Against Quote by Alan Greenspan
“Manufacturing capacity is not a rigid level against which one bounces. When you are dealing with a world economy, with a flexibility to employ production facilities other than one's own, then the concept of capacity is vaguer.”
About This Quote
Source Speech: Testimony before the Senate Banking Committee, 2005
Capacity is flexible, not fixed; firms can shift production across global resources, making traditional limits vague.
In simple terms: Capacity can be shifted worldwide.
Adapt planning to flexible resources.
Themes
Mood
Type
When to use this quote
- manufacturing planning
- risk management
- investment decisions
- policy making
Key Concepts
Questions to Reflect On
- How do you assess flexibility in your supply chain?
- What risks arise when relying on external capacity?
Assumes access to alternative facilities, which may not exist for all firms.