2.4.6. Determinants of capacity
Critical elements of most capacity plans include:
- Set time and resource allocation to meet demand;
- Set strategies for meeting new requirements (new demand, competition, time changes for projects, etc.); and
- Determine the cost of non-conformance to the plan (waste, time slippage, costs, variance in quality, etc.).
Table 4 Determinants of Effective Capacity
Factors |
|
Issues |
Facilities |
Design Location
|
Layout |
Product/Service |
Design
|
Product or service mix |
Process |
Quantity capabilities
|
Quality capabilities |
Human Factors |
Job content Job design Training and experience Motivation
|
Compensation Learning rates Absenteeism and labour turnover Knowledge |
Operational |
Scheduling Materials Management
|
Quality Assurance Equipment breakdowns |
External Factors |
Product standards Safety regulations Unions
|
Pollution and environmental standards Stability of society/ government |
(Stevenson 1993:245 - Table 6-4)