"To estimate capacity, you must first select a yardstick to measure it". Discuss.
Answers
Answer:
please mark as brainlist
Explanation:
To estimate Capacity, you must first select a yardstick to measure it. The first major task inCapacity Measurement is to define the unit of output. In some cases, the choice is obvious
PlanningNotesExample:RIL set up capacity to manufacture 250,000 MT of polypropylene and 160,000MT of polyethylene at its Hazira plant. This measures the output of the end products. Anotherexample is megawatt-hours of electricity for a power generation utility.Finding a yardstick to estimate capacity is more difficult in many service industries where thereis no uniform product on which the measurement can be based, e.g., airlines, hospitals, restaurants,etc. However, measures can be devised to assess capacity. For example, an airline can use seat-miles as a measure of capacity. A hospital can measure capacity as beds-days each year. In arestaurant, this might be the number of customers that can be handled per day.In a process-focused facility, Capacity is often determined by some measure of size, such as thenumber of beds in a hospital, seating capacity in a restaurant, etc.In a repetitive process, the number of units assembled per shift, such as number of refrigerators,may be the criterion for Capacity.And in a product-focused facility, such as TISCO, tones of steel processed per shift may be themeasure of capacity.Whatever the measure, the Capacity decision is critical to the management of an organizationbecause everything from cost to customer service is measured on the basis of the Capacity of theprocess, once the Capacity is determined.In general, Capacity can be expressed in one of two ways:1.Output measures or2.Input measures.1.Output measures are the usual choice for high-volume processes.Example:Maruti was set up to manufacture 100,000 passenger cars per year.This type of capacity measurement needs to be taken with some caution. The Maruti plantproduces three types of vehicles on a single platform. As the man-hours required to produce thedifferent models are not identical, Maruti may be able to manufacture 125,000 vehicles if it onlyproduced the Maruti 800, perhaps 110,000 vehicles if it only produced the Omni, and 85,000vehicles if it only produced the Gypsy. The 100,000 number is an average