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19 Cards in this Set
- Front
- Back
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Can't satisfy demand without
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Capacity
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Capacity
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Throughput or number of units if so we can hold, receive, store, or produce in a time period
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Design capacity
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maximum theoretical output of the system a.k.a. rate
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Effective capacity
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what a firm expects to achieve given current operating constraints
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Utilization
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Percent of design capacity actually achieve
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utilization=
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actual output/ design capacity
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Efficiency
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Percent of effective capacity actually achieve
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efficiency=
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actual output/effective capacity
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Capacity considerations
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Forecast demand accurately, next technology increments and sales volume, find the optimum operating size, build for change
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What you do when demand exceeds capacity
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Raising prices, scheduling longer lead time or increase capacity
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Capacity exceeds demand what do you do
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Stimulate market, product changes
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How do you adjust to seasonal demands
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Responsive complementary demand patterns
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Capacity analysis
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Determines the throughput capacity of workstations in the system
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Bottleneck
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Limiting factor or constraint. lowest effective capacity system
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Bottleneck time
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The time of the slowest workstation in the production system
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Throughput time
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Time it takes a unit to go through production start to finish
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Five-step process for recognizing in managing limitation
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Identify constraint, develop plan to overcome, focus resources on previous step, reduce effects by offloading work or expanding capability, Once overcome go back to step on and find new constraint
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Breakeven analysis
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Objective is to find a point in dollars and units that which cost equals revenue
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BEP=
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F/P-V
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