BUAD306 Study Guide - Midterm Guide: 3D Printing, Capacity Planning, Requirement

• School: University of Delaware
• Department: Business Administration
• Course: BUAD306
• Professor: Susan Murphy

Document Summary

Daily capacity: how much can you take in a day (ie when do you hit the wall) Upper limit or ceiling on the load that operating unit can handle. Establishes the level of productive resources for the firm. Enables managers to quantify production capabilities for a firm and make plans accordingly. Ie- having 5 machines and 7 seamstresses is not efficient because wasting resources. Who, what, where, when, why, how (much) Involves long term commitment (lots of 10876) Big picture approach (what are the long term plans and things around it) Identify the optimal operating level (example with ordering another 3d printer) Need to be near customer ie at barber. Design capacity (planned): maximum obtainable output- perfect world scenario. Effective capacity (reality): max capacity given product mix, scheduling difficulties, and other doses of reality(realistically what is the capacity)(ignore textbook math) Actual output (realized): rate of output actually achieved- cannot exceed effective capacity. Efficiency = (actual output/ effective capacity )(100%)