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Critical elements of most capacity plans include:
- Set time and resource allocation to meet demand;
- Set strategies for meeting new requirements (new demand, competition, time changes for projects, etc.); and
- Determine the cost of non-conformance to the plan (waste, time slippage, costs, variance in quality, etc.).
Table 4 Determinants of Effective Capacity
Factors
Issues
Facilities
Design
Location
Layout
Product/Service
Design
Product or service mix
Process
Quantity capabilities
Quality capabilities
Human Factors
Job content
Job design
Training and experience
Motivation
Compensation
Learning rates
Absenteeism and labour turnover
Knowledge
Operational
Scheduling
Materials Management
Quality Assurance
Equipment breakdowns
External Factors
Product standards
Safety regulations
Unions
Pollution and environmental standards
Stability of society/ government
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