Capacity Planning – Meaning, Classification and its Goals
April 3, 2025
The production system design planning considers input requirements, conversion process and output. After considering the forecast and long-term planning organization should undertake capacity planning. Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period.…
Introduction An organization can finalize its business plans on the recommendation of demand forecast. Once business plans are ready, an organization can do backward working from the final sales unit to raw materials required. Thus annual and quarterly plans are broken down into labor, raw material, working capital, etc. requirements over a medium-range period (6…
As children, we have always had to prove to our teachers or our parents that we have been working. The homework book was proof that we have spent our time productively and would often calm down angry parents and teachers. It seems like the same principles also apply in corporate life! Harvard Business Review has…
Objective of any organization is to provide customer satisfaction by building product and services, which not only satisfy needs and want but also create value for them.
This requires product design based on the customer feedback and production process which not only minimizes cost but also provides a competitive advantage. However, most organizations tend to follow conventional production method and process.
However, in the global age of new technology and competition organization have to re-invent the way they cater to needs of customer, focus on specialization and customization is ever increasing. Given this scenario it is imperative for the organization to integrate technology and innovation within the framework of integrated product and process development.
Integrated product and process development combines the product design processes along with the process design process to create a new standard for producing competitive and high-quality products.
Integration of new technologies and methods provide a complete new dimension to product design process. This process starts with defining of the requirements of products based on the customer feedback while considering the design layout and other constraints. Once the finer details are finalized, they are fed into CAD models where extensive testing and modeling are done to get the best product.
With integration of production method and technology with product design, it is natural for integration of product design and process design. Therefore, integrated product and process development can be defined as a process starting from product idea to development of final product through modern technology and process management practices while minimizing cost and maximizing efficiency.
Organization stands to benefit greatly from the implementation of IPPD. Some of the advantages are as follows:
There are certain factors, which can vastly improve IPPD. These factors are as follows:
Customer is the focal point of IPPD. Therefore, constant feedback from them is essential for IPPD to be a success.
Therefore, IPPD is approach design to address all the concern of modern organization in the globalized world.
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