PREPARED BY:PANKAJ PREET SINGH HARKAMALDEEP SINGH HARJIT SINGH TALWINDER SINGH RAJ SINGH

Capacity is the upper limit or ceiling on the load that an operating unit can handle. In simple words Capacity is the capability of an object, whether that is a machine, work center or operator, to produce output for a specific time period which can be hour, a day, etc.

Capacity planning is the process used to determine how much

capacity is needed(and when) in order to manufacture grater

product or begin production of a new product. Capacity planning uses capacity utilization to ensure that the maximum amount of product is made and sold.

FACILITIES

PRODUCT AND SERVICE FACTORS

PROCESS FACTORS HUMAN FACTORS OPERATIONAL FACTORS SUPPLY CHAIN FACTORS EXTERNAL FACTORS

 IMPACTS ABILITY TO MEET FUTURE DEMANDS

AFFECTS OPERATING COSTS

ACTS AS A MAJOR DETERMINANT OF INITIAL COST INVOLVES LONG-TERM COMMITMENT AFFECTS COMPETITIVENESS AFFECTS EASE OF MANAGEMENT

ASSESS COMPANY SITUATION

DETERMINE EXISTING CAPACITY DETERMINE REQUIRED CAPACITY IDENTIFY ALTERNATIVES

SELECT THE BEST ALTERNATIVES