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L7 Capacity management (•What is capacity management? (Measuring capacity…
L7 Capacity management
•What is capacity management?
maxium output+ a given period of time
objectives
3 steps
3 stages
Measuring capacity (3 indicator)
1 Design capacity
-planned loss
= 2 Effective capacity
-Avoidable loss
= Actual capacity
Efficiency
Utilization
OEE operating equipment effectiveness
Avaliability
Performance
Quality
valuable operating time/
net operating time
(Quality loss)
net operating time/
total operating time
(Speed loss)
Total operating time/
Loading time
(Availibity loss)
•What are the ways of coping with demand fluctuation?
(1) Aggregate
Planning
Total demand/ producion days
(2) 3 reconciling
plan
to
capcity & demand
Chase demand (zero inventory plan)
: change workforce each period and produce just enough to meet demand.
Demand management
: change the pattern of demand
demand partioning/ segementation
use price differiation to change demands
promoting off-peak demand
reservation- Pre-selling
Level capacity(Constant workforce)
: maintain minimum production level/ constant workforce to satisfy demand.
absorb demand
Make customer wait
excess cpacity
MTS
•How can operations plan their capacity level?