Capacity management ,its strategies and types (availabe&required) are described in this presentation.

2. • Productive capacity, in economics,
management and engineering, refers to the
maximum possible output of a system…
• Capacity management deals with the capacity
of an organization's processes – for example,
new product development or marketing – as
well as with capacity constraints that arise when
various resources are combined…
• Capacity planning – the process of
determining the production capacity needed by
an organization to meet changing demands for
its products…

3. • Lead strategy is adding capacity in expectation of
an increase in demand. Lead strategy is
an aggressive strategy with the goal of making
customers away from the company's competitors
by improving the service level and reducing lead-time.
It is also a
strategy aimed at
reducing stockout.

4. • Lag strategy refers to adding capacity only
after the organization is running at full
capacity or beyond due to increase in
demand This is a more conservative
strategy. It decreases the risk of waste, but
it may result in the loss of possible
customers either by stockout or low service
levels.

5. • Match strategy is adding capacity in small
amounts in response to changing demand
in the market. This is a more moderate
strategy.

6. • Adjustment
strategy is adding or
reducing capacity in
small or large amounts
due to consumer's
demand, or, due to
major changes to
product or system
architecture.

7. • Capacity available- capacity of system or resource
to produce a quantity of output in a given time.
• Capacity required- capacity of a system or resource
needed to produce desired amount of product in
a given time.

8. Do I Need Capacity Management?

9. Capacity management, is a way of
putting yourself back in control. It
enables CIOs:
• to plan ahead
• to respond to business requirements
speedily
• to manage resources efficiently.