(a) Discuss briefly capacity planning. Explain various kinds of capacity planning. 15 marks (b) Discuss in brief various phases…

Capacity planning. Capacity planning is the systematic estimation of the production, service or facility capacity needed to meet forecast demand over a chosen horizon, while balancing capital cost, flexibility and service level. It links demand forecasting, product mix, technology and labour availability to plant size, shifts and equipment. It is strategic: under-capacity causes lost sales and overtime; over-capacity raises idle costs and debt. The main strategies are lead, lag and match. Lead capacity is added before demand rises, improving responsiveness but risking idle assets; lag capacity is added after demand is proven, reducing risk but limiting growth; match capacity adds small increments continuously, balancing risk and flexibility. Capacity has three levels: design capacity is the maximum theoretical output under ideal conditions; effective capacity is the realistic output after planned downtime, maintenance and quality losses; actual capacity is the output achieved. Planning uses forecasting techniques such as moving averages, exponential smoothing and regression, and project scheduling tools such as CPM/PERT for capacity expansion projects.

Quality management. Quality management has evolved from inspection, where defects were detected after production, to statistical quality control, where Shewhart control charts and Deming’s statistical methods reduced variation during production. This moved into quality assurance, which builds quality into processes, suppliers and systems, and then into total quality management, where every function and employee is involved in customer-focused continuous improvement. Six Sigma adds disciplined DMAIC/DFSS problem solving and defect reduction. Deming’s PDCA cycle—plan, do, check, act—provides the iterative improvement loop, while Juran’s trilogy of quality planning, control and improvement gives the managerial framework. In India, Tata Motors’ journey from inspection to TQM and Six Sigma, and Maruti Suzuki’s line balancing and supplier quality, show how quality systems become competitive assets.

Job sequencing. For the two-machine problem, Johnson’s rule is applied. For each job, the smaller processing time is identified: if it is on Machine-1, the job is placed as early as possible; if on Machine-2, as late as possible. The minimum times are C=1.1 on M1, F=1.25 on M1, D=2.25 on M1, B=2.0 on M2, E=1.8 on M2 and A=1.5 on M2. Sorting the M1 jobs in ascending order and the M2 jobs in descending order gives the loading sequence on both machines: C–F–D–B–E–A. The schedule is: C on M1 0–1.1 and M2 1.1–4.35; F on M1 1.1–2.35 and M2 4.35–8.35; D on M1 2.35–4.60 and M2 8.35–11.10; B on M1 4.60–8.20 and M2 11.10–13.10; E on M1 8.20–11.95 and M2 13.10–14.90; A on M1 11.95–14.45 and M2 14.90–16.40. The total elapsed time, or makespan, is 16.40 hours. Machine-1 works for 14.45 hours, so its idle time is 1.95 hours; Machine-2 works for 15.30 hours, so its idle time is 1.10 hours. The total idle time is 3.05 hours. The Gantt chart shows that Machine-2 is idle only for the first 1.10 hours, while C is on Machine-1, and that Machine-1 is idle for the final 1.95 hours while Machine-2 completes A. This sequence balances the line by keeping both machines loaded as continuously as possible and minimising the overall completion time.

Conclusion. Capacity planning, quality management and line balancing are mutually reinforcing. Capacity decisions determine whether quality investments, such as SPC, Six Sigma or TQM, can be sustained without overloading machines; quality systems reduce rework and downtime, raising effective capacity; and balanced sequencing reduces idle time, improving throughput and cost. In Indian manufacturing, integrating ISRO’s phased capacity planning, Tata Motors’ quality discipline and Maruti Suzuki’s line balancing shows that operations are one system of planning, quality and execution.