Prof. fandel: Chapter 10 Capacity Management
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| show | The capability of a manufacturing or service resource such as a facility, process, workstation, or piece of equipment to acquire its purpose over a specified time period.
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| Capacity is determined by: | show 🗑
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| show | 1) As the maximum rate of output per unit of time.
2) As units of resource availability
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| Economies of Scale | show 🗑
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| show | Occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases.
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| show | A way to achieve economies of scale without extensive investments in facilities and capacity by focusing on a narrow range of goods or services, target market segments, and/or dedicated processes to maximize efficiency and effectiveness.
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| show | An amount of capacity reserved for unanticipated events, such as demand surges, materials shortages, and equipment breakdowns.
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| Average Safety Capacity (%) | show 🗑
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| show | = Setup (Si) + [Processing Time (Pi) x Order Size (Qi)]
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| Revenue Management Systems (RMS) | show 🗑
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| Theory of Constraints (ToC) | show 🗑
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| show | Amount of money generated per time period through actual sales.
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| show | Anything that limits an organization from moving toward or achieving a goal.
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| Physical Constraint | show 🗑
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| Bottleneck Work Activity | show 🗑
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| Non-bottleneck Work Activity | show 🗑
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| show | Environmental or organizational
ex) Low product demand or an inefficient management policy or procedure.)
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