Dba 8475, Unit Ii Assessment

1. Explain why the need to focus capacity on a fairly limited set of production objectives is the key to successful production. 75

Capacity is “the amount of output that a system is capable of achieving over a specific period of time” (Jacobs & Chase, 2010, p. 84). A focused factory has a limited set of production objectives so it behooves this type of operation to target specific tasks which provide the greatest contributions to its corporate objectives. Since the production facility cannot excel in all of the areas in the manufacturing process, its focus on the correct objections can product the capacity which maintains its flexibility, while remaining competitive and profitable (Jacobs & Chase, 2010).

Reference

Jacobs, F. R., & Chase, R. B. (2010). Operations and supply chain management (13th ed.). New

York, NY: McGraw-Hill.

2. What considerations must be made when a firm wants to add capacity?75

Jacobs and Chase (2010) describe how organizations must keep the most important considerations at the forefront, whether increasing or decreasing capacity. The organization must control system balance, the frequency of capacity enhancements or contractions, and external capacity usage when making considerations for adding capacity. Imbalances in the system can be generated by different operating levels, product demand variability, and processes. Cost considerations relative to both frequent and infrequent upgrades must be made. Awareness of whether outsourcing or sharing capacity are viable solutions to increasing capacity is an important part of any capacity increase decisions as well.

Reference

Jacobs, F. R., & Chase, R. B. (2010). Operations and supply chain management (13th ed.). New

York, NY: McGraw-Hill.

3. Work standards are the foundation of capacity and production planning. Do you agree or disagree with this statement? Defend your response.75

While work standards are an important...