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What Are the Causes and Effects of Excess Capacity? How

question 51

Essay

What are the causes and effects of excess capacity? How can companies seek to control these effects? Why must companies exercise caution when using capacity control strategies?


Definitions:

5Ss

A Lean production checklist.

Lean Production

An organized approach to reducing waste in a production system while maintaining output levels.

Waste Reduction

The process of minimizing waste generation by using fewer resources and recycling or reusing materials whenever possible.

Inventory

Items or products that are held by a business for the purpose of sale or production, including raw materials, work in progress, and finished goods.

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