EC207 Study Guide - Midterm Guide: Histogram, Central Limit Theorem, Poisson Distribution
Document Summary
Is the upper limit on the workload that an operating unit can handle. An operating unit might be a plant, department, machine, store, or worker. Strategic capacity planning is the systematic determination of facility and major machine/equipment requirements to meet long term demand for goods and services. The maximum output rate that can be sustained given work breaks, scheduling dif culties and expected delays, machine/equipment maintenance, etc. The ratio of actual output rate to effective capacity. The ratio of uptime(actual operating time) to available time. The design of facilties, including oor space and layout, directly in uence effective capacity. Layout of the work area often determines how smoothly work can be performed. When items are similar, the ability of the system to produce those items is much greater than when successive items differ. There is less need for product change-over and machine/equipment setup.
