Iom Case

Chapter 6 Capacity FITNESS PLUS case ? [Introduce with Chase Bank and the financial services industry.] A.Capacity Planning This activity is central to the long-term mastery of an organization. Too some(prenominal) capacity can be as problematic as too little [Mention Carnival canvas Line, MP 6.1.] Capacity planning considers questions much(prenominal) as: How much of a cushion is needed? Should we expand capacity out front the demand is there or wait until demand is more(prenominal) certain? 1.Measuring capacity No single capacity bank note is universally applicable. Capacity can be expressed in terms of outfits or inputs. yield measuresâ€"the usual choice for simple eye flow processes Low amount of customization Product mix becomes an disregard when the output is not uniform in work content. infix measuresâ€"used for flexible flow processes High amount of customization Output varies in work content; a measure of radical units produced is meaningless. Output is converted to some critical homogeneous input, such as labor hours or machine hours. Average enjoyment rate, expressed as a percentage: The average output rate and the capacity must be measured in the same terms. a.

Peak capacity Peak capacity Calling for extraordinary move on a lower floor ideal conditions that are not sustainable Rated capacity, an engineering sagacity of maximum annual output b.Effective capacity Economically sustainable under normal conditions c.Increasing maximum capacity The effective capacities of multiple trading feats within the same facility are different. A stymy is an operation that has the lowest effective capacity of any operation in the facility and thus limits the systems output. elaborateness of a facilitys capacity occurs only when obstruct capacity is increased. Flexible flow processes may have planless bottlenecks due to widely varying workloads on different trading operations at different times. Job shops have low equipment utilisation rates.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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