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Capacity Management

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Capacity Management presentation is about definition of productive capacity, from excess demand to excess capacity, capacity management, various demands by market segment, strategies for matching capacity of and demand for services, strategies for managing demand, strategies for managing capacity, demand and supply are well-balanced at the level of optimum capacity, excess capacity, types of productive capacity, physical facilities designed to contain customers, physical facilities designed for storing or processing goods, physical equipment used to process people, possession or information, labour, access to sufficient capacity in the public or private infrastructure, controlled capacity, affected capacity plans, specifications of a service provider, employee scheduling problem, defining the decision variables, defining the objective function, defining the constraints, where time goes, queues, waiting time, customer waiting time versus process efficiency, the psychology of waiting, reducing perceived wait, the propositions on the psychology of waiting lines, solutions, summary of fundamental process principles and framework for process flow management.

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SERVICE OPERATIONS
MANAGEMENT

CAPACITY MANAGEMENT

, What is Productive Capacity?
 Productive capacity can take several forms in
services
– Physical facilities designed to contain
customers
– Physical facilities designed for storing or
processing goods
– Physical equipment used to process people,
possessions, or information
– Labor
– Infrastructure
 Financial success in businesses that are
limited in capacity depends largely on how
capacity is used

, From Excess Demand to Excess
Capacity
Four conditions potentially faced by fixed-
capacity services:
 Excess demand
– Too much demand relative to capacity at a given
time
 Demand exceeds optimum capacity
– Upper limit to a firm’s ability to meet demand at a
given time
 Optimum capacity
– Point beyond which service quality declines as more
customers are serviced
 Excess capacity
– Too much capacity relative to demand at a given
time

, Capacity Management

Matching the amount of output that a
system is capable of achieving with
the demand placed on that system

Service capacity is a perishable
commodity.

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Uploaded on
November 6, 2022
Number of pages
41
Written in
2014/2015
Type
PRESENTATION
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