CAPACITY MANAGEMENT

CAPACITY : based on the APICS dictionary, capacity is defined as "the capability of a worker, machine, work center, plant, or organization to produce output per time period" CAPACITY is a rate of doing work , not the quantity of work done.

CAPACITY MANAGEMENT : is responsible for determining the capacity needed to achieve the priority plans as well as providing, monitoring, and controlling that capacity so the priority plan can be met.

CAPACITY PLANNING : Is the process of determining the resources required to meet the priority plan and the methods needed to make that capacity available. Thus capacity planning link to various production priority schedules to manufacturing resources.

CAPACITY CONTROL : is the process of monitoring production in output, comparing it with capacity plans, taking corrective action when needed .

MEASURING CAPACITY:

1)UNITS OF OUTPUT 
If variety of product produced at the work center or in a plant is not large it is often to use a unit common to all products.However,if variety of products is made a good common unit may not exist.In this case,the unit common to all products is time .

2)STANDARD TIME 
The work content of a product is expressed as the time required making the product using a given method of manufacture.It provide a yardstick for measuring work content and unit for stating capacity.

3)LEVEL OF CAPACITY 

• Machine or individual worker 
• Work center 
• Plant,which can be considered as a group of different work centers 

4)DETERMINING CAPACITY AVAILABLE 
There are two ways of determining the capacity available :measurement and calculation.Demonstrated (measured) capacity is figured from historical data.calculated or rated is based on available time ,utilization and efficiency

5)RATED CAPACITY 
rated capacity is the product of available time ,utilization and efficiency


6)AVAILABLE TIME 

the available time depends on the number of machines,the number of workers and the hours of operation.
(refers to example problems 1.1)
7) UTILIZATION 
The availabe time is the maximum hours we can expect from the work center.However ,sometime machine and all all mechanical breakdown that is called downtime and it cause unavoidable delays.
( refers to formula 1.1 and example problems 1.2)


8)EFFICIENCY 
Work center can utilize 100 hours a weeek but not produce 100 standard hours of work because using the workers ,it is because workers might be faster ,might slower than the standard working pace .ausing the efficiency to be more or less
(refers to example problems 1.3 and formula 1.2)

9)RATED CAPACITY 
Rated capacity is calculate by taking into account the work center utilization and efficiency
(refers to formula 1.3 and example problems 1.4)

10)DEMONSTRATED CAPACITY 
to find out the capacity of a work center is to examine the previous production records and to use that information as the available capacity at the work center .
(refers example problems 1.5 and 1.6)

11)CAPACITY REQUIRED (LOAD)
Capacity requirements are generated by the priority planning system and involved translating priorities,given in unit of product or common unit,in two hours of work required at each work center in each time period.The time needed in each order is the sum of the setup time and the run time.
(refers for example problems 1.7 and 1.8)







Example problems

                                                                         (1.1)

Formula