Two techniques or decision processes employed for planning and absorbing fluctuations in demand are as follows:- 1. Graphic Technique 2. Linear Programming Method. 1. Graphic Technique: The graphic technique is simple and shows clearly the fluctuations in production demand. However, it simply compares different alternative plans and by itself does not generate optimum plan. Moreover it is a static technique. [...]
After reading this article you will learn about the process and machine capabilities. Process Capabilities: A process capability study is a determination of the total spread of the process as determined by measuring the product produced under controlled conditions. The process capability is independent of the specification but is determined by: (i) The condition of the machine, (ii) Operator skill, [...]
Planning Phase: Forecasting: 1. Forecasting means estimation of type, quantity and quality of future work e.g., sales etc. 2. The survival of a manufacturing enterprise depends on its ability to assess, with reasonable accuracy, the market trends several years ahead. 3. Forecasters will be able to make use of sales trends, but these must be considered in the light of [...]