Ex 5 Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below: Capacity plan: Level Capacity Chase Demand Customer waiting Generally low Moderate Labour skill level High Low Forecasting Long run Short run a) Motivate why the forecasting horizon is longer for Level capacity plans. b) Which assumption is used to reach the conclusion that a level capacity plan has a shorter customer waiting time?

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Overall Equipment Effectiveness

Overall equipment effectiveness or OEE as it is known can be defined as a widely standard to measure manufacturing productivity. In other words, it can also be defined as the exact percentage of time which is productive. If the score of overall equipment effectiveness is 100%, it is an indication that only good parts are being manufactured with no stop time. Hence OEE of 100% means 100% quality, performance & also availability.