Term
| Strategic Capacity Planning |
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Definition
| Determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy |
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Term
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Definition
| The amount of output that a system is capable of achieving over a specific period of time |
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Definition
| The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized |
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Term
| Capacity utilization rate |
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Definition
| measures how close a firm is to its best operation level. =capacity used/best operation level |
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Term
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Definition
| the notion that as a plant gets larger and volume increases, the average cost per unit drops |
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Term
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Definition
| a facility with a fairly limited set of production objectives. typically the focus would relate to a specific product or product group |
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Term
| Plant within a Plant (PWP) |
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Definition
| A concept that can be used to operationalize a focused factory by designating a specific area in a larger plant |
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Term
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Definition
| Exist when multiple products can be produced at a lower cost in combination than they can separately |
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Term
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Definition
| Capacity in excess of expected demand |
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Term
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Definition
| having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another |
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Term
| Zero-changeover-time plant |
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Definition
| The ultimate in plant flexibility. Using movable equipment, knockdown walls, and easily accessible and reroutable utilities, such a plant can quickly adapt to change |
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Term
| Considerations in Changing Capacity |
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Definition
| Maintaining system balance, frequency of capacity additions or reductions, and the use of external capacity |
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Term
| Determining capacity requirements |
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Definition
| 1. Use forecasting techniques to predict sales for individual products within each product line. 2. Calculate equipment and labor requirements to meet product line forecasts. 3. Project labor and equipment availabilities over the planning horizon |
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Term
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Definition
| a schematic model of the sequence of steps in a problem and the conditions and consequences of each step |
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Term
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Definition
| more time- and location-dependent, it is subject to more volatile demand fluctuations, and utilization directly impacts service quality |
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