The continuous flow process type model is the most commonly used model to measure the capacity of firms in diamond value chain stages. The model allows for examining how much service a firm can produce given its resources and the demand. This information is important for assessing a firm’s potential and understanding how changes in production at one stage of the value chain can impact production at other stages. There can be multiple measures of a diamond’s capacity, but the most common is carats. One carat is equal to 200 milligrams. Diamonds are also measured in points; a point is 1/100 of a carat, so that one-point diamond would weigh 2 milligrams (Collier & Evans, 2020). The capacity at the mining stage is based on the number of stones falling within a specific weight class. For instance, if sixty percent of all diamonds mined weigh less than 1 carat, then the mining stage’s capacity would be based on stones that weigh less than 1 carat. This approach ensures that all stages in the diamond value chain can meet customer demand for specific weight classes of diamonds.
Hudson Jewelers diamond cutters use the latest in cutting technology to craft each diamond to perfection at the cutting and polishing stage. The team follows a rigorous process for measuring a diamond’s capacity, which is the volume of water that a diamond can hold without spilling (Collier & Evans, 2020). Capacity measurement is taken by filling up a calibrated glass container with water and carefully lowering the diamond into the water until it touches the water surface. The meniscus, or curved edge of the water, is then measured and used to calculate the capacity of the diamond. Capacity can be measured at the jewelry manufacturing for custom and standard jewelry stage by counting the number of pieces produced in a certain time frame (Collier & Evans, 2020). For example, a company might produce 1000 pieces in one hour. At the retail store stage, capacity can be measured by counting the number of customers served in a certain amount of time. For example, if a store serves 100 customers in one hour, then its capacity is 100/hour.
Reference
Collier, D. A., & Evans, J. R. (2020). Operations and supply chain management. Cengage Learning.