Assessing The Capacity Planning For Bmw Business Essay

Assessing The Capacity Planning For Bmw Business EssayFirst of all, mental ability refers to the upper limit or ceiling on the fill up that an operating unit can handle. And the load might be number of physical units produced or number of expediency produced. (Stevenson, 2009).According to Eng. Abdel Moniem shehata, he said that capacitor is al slip elbow room something to manage. He added that depicted object meanning is not necessary to be time consuming or expensive. And any ac follow go away single-valued function the susceptibility planning depending on its tools and resources. According to BMW, the Company owns workers, machines, tools, technology and materials and etc, and they progress to to use all this resources to maximize productivity and take full advantage of it to reach postgraduate mental ability.When Mr. Abdel Moniem shehata was asked about the importance of capacitor decisions towards BMW he said that the more capacity the more profit the company will gain and the expenses will be decreased as BMW involves manufacturing so it is historic to set a capacity planning because the source of income of BMW comes from selling cars. However, Capacity is important because it deliver benefits and profits much more than what was expected. Mr. Abdel Moniem shehata said that capacity is very important as it affect and have impact on BMW as a Company and its cars. It in any case affects competitiveness and he said that he thinks that the most near competitors to BMW atomic number 18 Mercedes and Volkswagen as the three brands are Germany and the factories are located near to each another(prenominal). On the other hand, the squiffy that has more capacity will have an advantage of delivery speed. He added that capacity decision affects the operational costs by helping in minimizing operating cost.There are two different ways to measure capacity which are design capacity and effective capacity. The design capacity is the output rank while t he effective capacity is the design capacity minus allowances. According to BMW Eng. Abdel Moniem shehata says about the ways BMW use to measure capacity, that at the beginning of any business a Feasibility study is very important to start with and study it very proper and stop up that it is right to reach the profit which the company needs. later things that is essential for production comes after like machines, inventories, workers, engineering, and equipment all these kind of resources which will help in achieving full(prenominal) capacity. Then the budget of the production is putted which consists of income and outcome. Income like assets and expenses while outcome like revenue and profit that is received. primarily BMW measures capacity by multiplying the number of machines or workers with the number of shift, with utilization and with efficiency.According to the determinants of effective capacity in that location are factors that lick capacity. The design of BMW is import ant including the shape and the size. Also the design can have influence on capacity. According to BMW it is important to produce cars with the same range other than different ones. He added that lineament of the car is an important part in the determinants of effective capacity. As by increasing quality the capacity will increase as well. And other external factors like safety, purchasing decisions and inventory stocking decision, all these factors have a great impact on capacity.Any company or organization has a capacity formulation bases its capacity strategy on assumptions and prediction. Strategy formulation consists of 3 primary stages which are leading, quest and tracking. Leading helps in building capacity in a hope of future demand increases. plot of land following start building capacity when demand increases current capacity. Finally tracking supportings capacity to keep demand increase (Stevenson, 2009). However, BMW can measure the success of its new process by trac king how yearn it takes for one car to be built from the very beginning until its all done. If vehicles take different of clock to be built then it is a sign of uneven flow of materials to the production line. Another way is looking at the number of vehicles that are returned for warranty work. This measurement looks at the final product. If suppliers are travel rapidly to complete orders, they might reduce the quality of the products that they are supplying to BMW. Once those low quality split are used in the manufacturing of a new car, the customer will find it unsatisfying and it will be returned back to be corrected.The capacity planning is done by the general manager and other people that are responsible for the materials and engineering as well. There are six bars of capacity planning. The first step is to Estimate the future capacity requirements, the sec step is to evaluate existing capacity, the trio step is identify alternatives, the fourth step is to conduct financi al analysis, the fifth step is to assess linchpin qualities issues, while the six step is to implement alternative chosen, finally, the six step is to monitor results.(Stevenson, 2009). But Eng. Abdel El Moneim said that BMW makes the capacity planning in 3 simple steps. The first step is determining service level requirements as they categorize the work done by systems and quantify customers expectations for how those works get done. The second step is to analyze the current capacity which is important to analyze it to see how it is meeting customers needs. The third step is planning for the future, by forecasting BMWs future business activity and determining it. However, Implementing is important as it ensure that the available capacity will be enough even if any changes happened if the future.Finally, when coming to the evaluation of the capacity planning at BMW Mr. Abdel Moniem shehata said that Evaluations carried out to learn lessons that can be used to improve ongoing or fut ure capacity planning efforts are of potentially greater value. Unfortunately, improvement-oriented evaluations are seldom carried out. This is a serious shortcoming of evaluation practice, since capacity-development efforts involve a great deal of experimentation, and managers need to know the results in order to sharpen or reformulate objectives and reorient their activities in appropriate ways.In conclusion, for any company to achieve a successful planning capacity is to set goals and define objectives. The company must also ensure that the planning process is carefully recognized. And if the company found any mistake in the plan or the plan is not working, it doesnt mean that the organization has to start the planning from the beginning but only(prenominal) to correct or improve the parts which include the mistake. BMW creates their capacity planning at least at one time a year and sometime every six months.Reference PageTrading eBook. (2010). , AL Scribd. Retrieved whitethorn 3, 2011, from http//www.scribd.com/doc/36253765/bmw-case.kern, H. (2008). , AL Tech Republic. Retrieved May 3, 2011, from http//www.techrepublic.com/blog/10things/10-ways-to-build-a-solid-capacity-planning-effort/370(2010). , AL Carzy. Retrieved May 6, 2011, fromhttp//carzy.co.in/blog/car-news/bmw-india-expand-capacity-8000-units-early-2011.html/