The concretizing of the financing and the source structure and the understanding of the causal connections between them demand that we examine and interpret the related concepts and contexts by getting to the point. We may ask ourselves some questions based on the title of the chapter. What do we call a resource? Why is the planning task emphasized? From what do we talk about when we talk about a resource and capacity? Do the resource and capacity mean the same? We need so to interpret the resource and the capacity concepts. We interpret the concept of the resource as a first step, we walk around this concept. We know it on the basis of our knowledge until now, that the companies – to conducting the real flows - need inputs. The inputs – or a particular proportion of them – can be interpreted as the company's resources. We know it, that the companies – adequately to their mission – pursue different activities, so their economic area is differentiated according to this and they demand different resources and different combination of the resources in connection with this.
We can find different views for that relevantly, that which factors of production we enumerate to the resources. We enumerate generally to the resources the following according to the classic partition:
• human resource,
• building and mechanical resources,
• purchased materials.
As we will see this later, the circle of the resources – based on the theoretical approach – is to be complemented with the elements of the current assets serving as the working capital, so here to be enumerated:
the working capital proportion of the inventories,
the working capital proportion of the receivables and
the safety liquid assets.
After we identified the resources, we are somewhat in an easier situation regarding the definition of the capacity, mainly, if we do not treat the purchased materials as a resource at our first attempt. Let us take the human resource as a starting point first. On friendly gatherings - in connection with our running lifestyle – we hear statements like this often, that for that I do not have capacity already.
What is needed to think for at hearing this sentence? To an intellectual ability, or something else? I was also affected that case, when we needed to wait for the entrance into a West-Danubian thermal bath for half an hour. (This comment is important: Not because we got there half an hour before the opening!) When I was a student I worked as a temporary worker beside a mason with my room-mates – for the supplement of our scholarship –with more occasions at the completion of flooring concreting. Our planned Saturday afternoon program upset because of the half m3 cement mixer rented by the proprietor.What is the common feature of the resources in the examples above (thermal bath and the cement mixer)? The requested common feature of the resources is the sum of their some kind of ability, in an other draughting their some kind of efficiency. So we can deduct the inference that the capacity means some kind of efficiency. Based on the brought examples the efficiency means the following: there was not enough time for that, the thermal bath was full, the cubic capacity of the cement mixer was small. So we can deduct that additional important inference, that it is not possible to formulate a valid definition onto the concept of the capacity with general validity onto all of the resources. To the interpretation of the capacity of the resource we have to know the resource that is which resource capacity we want to define. The resources so have
common features, but they have also peculiarities at the same time. The common feature of the single resources is that their efficiency, their capacity is measurable and expressible with a number.
The consideration of the capacity, its index-number on the other hand is resource pendant. We interpret the capacity of the single resources.
The concept of the capacity of the building (as producer place), and machines, equipments (as producer equipments) we mean the maximum efficiency of these resource, which efficiency can be reached without the disproportionate decay of the consistence of these resources,beside the given technology and the expected production organization. We measure the production capacity with the quantity of the output which can be reached in a year or with the efficiency of the resource on a year level.
The human resource is the totality of the employees employed at the company structured according to their place occupied in the division of labour, according to their necessary abilities to the working and their expertise (Chikan, 1997). The workforce, as the capacity of the resource is those working hours – nominal time - that the employee spends on the workplace, from the aim of working. We measure the capacity with the working hours obliging according to the plan of work.
Taking the above examples as a starting point, how it is possible to interpret the efficiency of the purchased materials, as in the case of resources? Do these resources also have capacity? If yes, then how this capacity can be interpreted? It has to be the answer; – in academic meaning – yes, these resources also have capacity, because the undisturbed production is unsecured without the constant presence of the supplie and receivables in case of a production process for example, but the safety money supply - of its known function - can play this role likewise. The good quality of bought stock - from which end-product is made – influences the unit expense of the product fundamentally – there will not be a waste product – and finally its competitiveness. Because of their role played in the production and the competitiveness of the output can be interpreted so these inputs as a resource.
From among the bought stock it can be considered as a resource, which belongs to the group “A”, which forms the main component of the product. We can express their capacity with the material norm, which define fundamentally the quality of the stock and the technolog,.
On the concept of the capacity of inventories, receivables as resources can be interpreted as the effect of the stock value of the working capital appearing in inventories and receivables, that insure the undisturbed transaction of the continuous production as the resultant of the interaction of the peculiarities of the production processes and the related management's decisions.
We stepped forward a lot with interpreting the definition of the concept of capacity, but we did not get onto the end of the problem yet. An important question can be formulated; how we can interpret the capacity of the production process of a given product, how we know that the assurance of the starting of a given production process and the undisturbed procession need the different combination of the resources and demand more resources simultaneously in a concrete case. The production process determined by the output and its technology determine what kind of resources it is necessary to insure unambiguously. It is necessary to respond to that question that which resource is that, which determines the maximum output, if we know all this. We know that the production process – as a system - will be operational only if the elements forming the system enter into an interaction with each other, that is the interaction of the resources is assured, so the harmony has to
capacity of the rest of the resources of the system have to be adjusted to the capacity of a resource managing this central role, taking the economic projections of the production process, the inner and exterior conditions of the management into consideration naturally, etc.
