Capacity & Forecasting

Module 3

Case Analysis: EMC-Capacity & Forecasting

Case Analysis: Capacity & Forecasting

This assignment deals with the Capacity and Forecasting within the Excellent Manufacturing Company (EMC). The definition “of capacity states, that it is the maximum rate of output of a process or system”. There are several ways we can discuss Capacity and Forecasting as we investigate EMC. For Instance, when we look at Capacity from a flow perspective, we find the following: Capacity is usually determined on a process-by-process basis. It is calculated as the number of parts that can be produced in a given period.

Additionally, when observing capacity from a level (container) perspective, we understand that Capacity is also analyzed from a physical space view. The amount of inventory that can be held often depends on the size of storage facility that holds it. This creates inventory costs, the holding cost, based on owning and maintaining physical facilities. There are two levels of Capacity, maximum and normal. Maximum evaluates how much can be produced when the process is running at peak levels of production. Most company like to set normal level of capacity of 80-85% of maximum to avoid problems.

Furthermore, our report of capacity and forecasting will analyze capacity of production line/bottlenecks, along with how to increase Capacity, determine the long-term demand and do it require more capacity, and how forecasting is important to capacity planning. Let begin!

TO: George Washburn

FROM: XXX

SUBJECT: Capacity & Forecasting

REVIEW OF THE CURRENT SITUATION

Mr. Washburn, in my report you will find highlights about the Excellent Manufacturing Company (EMC) Capacity and Forecasting procedures. The information provided from my perspective, pertaining to EMC in regards to Capacity and Forecasting is detrimental for the company future success. I am XXX the product Manager (PM) assigned to the Plastic-Brack product line.

Currently, the...