Strategic Capacity Management

Faster Plane Turnaround Times Pay Off

Besides cramped seats, what do you hate the most about flying?

The answer is probably waiting. Flight delays, long waits on the runway before takeoff, and extensive taxiing after landing often result in missed connections and distress for passengers. The waits also cost airlines money. A lot of money. To control those substantial costs, airlines are trying to cut turnaround times at the airports. Some projects are still being piloted, but they seem promising. For once, it appears that airlines’ cost-cutting […]

By Corinne M. Karuppan, Ph.D.|2023-12-05T06:29:14+00:00December 8, 2023|Tags: efficiency, process analysis, process improvement, value, waiting line, waiting time|

Ford Slows Battery Expansion for EV Market

A myriad of challenges—both external and internal—are leading automotive giant Ford Motor Company to delay construction of its second electric vehicle (VH) battery plant in Kentucky.

Ford has previously announced two large-scale EV battery plants in Kentucky, with start date of 2025 and 2026, respectively. The first Kentucky EV battery plant is on schedule, but the second plant’s opening is now pushed out with no specific start date.

“Given the dynamic EV environment, we are being judicious about our production and adjusting […]

By James Kirby Easterling|2023-12-06T06:45:24+00:00December 6, 2023|Tags: capacity management, downstream suppliers, efficiency, expansion, forecasting, prediction, supplier relationship, upstream suppliers|

UAW Deal Raises Ford’s Breakeven Point

To end strikes in its biggest factories, Ford entered into a tentative agreement with the United Auto Workers Union to increase the wages of its 57,000 workers by 25% in the next four and a half years.

The increase in wages will add $850 to $900 labor cost per vehicle. Ford faces a challenging task in balancing vehicle price, margin, and demand while remaining competitive relative to non-unionized automakers such as Tesla.

Video Spotlight:

Ford will delay […]

By Anita Lee-Post, Ph.D.|2023-12-03T03:39:22+00:00December 3, 2023|Tags: break, breakeven analysis, competitiveness, cost-volume analysis, labor costs, productivity, unions|

Short-Term Housing Rentals Lead to Housing Shortages

Housing availability has plummeted while housing costs have skyrocketed for residents of Florence, Italy, in the wake of popularity for shorter rentals via platforms like Airbnb.

The housing shortage leaves lower income Italians and students particularly hard pressed to find affordable housing. In the absence of action by the central government, the city of Florence has taken matters into its own hands, banning new short-term residential leases on sites like Airbnb. Other cities around the world have faced similar problems.

Video […]

By Lisa M. Spencer|2023-10-27T04:12:23+00:00October 27, 2023|Tags: aggregate planning, capacity planning, inventory management, shortage|