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Printable Handouts
Navigable Slide Index
- Introduction
- Agenda (1)
- Capacity and operations strategy
- Asset strategy
- Capacity planning hierarchy
- Example: Genzyme capacity expansion
- Agenda (2)
- Strategic capacity expansion approaches
- A fundamental business challenge
- Three extreme timing strategies
- Scale economies in capacity expansion
- Chasing: positives and negatives
- Leading: positives and negatives
- Lagging: positives and negatives
- Avoiding the extremes: a hybrid strategy
- Agenda (3)
- Capacity planning: the role of uncertainty
- Capacity sizing when demand is uncertain
- Will end up with one of three outcomes
- Capacity sizing as a balancing act
- Sales versus forecast-driven capacity sizing
- Agenda (4)
- Factors in capacity expansion strategy
- Creating an “optimal” expansion strategy
- A basic capacity planning model
- Data
- Decision variables
- Objective: maximize discounted profit
- Production and sales constraints
- Capacity constraints
- But world is uncertain and dynamic
- Recognize world is dynamic: rolling horizon
- Agenda (5)
- Capacity planning at Intel
- Intel’s long-range planning process
- Intel’s long-range organizational structure
- Agenda (6)
- Key points
- Thanks for watching
This material is restricted to subscribers.
Topics Covered
- Operations strategy
- Asset strategy
- Capacity planning hierarchy
- Capacity expansion approaches
- Timing strategies
- Chasing, leading and lagging
- Capacity sizing
- Hedging uncertainty
- Drivers of capacity strategy
- Capacity planning models
- Capacity planning process
- Capacity planning organization
Links
Series:
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Bite-size Case Studies:
Talk Citation
Tomlin, B. (2018, July 31). Capacity strategies [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved November 21, 2024, from https://doi.org/10.69645/LFJV5905.Export Citation (RIS)
Publication History
Transcript
Please wait while the transcript is being prepared...
0:00
Hello, my name is Brian Tomlin, welcome
to the topic on capacity strategies.
This topic forms part of
the series on operations strategy.
Before we get started, I'd like to take
a few moments to introduce myself to you.
I'm a professor at the Tuck School
of Business at Dartmouth,
where I teach the MBA elective
on operations strategy.
I also do research in the general
area of operations strategy and
supply-chain design.
Throughout my business and
academic career,
I've worked with a number of companies
from a range of different industries,
including the pharmaceutical industry,
the electronics industry, consumer goods,
industrial products and
the automotive industry.
I'm looking forward to spending some
time with you today on the topic of
0:49
capacity strategies.
I would like to start by describing
the content of what we will discuss today.
To begin with, I'll introduce
the general topic of capacity strategy,
and how it fits within the overall
framework of operations strategy.
Next, we will talk about capacity
strategy in terms of approaches
to expanding strategy, and timing or
when capacity should be added.
Then we will move to capacity strategy
in terms of how much capacity,
or the sizing of capacity expansions.
After that we will move on to
strategy development, in particular,
we will discuss relevant factors that
influence the capacity strategy and
introduce some basic models for
making capacity investment decisions.
Finally, and importantly,
we will talk about overall business
process and organization structure for
ensuring effective and
efficient capacity strategy development.
We will then wrap up with some
key points that summarize some of
the lessons from
the capacity strategy topic.