My Blog List

Sunday, October 10, 2010

What Is Capacity Management

Hi All !!!!!!
After a long time I got  some spare time to work on my blogs................................

Today I going to explain some of the very useful topics used in hotel industries.
It is used basically by senior management to make decisions about overall business growth,investment etc.
This term is called "Capacity Management".

Capacity Management is divided into 3 parts :-

Potential Capacity :- It is the capacity that enable management to plan for long term investment that does not influence day to day production.

Immediate Capacity :- The amount of production capacity that can be made available in the short term.This is also called Maximum Potential Capacity.

Effective Capacity :- It helps to determine the actual achievable production an important concept in Capacity Management.

Measuring Capacity :- Its the ability to produce work in a given time,must be measured in the unit of work.Its Depends upon 3 facts----

> The amount of work involved in production.
> Any additional time required in production.
> The productivity or effectiveness of the factory.

Constraints on capacity :-In capacity management there are usually two potential constraints - TIME and CAPACITY.

TIME may be a constraints where a customer has a particular required delivery date.In this situation managers plan the final stage of the production tasks to the period where delivery is required.This process helps identify whether there is sufficient time to meet the production goal and demands or capacity needs to be increased.

Production Scheduling :- A schedule is a representation of the time necessary to carry out a particular task.
A JOB SCHEDULE shows the plan for the manufacture of a particular job.It is created through work or study reviews which determine the method and times required.Most businesses carry out several production tasks at one time, is called scheduling and the result known as Production Schedule.

A perfect schedule helps the company to enhance their capacity.