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creating additional shifts and hiring more employees, or outsourcing to contractors.
Why is the location so important?
Capacity planning = level of human and other resources that will be necessary to meet the production targets - maximum output capability.
organizations should always use these strategies of capacity, facilities location and process planning in order to meet their objectives.
operations management strategies. 1. Capacity planning. ~determining the level of resources neccessary to meet organisational targets. ~the maximum output capability of an organisation in a given time. 2. Facilities Location Planning. these include, land, buildings, plant and equipment and other major physical inputs that determine . ~productive capacity ~capital investment. 3. Process Planning.the actual production assessing the production methods currently available and determining which of these is relevant for the organisation.
Increasing capacity can include hiring, overtime, outsourcing, adding plant and machinery, increasing inventory and taking back orders from customers. facilities location planning includes availability of employees and their skills, gvt zoning regulations, employee costs, environmental regulations, utility costs, and proximity to suppliers and customers. process planning involves assessing and determining the transformation of inputs to outputs. This depends on the number of goods or services to be delivered, activities, and layout of the work station.
Capacity planning, Facility Location Planning and Process Planning and what else
operation management facility layout :the strategies outline in this tension in other to specifies the organisation use real this subject objectives,their is three model capacity,facility and process
Operational strategies can be broken down into facility location planning, capacity planning and process planning.
The operations management strategies outlined in this section outline specific tools organisations use to reach their set objectives. This section will review:
facilities location planning, and
Capacity planning is concerned with determining the level of human and other resources that will be necessary to meet the production targets of the organisation. It is concerned with establishing the maximum output capability of an organisation in a given time period.
There are several ways that organisations can increase capacity. These include:
creating additional shifts and hiring more employees, or outsourcing to contractors
getting current staff to work overtime
outsourcing to other organisations
increasing plant and machinery
building up inventory and taking back orders from customers
Facilities encompass the land, buildings, plant and equipment, and other major physical inputs that substantially determine productive capacity and involve significant capital investment. Facilities issues confronting managers focus mainly on expansion and contraction decisions, facilities location and facilities layout.
The preferred location of the facility will be determined by the availability of employees with specific skills, government zoning regulations, employee costs, environmental regulations, utility costs and proximity to suppliers and markets.
Once a product or service has been designed, the organisation must plan for its actual production. This involves assessing the production methods currently available (e.g. project, batch or continuous) and determining which of these is appropriate for the organisation.
This decision will be based on the nature and number of goods or services to be produced, the space available and the activities that need to be carried out by employees in the actual production process. This will also involve determining the layout of the organisation's facilities and how they will be used in the production process.
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