Capacity Planning: Munch Bakery

Capacity planning Capacity is refers to the maximum amount of products produced that operation units can handle at specific time period which have been planned based on the demand forecasted. If the organizations’ forecasting is good, the planning of capacity will be accurate as well. It is critical for any business to manage the capacity and to put an effective plan for it because capacity planning has a significant impact of the success of the company. Capacity planning consider short-run and long-run associated to the overall organization goal (Rastogi, 2010). In addition, planning the capacity affected by several influences which are: quality problems, scheduling considerations, human factors and product design. In this part,

Munch bakery is following the PLC system that is set as per the Batch order and it as well measures its production plan against the actual achieved. In the other word, according to Bryan (2000), PLC is refers to “Programmable logic controller” which is a complicated computer specialized in controlling the machinery that includes the inputs and the outputs of the machines, it lead to an effective capacity planning. Moreover, the benefit of measuring capacity in Munch bakery is that it results in a well-organized work and the work is done in accordance with a plan as Mr. Amin stated. Nonetheless, it is important for large company like Munch bakery to ensure that it is using the most appropriate capacity measurement tool to achieve efficiency and

First, munch bakery uses goals and target achievement to compare it to the actual outputs and the manager has to take a corrective action if the results is not satisfying. Second, the goods that have QPS certification mark should be inspected from time to time, it provides the determinations of whether the company could provide those goods to the customers according to the original certificate for the duration of the inspection. In the other word, this inspection determine whether the goods provided is consistent with the standards of the certificate or not meet these standards. Third, Quality assurance (QA) inspection feedback and Quality control (QC) inspection reports are two methods to measure the quality as mentioned previously in Quality management. Fourth, ROI measure the performance of the company from the financial side that is a strongly indicates if the company achieves profit or loss according to the right calculation of the ratio. Lastly, Munch bakery evaluates CRM and market reports which include sales and marketing analysis that useful for helping in forecasting the demand and monitoring the competitors’