![]() |
![]() |
|
|
|
||
|
Capacity Analysis (CA) tells us how much product we can move through each manufacturing phase. It is a critical component of calculating ROI on new capital expenditures. Measuring current throughput against the expected productivity of the new equipment is necessary to justify the decision to proceed with a purchase. This exercise will also highlight any existing or potential bottlenecks; do we want to buy a new press that can print 15,000 sheets an hour if we can only die-cut 12,000 an hour? Similarly, CA can tell us what equipment is being underutilized. This knowledge will enable us to look at new business that can be taken without straining other production centers. Third, periodic Capacity Analysis lets us compare actual throughput to estimating standards. By comparing actual to estimated hours, we can determine whether or not we are leaving money on the table or worse, turning down business we could have actually run profitably. For additional information, contact Howie Herbitter. |
||||||||||||||||||||||||||||||||
|
Home |
Strategic Management |
Profit Planning |
Accountability Marketing & Sales | Capex Justification | Mergers & Acquisitions | Workshops |
![]() |
| Privacy Policy | |