“If you want to determine the production capacity and the plan necessary to meet the changing demands for its products and services, then you have done sufficient capacity planning, but what strategy and steps were taken to develop your plans?”
It should be self-evident as to why an organization should care about capacity planning. No one wants to be in the situation where they have tons of people with nothing to do or to have too many projects and not enough people. As work piles up you are unable to become more efficient or grow as a company. You are unable to do much more than fight the fires. A company that has done sufficient capacity planning understands their priorities, the resource availability, the cash flow, as well as the intricacies of their time frame. Every project matters!
The repercussions of a poorly planned product launch are not just some unplanned operational costs, but a battlefield of ruthless customer reviews as well as negative impacts on the company’s image. The goal of capacity planning is to reduce that possibility, by minimizing the discrepancy, and provide satisfactory service levels in a cost-efficient manner. In other words, you are checking the system, and determining if you have the roles and skills needed before scheduling the work. Regardless of the situation, capacity planning involves three basic steps:
There is lots more that can be said about each of these steps, but to begin you must understand your limits. After that is determined, you can start to understand your organizational constraints, the true project priority, and further speculate on production holdup. Companies use one of four general strategies to determine the production capacity, and produced the plans necessary to meet the changing demands for its products and services:
You made the resources available to really look at the capacity and demand in your organization. You even allowed others to adjust a few of the associated variables such as hiring a new copywriter and adjusted a few projects. So… you’re done with capacity planning? Right? Not so much.
We live in a fast paced world were nothing ever stays the same for too long. The capacity is defined as the maximum amount or number that can be received or contained. This could be about the amount of data on a hard drive, or the maximum amount of work that an organization can complete in each amount of time. It is important to know those numbers, but it is more important to know that capacity requirements can fluctuate between peak and limited demand. You might not require the same number of resources in normal operations as you do in peak demand. You are only human, to ensure the success of business initiatives and reduced cost, capacity planning should be actively done semi-annually, but with this concept, should be continuously in the back of your mind as things change!