BU385 Chapter 5: Operations - Chapter 5
Document Summary
Capacity the upper limit on the workload that an operaing unit can handle. Capacity is also measured as maximum producion rate. Strategic capacity planning systemaic determinaion of facility and major equipment requirements to meet long-term demand for goods and services. Design capacity the maximum output that can possibly be atained under ideal soluions. Efecive capacity the maximum possible output that can be sustained given operaing hours, product mix, scheduling diiculies and expected delays, and machine maintenance. Uilizaion = actual output _ or = used time _ Design capacity = 5 trucks per day (designed for 8 hours a day with 2 mechanics) Efecive capacity = 4 trucks per day (1-hour lunch break and 1 hour expected delay) Actual output = 3 trucks per day (1. 5 hours of addiional unexpected delays and break downs per day) Eiciency = 3 trucks per day = 75% Uilizaion = 3 trucks per day = 60%
