Evaluate Ways of Reconciling Capacity and Demand in Either a Service or Manufacturing Organisation You Are Familiar with.

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Faculty of Commerce
Department of Business Management
Master of Commerce Degree in Strategic Management and Corporate Governance 1.2 Module : Production and Operations Management
Module Code : MBM 705
NAME OF LECTURER : Mr A.Mafuka
Semester 2, 2012

NAME: Gwyneth Ngoma

Registration Number :R 12228 A
Date:31st August 2012

ASSIGNMENT 1 : Evaluate ways of reconciling capacity and demand in either a service or manufacturing organisation you are familiar with.
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Submitted in partial fulfilment of the Master of Commerce Degree in Strategic Management and Corporate Governance Part 1.2

1. DEFINITIONS
Capacity is defined as the “specific ability of an entity (person or organisation) or resource , measured in quantity and level of quality , over an extended period.” (Source : http // : www.businessdictionary.com)

Capacity utilisation is the “extent or level to which the productive capacity of a plant, firm, or country is being used in generation of goods and services.” It is expressed usually as a percentage and is calculated, it is computed by dividing the total capacity with the portion being utilized. (Source : http://www.businessdictionary.com ) Demand - “An economic principle that describes a consumer’s desire and willingness to pay a price for a specific good or service. Holding all other factors constant, the price of a good or service increases as its demand increases and vice versa.” (Source : www://investopedia.com)

The following definitions have been extracted from the Electricity Glossary (Source : https://power2switch.com/glossary) and these are terminologies used in the electricity industry and will be referred to in this paper :- Megawatt(MW)- “A unit of energy equivalent to 1000 kW or 1,000,000 watts.” Kilowatt(kW)- “A unit of energy equal to 1,000 watts.”

Grid – “used to describe the interconnected transmission system.” Thermal power – “power produced by converting heat into electricity.”  Hydro-power - “Power that is derived from the weight or motion of water, used as a force to drive a turbine or other machinery.” Co-generation is “the use of fuel to produce electricity as well as another product such as steam or water.”

Capacity – “The maximum electric power output of a generating unit (measured in megawatts(MW) or the maximum amount of power that lines or equipment can safely carry.” Demand – “The total amount of electricity used at any given moment in time usually measured in kilowatts(kW) or megawatts (MW).” Installed capacity : “It is the designed power generation capacity of a plant. It is expressed in terms of energy generated per unit time.” Load - “amount of end-use demand”

Load curve – “A graph that plots the power supplied by an electric power system versus time.” Power : “electricity”
Load factor :“ Ratio of average energy demand (load) to the maximum demand (peak load) during a period.” load-shedding –“cutting off the electric current on certain lines when the demand becomes greater than the supply.” Demand Side Management (DSM) “The act of reducing energy consumption or moving energy use from peak to off-peak, periods in order to reduce overall energy costs.” The Ministry of Energy and Power Development defines Demand Side Management as “a process whereby an electricity supplier (with other stakeholders) influences the way electricity is used by customers.” (Source : www.energy.gov.zw)

2. BACKGROUND
This paper analyses and evaluates ways of reconciling capacity and demand of electricity. ZESA group of companies is made up of two core business companies, which are Zimbabwe Power Company (ZPC) who are responsible for electricity generation and Zimbabwe Electricity and Transmission Company (ZETDC) who are responsible for transmitting electricity to various distribution points and then distributing the electricity to customers. The evaluation in this paper looks at various ways that ZETDC employs in order to match available...
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