Capacity Planning refers to the preparation in which organizations or teams

match employees together with the necessities of a project. (Management Study HQ) In
addition, capacity planning revolves in shaping the ability of a production line, service
department or function to meet a definite demand over a period of time. Intrinsic in this
are arrangements vital to regulate the capacity of the scheme to meet demand.
(Hammer, 2019) Capacity planning is very important in operations management
because it is an integral part of the overall production planning for an enterprise; it is
vigorous in assessing optimum utilization of resource and plays a significant role in
decision-making progression. The type of capacity required depends upon the products
and services which the enterprise intends to produce or provide. According to
Management Study Guide, “Effective capacity planning is dependent upon factors like
production facility (layout, design, and location), product line, production technology,
human capital (job design, compensation), operational structure (scheduling, quality
assurance) and external structure ( policy, safety regulations)”. Therefore, the ultimate
goal of capacity planning is to meet the current and future level of the requirement at a
minimal expenditure. Within the boundaries of operations management, the
considerations regarding capacity planning are of paramount bearing and as a student, I
can also apply what I learned about it in my day to day living as well in many different
aspects.

References

Hammer, C. (2019, July 31). What Is Capacity Planning and How Often Should You Do It?
Retrieved from River Logic: https://www.riverlogic.com/blog/what-is-capacity-planning-
and-how-often-should-you-do-it

Management Study Guide. (n.d.). Capacity Planning. Retrieved from Management Study Guide:
https://www.managementstudyguide.com/capacity-planning.htm

Management Study HQ . (n.d.). What is Capacity Planning? Retrieved from Management Study
HQ: https://www.managementstudyhq.com/concept-of-capacity-planning.html