Article PresentationArticle Presentation

Strategic Capacity Planning

November 29, 2010Kevin C. Barker, Tracie Butcher, Eric Chancellor, Chris Craig, and Diane

Fenstra

Agenda

Background

Concept

Analysis

Conclusion

Tracie

BACKGROUNDChris

Week Four Objective

• Evaluate Factors that Guide Strategic Capacity Planning

• Semiconductor Manufacturing Industry Article

Chris

CONCEPTEric

Strategic Capacity Planning

• Definition

– Article Authors

– Textbook

– Team

Eric

ANALYSISKevin

Challenges• Complex fabrication process

• Rapid changes in technology and products

• Long lead time and high cost of capacity increment

• High uncertain demand and capacityKevin

Capacity Planning Models/Methods

• Static capacity model

• Neighborhood search methods

• Simulation-based methods

• Methods based on the queuing model

Kevin

• Mathematical programming methods

• The LP Model

• The SP Model

• Other Methods

CONCLUSIONDiane

Review

• Strategic capacity planning objective

• Semiconductor manufacturing example

• Value

• Final thoughts

Diane

QUESTIONS?

Team

References• Chase, R. , Jacobs, F. , and Aquilano, N. (2006) Operations management for competitive

advantage. (11th ed). New York: McGraw Hill/Irwin. Retrieved November 18, 2010 from University of Phoenix Student Online Resource Forum, Course Materials Section.

• Geng, N. and Jiang, Z. (2009, July). A review on strategic capacity planning for the semiconductor manufacturing industry. Retrieved November 23, 2010 from University of Phoenix Online Resource Library – EBSCOHost.

• Photos. (2010). Miscellaneous presentation photos. Retrieved November 23, 2010 from http://www.google.com/images.