A primary outcome of continuous improvement efforts undertaken in a lean company is to create capacity. A company can use additional capacity to improve delivery, quality, lead time, productivity, cost, safety, and morale.
In lean accounting, it’s important to have clear, intuitive measures of capacity to quantify the following:
• Capacity created due to improvements.
• How the current capacity is being used: for activities that are value-added, non-value-added but necessary, or in some cases simply unnecessary.
• If there is adequate capacity to deliver a product or service on time.
• Where there is available capacity and determine how it can best be utilized.
• Where there is a lack of capacity and potential overburden as a result.
In this webinar you will learn:
• Why capacity needs to be measured
• The process to calculate capacity
• How to calculate capacity in manufacturing
• How to calculate capacity in service