Chapter 8Strategic Capacity Planning

Strategic Capacity Planning

Planning Time Frames

Best Operating Level

Capacity Utilization

Utilization--Example

Solution

Economies of Scale

The Experience Curve

Capacity Focus

Capacity Flexibility

Capacity Planning

Capacity Planning

Determining Capacity Requirements

Example--Capacity Requirements(Very similar to Example 8.1)

The Product from a Capacity Viewpoint

Equipment and Labor Requirements

PP Presentation

PP Presentation

Decision Trees

Payoff Table

We start with our decisions...

Then add our possible states of nature, probabilities, and payoffs

Determine the expected value of each decision

Solution

Planning Service Capacity

Capacity Utilization & Service Quality

Service Growth Matrix

Capacity Expansion Strategies:Entrepreneurial Stage

Capacity Expansion Strategies: Multisite Rationalization Stage

Capacity Expansion Strategies: Growth Stage

Capacity Expansion Strategies: Maturity Stage