Question

Student Instructions: Answer the following questions. A minimum of one page with references should be included. You will have only one (1) attempt to submit this by File Response. Each question has a value of 2 points for a total of 10 points for the complete Assessment. The deadline for this activity can be found in "Tools" located in "Calendar" in the Blackboard platform. 1. What is the difference between capacity analysis and capacity planning? 2. What is the difference between a Visual Stream Mapping and a Process flow chart? 3. Explain what takt, cycle, and flow times are. 4. What is the relation of Payback Period and Internal Rate of Return? 6. Explain when you should use transportation of materials with trucks, boat, train or air.

Answer 1

Answer 1=Capacity planning can be defined as the activity of finding out the production capacity that is required by a firm so that it can meet the changing demands of the product. On the other hand, capacity analysis can be defined as the activity modeling the different capacity infrastructure, facilities, equipment, machines, processes, and services.

Answer 2- Visual stream mapping can be defined as a lean management method that is used in order to visualize the different steps which are required to take from the creation of the product to the final delivery of the product to the end customer. It is helpful in introspection and understanding the different processes of the business efficiency

A process flow chart can be defined as a graphical representation of the different business activities with the help of the flowchart. This is quite helpful in understanding the operation of a process, different steps used in it and how the output changes.

Answer 3- Takt time is defined as the average tie between the initiation of the first unit’s production and the total time taken in staring the next unit's production

Cycle time is the total time consumed from the beginning to the end of the entire process.

Flow time is the total time a unit spends in certain business activities from the beginning to the end.

Answer 4- The payback period indicates the total time a company will need to have enough cash flows to recover its original investment. While IRR I the expected return on a project

Greater the IRR, smaller will be the payback time

References-

• Hill, Joyce (2006). Capacity Requirements Planning.
• Krajewski, Lee J.; Ritzman, Larry P. (2005). Operations Management: Processes and Value Chains. Upper Saddle River, New Jersey: Prentice Hall.