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Capacity Analysis
Overview
One of the areas that has been overlooked or misunderstood by suppliers
is the issue of capacity. In fact, capacity problems are a concern about 30%
of the time as production, delivery, and volume fall short of the expected
performance. The simple denition of capacity is a study that is regularly
conducted to get conrmation of supplier ability to support new model
launch and/or manufacturing plan changes. Supplier capacity means that
the supplier is capable of providing enough product to sustain the custom-
er’s requirements. It is performed under the following conditions. However,
understand that the timetable ...