Capacity planning is a strategic process that aligns an organization’s available resources with its projected demand.
What is Capacity Planning? Strategies, Types, and Processes
Capacity planning aligns with strategic resource planning, ensuring resource optimization for long-term organizational goals, competitiveness, and adaptability to market shifts.
Strategic Resource Planning
Capacity planning balances supply (resources) with demand (customer requirements and market dynamics).
Supply and Demand
Proactively increase production capacity for anticipated demand, benefiting from predictability.
Lead Capacity Planning
Lag strategy reacts to demand spikes, typical in healthcare, emergency services.
Lag Strategy Planning
Match strategy combines lead and lag strengths, adjusting capacity dynamically.
Match Strategy Planning
Capacity Planning vs. Resource Planning
Key Differences
Capacity views organization-wide, while resource focuses on tactical allocation.
Scope -
Capacity is long-term; resource is short-term.
Time Horizon -
Capacity ensures growth; resource maximizes efficiency and productivity.
Objectives -
Capacity considers broad resources; resource often focuses on human resources.
Resource Types -
Types of Capacity Planning
Workforce Capacity Planning
Critical component: analyzing human resources for effective task assignment, balance.
Tool Capacity Planning
Critical in industries; assess tools, machinery to meet customer demand.
Product Capacity Planning
Essential for physical goods production; analyze materials, maintain inventory levels.