The following article highlights some capacity planning challenges that companies face in meeting demand for their products in a growth market. Specifically, the article discusses the success of Fiat Chrysler Automobile’s (Auburn Hills, MI) operation in Brazil and the capacity planning challenges the company had to deal with to support its growth in South America.
Read the article Perry, J. (2014, October 10). Fiat Brazil: Quest for growth. Automotive Manufacturing Solutions. Retrieved from http://www.automotivemanufacturingsolutions.com/people/fiat-brazilgetting-bigger-and-better

1. Highlight some capacity planning challenges that Fiat faces with its Betim factory and desire to grow its markets in South America. How do the efforts to increase capacity lead to the identification of production bottlenecks? Give examples.

2. What are some challenges with increasing production capacity at older plants?

3. How can local government initiatives help a company like Fiat with its capacity planning challenges?