The design capacity refers to the total output that an organization is capable of producing under the utmost ideal working environment. The long term capacity of any organization or any business entity is highly dependent on other factors. The capacity planning, just like any other form of planning, involves the four main pillars of planning When a company or a business does not have a capacity planning strategy, the dangers exposed to its productivity are immense.ģ22 specialists online Types of capacity planning However, if thoughtful engagement and care are not given to the process, it can be disastrous.
The capacity planning, when handled with care and prudence, can singlehandedly influence a business’ profits. Effects of failing to use capacity planning However, implementing or adopting a capacity planning process, one needs to be very careful and prudent in the process. It is one of the greatest elements of a functional business entity (Kim et al., 2014) 1. Therefore, capacity planning is one of the most useful strategies. To achieve good results in operations, one needs to plan ahead of time in order to be sure that all the anticipated risks are covered in the risk management plan. This means the manager must utilize the available resource in the most effective manner. This includes machines, location/working space, and the required skilled labour/human resources, enough time/deadline to complete the work, and enough stock for production (Kim et al., 2014) 1.
1 For the success of an operation, the operation manager must have the basic supplies that he or she requires in order to achieve the desired goals. Communication flow, being one of the factors to consider, constraints that the client-server relationship should also be checked (Kim, Gupta, Urgaonkar, Berman, & Sivasubramaniam, 2014). In order to achieve such a success, one has to take into considerations a lot of other different factors. Operation managers are responsible for ensuring the operation at hand is successful. In this regard, capacity planning allows the possibility for the analysis and decision-making process. To enhance the chances of succeeding in operation, communication cannot be overlooked. 3 In many cases, project planning fails because of poor communication and inefficient flow of information. Information is one of the success factors that a specific operation can have (Lam, 2014). In managing any operation, the flow of information is very important. 3 This paper seeks to discuss and prove the benefits of capacity planning in managing an operation. It is the long term plan that dictates the success and sustainability of any business (Lam, 2014). Evidently, long term strategic planning is very crucial for the success of any business entity. Through this strategy, businesses can benefit from numerous financial advantages that accrue from it. Why capacity planning is crucial in managing an operationĮvery business, regardless of its size and operations, can benefit from capacity planning.
In addition, it can be very useful in the human resource department, and the manufacturing department, among other things. It may be functional in an organization’s computer network or storage system. 3 This is feasible in many areas and departments in a business setting. On the other hand, capacity planning is the ultimate utilization of resources by predicting production requirements (Lam, 2014).
This includes the amount of time, the constraints on the system that is involved in the production as well as the number of services and tangible goods produced.
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