GSCM ch. 4
22 flashcards · Other · by Daniel F.
Capacity Management
the ability to hold, receive, store or accommodate a number of customers in a system
Strategic capacity planning
finding the overall capacity level of capacity-intensive resources to best support the firm’s long-term strategy
Capacity
the output that a system is capable of achieving to deliver over a period of time
best operating level
a level of capacity for which the process was designed and thus is the volume of output the best operation level at the level where average unit cost is minimized
Capacity utilization rate
Capacity used / Best operating level
focused factory
A facility designed around a limited set of production objectives. Typically the focus would relate to a specific product or product group.
Plant within a plant (PWP)
An area in a larger facility that is dedicated to a specific production objective (for example, product group). This can be used to operationalize the
Capacity flexibility
he ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one to another
Flexible plants
The ultimate in plant flexibility is the zero- changeover time plant. Such a plant can adapt to change by the use of movable equipment, knockdown wall
Flexible processes
flexible manufacturing processes permit low- cost switching from one product to another and enable economies of scope (multiple products can be produce
Flexible workers
Flexible workers have multiple skills and the ability to switch easily from one kind of task to another.
capacity cushion
he amount of capacity in excess of expected demand (70% is best)
determining capacity requirements
If design capacity of all processes is sufficient, then the system is
constrained by the arrivals
Departure rate (i.e. throughput)
number of products that leave the system per time unit determined by the capacity of the bottleneck if the system is constrained by the arrivals, the departure rate is equal to the arrival rate
Utilisation rate
fraction of the total time in which a machine is used for production total operating time / total time = actual output/design capacity
Efficiency
actual output/effective capacity
λ
arrival rate
μ
production rate
The utilisation rate ρ for a workstation consisting of n identical, parallel servers can be computed from ρ
λ/(nμ)
WIP
The number of products that have been taken into production, but have not yet been finished
Little’s equation
Estimate WIP if the system is constrained by the arrivals L=λ*W L is the average WIP W is the deterministic throughput time λ is the arrival rate