Capacity planning and control

 

• or even bringing in contract labor.

 

The operations managers will then have  the difficult task of ensuring that quality  standards and safety procedures are still  adhered to and that customer service levels  are maintained.

 

METHODS OF ADJUSTING CAPACITY 

 

The chase demand approach requires that capacity is adjusted by some means.

 

There are a number of different methods for achieving this, although they may not all be feasible for all types of operation.

 

Overtime and idle time

 

Often the quickest and most convenient  method of adjusting capacity is by varying  the number of productive hours worked by the staff in the operation.

 

When demand is higher than nominal capacity, overtime is worked, and when demand is lower than nominal capacity, the amount of time spent by staff on productive work can be reduced.

 

In the latter case, it may be possible for staff to engage in some other activity such as cleaning or maintenance.

 

ASSIGNMENT #1 (DO IN TEAMS  OF 3)

 

# 2, 3 (page 32)                                     Deadline is in 1 week

 

# 2 (page 59)

 

Case study (p.56)

 

# 4,5,6 (page 82)

 

# 4,5 (page 116)

 

# 3,4 (page 145)

 

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