Capacity Triangle
Stage 1: Basic Development
Basic Development of Capacity Development and Disposition (CDD) actions result in a more effective program for identifying and developing the of production capacity to satisfy corporate strategies. Processes for performing market needs analysis and rationalization of current or proposed production capacity leads to traceable, consistent practices. An array of contracting methodologies can be integrated for increasing the probability of on-time, on-budget contractor performance. A life-cycle cost perspective is taken to evaluate design or performance modifications. Project design considers the overall effectiveness of the project in meeting capacity requirements. Material properties, production method, energy efficiency and other properties are integrated to achieve the optimal solution. During the construction phase you need to know how progress is being made. Establishing the right measures and constraints enables instantaneous monitoring of performance. Systematic identification, preparation and attainment of licenses and permits keep the project on track. Health, safety and environmental issues are resolved before they impact the project. Ensuring that reliability, availability and maintainability (RAM) become a key component of capacity projects assures lower life-cycle costs. Overall program management is emphasized so other activities that are impacted by a project can be informed and lessons can be identified and incorporated in future projects.
Stage 2: Operational Readiness
Operational readiness refers to having all the elements of on-stream operations in place. Standard operating procedures are based on required operating characteristics and available to the workforce. Similarly, all maintenance activities are developed, added to the CMMS. Technicians and operators are trained; tools and supporting publications are available. Start-Up and commissioning procedures include measures, training, time/resources allocated to QA and test run (contingency plans in place). The organization is ready to transition to on-stream production. Logistics issues include movement of WIP and finished goods, delivery methods established, outsourced support established, etc. Raw material and/or subcomponent supply chain arrangements enhance efficient production. Sensors, control devices and analysis tools are instituted for integrated variance processing; rapid identification of quantity or quality deviations.
Stage 3: Organizational Excellence
Organizational excellence refers to having the most efficient management structure, personnel sourcing strategy and workforce capabilities. Efficient management structures minimize the reaction time to market changes and reduce communication errors. A motivated and cross-trained workforce that is capable of operator performed maintenance; fully committed to operational excellence; teamwork and meeting strategic objectives. Strategic objectives are viewed as more important than individual or production unit performance. Workforce continuously prepared to achieve and maintain high capacity efficiency; strong program to maintain process discipline, indoctrination and sustainment training.
Stage 4: Engineered Reliability
Engineer reliability in Capacity Development and Disposition refers to the organizations ability to investigate and innovate. Highly competent organizations must be able to anticipate or develop technological that represent incremental or order-of-magnitude improvements in production capacity. Fundamental research and development must be conducted or monitored and evaluated for cost effective application; ability to sense the right time to make the change. Strategic capacity management allows the organization to efficiently assign production responsibilities; where to upgrade, where to downsize or where to outsource. Supplier collaboration on production materials/components as well as with maintenance supplies can reduce carrying costs, re-machining and set-up time. Constraint analysis provides feedback to rationalization analysis, strategic capacity management and other functions. Identifying the impediments to higher production levels can lead to process redesign and improved profitability.
Stage 5: Operational Excellence
When Asset Management is achieved the organization is in peak condition. All elements of the business are operating at high efficiency. World leadership in the efficient and effective use of capacity management is attained and sustained. Throughput flexibility can meet all demand variations.
SAMI Pyramid Quick-Links
Asset Healthcare Triangle Asset Healthcare Triangle & Maturity Matrix (pdf)
Production Management Triangle Production Management Triangle & Maturity Matrix (pdf)
Logistics Management Triangle Logistics Management Triangle & Maturity Matrix (pdf)
Capacity Development Triangle Capacity Development Triangle & Maturity Matrix (pdf)
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