L6: Capacity Management

Initial Cases
1. The Penang Mutiara
2. Panettone : Seasonal Demand
Difing Capacity
Capacity Management Challenge
Korea's Unused Airports
Resource Yield
1. Capacity Leackage
2. Utilisation
3. Efficiency
4. Capacity Varies
  1. Product/service mix chnages
  2. Level of output (sustain)
  3. Specification of Output
5. OEE
  1. NB - Fig 8.3
  2. 3 sources of capcity loss
    1. Availability Losses
    2. Speed Losses
    3. Quality Losses
Long-term Capacity Management
1. Cap Lead & Lag
  1. Graphs
S. Cause Demand Fluct/s
1. 2 Cases
Capacity Adjustment
1. Matching demand & capacity
2. Fig 6.10
3. Demand
  1. Predictable (variation)
  2. Unpredictable (variation)
Snow (retailers)
Medium-term Planning
1. Level Capacity
2. Chase Capacity
3. Manage Demand
4. Mixed Planning
5. Fig 6.12.1
Techniques to Increase Short-run Capacity
1. Increase Resources
2. Improve Resource Utilisation
3. Modify Output
4. Do not meet Demand
5. Lovelock & Lovelock
  1. Managing Service Operations
Queue Management
1. Infinite queue
2. Impact of demand and cap variation
3. Impact of prioritisation
4. Spare Cap needed to prevent queues?
Lessons (5 key points)
Queue Designs
1. Multi- Q/ Multi-Server
2. Reneging & Baulking
3. Millar & Carter (Pager)
4. Singe Q /Multi-server
Base Capacity
1. Fig 8.6
2. Operastions PO
3. Perishability (outputs)
4. Degree of variability (demand/supply)
Understanding Demand Patterns
1. Demand Seasonality
2. Weather
3. Festive
4. Economic
5. Political
Capacity Constraints
1. Bottleneck
2. Process Bottlenecks (Fig 6.6.1)
Final Cases
1. Fleet Call Centre
2. Blackberry Hill Farm

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L6: Capacity Management

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