Can you give some specific examples for the 7 determinants of Effective Capacity

Determinants of Effective Capacity

Following are the significant determinants of effective capacity, which should be considered while planning the capacity:

1.Facilities: Constitutes all amenities for expansion, including the location factors for the organization (which determine the transportation cost, distance from market), labour availability factors, resources and energy accessibility. These determine how smoothly tasks can be performed in any organization.

2.Product and Service Factors: These are the factors concerned with the output, and depict the quality and standardization of methods and material to be employed. On efficient management, they lead to a better designed capacity.

3.Process Factors: Efficient processes increase the quality and productivity, eventually leading to effective capacity. Process enhancement, along with the time it takes, is another factor to consider, which may increase the output rate because of the elimination of duplication of work, inspection and rework.

4.Policy Factors: Management strategies can explore or limit the potential of production as they define the criteria of work that should be performed. They directly influence the capacity options, such as product restrictions or overtime shift.

5.Operational Factors: These factors include scheduling, operational issues that arise due to differences among the equipment capabilities and the job requirement. There are several other areas which decisively impact the capacities and the productivity, including delay in deliveries, unmatched purchasing requirement, control over the processes and mechanisms, and inventory decisions.

6.Supply Chain Factors: Constituents of supply chain of any organization limit the accessibility to resources and the materials, and thus define the potential for producing commodities. Dependence on the suppliers is a vital determinant of the effective capacity of an organization.

7.External Factors: Include the efficiency and quality of performance factors in accordance with the predefined management opinion; they determine the edge of capacity.