03: Capacity Mgmt Flashcards Preview

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Flashcards in 03: Capacity Mgmt Deck (14)
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1
Q

Capacity =

A
  • How much can production make in a given time (aka throughput)
  • tries to meet demand

Capacity: how much can an operation make? “Capacity determines the rate at which the operation can transform inputs into outputs and the quantity of a product or service that can be delivered within a given time period”

2
Q

Design Capacity Vs Effective C Vs Actual C

A

Theoretical if no prod. Losses

Vs Minus planned (=expected) losses (=stoppages)

Vs Minus unplanned losses

3
Q

C: efficiency

A

= actual output / effective capacity

4
Q

C: Utilization

A

= actual output / design capacity

5
Q

How add C?

A

Working on the 4Ms to reduce the capacity constraint = «bottleneck»

=> a new bottleneck will form

6
Q

Bottleneck control

A

= make all operations work at the rate dictated by the bottleneck station

7
Q

Forecasting aspects:

What 2 things?

In which 2 ways, during product life cycle?

A

Demand n capacity.

First using qualitative, then quantitative methods

8
Q

5 quantitative demand forecasting from naive to sophisticated:

A

Time series method=Just looking at past sales data

1- naive: like last period

2- MovAvg

3- exp smoothing (w alpha smoothing parameter)

4- trend projection

5- Causality methods:

  • linear n multiple regression

> chk seasonal peaks n random variation components in order to choose best method

9
Q

3 qualitative methods for demand forecasting:

A

1- surveys

2- scenario planning

3- Delphi method = iterative expert interviews

10
Q

Demand forecasting techniques:

Trade-off in choice=

A

Cost / precision -> choose based on total cost, including cost of lack of precision

(But: If BM = subscription = MTO -> time series are precise)

11
Q

Forecasting R more precise under 4 conditions:

A

Short period

Families f items

If often revised

If considering human factors

12
Q

3 planning time horizons, from near to far

A
  • Short-term planning: up to 3 months
    => reactive, flexible resources eg changing shift patterns
  • Medium-term planning: between 3 and 12 months
    => hiring new staff or renting new facilities
  • Long-term planning: over 12 to 18 months
    => operations strategy, eg new processes, technology and skills
13
Q

Three general planning strategies in the medium term
w instruments used

A
  1. Level production
    Use inventory to smooth demand (if product not perishable and not customized)
  2. Chase demand
    Dynamic capacity. Heavy use of forecasting.
  3. Demand management
    Manipulate demand via marketing

+ These strategies are not mutually exclusive, and most organizations use a mix of them, but it is likely that one strategy will dominate.

14
Q

Little’s law of queing

+ in operations

A

L = lambda * W

where

L = avg number of people / units in the queue / system

lambda = arrival rate

W = avg waiting time, i.e. time in the queue / system

WIP = throughput * lead time