2019-02-02T13:01:35+00:00 projects

Question: As we increase productivity we still need to consider how to deal with capacity as our demand increases. I am asking all Product Managers to do a capacity analysis in their areas of responsibility and develop both a short-term and long-term plan

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Operations Management- Capacity & Forecasting

Question:
As we increase productivity we still need to consider how to deal with capacity as our demand increases. I am asking all Product Managers to do a capacity analysis in their areas of responsibility and develop both a short-term and long-term plan. As we begin to feel the crunch in the short-term, we can implement some of the ideas you propose in the short term plan, while at the same time, I will begin to have the Executive team consider the options for long-term investment and capacity expansion. Your input on this matter is extremely important. I am looking for a thorough review and a plan with your recommendations and justification.

Specifics:

Analyze the capacities including the rates of production, the amount of physical space and needs for equipment and people. At what level of capacity are these processes operating? What are some of the possible bottlenecks?
What impact does the forecast have on future capacity needs? What are the implications if the forecast is inaccurate (too high or too low?)
What are some possible ways of increasing capacity and what are the implications for the short term and long term such as costs and investment in the capital?
Determine a plan for the capacity situation in the Plastic-brack product line.
Justify your plan based on the concepts of capacity management.


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