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Solving Dam Problems: How to Compute Your Plant's DAM Capacity

Do you know your plant’s capacity? If your answer is, “Yes, because we have a scheduling department and an extensive scheduling system module built into our ERP,” I would say, “No, you don't.” What is my reasoning? First, an answer like this doesn’t really answer the question I asked; it doesn’t tell me what the plant capacity is. Second, this answer doesn’t tell me the process used to determine the plant’s capacity. Third, this answer doesn’t tell me how plant capacity estimates are verified and validated.  Fourth, this answer doesn’t tell me if their capacity is static (the same across all product types and product mix) or dynamic (different by product type and product mix).

We have all been obsessed with global labor costs in this industry, but what is hidden in terms of the cost of not understanding our plant’s true capacity could make our plants so DAM profitable that we would not have to worry about global labor costs ever again. Yes, the opportunity could very well be that great.

Few of us are willing to admit we don’t know our plant’s capacity. It would be like a dentist not knowing how to brush teeth. Yet with our need to build advanced technology HDI boards with sequential lamination, figuring out our plant capacity is a very difficult thing. Let me give you some examples that will more than pound this important point home. How much quick-turn work can you handle in your factory if it is a one-day, two-day, three-day, or four-day quick-turn? Is it 0%, 5%, 10%, and 20% by volume? What if you have a mixture of different quick-turn levels? How could you load your shop or set your promise dates to ensure perfect on-time delivery? Let’s compound the problem with HDI work with products that have two-eight lamination cycles. Based on the quick-turn commitments, how much plant capacity would you have left for regular 15-day orders? These are not questions that work well on spreadsheets. If you don’t believe me, try using a spreadsheet to work out the different cycle times for each job in each scenario. The only way you can answer questions like these is with a model.Read the full column here.Editor's Note: This column originally appeared in the November 2013 issue of The PCB Magazine.