Beck Manufacturing Company Capacity And Proficiency

1124 WordsApr 26, 20165 Pages
Beck Manufacturing Company Capacity and Proficiency The Beck Manufacturing Company currently has five operational work stations, in which they produce steering gears for many auto manufacturers. Operation work stations in place are for milling, grinding, boring, drilling and assembly of parts. Within those operational departments the company must determine the organization capacity inputs and outputs to satisfy their customer demands. Capacity is a corporation’s ability to deliver consumers goods, products or services in the volume needed within the time period allotted. To accomplish these obligation organizations will need to procure a physical location, working capital, skilled employees, and raw material for accomplishing the anticipated level of productions in order to meet the consumers demand. In business capacity planning is vital for the organization sustainability in an economical business environment, Vonderembse, & White (2013), notes that substantial capital is generally required to build a facilities and for the procurement of equipment to build capacity. (ch. 8.1). For example if a manufacturers cannot deliver the required quantity of goods to a vendor on time due to a shortage of inventory, then and there to buyer may find another vendor and the business relationship can be severed. But then again, the company does not want to have excess products sitting in inventory and capacity without the demand from the consumers. Therefore, before estimating capacity as
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