8. All organizations have the potential to perform work, which is determined by the types of...

Transcribed Image Text:

8. All organizations have the potential to perform work, which is determined by the types of resources and the organization's capacity. Effective use of resources can be critical to a firm in any competitive market. In their efforts to efficiently use capacity, managers may ask questions such as: What portion of the available capacity is in use? Of the capacity in use, what portion is used productively? How can we increase the productive use of capacity? Why is a portion of available capacity not in use? Can we eliminate unused capacity? Over-land's management is no different. In fact, management is not exactly clear about how to view capacity. Discuss the challenges that Over-land's management faces with defining and managing capacity. Consider various definitions of capacity, such as theoretical, practical, normal, and actual capacity. Based on the facts presented in the case. prepare an estimate of capacity for Over-land (assuming one driver per rig without slip seating or team driving). 8. All organizations have the potential to perform work, which is determined by the types of resources and the organization's capacity. Effective use of resources can be critical to a firm in any competitive market. In their efforts to efficiently use capacity, managers may ask questions such as: What portion of the available capacity is in use? Of the capacity in use, what portion is used productively? How can we increase the productive use of capacity? Why is a portion of available capacity not in use? Can we eliminate unused capacity? Over-land's management is no different. In fact, management is not exactly clear about how to view capacity. Discuss the challenges that Over-land's management faces with defining and managing capacity. Consider various definitions of capacity, such as theoretical, practical, normal, and actual capacity. Based on the facts presented in the case. prepare an estimate of capacity for Over-land (assuming one driver per rig without slip seating or team driving).