Operational Management

Operations
Management
Capacity Planning

PowerPoint presentation to accompany Heizer/Render -
Principles of Operations Management, 5e, and Operations
Management, 7e

, Outline
 CAPACITY
 Defining Capacity
 Design and effective capacity
 Capacity Considerations
 Managing Demand
 CAPACITY PLANNING




PowerPoint presentation to accompany Heizer/Render -
Principles of Operations Management, 5e, and Operations
Management, 7e

, Definition and Measures of Capacity
Capacity: The “throughput,” or number of units a facility
can hold, receive, store, or produce in a period
of time.

Design capacity is the maximum theoretical
Design output of a system in a given period under
capacity:
ideal condition.
Capacity a firm can expect to receive given its
Effective
capacity : product mix, methods of scheduling,
maintenance, and standards of quality.

PowerPoint presentation to accompany Heizer/Render -
Principles of Operations Management, 5e, and Operations
Management, 7e