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7 Cards in this Set

  • Front
  • Back
what two major decisions is capacity based on or related to
1- volumes--> how much are u gonna make
2- delivery systems and process capabilities--> to ensure the technical specifications are met
utilization
measure of the actual amount of time that was worked
- 2 common denominators used in business to measure performance - what is the best used for operations?
1- time & money
2- time is the standard for operations
planned capacity
statement of the planned or number of hours to be made available in a given period
efficiency
the actual output compared to the planned output for that period
should the measurement of capacity be based on people or equipment?
most of the time it is based on the equipment, but it should reflect who is putting the most input into the delivery system
what two elements of work are calculated into the definition of "hours worked"
1- machine set up time--> non-saleable productive time
2- time when the machine was producing--> saleable productive time