Expansions
Planned use of short- Forecast of capacity
term options required
Capacity
Capacity
increment
Time between
increments
Time
(b) Wait-and-see strategy
Capacity leading demand and capacity lagging demand
Capacity
Volume
Volume
Demand Demand
Capacity
Time Time
Smoothing with inventory
Capacity
Volume
Demand
Time
Capacity Expansion Strategies
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-26
Management, 7e
A Systematic Approach to
Capacity Decisions
Estimating Capacity
Short Term
Long Term
50
M= = 62.5 customers per day
[1.0 – .20)]
Dp
M=
N[1 – (C/100)]
Item Client X
Annual demand forecast (copies) 2000.00
Standard processing time (hour/copy) 0.50
Capacity Cushion 0,15
5305
M= = 3.12 4 machines
1700
Sara James bakery has a plant for processing
breakfast rolles. Last week the facility
produced 148,000 rolls. The effective
capacity is 175,000 rolls. The production line
operates 7 days per week with three-8 hour
shifts per day. The line was designed to
process rolls at a rate of 1,200 rolls per hour.
Determine the maximum (design) capacity,
utilization, and efficiency of the plant.
Bakery Example
The shop works two shifts per day, eight hours per shift, 200 days
per year. There currently are four machines, and a 25 percent
capacity cushion is desired. How many machines should be
purchased to meet the upcoming year’s demand without resorting
to any short-term capacity solutions?
Estimating Capacity
Requirements
[D p + (D/Q)s]product 1 + ... + [D p + (D/Q)s]product n
M=
N[1 – (C/100)]
Up, Up, and Away is a producer of kites and wind socks.
Relevant data on bottleneck operation in the shop for upcoming
fiscal year are given in the following table:
The shop works two shifts per day, eight hours per shift, 200 days
per year. There currently are four machines, and a 25 percent
capacity cushion is desired. How many machines should be
purchased to meet the upcoming year’s demand without resorting
to any short-term capacity solutions?