Production and Capacity
Generating timely output in the face of uncertain demand, complicated processes, and variances in input for better performance
Production and Capacity management depends on order fulfillment and expected sales. You need to know product demand well in advance to be able to plan capacity and schedule production runs for products. This minimizes downtime and maximizes machine loadings.
Changes in demand affect input requirements. The domino effect of changes across Operations can create costly capacity management responses. You must therefore communicate new information immediately so Operations can adjust its schedule. You must also communicate potential delays to Customer Service for resolution.
With the Production and Capacity decision area, you can set planning goals and scorecarding metrics for these elements for better performance management:
- Backlog (%)
- Capacity utilization (%)
- Systems up time (%)
- Fixed, marginal, and variable production cost ($ and %)
- Production hours and batch runs (#)
- Scrap unit (#)
- Set-up time (#)
- Units produced and reworked (#)
Most importantly, you can analyze these goals and metrics by a number of dimensions to find the hidden gems in the data:
- Fiscal month / year
- Machine type / equipment type
- Manufacturing product component
- Organization /department
- Production process
Using the Production and Capacity decision area
You set targets based on your goals and metrics in Production and Capacity. You monitor your success by looking at how you measure up against your targets. Further, you dive into your results to find out more about these aspects driving performance management.- Variable production cost ($ and %) : What is the impact if we change our production schedule for this urgent customer need?
- Capacity utilization (%) : Is plant product capacity sufficient to meet demand?
- Backlog (%) : How can we improve product delivery without increasing costs?
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