5. Managing Capacity
Capacity planning is the technique of determining the manufacturing capacity needed by using a business enterprise to satisfy converting demands for its products. In the context of capacity planning, design capability is the maximum amount of work that an organization is able to finish in a given period. Examples of this are the seasonality of products. Capacity define as “the maximum level of value–added activity over a period of time”. Thus, three main factors come into force here – the capacity of resources and labour force, the process operation which itself leads to satisfying customers through matching demand. It is very important to plan and coordinate all 3 factors very effectively because a difference in capacity and performance easily affects: costs, revenues, working capital, flexibility, quality of goods, the speed of response and others.
5.1. Production Capacity of Nestle
The world’s leading nutrition, health and wellness company Nestle?, with a 100-year presence in Turkey, is completing the construction of its breakfast cereals production facility which is going to meet the domestic demand and make Turkey an export and production base for the nearby countries. Nestle? is going to start the production of the breakfast cereals, which it has imported up to this date, in Turkey. Built with the support of the Investment Support and Promotion Agency of Turkey (ISPAT) in Karacabey, Bursa, the breakfast cereals production facility will begin production with a production capacity of over 10,000 tons in the second half of 2011. All of the raw materials to be used in the production processes will be procured domestically and Nestle? will buy 4,350 tons of sugar, 5,350 tons of wheat, 4,000 tons of corn and 1,000 tons of rice per year as of 2013. By the completion of production facility, almost all Nestle products which are sold in Turkey shall be produced in Turkey. The production facility, which will transform Turkey into a regional hub in the breakfast cereals category, is launched to the press through a meeting attended by Minister of Trade and Industry.