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Assignment #1: Due Sunday June 16, 2013
Chapter 5: Discussion and Review Questions: 1, 2, 6, 11, & 15 (p. 208), Problem 13 (p. 210)
1.
Contrast design capacity and effective capacity.
2.
List and briefly explain three factors that may inhibit capacity utilization.
6.
Why is it important to adopt a big-picture approach to capacity planning?
11.
Why is it important to match process capabilities with product requirements?
15.
Why is capacity planning for services more challenging than it is for goods production?
 
13.
The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.
 
a. Determine the capacity of this process.
b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 15 percent; (2) increase the capacity of Operation 2 by 10 percent; or (3) increase the capacity of Operation 3 by 10 percent?

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