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. …

Work measurement systems are widely used by American manufacturers in establishing labor standards as inputs for budgeting, estimating, planning, evaluating, and managing production. These systems are used by defense related and non-defense related contractors alike. However in 1987, their use was required in United States Air Force major procurement contracts through Military Standard 1567A.