Summary Production management

Chapter 7

Capacity and Facilities




1

, Lecture Outline
• Capacity Planning
• Basic Layouts
• Designing Process Layouts
• Designing Service Layouts
• Designing Product Layouts
• Hybrid Layouts




Copyright 2011 John Wiley & Sons, Inc. 7-2

, Capacity
• Maximum capability to produce
• Capacity planning
• establishes overall level of productive
resources for a firm
• 3 basic strategies for timing of capacity
expansion in relation to steady growth in
demand (lead, lag, and average)




Copyright 2011 John Wiley & Sons, Inc. 7-3

, Capacity Expansion Strategies




Copyright 2011 John Wiley & Sons, Inc. 7-4