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…
For an organization to be successful it is of paramount importance to exceed the customer expectations as to generate customer delight. One of the best ways of doing this is by providing quality products and services.
In technical language, quality means to a product adhering to the specifications. For customer probably meeting or exceeding the expectation could be quality.
Therefore, quality has different meaning to different people, for example, in automobile industry quality means cars with no defects and works smoothly.
Quality involves meeting and exceeding of customer expectations. So to summarize quality is:
According to industry and users quality has many definitions some of them are as follows:
Accordingly, Customers look at quality in different areas as follows:
The two main objectives of Total Quality Management are 100% customer satisfaction and zero defects. TQM is a process beyond quality of product or services; it deals with the business philosophy of the organization. TQM propagates the concept of doing right things right and at first time itself. In TQM:
The main focus of the total quality management is as follows:
Considering above focus points, scope of TQM can be defined as follows:
Total Quality Management gives a great importance to customers and suppliers. Here customers and supplier both can be internal as well external. The relationship of organization with customers as well supplier is critical in continuation of TQM. Therefore, it is important to understand customers and suppliers.
The main principles of Total Quality Management are as follows:
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