Management consists of five functions:

1. How to Do Capacity Planning
2. Organizing
3. Leading
4. Coordinating
5. Controlling

How to Do Capacity Planning

Psychological method of create and refining a plan is well-known the same as Planning. Be as well used to explain the procedures used in endeavor, such like documents making, diagrams, or meetings to discuss the main issue to be address, the objectives to be met, plus the policy to be follow. Beyond this, planning has a different sense depending on the political / economical background in which it be used. Capacity planning is the procedure of adjust the capacity of an organization to perform work in answer to altering or predict demands.

When we discuss capacity planning, capacity means the capability of an organization for completing the work in a given span of time. In other words or numberically we can say that capacity planning can be calculated as (number of machines and/or workers) x (number of shifts) x (utilization) x (efficiency).

Demand for working in an organization will vary in very different circumstances. Events and circumstances which will cause a delay can be starting a new organisation, extending the operations of an existing business

Anticipation for an increase in demand is known as “Lead Capacity Strategy”. It is the strategy in which it is aimed that customers are luring away from the company competitors and is also deemed as aggressive strategy. The main disadvantage of this strategy is that it might result in excess inventory which is often costly and wasteful.

According to general rule, there are seven reasons which may result in ineffective implementation of capacity planning.

• Analysts are too busy with day-to-day activities.
• Managers sometimes confuse capacity management with capacity planning.

Another strategy is known as “Lag Strategy” which refers to add capacity in the company production when it is working in full capacity or when the production is beyond its full capacity due to increase in demand. The strategy is better than lead capacity strategy and decreases the risk of wastages but may result in loss of possible customers. Traking strategy or match strategy is adding capacity in small amounts in response to changing demand in the market.

Mc Donald is adopting “Lead Capacity Strategy” as it is always aiming to bring the customers at their outlets and to avoid visiting them to their competitors. The main technique which should be adopted might be Lag Strategy as it is beneficial to food Product Company.

The main famous subjects of managers are performance monitoring and capacity planning because in the current world of information technology, managers must decide how much resources they require for fulfilling their organization needs and to use the organization resources efficiently.

Referances:

• en.wikipedia.org/wiki/Capacity_planning
• www.informit.com/articles/article.asp?p=169584
• office.microsoft.com/en-us/sharepointportaladmin/HA011647571033.aspx
• www.microsoft.com/resources/documentation/wss/2/all/adminguide/en-us/stsb07.mspx
• www.smthacker.co.uk/capacity_management.htm

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