CAPACITY
PLANNING
Submitted To: Submitted By:
Dr. ANJALI GUPTA AJAY
M.B.A Genera(a)
190101010037
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CAPACITY
PLANNING
Submitted To: Submitted By: Dr. ANJALI GUPTA AJAY M.B.A Genera(a) 190101010037
CONTENTS
• WHAT IS CAPACITY AND PLANNING
• WHAT IS CAPACITY PLANNING
• LEVEL OF PLANNING
• CAPACITY PLANNING REQUIRED
• TYPES OF CAPACITY PLANNING
• EFFECTIVE CAPACITY
• MEASUREMENT OF CAPACITY
• STEPS IN CAPACITY PLANNING
• FACTOR EFFECTING DETERMINATION OF PLANT CAPACITY
• REFERANCE
What is Capacity?
Capacity is a facility is its limiting capability to produce an output over a period of time. Definition : “it is the ability of a given system to produce output within specific time period.”
Capacity Planning: The available capacity
should match the forecast demand .that enables an organization to design a schedule to shoe exactly when it will produce the output .that is what product planning is all about .It must meet the long term demand ,allow for variation in demand over a short term and remain within the available capacity. It than generate time table for the man power, equipment, purchases and strategic level capacity plan to detailed operations
schedule.
Definition: “It is the process of determining the
production capacity needed by an organisation to meet
changing demand for its products.”
Short Run Decision MPS Aggregate Plans Capacity Plans Corporate Strategy Business Plans Mission Levels of Planning
Capacity Planning Required: (^) To meet the customers demand (^) Cost of efficiency of operations (^) For scheduling system (^) For producing more products (^) For producing new products
FACTOR DETERMINING EFFECTIVE CAPACITY Facilities Product Process Human Factor Operation al Factor External Factor
STEPS IN CAPACITY PLANNING
- Forecast the demand
- Access capacity of existing facilities
- Access of gap between the needed and available capacity
- Make alternative plans to fill the gap
- Compare those alternative plan and choose the best
- Implement the best plan and check and control its progress
(^) Factor effecting Determination of Plant Capacity (^) Capital investment requirement (^) Changing the product design , market condition and product life cycle (^) Flexibility for capacity decisions (^) Market demand for product (^) Type of technology selected
REFERANCES
Production and Operation management by S.A. Chunawalla Production and operation management by Shailendra Kale