Capacity planning determines whether available labor, machines, and facilities can meet expected demand. It considers long-term strategic capacity and short-term adjustments such as overtime or subcontracting.
Governing FormulaUtilization = Actual output / Design capacity
Knowledge Check
10 Questions
1.What is the primary purpose of capacity planning?
2.Which input is important when applying capacity planning?
3.What is a common performance objective in capacity planning?
4.Why are constraints important in capacity planning?
5.What should be checked when validating a capacity planning result?
6.What can poor data cause in capacity planning?
7.Which practice improves reproducibility in capacity planning?
8.What does a feasible solution mean in capacity planning?
9.Why should managers review capacity planning outputs before implementation?
10.Which factor can directly affect outcomes in capacity planning?