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Supplier Capacity Assessment Guide

The document outlines a structured approach for assessing a supplier's production capacity, starting with defining objectives and collecting essential production information. It emphasizes conducting on-site observations, using capacity calculation templates, and comparing available capacity to demand forecasts. The report should also include visuals, recommendations for improvement, and optional tools for advanced support.

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aleassaahmad
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5 views3 pages

Supplier Capacity Assessment Guide

The document outlines a structured approach for assessing a supplier's production capacity, starting with defining objectives and collecting essential production information. It emphasizes conducting on-site observations, using capacity calculation templates, and comparing available capacity to demand forecasts. The report should also include visuals, recommendations for improvement, and optional tools for advanced support.

Uploaded by

aleassaahmad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

Define Objectives

Start by being clear:

 What do you want to assess? (e.g., Can the supplier meet


volume/delivery expectations?)

 Do you need current capacity, maximum capacity, or both?

 Will you benchmark this capacity vs your forecast?

✅ 2. Collect Basic Production Info

Ask the supplier to prepare the following:

 List of Key Machines & Lines (Name, type, model, year)

 Shift patterns (e.g., 2 shifts x 8 hours/day, 5 days/week)

 Planned vs actual working hours

 Cycle time per part/process

 Changeover time

 Downtime records (maintenance, tool change, etc.)

✅ 3. Conduct Gemba Walk (On-Site Observation)

 Walk through production lines

 Observe WIP, bottlenecks, machine idle time

 Interview production managers/operators about peak load capability

✅ 4. Use a Capacity Calculation Template

A simple formula to calculate Theoretical Capacity:

sql

CopyEdit

Production Capacity = (Available Time per period × Machine/Line Efficiency)


÷ Cycle Time
Example format:

Cycle Daily
Machin No. of Shift/ Hours/ OEE
Process Time Capacity
e Machines Day Shift (%)
(sec/part) (pcs)

DMG
Milling 2 2 8 75% 60 sec ~720
1035

Assembl
Manual 5 1 8 80% 300 sec ~480
y

✅ Then summarize Total Line Capacity vs Your Demand Forecast

✅ 5. Check Support Areas

 Warehouse: Is there enough space for raw material, WIP, and finished
goods?

 Manpower availability & training

 Tooling availability and changeover efficiency

✅ 6. Compare to Your Demand

Prepare a section in your report:

 What is your monthly/yearly forecast?

 Is their available capacity sufficient?

 If not, how much CAPEX or adjustment is needed?

✅ 7. Include Visuals

Graphs, charts, and simple visuals are very helpful:

 Gantt chart of process steps

 Capacity vs demand bar chart

 Layout sketch with bottlenecks or capacity constraints


✅ 8. Add Recommendations

End the report with:

 Bottlenecks identified

 Risks (e.g., single machine dependency, limited operator availability)

 Suggestions (e.g., add shift, reduce downtime, invest in automation)

✅ Optional: Use Tools

If you need more advanced support:

 Excel templates (for capacity calculation)

 VSM (Value Stream Mapping) to visualize throughput

 OEE tracking tools (for deeper machine performance)

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