In your book I read about Protective and excess capacity.
Does it mean that we need to keep more manpower or equipment than required? Wouldn’t it be an expensive affair ?
Kindly explain with reasons.
Further I have also read the remark “Once we become aware of these different categories of Capacities, we must avoid falling into the Cost Accounting trap”.
That’s true but how to justify that, if cost of product get increased drastically.
You also advise to postpone commitments to avail capacity.
In most of the cases its not possible to postpone.
Secondly it also hampers OTIF.
Kindly revert .