Capacity strategies

Published on December 6, 2012 Reviewed on July 31, 2018   57 min

Other Talks in the Series: Operations Strategy

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
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.