Dynamics of AMT Capacity Planning

The introduction of advanced manufacturing technology (AMT) to an industrial concern can result in a protracted startup period. This may well extend into the anticipated operating phase of a new installation and thereby limit the productive capacity of the plant. In assessing the dynamics of capacity planning we need to understand the significance of any estimate made of Ŷ_c (the initial productivity), Ŷ_f (the productivity gain) and $$\hat{\tau }$$ (the rate at which the improvement in productivity is gained). “^” means the best estimate available at the time a forecast is to be made.