A capacity planning model for precast concrete building products

Abstract Examples of poor performance of precasters in terms of inefficient resource utilization and overstocking are commonplace in the precast industry. This is partly due to inaccurate planning practices and poor managerial decisions. The object of this paper is to develop a computer-based capacity planning model for precast concrete building products in order to help production managers to make better planning decisions and explore options open to them. The planning model is a factory simulator which automates the process of planning and predicts the effect of several managerial strategies before actual production commences. The performance of the model is examined using both real and hypothetical demand patterns. The paper has concluded that the model is a practical and considerable managerial tool for exploring and testing managerial options open to production managers. The model is suitable for companies which produce variety of concrete products on several plant. The authors welcome any collaboration with the industry to further the knowledge and application of the model. The model can be used to educate managers about the production process, the utilization of plant and the consequence of using certain managerial decisions.