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The Lean CFO
book

The Lean CFO

by Nicholas S. Katko
September 2013
Beginner
151 pages
4h 24m
English
Productivity Press
Content preview from The Lean CFO
73
7
The Value of Measuring Capacity
CAPACITY IN TRADITIONAL MANUFACTURING
In manufacturing, the term “capacity” typically refers to the production
capabilities of the factory. Understanding your production capabilities
allows you to project the total number of resources (or capacity) required,
as well as to measure the eectiveness of those resources.
Traditional manufacturing companies use MRP (manufacturing
resource planning) soware to calculate their total capacity. A production
forecast is input into the soware, which uses data such as bills of mate-
rial and production run rates to calculate material requirements and the
number of machine ...
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Publisher Resources

ISBN: 9781466599406