Operations Management: Long Term Expansion Strategies
+
Operation Management
+ Strategies for Capacity Planning/
Substantial Expansion
K.J.Sanjit Roll No#59 PGPME-14, Great lakes IEMR, Gurgaon
+
INDEX
Table of Contents
K.J.Sanjit Roll No: 59 PGPME-14, GLIEMR
INTRODUCTION & SUMMARY .............................................................. 3 CHAPTER#1: CAPACITY PLANNING ..................................................... 4
Break-even analysis ........................................................................................................... 4 Long-term capacity planning on the basis of different variables ....................................... 6
CHAPTER#2: CAPACITY EXPANSION STRATEGIES ................................. 8
Capacity leading demand strategy .................................................................................... 8 Capacity lagging demand strategy .................................................................................... 9 Capacity matching/averaging demand strategy .............................................................. 11 Single step large expansion vs. Multi-step incremental expansion .................................. 12
CHAPTER#3: CAPACITY PLANNING FRAMEWORK ............................... 14 CASE STUDY: HEATHROW AIRPORT .................................................... 17 CONCLUSION ................................................................................... 19 REFERENCES .................................................................................... 20
+
Introduction
Long-Term Capacity Planning
K.J.Sanjit Roll No: 59 PGPME-14, GLIEMR
The capacity of a process or a plant is defined as the maximum output it could produce in a given time. An efficient long-term capacity planning is very important for any manufacturing firm. It involves making decisions on the capacity of a process to efficiently cater for the demand. In a manufacturing plant the strategy on capacity is formulated, keeping in view the long-term demand changes, to
Operation Management
+ Strategies for Capacity Planning/
Substantial Expansion
K.J.Sanjit Roll No#59 PGPME-14, Great lakes IEMR, Gurgaon
+
INDEX
Table of Contents
K.J.Sanjit Roll No: 59 PGPME-14, GLIEMR
INTRODUCTION & SUMMARY .............................................................. 3 CHAPTER#1: CAPACITY PLANNING ..................................................... 4
Break-even analysis ........................................................................................................... 4 Long-term capacity planning on the basis of different variables ....................................... 6
CHAPTER#2: CAPACITY EXPANSION STRATEGIES ................................. 8
Capacity leading demand strategy .................................................................................... 8 Capacity lagging demand strategy .................................................................................... 9 Capacity matching/averaging demand strategy .............................................................. 11 Single step large expansion vs. Multi-step incremental expansion .................................. 12
CHAPTER#3: CAPACITY PLANNING FRAMEWORK ............................... 14 CASE STUDY: HEATHROW AIRPORT .................................................... 17 CONCLUSION ................................................................................... 19 REFERENCES .................................................................................... 20
+
Introduction
Long-Term Capacity Planning
K.J.Sanjit Roll No: 59 PGPME-14, GLIEMR
The capacity of a process or a plant is defined as the maximum output it could produce in a given time. An efficient long-term capacity planning is very important for any manufacturing firm. It involves making decisions on the capacity of a process to efficiently cater for the demand. In a manufacturing plant the strategy on capacity is formulated, keeping in view the long-term demand changes, to
References: BOOKS: K.J.Sanjit Roll No: 59 PGPME-14, GLIEMR o “Production and Operations Management”: Concepts, Models and Behavior” by Everett E. Adam, Jr. Ronald J. Ebert o “Operations Strategy- 2nd Edition” by Slack Nigel o “Production And Operations Management: An Applied Modern Approach” by Joseph S. Martinich o “Principles of Supply Chain Management: A Balanced Approach” by Joel D Wisner o “Operations Management Along The Supply Chain” by Robert S. Russell and Bernard W. Taylor JOURNALS: o “Long term capacity expansion”: Academic Journal by Singh, Gaurav; Sier, David; Ernst, Andreas T.; Gavriliouk, Olena; Oyston, Rob; Giles, Tracey; Welgama, Palitha. (European Journal of Operational Research. Jul2012, Vol. 220 Issue 1, p210-224. 15p. DOI: 10.1016/j.ejor.2012.01.012) o “Capacity Expansion strategies”: A Journal by Lieberman and Marvin B. Sloan Management Review; Summer87, Vol. 28 Issue 4, p19-27, 9p o “Heathrow Economics Study: Expansion of Heathrow airport a study” by Govt. of UK WEBSITES: o o o o o http://www.ciosummits.com http://www.bilkent.edu.tr www.wikipedia.com http://mitsloan.mit.edu/omg/ https://www.coursera.org/course/operations Institutions: o The MIT Sloan School of Management, Cambridge, Massachusetts o Institute of Information & Operations Management, Seoul National university Business School 20