BU385 Lecture Notes - Lecture 10: Absenteeism, Spin Master, Nylon
Document Summary
Capacity is the upper limit on the workload that an operating unit can handle, which is the maximum of something. Strategic capacity planning is the systematic determination of facility and major machine/equipment requirements to meet long term demand for goods and services. Two measures of operating unit performance: efficiency = actual output rate/effective capacity, utilization = actual output rate/design capacity. Examples: t he firs t product created by toy company s pin mas ter, now the third larges t toy manufacturer in north america, was e arth b uddy, a gras s head. 1 s pin mas ter was hoping to produce and s ell 8,000 e arth b uddies for mother"s d a y and had one week to produce them. F inally, e arth b uddies are left to dry overnight and then packed. T here are 6 workers doing a, 3 doing b , 2 doing c , and 1 doing.
