Capacity, Layout, and Inventory Management Techniques
Capacity Management
Capacity: The maximum output a system can achieve. Understanding capacity helps align resources with demand.
Types of Capacity
Design Capacity: Theoretical maximum output.
Effective Capacity: Practical maximum output considering constraints.
Actual Capacity: Realized output under actual operating conditions.
Capacity Measures
Input Measures: Labor hours, machine hours.
Output Measures: Units produced, services delivered.
Capacity Utilization
Indicates how efficiently capacity is being
Time Series Analysis, Forecasting & Operations Management Concepts
Time Series Components
A time series is a set of values of a variable measured at successive points in time.
Key Components
- Trend: The gradual increase or decrease of a time series over a longer period.
- Seasonality: Regular patterns of variability within certain time periods, such as a year, week, etc.
- Cycle: Any regular pattern above and below the trend line lasting more than one year.
- Random Variations: Fluctuations caused by chance events and/or unusual situations.
Time Series Forecasting Methods
Smoothing
Read MoreConstruction Contracts and Estimates
Types of Contracts
- Lump Sum
- Item Rate
- Percentage Rate
- Cost Plus Percentage Rate
- Cost Plus Fixed Fee
- Target
- All-in-One
- Labor
- Cost Plus Fluctuating
Types of Approximate Estimates
- Service Unit
- Plinth Area
- Cube Rate
- Carpet Area
- Approximate Quantity Method
Types of Detailed Estimates
- Original/Fresh
- Revised
- Supplementary
- Special Repair
- Annual Repair/Maintenance
Measurement Sheet
| Sr. | Particular of Item | Nos. | Length | Breadth | Height | Qty. | Remark |
|---|---|---|---|---|---|---|---|
| Abstract Sheet (Rate Analysis) | |||||||
| Sr. | Particular | Qty | Unit | Rate | Amount | Remark |
Rules of Measurement Writing
- Before
Mastering the Maturation Period: Inventory & Sales Cycle
Understanding the Maturation Period
The maturation period of a company is the time it takes from purchasing raw materials to converting them into sales, encompassing warehousing, manufacturing, and sales processes. A longer maturation period necessitates more working capital.
Averaging the Maturation Period
Companies experience various cycles, which can be categorized as:
- Long-term cycles: These cycles involve fixed assets and span from acquisition to depreciation or renewal.
- Short-term cycles: These
Statistical Analysis: ANOVA, Experiments, and Variable Types
Statistical Analysis Definitions and Assumptions
Observational Study: Data is collected without any attempt to manipulate or influence the outcome.
Planned Experiment: Some manipulation is attempted in order to see if the outcome is related to the controlled factor.
Independent Variable: The variable that is manipulated.
Dependent Variable: Variable that is not manipulated but is affected by the independent variable.
Stratification: Units in the sampling frame are first divided into groups.
Simple Treatment:
Read MoreKey Probability Definitions and Rules
Sample Space Definition
A sample space is a collection or a set of possible outcomes of a random experiment. The sample space is represented using the symbol S. The subset of possible outcomes of an experiment is called an event. A sample space may contain a number of outcomes that depend on the experiment. If it contains a finite number of outcomes, then it is known as a discrete or finite sample space.
Probability of an Event
An event in probability can be defined as a set of outcomes of an experiment.
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