Chapter 4- Strategic Capacity Mgmt

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business info

Created Feb 8, 2012
by rothera

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	Side A	Side B
1	capacity	the amount of output that a system is capable of achieving over a specific pd of...
2	managing _______ ________ is critical in operations of all businesses	productive capacity
3	basic capacity questions	what kind of capacity is needed?how much is needed?when is it needed?
4	speculative	forecast
5	responsive	demand
6	real (effective) capacity	what is to be produced
7	long range capacity planning	> 1 yrbuildingsinvest in new facilities and equipment or not?large capital expenditures
8	intermediate range capacity planning	6-18 monthshiring, lay off, minor equip purchase
9	short range capacity planning	1 month or lesseliminate variance between planned vs. actual outputovertime, personnel...
10	strategic capacity planning	determining the overall capacity level or capital intensive resources that best...
11	best operating level	level of capacity for which the process was designed and volume output where avg cost per unit...
12	capacity utilization rate=	actual output/ best operating level (%)
13	capacity utilization rate	how close to best operating level
14	economies of scale	volume increase, cost/unit decreasespread the fixed costs of building and equip over multiple...
15	diseconomies of scale	where cost/unit rises as volume increasesplant too large
16	focused factory	a facility with a fairly limited set of production objectivesfocus on one product
17	Plant within a Plant	used to operationalize a focused factory by designating a specific area in a larger plant
18	capacity flexibility	ability to increase or decrease production levels and shift products
19	economies of scope	low cost to switch from one product to another
20	flex plants	adapt to change like ringling bros
21	adjustments	balance capacityfrequency of additions/reductionsexternal sources of capacity
22	balancing capacity across process steps	outputs from prior steps are inputs to nextminimize bottleneck
23	frequency of add/reduction	too frequent, unnecessary costsnot frequent, lost salesboth expensive
24	external sources of capacity	may be cheaper to out source
25	bottleneck	the step in production delivery process that has the lowest capacity when measured using a...
26	find a bottleneck	on paper: find capacityline of sight: highest WIP inventory
27	capacity expansion=	desired change in capacity- increase in capacity from replacing depreciated capital- change...
28	match capacity to	demand
29	Planning SERVICE capacity	time (deliver to customer then produced)locationvolatility of demand (10-30 min)capacity utilization...
30	best operating point is near _____ of capcity for serivce	70%
31	caveats	capacity affects not only service quality but also conformance quality
32	capacity cushion	amt of capacity in excess of expected demanddesign/expected