Strategic Capacity Planning Essay Sample
Strategic capacity planning is a great procedure design tool that allows an organisation to measure its drawn-out supply concatenation and its cost-effectiveness. which can drive its capital outgos and schemes to construct a first supply concatenation to vie against other organisations ( Citrin. n. d. ) . Riordan Manufacturing Inc. does hold a capacity program to back up both the design capacity and the supply concatenation for the organisation. However. it is of import that the company evaluates its labour related costs in China. a likely resettlement to Shanghai. increased costs of international trade and transit. and natural stuff costs to guarantee efficiency and cost-effectiveness of the procedure design and supply concatenation.
In an attempt to do the new location in China profitable. Riordan needs a long-run strategic capacity program that would assist the company find the capacity degree of installations. equipment. and labour force size ( University of Phoenix. 2004 ) . An instability of capacity can ensue in low return on assets. morale detrimental layoffs. expensive installation closings. lost gross revenues. and gnawing client trueness. In this instance. the cargo of the natural stuffs and finished merchandises from Hangzhou Port to Shanghai Port to their concluding finishs could be dearly-won. Riordan’s human resource’s information system has been uneffective for the current coevals of engineering systems needed to carry on operations. An interlinked information system would be a better pick for Riordan to manage the demands of the human resource section. The new system would ease the outsourcing of human resource’s processes that would assist Riordan concentrate on production of goods.
Mention
Citrin. S. ( n. d. ) . Capacity Planning: A Tactical Decision with Strategic Impact. Retrieved from hypertext transfer protocol: //www. insight-mss. com/_whitepapers/ ? file=CapacityArticle020703. htm University of Phoenix. ( 2004 ) . Riordan Manufacturing Virtual Organization [ Computer Software ] . Retrieved from University of Phoenix. Simulation. OPS571 – Operations Management web site.
