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2.4 Manage Capacity

Planning capacity is one of fundamental importance to organisations seeking to maintain competitiveness. In essence the manager's role is to convert the existing information on strategic directions into process or 'business unit' outcomes. How this is done will vary with the type of processing occurring in either a service or manufacturing organisation. There are three basic types of processing that will impact how planning can occur:

Continuous - Output that is generated through ongoing and continuous processes that may occur over extended lengths of time.

Intermittent - Output that is generated through non-continuous cyclic or staged plans (e.g. Seasonal requirements).

Project - Output tied to an event, service or product within a given time frame.

Activity 3

Categorise the following operations into one of the three (I, II, OR III) types of processing identified.

Process Described

Processing Type*

Designing a new product label

C or a project

Manufacturing pain relief tablets

 

The construction of a hotel

 

The milking of cows on a farm

 

Sales support from a call centre

 

Car Manufacturing

 

Car maintenance services

 

 

Capacity refers to an upper limit or ceiling on the load [input or output] that on operating unit [department, store, process, team, person, etc.] can handle (Stevenson 1993:240).

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