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…
Quality of product and services determines success or failure of the organization. Consumers expect the company to maintain high-level of quality and consider it an important aspect of satisfaction.
Quality management, therefore, becomes very important as far as any organization is concerned.
Quality management can be accomplished through various quality control techniques. Quality assurance and quality control are objective oriented and can be achieved through statistical quality control.
Statistical quality control requires usage of acceptance sampling and process control techniques. Statistical quality control extensively uses chart to measure the acceptance level of the product samples.
Objective is to ensure that products fall within pre-decided upper control and lower control limits. Any sample falling outside the limits is inspected further for corrective action.
The quality of product or service is ensuring if proper designing process is followed. This designing process needs to be backed by appropriate process design supported by a suitable technology which confirms to requirements of customers.
Quality control ensures that defects and errors are prevented and finally removed from the process or product. Therefore, quality control should include; planning, designing, implementation, gaps identification and improvisation.
If organization can implement a stringent quality control than following benefits are possible:
Above mentioned points are relevant not only for production stage but are equally important for input material, manufacturing process, delivery process, etc.
Quality control techniques require extensive usage of statistical methods. The advantages of the statistical analysis are as follows:
Statistical Quality tools can broadly be classified into following categories:
Acceptance sampling is done on sample’s post production to check for quality parameters as decided by the organization covering both attributes as well as variables.
If the sample does not meet the required parameters of quality than that given lot is rejected, and further analysis is done to identify the source and rectify the defects.
Acceptance sampling is done on the basis of inspection, which includes physical verification of color, size, shape, etc.
The major objectives of inspection are:
Scope of inspection covers input materials, finished material, plant, machinery etc.
To sustain quality of product and services it is important to have in place robust quality control techniques.
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