Why Do Operation Managers Use Capacity Planning

992 Words4 Pages
Topic: In what extent the operation managers use Capacity Planning and control strategies to enhance organization operations performance.

Capacity is value added activity over a period of time at maximum level that an operation/process achieved under normal conditions. It is fundamental responsibilities of Operations management to satisfy the current and future demand. Operations management should create balance between capacity and demand. An appropriate balance between capacity and demand can satisfied the customers and eventually lead to organization profits. Capacity planning is the process of determining the production capacity to meet changing demands for its products. Capacity planning and control is the task of setting up the capacity of operations so that it responds to demand placed upon it. This means that taking a decision how the operations should react to demand fluctuations.
Capacity planning and control is major responsibility of operation managers. In this some other functional managers also involved in it. There are three reason for this. First capacity decisions have a companywide impacts. Secondly, all the other functions provide vital inputs to the process. The third and more important is each business function will have the capacity plan and control for its own micro operations
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They will also have some idea of their ability to meet this demand. Before any further decisions are taken, they must have quantitative data on both capacity and demand. The sequence of capacity planning and control decisions which need to be taken by operations managers is first of all measure the aggregate demand and capacity levels for the planning period. Secondly identify the alternative capacity plans which are adopted in response to the demand fluctuations. The third and final step is to choose the most appropriate capacity plan for their
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