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…
To survive in the current competitive and global environment, it is important for the organization to continuously look at ways to improve efficiency and productivity. It needs to discover a new, easy and cost-effective way of manufacturing or providing services.
Work study and industrial engineering play important role in job simplification, job design, job enrichment, value analysis/engineering, method analysis, operational analysis, etc. Work study has been utilized by companies to job productivity. Industrial engineering is the latest method employed to improve productivity. It deals with design, enhancement and setting up of engineering systems encompassing plants, machinery, workers, etc.
Work study uses techniques like method study and work measurement to understand human work potential in terms of time spend on completing a task, looking at ways to make the task simpler and easy, as to increase productivity and efficiency. Work study is field used to finding ways of increasing on job performance, optimum usage of plant and machinery, standardization of work methods, etc. Therefore, objectives of work study are as follows:
For an organization, productivity can be increased over a period of time, if workers are efficient and are focused. Therefore, advantages of work study are as follows:
It is a scientific process to better job design. It studies the existing job process and proposed job process as to identify the appropriate job process which results in efficient and cost effective operations. Therefore, objectives of method study are as follows:
Method study ensures that there is an increase in overall productivity and profitability of organization. Method study involves following procedures:
Industrial engineering is concerned with developing the most effective and efficient way to use plant, machinery, materials, etc. The main objectives of industrial engineering are as follows:
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