Capacity Planning And Timing Strategy Business Essay

mental object Planning And Timing Strategy lineage EssayThis report discusses a case study on talent prep and quickness locating at gallium Pacific a company that has undergone return. The case study illustrate the importance of maturation and its linkage to the environment. The report kickoff start with defining the susceptibility plan and control then looks at capacity- quantify strategy atomic number 31 Pacific uses and the work outs that form this strategy. Then looks at major movers that it utilise to reserve its capacity amplification finish and what other(a) factors might the company have considered. The report then further explicate the technique gallium Pacific used to make its facility location decisiveness and what other facility factors might the company have considered. as salutary as the report looks at how environmental considerations affect capacity prep and facility location at gallium Pacific and lastly in my own opinion explain if Geor gia peaceable has made the correct capacity planning and facility location. Finally the report concludes with Georgia pacific payoff style, the manner in which the company operates as a team, its environmental consideration and decision making process.Definition on capacity planningIn operations management, capacity is referred as an measuring of the input resources operational to produce relative output all over period of time.(citation)Strategic capacity planning is distinguished in an constitution of importly because its facilitate the organisation to meet its future requirements. Planning tackle that operation cost are kept at a minimum level without affecting the quality, it excessively guarantee that organisation remain possible to attain its long-term plan for expansionCapacity planning and timing strategyLong range capacity planning and control primarily depends on a range of factors and some of the factors Georgia-Pacific used base on the on changes in capacity a re food market conditions The timing of the market and making a decision base on the market gives the organisation a competitive edge as well as an ontogeny in market share. Georgia-Pacific have used these strategy to increased its toil capacity base on the changes in the market, as the market grew production was increased so as to meet the demand.Technology The change in the technology recalls organisation, mandatory fewer resource to operate its production and therefore this means that with the advance technology Georgia-Pacific can increase its production ability with only slight equipment changes.Equipment So to achieve a large increases in production capacity, Georgia-Pacific use improving the already subsisting equipment, or set up new equipment,The major factors that influence the buying of sawmill is because of the strategic location of the sawmill and since the capacity of the sawmill was restricted in 1970 when it was first built buying it 1987 and expanding the operat ion such as adding drying kilns, a planner mill for finishing on site and a warehouse for storing the finish lumber to improved production capacity and the fact that the ground has the basic equipment and the has company owned forests in the area were more economically viable.Factors deciding the expansionThe timing in making a decision to expand a rail line is vital, as you need to carefully study the fiscal benefits of such expansion such as assessing having the cash for the investment to cater for the extra inventory, new facilities or equipment. At Georgia-Pacific the various factors considered in deciding whether to buy and expand the sawmill in Florida for example areMarket conditions Florida has an excellent market condition such as the speedy growth of population and the boom in home construction because of these strategic position of the location of Florida gave Georgia-Pacific an edge over their competitorsRaw materials Georgia also considered this site because it o wn forest in the area that also had other position of privately owned timber.Environment- That the other major factors to consider was legislation and government policies regarding the environment Georgia Pacific considered this factor and assessed the environmental regulation of Florida and find out that Florida has more strict environmental regulations that make it hard to build a new plant than to acquire an existing plant.Economics- This is a major factor to considers when planning for capacity expansion as this affect the economic viability of the organization. Georgia pacific has considered this factor by analysing the return on investment when acquiring facilities and found out that acquiring and expanding was much easier and economically viable that building new facilities.Labor The availability of tire both skill and unskilled is very important when considering making a decision for capacity expansion. As for Georgia pacific the nearby facility mean that the sawmill could draw some trained personnel.Equipment As for a long term capacity expansion the availability of equipment to carry the operation is a major factor to consider. For Georgia pacific the already existing sawmill had the vital required equipment and facilities such a functioning road system, a nearby complain road spur, and electricity facilities.Overall at Georgia pacific acquisition of the sawmill offered exceptional latent for capacity expansion and the sawmill was expanded in 1998 hence greatly contributed to the success of the Georgia pacific.What other factors might the company have consideredOther factors includeFacilities location decisionThe decision on where to decide facilities is the most important factors in capacity planning and its where the success of the company depends. Facility location involves organisation seeking to locate, relocate or expand their operation, the decision process encompasses the identification, analysis and evaluation of a plectrum among alte rnative,Since at Georgia Pacific facility location mostly involves long term commitment of resources the decision on where to locate facilities are mainly affected by several factors such as financial, capacity and technology as well as political, economic and social..However in the case study at Georgia pacific corp. the main focus of consideration are raw material, market condition labor force, government regulation and policies and finally energy utilitiesMarket condition- Georgia pacific asses the market condition by serving so as know the demand and place the product close to the location.Raw materials- Georgia pacific review the availability of raw so to have adequate supply of locally available raw materials at a low priceGovernment regulation- Georgia pacific choose where the invoke and local government welcome companies by looking at factors where they have relax tax and environmental policies as well as attitude of the local towards industry such as floridaLabor- Georgia pacific have assessed the availability of local work force that can be easily trainUtilities- Georgia pacific have considered the availabilities of all utilities necessary such as such as water, electricity and cancel gas.Other factors that Georgia pacific could have also consider could be the availability of less expensive land with a bigger space as well as land with quality and qualification facilities such as such as roads, bridges, water and sewer systems, airport and cargo facilities, energy systems, and telecommunications. Also there other crucial factor that George pacific could consider could be the cost of dose in terms moving the product as well as the supply cost. For example proximity to provider can be excellent for JIT production as it improves performance of deliveries and reduces inventory as well as reducing cost.Environmental considerationIn general environmental consideration is segmentation of capacity planning and facility location. It was paramount that Geo rgia Pacific makes itself environmental friendly. Since Georgia pacific depends on timber as a ingrained resource, they need to assess location where environmental policies are either relax or less strict. For example Georgia Pacific had to buy the sawmill in Florida with strict environmental rules that makes it more difficult to build a new facility.In order to reduce pollution caused by transportation Georgia pacific corp. have considered locating the material close to the site by expanding operation such as adding drying kilns, a planner mill for finishing and a warehouse for storing the finish lumber on site.also choosing municipal sewage disposal system on site at victors site ,also the skipper was near an excellent timber base and a nearby resin plant that uses the residualsOpinion on Georgia PacificIt is believe that Georgia Pacific has made the correct capacity planning and facility location since all consideration were carefully analyses and decision made base on the out came. The main emphasis was the market condition and the raw materials. The market condition was important because it focuses on the product demand, evenly the availability and the location of raw materials so as to reduce the cost of transportation as well and meet the demand of the government or state environmental policy on industries all the factor discuss above were carefully consider by Georgia pacific corp. hence execute a well plan capacity planning and facility location.ConclusionIn the case study it looks desire at Georgia Pacific the emphasis is on growth, and so capacity increase and acquisition is a way of life.It assesses possible increase of capacity by working as a team to request suggestion and obtaining information and use a check list for major factors such as deciding on market demand, technology equipment and labor. Also since the company depends on timber as a natural resource environmental consideration is equally important.All of the above factors are very important part and parceled in decision making on capacity planning and facility location.The factors listed on this report are very crucial when making capacity decisions. Capacity planning is a very important manifestation in manufacturing companies, as it to do with meeting the customers demand. They also have a long term impact. Capacity also determines the selection of appropriate technology, type of labour and equipments. The right capacity ensures economically viable business