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…
Introduction Manufacturing has evolved considerably since the advent of industrial revolution. In current global and competitive age, it is very important for organization to have manufacturing practice which is lean, efficient, cost-effective and flexible. World class manufacturing is a collection of concepts, which set standard for production and manufacturing for another organization to follow. Japanese…
International production and operations management deals with production of goods and services in international locations and markets. It involves management process which has to take into consideration local production market (labor and capital) and international customer requirements.
The foundation for international production and operations is no different to domestic production and operations management. But there are certain aspects which make international exposure a challenge for an organization.
As IPOM is dynamic in nature, organization has to design it strategic objectives which cover following points:
Organization has to clearly identify challenges it is likely to face in an international environment. Those challenges can be categorized as follows:
Organization needs to consider the following point while developing IPOM strategies:
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