QUESTION 4 a. Why is the capacity decision important? b. Describe six tactics for matching capacity to demand. c. The staff training center at a large regional telecommunications company provides training sessions in Microsoft office to all employees. Assume that the capacity of this training system was designed to be 2000 employees per year. Since the training center was first put in use, the program has become more complex, so that 1500 now represents the most employees that can be trained per year. In the past year, 1350 employees were trained. i. Calculate the efficiency of this system. ii. Calculate the utilization of this system. d. A factory produces 2000 units a month. If design capacity is 3000 and efficiency is 80%. i. Calculate the utilization rate. ii. Calculate the effective capacity.

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Breakeven Analysis

Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.

Process analysis

The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.