1. TOPIC :CAPACITY AND FACILITIES
SUBJECT:
OPERATION MANAGEMENT
GUIDED BY: SIR SIRAAJ KANDHRO

2. TEHNIAT FATIMA SHAH: R/N 74
PRESENTED BY:
TEHNIAT FATIMA SHAH: R/N 74
UROOSA FAROOQUI: R/N 79
AZRA PARVEEN: R/N 20
FARIYAL SABIR : R/N54

3. CONTENTS Efficiency and Utilization Importance of Capacity Decisions
Theme
Facility Planning
Capacity Planning
Efficiency and Utilization
Importance of Capacity Decisions
Facility Layout
Factors affecting layout
Types of layouts
Service Location Strategies

4. THEME Forecast demand Aggregated output Estimate of current capacity
Measure aggregate capacity and demand
Identify the alternative capacity plans
Time
Aggregated output
Choose the most appropriate capacity plan
Forecast demand
Estimate of current capacity

5. CAPACITY AND FACILITY
CAPACITY: the capacity of an operation is the maximum level of value-added activity over a period of time that the process can achieve under normal operating conditions.
FACILITY: Facilities management involves the management and development of the workplace to integrate people and their work in the operation to achieve the objectives of the organization.

6. FACILITY PLANING HOW MUCH LONG RANGE CAPACITY NEEDED
WHEN MORE CAPACITY IS NEEDED
WHERE FACILITY SHOULD BE LOCATED
HOW FACILITY SHOULD BE ARRANGED

7. Capacity planning
approach for determining the overall capacity level of capital intensive resources, including facilities, equipment, and overall labor force size.

9. Various Capacities Design capacity
Maximum obtainable output
Effective capacity, expected variations
Maximum capacity subject to planned and expected variations such as maintenance, coffee breaks, scheduling conflicts.
Actual output, unexpected variations and demand
Rate of output actually achieved--cannot exceed effective capacity. It is subject to random disruptions: machine break down, absenteeism, material shortages and most importantly the demand.

10. Efficiency and Utilization
Actual output
Efficiency =
Effective capacity
Utilization =
Design capacity

11. Best Operating Level and Size
Alternative 1: Purchase one large facility, requiring one large
initial investment
Alternative 2: Add capacity incrementally in smaller chunks as
needed

12. DETERMINANTS OF EFFECTIVE CAPACITY
facilities
Product or services
operations
External forces
process

13. Importance of Capacity Decisions
Impacts ability to meet future demands
Affects operating costs
Major determinant of initial costs
Involves long-term commitment
Affects competitiveness
Affects ease of management

14. Facility Layout Definition
A facility layout is an arrangement of everything needed for production of goods or delivery of services. A facility is an entity that facilitates the performance of any job. It may be a machine tool, a work centre, a manufacturing cell, a machine shop, a department, a warehouse, etc

15. Factors affecting layout
material
product
machinery
labor
location

16. Scope of facility layout
Related to material
Related to work place
Less material handling and minimum transportation cost
Less waiting time for in process-inventory
Safe working condition form the point of ventilation ,lighting etc.
Minimum movement of workers
Least chances of accidents.
Proper space for machinery,workers,tools.

17. Fixed-position layout
Types of layouts
Process layout
Product layout
Fixed-position layout

18. Car 1
Car 2
Car 3
Process layout:
Process layouts, also known as functional layouts, group similar activities together in departments or work centers according to the process or function they perform The specialized machines and equipments are grouped together one after then other in order of sequence required in production process
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19. Product layout
Product layouts, better known as assembly lines, arrange activities in a line according to the sequence of operations that need to be performed to assemble a particular product. Each product or has its own "line" specifically designed to meet its requirements. The flow of work is orderly and efficient, moving from one workstation to another down the assembly line until a finished product comes off the end of the line.

20. Fixed-position layout
Fixed-position layouts are typical of projects in which the product produced is too fragile, bulky, or heavy to move. Ships, houses, and aircraft are examples. In this layout, the product remains stationary for the entire manufacturing cycle.

21. Service Location Strategies
Maximize the volume of business and revenue:
Purchasing power of the customer-drawing area.
Service and image compatibility with the customer- drawing area.
Competition in the area.
Quality of the competition.
Uniqueness of the firm’s and competitor’s locations.
Physical qualities of facilities and neighboring businesses.
Operating policies of the firm.
Quality of management.