Question

In the current state of the economy and the bullwhip effect of prepping for a health epidemic, many companies are experiencing capacity planning issues.

What capacity issues have you experienced or know about related to this health crisis?

Answer 1

Capacity issue is the process of determining the production capacity needed by an organization to meet the changing needs for its products. In the context of capacity planning, project capacity is the maximum amount of work that an organization can complete in a given period of time. Effective capacity is the maximum amount of work an organization can perform in a given period of time due to limited issues such as quality issues, delays in working with raw materials, and more.

This phrase is also used in business calculations and information technology as a means for capacity management. IT capacity planning includes assessments of storage devices, computer hardware, software, and connected infrastructure resources needed for the future. A common concern of businesses is whether the necessary resources are available to withstand the increase in users or the number of interactions. Capacity management is concerned with adding CPU, memory, and storage to the actual server or servers. This is a traditional and vertical way to scale web applications, but IT capability planning is designed to anticipate the need for this vertical scaling method.

Inconsistencies between organizational capabilities and customer needs lead to inefficiencies, inaccurate resources, or unsatisfactory clients. The purpose of capacity planning is to bridge this gap. Organizational capacity requirements vary depending on production changes, such as increasing or decreasing the production volume of existing products or the production of new products. Better utilization of existing capabilities can be achieved by optimizing the overall equipment. Capacity can be increased by introducing new techniques, tools and equipment, increasing the number of workers or machinery, increasing the number of shifts, or gaining additional production capacity.