This document discusses options for managing capacity and demand. It outlines several strategies for businesses to match their capacity to demand, including involving customers in self-service, cross-training employees, using part-time employees, renting or sharing extra facilities and equipment, scheduling downtime during low demand periods, and changing the service delivery system. The overall goal is for businesses to efficiently meet current and future requirements and maximize capacity while still providing a satisfying customer experience.

1. MANAGING CAPACITY
AND DEMAND

2. Managers have two major options for
matching capacity with demand:
Change Demand or Change Capacity

3. Capacity Management
>> Meeting the current and
future business requirements
in a cost-effective manner.

4. Involve the Customer in the
Service Delivery System
• Getting the customer involved in service
operations expands the number of
people that one employee can serve,
thus increasing the capacity of the
operation.
• Self-service technologies(SSTs) allow
the customer to serve as the company’s
employee.

5. Cross-train Employees
• Cross-training your employees means
you have a group of employees that can
be called on if demand for the
restaurant on any particular night
exceeds the capacity of the actual
employee assigned to that specific area.

6. Use Part-time Employees
• They can be use during unusually busy
day or meal period or during the busy
months of the year for seasonal
business or can be used on an on-call
basis.
• They give the organization the
flexibility to adjust the number of
employees to the level required to meet
demand.

7. Rent or Share Extra
Facilities and Equipment
• Business do not have to be constrained
by space limitations or equipment
limitations.
• Renting, Sharing or Moving groups to
outside facilities can increase capacity
to accommodate short-term demand.

8. Schedule the Downtime
during Periods of Low
Demand • Business in seasonal resorts have
periods of high and low demand.
• One way to decrease capacity to match
the lower demand is to schedule repairs
and maintenance during the low season.

9. Change the Service Delivery
System
• During peak hours, the managers should
create or think of a way that will enable
them to accommodate all customers/
clients that will come.
To take full advantage of this opportunity,
restaurant managers must accomplish two
things:
1. They must adjust their operating system
to enable the business to operate at
maximum capacity.
2. They must remember that their goal is to
create satisfied customers.