Capacity Planning

Manufacturers all face critical questions regarding capacity planning. Which production lines or plants should we add (or cut) to maximize cash flow and Return on Assets (ROA) as well as to meet market demand? If we add capacity, where should it go? Should we expand an existing line, or build a new one closer to our customers? Which production facilities are the real winners for us? Should we expand our operations, or consolidate a few of our production lines? Should we look at acquiring a new facility or build a new one?

Answers to these questions are generally made based on revenue, margin and productivity factors. However, if capacity planning is not based on detailed analysis of profitability and ROA by product, product type, production line and facility, overall company profitability will never be maximized. Maxager's profit-per-minute approach enables companies to accurately predict the cash and profit impact of changes to capacity.

  • Rank production lines and facilities by true profitability at a product level
  • Determine the cash and profit impact from potential capacity changes
  • Generate product-asset scenarios for expansion, consolidation or acquisition analysis
  • Analyze production facility profitability in conjunction with sales & marketing needs

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