Operations Management Lesson 8 Flashcards Quizlet
Capacity Planning Approaches There are four principle methods to approach capacity planning Each method is based on reacting to or planning for market fluctuations and changing levels of demand These capacity planning strategies are match, lag, lead, and adjustment MatchStrategies The broad classes of capacity planning are lead strategy, lag strategy, match strategy, and adjustment strategy Lead strategy is adding capacity in anticipation of an increase in demand Lead strategy is an aggressive strategy with the goal of luring customers away from the company's competitors by improving the service level and reducing lead time
A level capacity strategy is also known
A level capacity strategy is also known- A period's planned quantity of output is equal to that period's expected demand Level capacity strategy When an organization adopts the level capacity strategy then it manufactures at a constant output rate It does not consider any fluctuation or change in Lag strategy is planning to have enough resources to meet true demand (not projected) Lag strategy is a conservative method of capacity planning that ensures your costs are as low as possible The potential downside to this strategy is that it can create a lag in the delivery of products or services to customers, which is where the name comes from
Processes Technology And Capacity Prezentaciya Onlajn
3 Types of Capacity Management John Spacey, Capacity management is the process of planning the resources required to meet business demands This includes capacity forecasting, planning, monitoring and performance analysis This can happen at three levels in an organization Types of Capacity Planning Strategies 1 LEAD STRATEGY The Lead Strategy involves an upfront investment in more capacity that is needed and is one of the 2 LAG STRATEGY The Lag Strategy is much more conservative than the Lead Strategy as it waits until the current 3 MATCH STRATEGY The Chase demand strategy can be defined as a strategy where the changes are made to the output according to the demand Here, the changes are in terms of increasing or decreasing the output in line with the rising or falling demand It involves matching the demand by hiring or firing the workers or by controlling the level of production and using
Problem 131 level strategy allowing backorders Calculate the production rate and workforce level Develop the plan, calculate the costs, and evaluate the strategy Problem 1334 chase strategy 3) Calculate the production rate and workforce levels 4) Develop the plan, calculate the costs, and evaluate the strategy Lag Strategy Waiting until your current capacity is stretched to its limits before adding more capacity For example, a call center with 10 staff that doesn't hire more employees until everyone is working overtime This may serve to boost efficiency and productivity as current resources are heavily utilizedThat sets the overall scope for capacity development The organizational level refers to the internal structure, policies and procedures that determine an organization's effectiveness It is here that the benefits of the enabling environment are put into action and a
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The advantages of the Level capacity strategy a Employment of operational resources at all times b Efficient production stages can be held at a constant rate c Lowers unit cost for examples, mass production or manufacturing of uniform productsThis strategy characterised by a verylow capacity level in all the capacity measures Therefore, the proposed taxonom y for this air line capacity strategy is
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