Swing Capacity - What is that? - Course

  Find out about "Swing Capacity". The use of spare capacity to cope with uncertainty up and down the Supply Chain.
How to size and use your Swing Capacity.

"Swing Capacity" is the plant capacity equivalent of safety stock. "Safety Stock" is a well-worn concept these days. Much has been written and talked about Safety Stock, yet it's capacity counterpart is often ignored.
Basically, safety stock or capacity is there to help cope with uncertainty in the supply chain.
Consumer demand cannot be predicted accurately. Suppliers can let you down. Transport can have problems. Setup times can be variable. Product yields can vary.

Keeping swing capacity can be a good alternative to holding product in stock. For example, capacity isn't product specific. Instead of racks holding safety stock of 38 different SKUs, you might be able to plan for one extra packing line to be available in quick start mode.

But, it not always so easy. A top manager might be able to say, "we have plenty of spare capacity" and be right at a global level, while production people know that "the Devil is in the Detail". Are there hidden bottlenecks? Is there only one crane? Are people with the right skills going to be available? What about start-up time?

In the seminar we will discuss uncertainty and risk and how to size these factors in specific cases. Then we will examine how to apply the factors to capacity units. We will discuss the trade-offs between safety stock and swing capacity.

At the end of the course you will get a copy of the course notes and a working model spreadsheet with the macros and scripts used in the course.

 

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Pre-requisite: Basic spreadsheet skills

Fee: $195

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for more information
Contact: Assured Systems Tel: 03 9555 7222
email: info@assuredsystems.com.au

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