Brown Cute Simple Group Project Presentation.pdf

Lessons 4: Strategic Capacity, Planning for Products and Services  What is Capacity Planning? Capacity planning is a key strategic component in designing the system. The goal of strategic capacity planning is to achieve a match between the long- term supply capabilities of an org...

Lessons 4: Strategic Capacity, Planning for Products and Services  What is Capacity Planning? Capacity planning is a key strategic component in designing the system. The goal of strategic capacity planning is to achieve a match between the long- term supply capabilities of an organization and the predicted level of long-term demand. Over capacity causes operating costs that are too high, while under capacity causes strained resources and possible loss of customers. Capacity Decisions are Strategic for a Number of Reasons: Capacity decisions have a real impact on the ability of the organization to meet future demands for products and services. Capacity decisions affect operating costs. Capacity is usually a major determinant of initial cost. 2 Useful Definition Of Capacity DESIGN CAPACITY EFFECTIVE CAPACITY The maximum output Design capacity minus rate or service capacity allowances such as an operation, process, personal time, and or facility is designed maintenance. for. Determinants of Effective Capacity Facilities Introduction Operational Project Goal Member of Group Result & Finding Product and Factors Project Overview Project Gallery Service Factors Methodology Supply Chain Discussion Timeline Process Factors Conclusion Factors Human Factors External Factors  Strategy Formulation 3 Primary Strategies LEADING FOLLOWING TRACKING STRATEGY STRATEGY STRATEGY It builds capacity in It builds capacity It is similar to anticipation of when demand future demand a following exceeds current increases. capacity. strategy Steps in the Capacity Planning Process 1. Evaluate existing capacity and facilities and identify gaps 2. Estimate future capacity requirements 3. Identify alternatives for meeting requirements 4. Conduct financial analyses of each alternative 5. Assess key qualitative issues for each alternative 6. Select the alternative to pursue that will be best in the long term 7. Implement the selected alternative 8. Monitor results Forecasting Capacity Requirements Capacity planning decisions involve both long-term and short-term considerations. Developing Capacity Strategies 1. Design flexibility into systems 2. Take stage of life cycle into account Introduction Stage Growth Stage Mature Stage Decline Stage  Developing Capacity Strategies 3. Take a“big-picture” approach to capacity changes 4. Prepare to deal with capacity“chunks” 5. Attempt to smooth out capacity requirements 6. Identify the optimal operating level 7. Choose a strategy if expansion is involved  Constraint Management Constraint is something that limit the performance of a process or systems in achieving its goal. Seven Categories Of Constraints 1. Market 5. Supplier 2. Resource 6. Knowledge 3. Material or competency 4. Financial 7. Policy  Financial Analysis Operations personnel need to have the ability to do financial analysis.  2 Important Terms in Financial Analysis CASH FLOW PRESENT VALUE It refers to the Expresses in current difference between the value the sum of all cash received from sales future cash flows of and other sources and an investment the cash outflow. proposal. 3 Methods of Financial Analysis Introduction Project Goal INTERNAL Member of Group PRESENT Result & Finding RATE OF PAYBACK Project Overview VALUE Project Gallery Methodology Discussion RETURN Timeline (PV) Conclusion (IRR)  Decision Theory It is a helpful tool for financial comparison of alternatives under conditions of risk or uncertainty Waiting-line Analysis It is often useful for designing or modifying service systems.  Simulation Simulation can be a useful tool in evaluating what-if scenarios. Thank You!  Group 1 Antolin, Julie Ann Garcia, Gladys Capitulo, Jonathan Mendoza, Dennis Claus, Glenda Santos, Anica Dacanay, Daryl