Page 68 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management Tanima Dutta, Lovely Professional University

Notes Unit 3: Capacity Planning

CONTENTS
Objectives

Introduction
3.1 Defining Capacity
3.2 Measuring Capacity
3.3 Determinants of Effective Capacity

3.4 Determining Capacity Requirements: Planning Capacity
3.5 Calculating Processing Requirements
3.6 Make or Buy Decisions
3.7 Developing Capacity Alternatives

3.8 Challenges of Planning Service Capacity
3.9 CVP Analysis
3.9.1 CVP Analysis in Units
3.9.2 CVP Analysis in Revenue

3.9.3 Break-even Point
3.10 Summary
3.11 Keywords
3.12 Self Assessment

3.13 Review Questions
3.14 Further Readings

Objectives

After studying this unit, you will be able to:

Explain measuring capacity
Understand determining capacity requirements
Discuss calculating processing requirements
Describe make or buy decisions
Explain developing capacity alternatives

State challenges of planning service capacity
Describe CVP analysis

62 LOVELY PROFESSIONAL UNIVERSITY