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33 Cards in this Set
- Front
- Back
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strategic |
Relates to the identification of long-term or overall aims and interests of achieving them |
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Capacity |
Upper limit or ceiling on the load |
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Capacity |
includes: equipment, space, employee skills |
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Capacity planning |
Determines the capacity desired by an entity with a given forecast of demand |
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Capacity planning |
1st step when a firm decides to produce new or more product |
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Demand forecast |
Determination of future demands |
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Demand forecast |
takes note of degree of uncertainty and accuracy |
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Strategic planning capacity |
To achieve a match between long-term supply capabilities of an organization and the predicted level of long term demand |
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Overcapacity |
Too high operating cost |
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Inadequate capacity |
Strained resources |
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Inadequate capacity |
Possible loss of customers |
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Capacity investment |
Needs a planning backed with a formulated strategy and wise capacity decisions |
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Measuring capacity |
Measures efficiency and utilization of operations |
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Efficiency |
Signifies a level of performance that describes using the least amount of input to achieve the highest amount of output |
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Utilization |
How well a resource is being used |
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Design capacity |
Maximum output rate |
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Effective capacity |
Design capacity minus allowances |
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Actual output |
Rate of output actually achieved |
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Long-term capacity |
Forecasting demand over a time horizon |
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Short term capacity |
Less concerned with cycles or trends than with seasonal variations |
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Demand management strategies |
can be used to offset capacity limitations |
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Economies of scale |
Output rate is less than the optional level |
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Diseconomies of scale |
Output rate is more than the optimal level |
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Bottleneck operations |
An operation in a sequence of operations whose capacity is lower than that of the other operations |
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Constraints |
Something that limits the performance of a process or system in achieving its goals |
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Cost-volume analysis |
Focuses on relationship between cost, revenue, and volume of output |
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Cost-volume analysis |
Estimate the income of an organization |
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Financial analysis |
Rank the investment proposals |
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Cash flow |
Refers to the cash received and cash outflow |
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Present value |
Expresses in current value the sum of all future cash flows |
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Decision theory |
Involves identifying a set of possible future conditions |
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Waiting line analysis |
Helps managers choose capacity levels |
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Simulation |
Useful tool in evaluating what if scenarios |
