Service Offering - Measuring Capacity and Capacity Performance in a meaningful way.

In Operations Management, very often the language used to describe output is inadequate. For instance, a common failing, is that influenced by the algorithms of a particular ERP or local planning software, operations tend to use abstract measures such as standard hours of output. Orbsen Consulting strongly professes the belief it is critical to have concrete based measures of capacity, chosen carefully to support the nature of capacity dialogue needed within the business. This will avoid the jelly elephant syndrome, so typical when capacity discussions are underway in organizations.

Deliverables :

• Determination for each salient operational step, the appropriate benchmark products.
• Translation of all other outputs from that step in equivalent benchmark output terms.
• Development of parallel mechanisms around multiple units of measure, in situations where translation equivalence cannot be usefully deployed.
• Linkage of the physical output measures to the OEE framework, if deployed.
• Assessment of demonstrated performance.
• Linkage to the team based continuous improvement agenda, as appropriate.
• Develop the capacity management framework for the operations, including :
  • Determination of forward load in selected concrete measure terms,
  • Determination of the capacity envelope in concrete measure terms.
• Development of ongoing monitoring and control mechanisms, with linkage to S&OP.

Typical Duration : (contingent on operating unit complexity, EIS capability and robustness of the current process)

Typical Sponsor

• Director Operations, Supply Chain or General Manager.

Related Offerings : Long Range Capacity Management