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    Capacity Planning

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    foxahef779
    Capacity planning is a dynamic process that requires ongoing monitoring and adjustments as an organization evolves. It involves analyzing an organization's current capacity and forecasting future demands to ensure efficient operations and balance meeting customer demand without over- or underutilizing resources. There are several types of capacity planning including strategic, tactical, operational, lead time, financial, resource, facility, and inventory capacity planning that each focus on different timeframes and aspects of managing an organization's resources and capacity.

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    Capacity Planning

    Uploaded by

    foxahef779
    21 views6 pages
    Capacity planning is a dynamic process that requires ongoing monitoring and adjustments as an organization evolves. It involves analyzing an organization's current capacity and forecasting future demands to ensure efficient operations and balance meeting customer demand without over- or underutilizing resources. There are several types of capacity planning including strategic, tactical, operational, lead time, financial, resource, facility, and inventory capacity planning that each focus on different timeframes and aspects of managing an organization's resources and capacity.

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    Capacity planning is a dynamic process that requires ongoing monitoring and adjustments as an organization evolves. It involves analyzing an organization's current capacity and forecasting future demands to ensure efficient operations and balance meeting customer demand without over- or underutilizing resources. There are several types of capacity planning including strategic, tactical, operational, lead time, financial, resource, facility, and inventory capacity planning that each focus on different timeframes and aspects of managing an organization's resources and capacity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    21 views6 pages

    Capacity Planning

    Uploaded by

    foxahef779
    Capacity planning is a dynamic process that requires ongoing monitoring and adjustments as an organization evolves. It involves analyzing an organization's current capacity and forecasting future demands to ensure efficient operations and balance meeting customer demand without over- or underutilizing resources. There are several types of capacity planning including strategic, tactical, operational, lead time, financial, resource, facility, and inventory capacity planning that each focus on different timeframes and aspects of managing an organization's resources and capacity.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    CAPACITY PLANNING

    Operations Management
    CAPACITY PLANNING
     Capacity planning is a dynamic process that requires ongoing monitoring and
    adjustments as the organization evolves. By effectively managing capacity, organizations
    can optimize their resources, maintain high levels of customer satisfaction, and support
    their growth and profitability goals. Capacity planning is determining the production or
    service capacity needed by an organization to meet its current and future demands. It
    involves analyzing the current capacity of resources, such as equipment, facilities, labor,
    and infrastructure, and forecasting future requirements to ensure that the organization can
    operate efficiently and effectively. The goal of capacity planning is to strike a balance
    between meeting customer demand and avoiding underutilization or overutilization of
    resources. By conducting capacity planning, organizations can optimize their operations,
    minimize costs, improve customer satisfaction, and make informed decisions regarding
    investments in new resources or infrastructure.
    TYPES OF CAPACITY PLANNING
    1.Strategic Capacity Planning:
    This type of planning focuses on long-term capacity decisions, often spanning several
    years. It involves assessing the organization's overall capacity needs to meet future market
    demand and strategic goals. Strategic capacity planning may involve decisions about
    building new facilities, expanding existing ones, or entering into partnerships and
    alliances.

    2.Tactical Capacity Planning: Tactical capacity planning typically covers a shorter time
    frame, often up to a year. It involves adjusting capacity to accommodate seasonal
    fluctuations, changes in product lines, or other short-term changes in demand. The goal is
    to maintain a balance between capacity and demand while minimizing costs and
    maximizing efficiency.
    3.Operational Capacity Planning
    This type of planning is the most immediate and focuses on day-to-day operations. Operational capacity
    planning ensures that resources, including labor, equipment, and materials, are effectively deployed to meet
    current demand and maintain efficient operations. It may involve real-time adjustments to address
    immediate capacity issues.

    4. Lead Time Capacity Planning


    Lead time capacity planning considers the time required to acquire or increase capacity. It involves
    forecasting lead times for procuring equipment, hiring and training staff, or setting up new production lines.
    This is crucial for ensuring that capacity is available when needed.

    5.Financial Capacity Planning


    Financial capacity planning evaluates the financial resources required to fund capacity expansion or
    improvements. It includes budgeting for capital expenditures, securing financing if necessary, and assessing
    the financial impact of capacity-related decisions on the organization
    6.Resource Capacity Planning
    Resource capacity planning focuses on the allocation of specific resources within the organization. This can
    include labor capacity planning, machine capacity planning, or the allocation of other critical resources to
    different tasks or projects.

    7.Facility Capacity Planning


    Facility capacity planning pertains to the physical infrastructure of an organization. It includes determining the
    capacity of facilities such as manufacturing plants, warehouses, and distribution centers to meet production and
    storage requirements.

    8. Inventory Capacity Planning


    This type of planning focuses on managing inventory levels to ensure that they align with demand fluctuations.
    It aims to strike a balance between holding enough inventory to meet customer demand and avoiding excess
    carrying costs.
    THANK YOU

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