The objective of this study was to examine the relationship between intensity of short-range and medium-range capacity management and effectiveness of manufacturing operations. Data were collected to test the null hypothesis which stated that intensity of short-range and medium-range capacity management does not influence manufacturing effectiveness. Intensity of short-range and medium-range capacity management was indicated by the following variables: (1) production standards; (2) priority determination; (3) delivery dates determination; (4) material requirements planning; (5) routing information; (6) capacity utilization; and (7) backlog measurement. Manufacturing effectiveness was indicated by the following variables: (1) delivery dates performance; (2) lead times; (3) subcontract work; (4) direct labor overtime; (5) direct labor efficiency; (6) plant and equipment utilization; and (7) work in process inventory. The population selected to provide data for this study is the manufacturing firms in the State of Texas with five hundred or more employees. Over 42 percent of the eligible firms responded to a six-page questionnaire. Several multivariate techniques were utilized for data analysis: (1) factor analysis; (2) canonical correlation analysis; (3) bivariate correlation; (4) multiple linear regression; (5) cross-tabulation; and (6) analysis of variance. The results of this research did not adequately support the rejection of the null hypothesis. …

This study identifies the concepts of reliability, cost of downtime, cost of spare parts, and procurement lead time as the four key moderators of spare parts availability. These concepts are used to establish a model to manage spare parts inventories. Reliability was assessed in terms of developing failure predictions for major component categories. Cost of downtime was evaluated by identifying various methods for determining costs associated with downtime. Cost of spare parts was examined to find correlations with economic indicators. These correlations were used to predict future price movements. Yearly changes in lead time were identified and correlated with economic indexes to develop movement predictability.