Capacity Planning and Performance Modeling

Preparing Capacity Planning and Performance Modeling
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Capacity planning refers to the process by which the production functions that are required by the organization in order to enable them meet the change regarding the demand for their outputs are determined. It tries to come up with the design capacity of the organization. It only refers to the maximum duties that the organizations can successful carry out within a given period. In the preparation of the capacity planning, we also focus most of the attention on adequate capacity. This refers to the maximum quantity of duties that the employees in an organization can finish within a given period but due to the various constraints imposed on them by the authority. These constraints may include the delays, quality problems and the handling of organization materials among other forms of constraints. Some of the organizations refer to capacity planning as the capacity management.
Capacity management by the organizations is very crucial. It is because it plays very vital role towards the fulfillment of the demands made by the customers. Failure to manage the capacity of the organization may result in either the dissatisfaction of the customers’ wants or the underutilization of the available resources by the organization. The primary objective of the capacity management is to realize the minimum level of discrepancy within the organization. The organization's capacity varies from one organization to another (Allspaw, 2008). They are based on the changes in the output that the organization produces which may either reduce or increase in quantity. The capacity of any given organization can be increased by acquiring additional production materials, introducing brand new techniques in the organization or by increasing either the number of workers or machines available in the organization.
In the preparation of capacity planning, we take note of the following strategies to make sure that the process is successful:Lead strategy: it implies that we will increase the capacity of the organization with the primary objective of growing demand. It typically plays the significant role of ensuring that the customers who are loyal to the competing firms are lured to the company. It does this by emphasizing the need to improve the level of services available and reduction in lead-time. The strategy also helps in the reduction of the stock of expenses.Lag strategy: this refers to the addition of capacity as a result of the organization operating either at full capacity or above its capacity due to the increase in the demand for their products. This strategy is seen as more conservative. It has the main advantage of reducing the ri...