Bài giảng Operations Management - Chapter 5: Strategic Capacity Planning for Products and Services

Learning Objective: Chapter 5 You should be able to: Summarize the importance of capacity planning Discuss ways of defining and measuring capacity Describe the determinants of effective capacity Discuss the major considerations related to developing capacity alternatives Briefly describe approaches that are useful for evaluating capacity alternatives

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Strategic Capacity Planning for Products and ServicesMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.You should be able to:Summarize the importance of capacity planningDiscuss ways of defining and measuring capacityDescribe the determinants of effective capacityDiscuss the major considerations related to developing capacity alternativesBriefly describe approaches that are useful for evaluating capacity alternatives5-*Student SlidesCapacityThe upper limit or ceiling on the load that an operating unit can handleCapacity needs includeEquipmentSpaceEmployee skillsStudent Slides5-*Key Questions:What kind of capacity is needed?How much is needed to match demand?When is it needed?Related Questions:How much will it cost?What are the potential benefits and risks?Are there sustainability issues?Should capacity be changed all at once, or through several smaller changesCan the supply chain handle the necessary changes?Student Slides5-*Design capacityMaximum output rate or service capacity an operation, process, or facility is designed forEffective capacityDesign capacity minus allowances such as personal time, maintenance, and scrapActual outputRate of output actually achieved--cannot exceed effective capacity.5-*Student SlidesMeasure capacity in units that do not require updatingWhy is measuring capacity in dollars problematic?Two useful definitions of capacityDesign capacityThe maximum output rate or service capacity an operation, process, or facility is designed forEffective capacityDesign capacity minus allowances such as personal time and maintenance5-*Student SlidesActual outputThe rate of output actually achievedIt cannot exceed effective capacityEfficiencyUtilizationMeasured as percentages5-*Student SlidesEstimate future capacity requirementsEvaluate existing capacity and facilities; identify gapsIdentify alternatives for meeting requirementsConduct financial analysesAssess key qualitative issuesSelect the best alternative for the long termImplement alternative chosenMonitor results5-*Student SlidesService capacity planning can present a number of challenges related to:The need to be near customersConvenience The inability to store servicesCannot store services for consumption laterThe degree of demand volatilityVolume and timing of demandTime required to service individual customers5-*Student SlidesOnce capacity requirements are determined, the organization must decide whether to produce a good or service itself or outsourceFactors to consider:Available capacityExpertiseQuality considerationsThe nature of demandCostRisks5-*Student SlidesThings that can be done to enhance capacity management:Design flexibility into systemsTake stage of life cycle into accountTake a “big-picture” approach to capacity changesPrepare to deal with capacity “chunks”Attempt to smooth capacity requirementsIdentify the optimal operating levelChoose a strategy if expansion is involved5-*Student SlidesMinimum cost & optimal operating rate are functions of size of production unit.5-*Student SlidesCost-volume analysisFocuses on the relationship between cost, revenue, and volume of outputFixed Costs (FC)tend to remain constant regardless of output volumeVariable Costs (VC)vary directly with volume of outputVC = Quantity(Q) x variable cost per unit (v)Total CostTC = FC + VCTotal Revenue (TR)TR = revenue per unit (R) x QStudent Slides5-*BEPThe volume of output at which total cost and total revenue are equalProfit (P) = TR – TC = R x Q – (FC +v x Q) = Q(R – v) – FC Student Slides5-*Capacity planning impacts all areas of the organizationIt determines the conditions under which operations will have to functionFlexibility allows an organization to be agileIt reduces the organization’s dependence on forecast accuracy and reliabilityMany organizations utilize capacity cushions to achieve flexibilityBottleneck management is one way by which organizations can enhance their effective capacitiesCapacity expansion strategies are important organizational considerationsExpand-early strategyWait-and-see strategyCapacity contraction is sometimes necessaryCapacity disposal strategies become important under these conditionsStudent Slides5-*
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