capacity planning for production management
Post on 04-Apr-2018
219 Views
Preview:
TRANSCRIPT
-
7/29/2019 capacity planning for production management
1/29
Shaun Manuel J. ApolinarioEvan Ephraim P. Medina
Vincent N. Montes
Jasper Kim G. Zarraga
-
7/29/2019 capacity planning for production management
2/29
Concepts of Capacity Planning Capacity- Refers to an upper limit or ceiling on the
load that an operating unit can handle.
- An upper limit on the rate of output Goal to achieve a match between the long termsupply capabilities of an organization and thepredicted level of long-term demand.
-
7/29/2019 capacity planning for production management
3/29
Concepts of Capacity Forecast are key inputs used to answer the questionsof how much capacity is needed and when is it needed.
Design Capacity The maximum output rate or service capacity an
operation, process, or facility is design for.
- Is the maximum rate of output achieved under idealconditions
-
7/29/2019 capacity planning for production management
4/29
Effective Capacity Design Capacity minus allowancessuch as personal time, maintenance and scrap.
- Is usually less than design capacity owing to realities ofchanging product mix, the need for periodicmaintenance of equipment, lunch breaks, coffee breaks,problems in scheduling and balancing operations andsimilar circumstances.
- Actual output cannot exceed the effective capacity and itis often less
-
7/29/2019 capacity planning for production management
5/29
Efficiency Ratio of actual output to effective capacity
Efficiency = Actual OutputEffective Capacity
-
7/29/2019 capacity planning for production management
6/29
Utilization Is the ratio of actual output to design capacity
Utilization = Actual OutputDesign Capacity
-
7/29/2019 capacity planning for production management
7/29
Determinants of Effective Capacity 1. Facilities
2. Product and Service Factors
3.Process Factors 4. Human Factors
5. Operational Factors
6. Supply Chain Factors
7. External Factors
-
7/29/2019 capacity planning for production management
8/29
Facilities Design of facilities
Work would run smoothly if the workplace or layout of
the work area is good. Personnel can perform effectively if they are
comfortable in the workplace, and they would struggleif is the contrary.
-
7/29/2019 capacity planning for production management
9/29
Product and Service Factors Simplicity can beat extensiveness
Simple products are easy to prepare
-
7/29/2019 capacity planning for production management
10/29
Process Factors Output of quality is important.
If there are irregularities in the output, the rate of
production would be sluggish since inspections wouldbe made to determine the problem.
-
7/29/2019 capacity planning for production management
11/29
Human Factors Skills and experience would affect the output.
Employee motivation could make or break the output.
-
7/29/2019 capacity planning for production management
12/29
Operational FactorsJobs and equipments must be designated equally so
that it would not affect the output.
Availability of the equipments and personnel must betaken in to consideration so that the process shouldnot be halted.
-
7/29/2019 capacity planning for production management
13/29
Supply Chain Factors Changes in operation
-
7/29/2019 capacity planning for production management
14/29
External Factors Product standards can restrict managements options
for increasing and using capacity.
Pollution standards and paperworks pertaining toregulatory standards required by the governmentshould be also be taken into consideration.
-
7/29/2019 capacity planning for production management
15/29
Cost Volume Relationships Focuses on relationships between cost, revenue, and
volume of output.
Purpose: estimate the income of an organizationunder different operating conditions.
Useful as a tool for comparing capacity alternatives.
-
7/29/2019 capacity planning for production management
16/29
Cost Volume Relationships Fixed Costs- constant regardless of volume of output.
Ex: rental costs, property taxes
Variable Costs- varies directly with volume of output.
Major components: materials and labor costs. Total Costs = FC + VC
VC = Quantity of volume per output x Variable cost perunit. ( VC=Q x v)
-
7/29/2019 capacity planning for production management
17/29
Strategy Formulation Organizations typically bases its capacity strategy on
assumptions and predictions about long-term demandpatterns, technological changes and behavior ofcompetitors.
-
7/29/2019 capacity planning for production management
18/29
Strategy Formulation Key decisions of capacity planning:
1. Amount of capacity needed.
2. The timing of changes3. Need to maintain balance throughout the system
4. Extent of flexibility of facilities and the workforce.
-
7/29/2019 capacity planning for production management
19/29
Strategy Formulation Capacity Cushion extra demand intended to offset
uncertainty.
Steps in the Capacity Planning Process:
1. Estimate future capacity requirements
2. Evaluate existing capacity and facilities and identifygaps
3. Identify alternatives for meeting requirements
-
7/29/2019 capacity planning for production management
20/29
4. Conduct financial analyses of each alternative.
5. Assess key qualitative issues for each alternative.
6. Select one alternative to pursue.7. Implement the selected alternative.
8. Monitor results.
-
7/29/2019 capacity planning for production management
21/29
Facilities Layout Layout refers to the configuration of departments,
work centers and equipment, with particular emphasison movement of work through the system
-
7/29/2019 capacity planning for production management
22/29
Basic Layout typesI. Product Layouts
II. Process Layouts
III. Fixed position LayoutsIV. Combination Layouts
V. Cellular Layouts
-
7/29/2019 capacity planning for production management
23/29
Product Layouts Layout that uses standardized processing operations to
achieve smooth, rapid, high volume flow.
-
7/29/2019 capacity planning for production management
24/29
Process LayoutAre designed to process items or provide services that
involve a variety of processing requirements
-
7/29/2019 capacity planning for production management
25/29
Fixed Position Layouts In FPL, the item being worked on remains stationary
and workers, materials and equipment are movedabout needed.
-
7/29/2019 capacity planning for production management
26/29
Combination Layouts Is the combination of the three basic layouts that are
ideal models but altered to satisfy the needs of aparticular situation.
-
7/29/2019 capacity planning for production management
27/29
Cellular Layouts Is a type of layout in which work stations are grouped
into what is referred to as Cell. Groupings aredetermined by the operations needed to perform work
for a set of similar items that requires similarprocessing.
-
7/29/2019 capacity planning for production management
28/29
Need for Layout Decisions1. They require substantial investments of money and
effort
2. They involve long term commitments which makesmistakes difficult to overcome
3. They have a significant impact on the cost andefficiency of operations.
-
7/29/2019 capacity planning for production management
29/29
Cycle Time Period required to complete one cycle of an operation
or to complete a function, job, or task from start tofinish.
top related