Capacity dimensioning of operations capacity in manufacturing companies

University essay from Högskolan i Jönköping/IHH, Företagsekonomi; Högskolan i Jönköping/IHH, Företagsekonomi

Abstract:

Purpose:To investigate how managers work with capacity dimensioning and what the main challenges are in order to balance efficiency and responsiveness in the continuous operations, as well as investigate what patterns and trends that can be identified within the capacity dimensioning approach.

Methodology:A multiple case study was conducted including 14 manufacturing companies. Empirical data was collected through semi-structured interviews and used to explain the phenomenon of capacity dimensioning. Differences and similarities in the way companies approach capacity dimensioning was investigated though a cross-case analysis. The research is of exploratory and inductive character.

Findings:A general process for capacity dimensioning has been established and affecting aspects and challenges has been identified. Potential trends and relationships have been investigated for the capacity dimensioning approach, with a potential connection between flexibility and investment strategy with introduction period in human resources. Further the capacity strategies tend to vary depending on alternative capacity sources.

Theoretical implications:Information is provided for how capacity dimensioning is done at companies today, connections are strong to adjacent theories as S&OP but with more detail in the area of setting the capacity level.

Managerial implications:The capacity dimensioning does not have a solution that suits all companies, but communication and alignment in the supply chain should not be underestimated for successful capacity dimensioning.

Research delimitations:The research is conducted on manufacturing companies active in Sweden, other countries or continents of the world could generate other results because of different culture and laws. Further, service companies could also have provided other results. 

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