Quantitative and Qualitative Approaches to Utilizing Surplus Production Capacity)An Applied Study at the General Company for Automotive and Equipment Manufacturing in Alexandria, Iraq(

Abstract

The research aims to analyze the utilization of excess production capacity at the General Company for Cars and Equipment in Alexandria, Iraq. It focuses on assessing the potential for exploiting this capacity through leasing, selling, or self-utilization under the currént economic conditions. The study seeks to determine the volume and percentage of excess production capacity and to select the optimal alternative for production plans that achieves the highest returns at the lowest costs, taking customer opinions into account. It also aims to verify the components of excess capacity, such as machinery, equipment, labor, and financial support, as well as engineering expertise. A dual scientific methodology was adopted, combining both quantitative and qualitative approaches. The quantitative methods included data analysis using decision theory and linear programming techniques to evaluate available options. The qualitative methods involved conducting surveys and interviews with employees and experts, along with studying production-related documents and records, as well as field visits. The research found that the company suffers from an excess production capacity of up to 50% of its total capacity. Data analysis indicated that self-utilization of excess capacity is the optimal option for achieving the highest returns at the lowest costs. The results revealed a strong desire among customers to support national products, enhancing the opportunities for utilizing this excess capacity. The study confirmed that excess capacity significantly impacts costs and increases inefficiency. The research recommended the need to develop an effective strategic plan to exploit this capacity, conduct feasibility studies to assess available opportunities, and improve supply chains to ensure efficiency and effectiveness in production