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📘 Chapter 06: Capacity Planning | DSC 2370 – Operations Management 🎓 Department of Decision Sciences 🏫 Faculty of Management Studies & Commerce, University of Sri Jayewardenepura 🎥 Presented by: Charith Dhanesh | Jpura Academic Help Welcome to Chapter 06: Capacity Planning, a core topic in the DSC 2370 – Operations Management course. This lecture provides a comprehensive understanding of how businesses plan, measure, and manage their production and service capacities to meet current and future demand effectively. Content • Strategic Capacity Planning • Importance of Strategic Capacity Planning • Measuring Capacity • Definitions of Capacity • Capacity Utilization and Efficiency • Basic Capacity Planning Concepts • Considerations in Changing Capacity • Capacity Strategies • Adjusting Capacity to Meet the Demand • Determining Capacity Requirements 🔍 What You’ll Learn in This Video: 📌 Strategic Capacity Planning Capacity planning at the strategic level involves long-term decisions about the overall level of capacity to meet future demands. Example: A car manufacturing company deciding whether to build a new plant to meet projected demand in the next 10 years. 📌 Importance of Capacity Planning Effective capacity planning ensures organizations avoid underutilization (wasting resources) or overutilization (leading to delays and poor quality). It directly impacts operational efficiency, customer satisfaction, and profitability. 📌 Measuring Capacity Capacity can be measured in output terms (e.g., number of units produced per day) or input terms (e.g., labor hours available). Example: A hospital measuring capacity by the number of patients it can treat per day. 📌 Definitions of Capacity Capacity refers to the maximum output a system, facility, or process can produce in a given period under normal conditions. 📌 Capacity Utilization and Efficiency Capacity Utilization Rate = (Actual Output / Design Capacity) × 100 Efficiency = (Actual Output / Effective Capacity) × 100 Example: A machine designed to produce 100 units per day but produces only 80. The utilization is 80%. 📌 Basic Capacity Planning Concepts Understand terms like design capacity, effective capacity, and actual output, and how they relate to one another. 📌 Considerations in Changing Capacity Factors include cost, lead time, availability of resources, technology changes, and demand variability. 📌 Capacity Strategies Lead Strategy: Adding capacity in anticipation of demand. Lag Strategy: Adding capacity after demand increases. Match Strategy: Incremental capacity changes in response to demand trends. 📌 Adjusting Capacity to Meet Demand Methods include adding shifts, outsourcing, hiring temporary workers, or investing in technology. 📌 Determining Capacity Requirements This involves forecasting future demand, evaluating current capacity, and planning for gaps. 🎯 Whether you're preparing for exams or seeking practical knowledge, this lecture is a must-watch for mastering capacity planning in operations management. 📚 Part of the official DSC 2370 course content at the University of Sri Jayewardenepura. 🔔 Like, share, and subscribe to Jpura Academic Help for more in-depth academic content. 📺 Watch the full Operations Management playlist here: [insert playlist link] 💬 Got questions? Drop a comment below – let’s learn together! 🔖 Hashtags for Better Reach #CapacityPlanning #OperationsManagement #DSC2370 #JpuraAcademicHelp #CharithDhanesh #USJP #UniversityofSriJayewardenepura #StrategicCapacity #CapacityUtilization #EfficiencyInOperations #BusinessEducation #ManagementStudies #OMLecture #HigherEducation #SriLankaEducation #BBA #Productivity #LeanManagement #ProcessImprovement #CapacityStrategies #DemandForecasting #AcademicSupport #SupplyChainManagement #OperationalStrategy #BusinessOperations