Importance Of Capacity Planning

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“Capacity Planning is the most crucial aspect of managing operations successfully”.

CAPACITY PLANNING
Wise Geek Society believes that capacity planning is the strategy that an organization uses to forecast the production levels that the organization should have to ensure that the demand of the goods or services in the market can be catered to.
Capacity Planning is basically the efficient use of the available resources. It is applicable in every aspect of our daily life. For instance, Capacity Planning in any organization involves the efficient utilisation of the labour force in tandem with the other resources like time, raw materials, etc to achieve with the goal of the organization. The organization needs to determine its capacity requirements before it starts it operations. Like the skills needed by the workforce, no of workforce required, etc.
Every business, whether it is small or big, is required to do capacity planning. It brings in connection between the decision making power and the analysis of the decisions made for running the organization. Efficient capacity planning can turn any organization into a profit making organization.
For instance, in a shopping mall, the manager should make sure that there is enough capacity of cash registers and cashiers to meet the check out demand of the customers. If there isn’t sufficient capacity of cash registers or cashiers, the customers might have to wait for a long period of time which can lead to loss of customers

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