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…
Scheduling and workplace planning is the final step in operation planning and design. Operation’s scheduling and workplace planning is implemented during transformation of input to output. Scheduling deals with production of required quantity of product within the required time frame. Workplace planning deals with allocation of resources with priority to work job with first delivery date.
Scheduling deals with both time allocations as well resource allocation for production of required quantity. Operations’ planning is done as part of short term planning.
High level objective of operation’s planning is to decide the best way of allocation of labor and equipment as to find balance between time and use of limited resources within the organization.
In modern age of competition and global market importance is given to Just In Time and the lean production concepts. This has led to importance of operation’s scheduling. There are three important task performed by operations scheduling:
Operations’ planning ensures that proper workflow is established by ensuring allocation of job on appropriate machines before the advent of production activities. Scheduling is production timetable highlighting sequence of job, timing and quantity for allocation of resources as to help an organization in cash flow planning. Therefore, there are three main objectives of production scheduling:
Operation scheduling is arrived at base on the following principles.
Scheduling is done with two approaches, and they are as follows:
Workplace planning ensures optimum productivity by ensuring proper utilization of limited resources and priorities’ job order at different work centers. Workforce control ensures that maximum output is achieved from machines, raw material and workforce. All production-related information is recorded as to establish input-output control as to achieve overall efficiency and optimum utilization of raw materials.
The main objectives of workforce planning and control are as follows:
Therefore operations scheduling and workplace planning play an pivotal role in success of an organization.
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