Bài giảng Operations Management - Chapter 5 Strategic Capacity Planning for Products and Services

Strategic Capacity Planning for Products and ServicesChapter 5Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.You should be able to:LO 5.1 Name the three key questions in capacity planningLO 5.2 Explain the importance of capacity planningLO 5.3 Describe ways of defining and measuring capacityLO 5.4 Name several determinants of effective capacityLO 5.5 Discuss factors to consider when deciding whether to operate in-house or outsourceLO 5.6 Discuss the major considerations related to developing capacity alternativesLO 5.7 Describe the steps that are used to resolve constraint issuesLO 5.8 Briefly describe approaches that are useful for evaluating capacity alternativesLearning Objective: Chapter 5CapacityThe upper limit or ceiling on the load that an operating unit can handleCapacity needs includeEquipmentSpaceEmployee skillsCapacity PlanningLO 5.1Key Questions:What kind of capacity is needed?How much is needed to match demand?When is it needed?Related Questions:How much will it cost?What are the potential benefits and risks?Are there sustainability issues?Should capacity be changed all at once, or through several smaller changesCan the supply chain handle the necessary changes?Capacity Planning QuestionsLO 5.1Capacity decisionsimpact the ability of the organization to meet future demandsaffect operating costsare a major determinant of initial costoften involve long-term commitment of resourcescan affect competitivenessaffect the ease of managementhave become more important and complex due to globalizationneed to be planned for in advance due to their consumption of financial and other resourcesCapacity Decisions Are StrategicLO 5.2Measure capacity in units that do not require updatingWhy is measuring capacity in dollars problematic?Two useful definitions of capacityDesign capacityThe maximum output rate or service capacity an operation, process, or facility is designed forEffective capacityDesign capacity minus allowances such as personal time and maintenanceDefining and Measuring CapacityLO 5.3FacilitiesProduct and service factorsProcess factorsHuman factorsPolicy factorsOperational factorsSupply chain factorsExternal factorsDeterminants of Effective CapacityLO 5.4Once capacity requirements are determined, the organization must decide whether to produce a good or service itself or outsourceFactors to consider:Available capacityExpertiseQuality considerationsThe nature of demandCostRisksIn-House or Outsource?LO 5.5Things that can be done to enhance capacity management:Design flexibility into systemsTake stage of life cycle into accountTake a “big-picture” approach to capacity changesPrepare to deal with capacity “chunks”Attempt to smooth capacity requirementsIdentify the optimal operating levelChoose a strategy if expansion is involvedDeveloping Capacity AlternativesLO 5.6ConstraintSomething that limits the performance of a process or system in achieving its goalsCategoriesMarketResourceMaterialFinancialKnowledge or competencyPolicyConstraint ManagementLO 5.7Identify the most pressing constraintChange the operation to achieve maximum benefit, given the constraintMake sure other portions of the process are supportive of the constraintExplore and evaluate ways to overcome the constraintRepeat the process until the constraint levels are at acceptable levelsResolving Constraint IssuesLO 5.7Alternatives should be evaluated from varying perspectivesEconomicIs it economically feasible?How much will it cost?How soon can we have it?What will operating and maintenance costs be?What will its useful life be?Will it be compatible with present personnel and present operations?Non-economicPublic opinionEvaluating AlternativesLO 5.8Techniques for Evaluating AlternativesCost-volume analysisFinancial analysisDecision theoryWaiting-line analysisSimulationEvaluating AlternativesLO 5.8Cost-volume analysisFocuses on the relationship between cost, revenue, and volume of outputFixed Costs (FC)tend to remain constant regardless of output volumeVariable Costs (VC)vary directly with volume of outputVC = Quantity(Q) x variable cost per unit (v)Total CostTC = FC + VCTotal Revenue (TR)TR = revenue per unit (R) x QCost-Volume AnalysisLO 5.8Cash flowThe difference between cash received from sales and other sources, and cash outflow for labor, material, overhead, and taxesPresent valueThe sum, in current value, of all future cash flow of an investment proposalFinancial AnalysisLO 5.8