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6 Cards in this Set
- Front
- Back
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What is design capacity?
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The capacity when everything runs smoothly.
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What is effective capacity?
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Realistic capacity which includes downtime, maintenance, and scrap.
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What can actual capacity not exceed?
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Effective capacity; usually its even lower than effective capacity.
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What is the key to improving capacity utilization?
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Increasing effective capacity by finding out what is holding it back.
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What are the 2 steps to Long-Term Capacity Planning?
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1.) Forecasting future demand
2.) Determining capacity requirements to meet those demands |
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What are 2 things that Short-Term Capacity Planning are concerned about?
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1.) Seasonal variations
2.) Variations from the average |
