Question

CAPACITY PLANNING
In what case should capacity plan be revised?

SUPPLIER MANAGEMENT
How can suppliers (who wants highest price) and buyer firm (who wants lowest cost) be partners?

LEARNING CURVE
There are 2 firms: Company A and Company B.
Company A took 150 hours to produce its first unit.
This month it wants to product 500 units.
Using 80% learning curve, how many hours will it
take to produce those 500 units?

Comany B also produced 500 units.
However, it took B only 50 hours to produce its first unit.
What was was B's learning curve?

Answer 1

ans 1=CAPACITY PLANNING

Effectually planning the manufacturing so as to ensure that the capacity & the demand for the product match impacts a firm's profit levels. When you anticipate how many articles you will be able to sell, plan for sufficient capacity & create production schedules which operate without any time lags, you eradicate unwanted expenses. The key is to find data sources giving dependable info which enables you to anticipate precisely the production levels & scheduling you will require.

If there haven’t been any major alterations in your firm's circumstances, then the most dependable way for production scheduling & capacity planning is to utilize info from the past planning cycle.

Your plans are usually based on altered presumptions stemming from your marketing strategy. For instance, suppose your strategic plan is to augment market share via raising volume of production , lessening expenses & competing on pricing, your marketing strategy anticipates your augmented sales volume & reduced expenses . In order to satisfy this augmented volume & obtain the expense savings, you have to ensure that you have the needed capacity & can schedule operations without giving rise to overtime / waiting-time expenses.

If marketing projections aren’t certain / the expenses for capacity addition are quite high, it is sensible to have some flexibility in the planning. Prior to committing to any capacity augmentation via recruiting additional employees / adding equipment, hold on till the firm obtains orders for the merchandise, enabling you to anticipate more precisely what levels of capacity you will need & enabling you to plan production with augmented sureness.

In few situations , capacity addition to a production line & altering the scheduled production runs is more time-consuming than the delivery time of the merchandise. Advance sales info allows you to plan your manufacturing & adjust your capacity to forecasted sales levels which advance sales figures have validated / modified.