Bill Ritchie

President
Tempus Institute
P.O. Box 41171
Dayton, OH 45441

The miraculous effect of spare capacity

August 29, 2014

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The traditional cost-based approach to manufacturing promotes using your resources—people and machines—to the fullest extent, but this can wreak havoc in high-product-mix manufacturing, especially in contract operations with varying and unpredictable levels of demand. This is where the value of spare capacity comes into play.

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