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Lecture Principle of inventory and material management - Lecture 11

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Lecture 11 - Capacity Management and Planning. The contents of this chapter include all of the following: Capacity, capacity management, matching capacity and demand, capacity planning process, resource planning, inputs to capacity planning. | Lecture 11 Capacity Management and Planning Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, P.E., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, Ph.D., CFPIM, North Carolina State University, Lloyd M. Clive, P.E., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, N.Y.: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Capacity Capacity Management Matching Capacity and Demand Capacity Planning process Resource Planning Inputs to capacity planning Capacity The throughput, or the number of units a facility can hold, receive, store, or produce in a period of time Determines fixed costs Determines if demand will be satisfied Three time horizons 3 This slide provides some reasons that capacity is an issue. The following slides guide a discussion of . | Lecture 11 Capacity Management and Planning Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, P.E., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, Ph.D., CFPIM, North Carolina State University, Lloyd M. Clive, P.E., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, N.Y.: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Capacity Capacity Management Matching Capacity and Demand Capacity Planning process Resource Planning Inputs to capacity planning Capacity The throughput, or the number of units a facility can hold, receive, store, or produce in a period of time Determines fixed costs Determines if demand will be satisfied Three time horizons 3 This slide provides some reasons that capacity is an issue. The following slides guide a discussion of capacity. Capacity Management Capacity management is planning and controlling resources needed to meet production objectives Planning - determining resources needed to meet the priority plan; selecting methods to make that capacity available Controlling - monitoring output, comparing it with the plan, and taking corrective action 4 Matching Capacity and Demand Demand Management vary prices change lead times encourage/discourage business Capacity Management adjust staffing adjust equipment and processes change methods to facilitate production redesign the product to facilitate production Capacity Planning Process Determine the capacity available at each work center. Translate the released and planned orders into the capacity required at each work center in each time period. Sum up the capacities required for each work center to determine the load on each work center in each time period. Resolve differences between available capacity and required capacity. Modify capacity Use capacity .