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Business & Marketing
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English (U.S.)
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Topic:
BUS 415 Milestone 3
Essay Instructions:
Instructions
(Read chapters 7, 8, and 9)
Answer the following questions in full after completing the assignments found in CLO 3 and conducting additional research as needed.
Identify the determinants of effective capacity and give detailed examples of how each can be applied.
Identify and give detailed examples of the benefits of the four basic layout designs in the physical placement of resources.
Explain the principles behind using a motion study to improve processs performance in service industries. Be certain to give examples that clearly explain the process, and the outcomes expected.
Describe the three general classifications of inventory. Give examples of each and describe the process of their movement from entering to exiting the facility.
Give an example whereby you apply the EOQ Model to calculate inventory order volume. Be certain to describe the process in detail.
Give an example whereby you calculate the reorder point to prevent a stock-out from occurring in an inventory scenario.
Essay Sample Content Preview:
BUS 415 Milestone 3
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BUS 415 Milestone 3
Determinants of Effective Capacity
The effective capacity is the maximum utilization a system can reach without constraint. Several determinants influence this capacity: Several determinants influence this capacity:
1 Facility Size and Layout: The amount of physical space provided to the employees and its layout can significantly influence productivity. For example, a huge warehouse, which has a proper design, will accommodate many goods and ensure rapid picking and shipping activities. An example would be a warehouse in any country that serves Amazon, which will effectively occupy space and improve the efficiency of operations (Ailawadi & SINGH 2021).
2 Product Design and Variety: The nature and number of products call for capacity, which is complex and diverse in this case. A plant specializing in manufacturing only a few simple items will likely have higher effective capacity than a factory making customized goods. For example, an automobile plant that manufactures one model may turn out more units than another, manufacturing many different models.
3 Workforce Skill and Availability: Professionals and employees with adequate training play a significant role in capacity. For instance, skill enhances a software development company’s capacity to complete projects efficiently by embracing the services of qualified developers (Stevenson 2021).
4 Equipment and Technology: Well-updated and maintained tools are always productive due to their high capacities. For instance, a manufacturing plant with mechanized equipment will likely produce more than one that mostly uses a workforce.
5 Process Design: High capacity is achieved through good process flow and little bottlenecks. For instance, a fast food restaurant with an efficient way of preparing food and serving it will be able to attend to more customers in an hour (Ailawadi & SINGH 2021).
Benefits of Four Basic Layout Designs
1 Product Layout: Organizes resources based on a step-by-step process of the manufacturing sequence. This layout is advantageous for manufacturing companies producing countless similar products, such as an electronics manufacturing company with an assembly line. It reduces transportation and packaging, hence increasi...
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