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Author:Barnett, F. W.
Title:Elastic capacity and skin-tight costs: low-budget production improvements
Journal:Sloan Management Review
1990 : SPRING, VOL. 31:3, p. 65-71
Index terms:CAPACITY
SALES
QUANTITY
COSTS
RISK
CUSTOMERS
QUESTIONNAIRES
Language:eng
Abstract:Managers sometimes assume that capacity additions and sales volume increases will require major plant expansions, which bring with them financial, market, and operational risks. Examples are provided that companies that think imaginatively about managing capacity often find excellent low-cost and low-risk opportunities to increase volume. The steps that managers typically must follow to uncover these opportunities and act on them are described. A brief self-diagnostic questionnaire is included and discussed. Some competing ways to increase capacity are reviewed: "debottlenecking", redesigning the product, using more reliable components, changing product or customer mix. Some other approaches are only mentioned.
SCIMA record nr: 80577
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