Factors to Decide Effective Capacity of a Plant

1. First of all you have to consider financial resources and investment which are made and likely to be made by the organization.

2. The material factor that includes design, variety, quantity, the neccessary oerations and their sequence.

3. The man factor that includes direct and indirect workers and manpower utilization.

4. The movement factor that includes transportation.

5. The waiting factor that includes storage and delays.

6. The service factor like parking lot, waiting rooms and maintainance.

7. To decide effective capacity of a plant you have consider future demand including competition factors and others events.

8. Apart from general growth in demand you have to consider market trends and other factors like changes in monsoon etc.

9. Historical data and analysis of product life cycle helps tp decide the effective capacity of plant. For example, the growth of LCD TV sets can be compared with life cycle of other color TV sets and long term predictions of LCD TV sets can be made based on such comparison.

10. Other factors like outside and inside building features and the change factor like versality and expansion should be considered to decide effective capacity of plant

What are the other important factors?