Final Cap planning - for Manufacturing Industry

Capacity Planning for a manufacturing Industry and Methodology

1. St r a t e g i e s o f c a pac i ty p l an n i n g 1 . ) S h o rt t e rm c a pac i ty s t r a t e g i e s 2 . ) L o ng t e rm c a p a c i ty s t r a t e g i es

2. 1 . ) S h o rt t e rm c a p a c i ty s t r a t e g i e s Short-term capac i ty covers a shorter t i me spa n , normally up to one yea r . The u l timate a i m of the short - t erm strate g y i s to me e t the sudd e n changes i n demand due to dynam i c economic changes. I t invo l ves day- to-day planning also to choose the be s t way of increas i ng the capaci t y . St r a t e g i e s o f c a pac i ty p l an n i n g

3. Short - range capac i ty planning can inc l ude : 1 . ) Working overtime to me e t the deman d . 2 . ) Transfer of workforce 3 . ) Change the sequence of product i on 4 . ) Change in inve n tory 5 . ) H ire more workforce for a short e r t i m e . 6 . ) Upgr a de the current machine St r a t e g i e s o f c a pac i ty p l an n i n g

4. 2 . ) L o n g t e rm c a p a c i ty s t r a t e g i e s Th i s strategy includes a time frame of more than one yea r . This requ i res the suggestion and appr o v a l of the to p - level manag e ment. Ext e rnal env i ronment cond i ti ons such as econom i c , political, technological , soc i al cond i t i o n , etc affect the decis i on regard i ng lon g - term capaci ty plann i n g . St r a t e g i e s o f c a pac i ty p l an n i n g

5. The manager should evaluate the n u mber of factors wh i le mak i ng long-term capac i ty planning. Some of the f actors are : 1 . ) Availabil i ty of the funds for fu ture growt h . 2 . ) Act i on taken by t h e compet i ng f irms. 3 . ) Requ i reme n ts of i nnovation in the tec h nology or proces s . 4 . ) Est i mat i ng the demand that can i ncrease i n the fut ure St r a t e g i e s o f c a pac i ty p l an n i n g