Professional Documents
Culture Documents
Capacity Planning
Capacity Planning
Henry Gotham is a
supervisor at one of Kirk &
Patrick Car manufacturing
plants.
He also guides and instructs the workers for day to day activities and is
responsible for the quality as well as quantity of production.
Henry ensures that the resources are put to the optimum use and the
quality of the products is maintained.
The management hopes that this increased production levels would help
meet the current market demand and the company can make huge profits
from this situation if they succeed in meeting this surge in demand.
Introduction
However, when the suppliers are contacted, they inform Gerard that they
would not be able to supply the required raw materials before another
three months due to the huge demand from all sides.
Therefore, ‘Capacity
Planning’ can be the
competitive advantage that
can help an organization to
succeed and help fulfil the
objectives and strategies of
the organization.
In General Te
n rms
For an Organizatio
‘Capacity’ is referred to
‘Capacity’ is the ability as maximum
of a given system to production capacity,
produce output within which can be attained
the specific time within a normal
period. working schedule.
What is meant by ‘Capacity Planning’?
Proper utilization of
work centers
e n ti al to
• It is es s
r o d u c tion
te t h e p
integr a n tr ol
a nd co
n in g
plan e ffi c ie nt,
st e m f or
sy nd
c ti v e a o n in
effe a l op e r ati
m i c o f
econo t u ring u n i t
f a c
a manu ation.
o r g a n iz
an
Factors affecting Production Control
‘Production Control’ cannot be the same across all of the organization.
‘Production Control’ is dependent upon the following factors:
Nature of Production
(job oriented, service oriented, etc.)
Nature of Operation
Size of Operation
Independent Demand Inventory Model
1
e nt ‘Independent Demand Inventory Model’
e nd talks about raw material demand which is
d ep dependent upon prevailing market
I n
conditions and is not correlated to any raw
Demand