Capacity planning and its importance decisions

Capacity  is the upper limit or ceiling  on the load that an operating  unit can handle .



The basic question in capacity  handling are :
1.  What kind of capacity  is needed?

2. How much is needed?

3.When is it needed  ?


Importance  of Capacity  decisions : 

1.)  Impacts ability  to meet future  demand.


2).     Affects operating  cost. 

3).    Major  determinants  of initial  cost.

4.)   Involving long term commitment.

5.)   Affects  ease of management.

6).  Impacts  long  range  planning.



Efficiency = Actual output / Effective capacity


Utilisation = Actual output /Design  capacity


Effective  capacity  = Design capacity  minus allowance such as personal  time , maintenance  ,and scrap etc.


Steps for capacity  Planning 》


1.)   Estimate  future capacity  requirement.

2.)  Evaluate existing  capacity.


3.)  Identify  alternatives  .

4.) Conduct financial  analysis  .

5.)  Assess key qualitative  issues.


6.)  Select one alternative

7.)  Implement  alternative  chosen.

8.) Minority results

Scheduling System

What Is a Scheduling System?

by NADEEM AKHTAR                                                      abcdakhtar@gmail.com ;                                          Updated NOVEMBER 19, 2018

With all of the tasks managers are required to perform, any tools which expedite and ease those duties are welcome. Scheduling systems provide a diverse range of functions which attempt to do precisely that.

 IDENTIFICATION

A scheduling system is usually a form of software that allows managers to construct schedules for their employees. It will often be subdivided into different departments with lists of employees working in those departments. The software will also tend to calculate or tally individuals' total hours projected over a scheduling cycle.

 FUNCTION

Systems of this nature offer an important tool for managers in helping them to control labor costs. They can frequently see how much they are spending on a certain type of labor and whether the need for that labor matches what is being scheduled. These systems additionally offer an opportunity for employers to manage the payment of overtime by seeing how many hours people are scheduled to work in a given cycle.

Describe the type of captive power plants ?