Operations Management Essay

Submitted By BettyD8888
Words: 373
Pages: 2

Process Innovation is the total redesign of a process for breakthrough improvements.
(Jess this part is already in the power point that Nick started, I think that is enough for this part)

Capacity Planning The best resolution for the business is to rebuild the overall operation will run more efficiently. This is a capacity decision that most businesses must make from time to time. A capacity decision can be difficult because of these decisions involve a lot of up-front capital expenditure and making the wrong decision could be detrimental to the business. On the other hand if the business does not take the risk and the capacity is too low, competitors can move in and draw customers to a newer facility, therefore we must be careful and attempt to use the correct capacity design. (this part for power point) Capacity planning is an important part of strategy because it: . Establishes the overall level of productive resources . Affects lead time, responsiveness, cost and competitiveness . Determines when and how much to increase capacity For this business the best strategy is The Average Capacity Strategy. For power point Average Capacity Strategy . The average expected demand has increased since the building was first built . This will endure periods of unmet demand . This is a moderate strategy in which managers are certain they will be able to sell at least some portion of the additional output