capacity plan

Topics: Term, Time, Future Pages: 5 (1522 words) Published: November 29, 2013
Capacity planning:
Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, "design capacity" is the maximum amount of work that an organization is capable of completing in a given period, "effective capacity" is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing as a synonym for Capacity Management. Capacity Planning Classification:

Capacity planning based on the timeline is classified into three main categories long range, medium range and short range. (a). Long Term Capacity:
Long range capacity of an organization is dependent on various other capacities like design capacity, production capacity, sustainable capacity and effective capacity. Design capacity is the maximum output possible as indicated by equipment manufacturer under ideal working condition. Production capacity is the maximum output possible from equipment under normal working condition or day. Sustainable capacity is the maximum production level achievable in realistic work condition and considering normal machine breakdown, maintenance, etc. Effective capacity is the optimum production level under pre-defined job and work-schedules, normal machine breakdown, maintenance, etc. (b). Medium Term Capacity:

The strategic capacity planning undertaken by organization for 2 to 3 years of a time frame is referred to as medium term capacity planning. (c). Short Term Capacity:
The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning. Goal of Capacity Planning:
The ultimate goal of capacity planning is to meet the current and future level of the requirement at a minimal wastage. The three types of capacity planning based on goal are lead capacity planning, lag strategy planning and match strategy planning. Factors Affecting Capacity Planning:

Effective capacity planning is dependent upon factors like production facility (layout, design, and location), product line or matrix, production technology, human capital (job design, compensation), operational structure (scheduling, quality assurance) and external structure ( policy, safety regulations) Forecasting v/s Capacity Planning:

There would be a scenario where capacity planning done on a basis of forecasting may not exactly match. For example, there could be a scenario where demand is more than production capacity; in this situation, a company needs to fulfill its requirement by buying from outside. If demand is equal to production capacity; company is in a position to use its production capacity to the fullest. If the demand is less than the production capacity, company can choose to reduce the production or share it output with other manufacturers.

#1: Start small
Many a capacity-planning effort fails after a few months because it encompassed too broad a scope too early on. This is especially true for shops that have had no previous experience in this area. It is wise to start with just a few of the most critical resources — say, processors or bandwidth — and to gradually expand the program as you gain more experience. #2: Speak your customers’ language

When requesting workload forecasts from your developers and especially your end-user customers, discuss the forecasts in terms that the developers and customers understand. For example, rather than asking for estimated increases in processor utilization, ask how many additional concurrent users are expected to be using the application or how many of a specific type of transaction is likely to be executed during peak periods. #3: Consider future platforms

When evaluating tools to be used for capacity planning, keep in mind new architectures that your shop may be...
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