DVMS Power Electronics Private Limited: Capacity Analysis
(5 pages of text)
In 2016, the deputy general manager of operations at DVMS Power Electronics Private Limited (DVMS) in Gujarat, India, was faced with a problem at the company’s transformer plant. In recent years, amidst growing demand, the company had experienced low manufacturing capacity and was often unable to fill customer orders. Various stakeholders expressed their concerns about failing service levels. The deputy general manager was considering additional capacity as an option, but simply adding such capacity might negatively affect DVMS’ cost structure. He needed to consider the various short- and long-term options that would best benefit the company. He assigned the company’s summer intern the task of collecting the required data regarding the manufacturing of transformers at DVMS: the specified number of machines and workers, the processing time, and the monthly demand data for transformers. He needed to prepare a report that identified weak areas and suggested possible ways to expand capacity.
This case is suitable in an operations management course for first-year MBA students or in an introductory course in operations for executive MBA programs. After completion of this case, students will be able to
- understand basic operations concepts such as flow rate, demand rate, utilization, and implied utilization;
- carry out process analysis for a capacity-constrained manufacturing system;
- measure and monitor the process by cycle time, takt time, and Gantt chart; and
- forecast demand based on patterns in historical data.
India, Medium, 2016
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