Term
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Definition
| The maximum rate of output of a process or a system. |
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Definition
| The degree to which equipment, space, or the workforce is currently being used, and is measured as the ratio of average output rate to maximum capacity (expressed as a percent) |
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Term
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Definition
| A concept that states that the average unit cost of a service or good can be reduced by increasing its output rate. |
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Definition
| Occurs when the average cost per unit increases as the facility's size increases. |
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Term
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Definition
| Amount of reserve capacity a process uses to handle sudden increases in demand or temporary losses of production capacity; measures the amount by which the average utilization falls below 100% |
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Term
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Definition
| What a process's capacity should be for some future time period to meet the demand of customers, given the firm's desired capacity cushion. |
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Term
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Definition
| Set of consecutive time periods considered for planning purposes |
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Term
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Definition
| The time required to change a process or an operation from making one service or product to making another. |
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Term
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Definition
| Positive or negative difference between projected demand and current capacity. |
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Definition
| Act of doing nothing and losing orders from any demand that exceeds current capacity, or incur costs because capacity is too large. |
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Term
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Definition
| Difference between the flows of funds into and out of an organization over a period of time, including revenues, costs, and changes in assets and liabilities. |
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Term
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Definition
| (Avg output rate/max capacity)*100% |
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Term
| Capacity Cushion equation |
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Definition
| 100%-Avg Utilization rate (%) |
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