We can define the concept of the resource plan based on the above ones. The planning of the capacities or resources finally is aimed at the harmonising of the needs for the capacities and the capacities standing for the provision (coverages). It serves that aim that the necessary resources let stand for provision in a suitable quantity, quality, in time and on place.
The consideration of the capacity can happen with a diverse index-number depending on that we are talking about a resource, or a product producing or a service system because of the peculiarities. The index-number of the capacity can be;
natural unit of measure, for example 5000 pieces of TV, 15 000 pieces of bicycle, 50 000 tons of flour, the capacity of my theatre is 500 people, in hospital the number of the beds is 250 pieces, in a motor work's case the number of the produced automobiles, 50 pieces of cow and the progeny in a dairy-farm, etc.
We can speak for example about production capacity, space capacity, etc.
calculated unit of measure, for example 1000 shift hours/year, 50 thousand ton-kilometer /longevity,
In work amount (norm hour, working hour, etc.), as norm hour or working hour capacity,
In a mechanical time expenditure (machine hour, works hour, as machine hour or works hour capacity, etc.)
we can measure it in money – we can not make anything else concerned of the service because of the peculiarities - for example the capacity of a bank, when the credits are defined in Ft which can be outsourced, but it is not possible to find more suitable device in a press' case onto the expression of the capacity, as the income from sales, but we can characterize a food store's capacity only with the greatness of the trade – that is with the income from sales, etc.
We can see it so, that the consideration of the capacities is not an easy task. Because of the peculiarities of the production processes, we can say that we can express the capacity with the inputs in case of process centric production, and it is possible to measure the capacity with the volume of the outputs better in the case of product centric production.
The ensurance of the harmony of the capacities, the definition of the central resource, the size and setup of the capacities, etc. demand a serious designer work, and it is not exaggerating to say, that a professional knowledge is needed in some cases. Since the resources are the permanent elements of the conduction of the production, because of their economic effect they have a determining effect on production expenses since the related expenses come forward if production is not going on, that is they are constant expenses in the production. Let us think for example on the depreciation of a building or a machine or a technical equipment, onto a workforce's wage employed constantly, its common charges, the opportunity cost of the current assets serving as the working capital, etc. Since these expenses are independent of the volume of the output, it does not matter so, how the utilisation of the capacity of the given resource develops. The capacity utilisation is a rate, that is a ratio. The measure of the utilisation finally is in a contact with the quantity of the output. If for example the dairy-farm
is able to receive 50 pieces of cow and their progeny, the 35 pieces of cow and their progeny binds down only 70% of the settlement's capacity. The determining resource of the dairy-farm is the cowshed, as the capacity of the „production place”, which we express with the cowshed's space. It is needed so to fix the capacity of the other „production place” for this (giving birth, calf growing, etc.) but the other resources, as for example the workforce's capacity, furthermore the amount of the supplies, etc. too. The capacity of the central resource determines the rest of the capacity unambiguously in many cases, measure regulations concern them in a concrete case (for example fertiliser depository). As this is known already, the general basis context of the planning of the capacity is:
capacity Specific
capacity Necessary
The resources of the Ltd, the invested assets and the workforce are given. The plant protection service demands a resource plan only.
The power machine and work machine need plan of the plant protection service
The necessary machine piece is plannable based on the general context as this is known in the case of power machines. We get the necessary capacity if we divide the cumulative area by the planned performance of a machine. The planned performance is 50 ha/ 10-hour-shift-day. We get the following according to the table 16:
10: 15 = 0,66 ≈ 1 piece of power machine 18 : 21 = 0,86 ≈ 1 piece of power machine 23:24= 0,95 ≈ 1 piece of power machine Table 16. The power machine and work machine demand plan
Description Area
Total 1150 500 900 1150 500 3050
Necessary shift day 10 18 23 10 61
Capacity/10-hour-workday/month/
15 21 24 25
Power machine demand 1 1 1 1
It is necessary to mention emphasized that it is necessary to divide it by the spraying turning in the plant protection and not with the number of workdays which can be worked off and standing for a provision outdoor. (In the case of the Ltd we take the existing machine capacities into consideration, because of this we plan according to the algorithm above.) There is need for 1 piece of machine according to 1 pieces of calculated power machine demand. The power machine and work machine demand of the service is also 1-1 piece. The aggregated power and work machine demand is in the table 17. The materials of power and work machine of the plant protection service, the depository capacity can be found in the
TABLE 17. THE INVESTED RESOURCES OF THE PLANT PROTECTION SERVICE
Description Unit of
measure Amount Investment cost (KHUF)
Landini Legend 165 TDI piece 1 14000
MTZ-82 piece 1 4 800
Berthoud 3200 piece 1 7 200
DETK 3015 piece 1 1 600
Fertiliser depository piece 1 2000
Total 29 600
The human resource needs of the plant protection service:
The claimed service does not demand the insurance of additional staff numbers. The service means altogether 61 workdays that is 610 working hours demand. The human resource demand of the service can be solved with the present workforce of the Ltd., with 4 skilled workers.