quiz today

• Capacity planning


  A strategic process used by organizations to ensure they have the necessary resources and infrastructure to meet both current and future demand for their products or services
• Capacity


  The maximum output rate that can be achieved by a facility
• Capacity can be defined as the maximum output rate that can be achieved by a facility. The facility may be an entire organization, a division, or only one machine.
• Why is capacity planning important?

  • If a company does not plan its capacity correctly, it may find that it either does not have enough output capability to meet customer demands or has too much capacity sitting idle
• There is no one way to measure capacity. Different people have different interpretations of what capacity means, and the units of measurement are often very different.
• Examples of how capacity might be measured by different organizations


  • Table 9-1
• Available capacity


  The amount of capacity a facility has
• Effectiveness of capacity use

  How effectively a facility is using its available capacity
• Design capacity


  The maximum output rate that can be achieved by a facility under ideal conditions
• Effective capacity


  The maximum output rate that can be sustained under normal conditions
• Capacity utilization


  How much of a facility's capacity is actually being used
• Effective capacity is usually lower than design capacity
• Identify capacity requirements


  • One of the key steps in capacity planning
• Location analysis


  • One of the key steps in capacity planning
• The three most important factors in real estate are location, location, location.
• Globalization is a key factor in location decisions.
• Steps in making location decisions

  1. Step 1

  2. Step 2

  3. Step 3

  4. Step 4

  5. Step 5
• Challenges of capacity planning in a hospital setting
• Highlights of the chapter