Operations Management Capacity Design. Long Range Planning. Add Facilities. Intermediate Range Planning. Sub-Contract Add Equipment Add Shifts. Add Personnel Build or Use Inventory. Schedule Jobs Schedule Personnel Allocate Machinery. Short Range Planning.
Long Range Planning
Intermediate Range Planning
Build or Use Inventory
Short Range Planning
The maximum “throughput,” or number of units a facility can produce in a period of time.
Capacity a firm can expect to achieve given its product mix, methods of scheduling, maintenance, and standards of quality.
Actual output as a percent of design capacity.
Actual output as a percent of effective capacity.
Measure of planned or actual capacity usage of a facility, work center, or machine
Measure of how well a facility or machine is performing when used
Facility produces breakfast rolls
Same facility adding one more line due to increase in demand for deluxe rolls
Total revenue line
Total cost = Total revenue
Total cost line
Cost in Dollars
Process A: low volume, high variety
Process B: Repetitive
Process C: High volume, low variety
Total cost - Process A
Total cost - Process B
Total cost - Process C
Fixed cost - Process C
Fixed cost - Process B
Fixed cost - Process A
Lowest cost process
BEPrs.= FC (amount)
BEPrs.= FC (multi product)
P=Selling price, V=variable cost
3500*12 = 67200