Summary


  1. Capacity decisions deals with competitive environment, which has to consider priorities about: cost, quality, time, and flexibility.

  2. Trade-offs is needed to balance between priorities.

  3. So, operations management can translate competitive priorities into production requirements.

  4. However, achieving operational objectives must take in account the types of operations resources, whether it is intermittent or repetitive operations.

  5. Process planning determines how a product will be produced or service provided.

  6. It decides which components will be made in-house or will be purchased. It's a matter of outsourcing and process selection.

  7. Process analysis is the systematic examination of all aspects of a process to improve its operations through the best utilization of capacity available.


Summary


  1. So, we need process innovation and take technology decisions which involve large sums of money and have impact on the cost, speed, quality, and flexibility of operations.

  2. Capacity is most frequently viewed as the amount of output that a system is capable of achieving over a specific of time.

  3. We have to consider: Economies and diseconomies of scale, the experience curve analysis, capacity focus, and capacity flexibility concepts when planning for capacity decisions.

  4. As well as, using the suitable quantitative models for capacity planning.