Determinants of effective

capacity

Facilities factors
Facilities

factors

Design
Location
Layout
environment

Product Services factors

Design
Product/ services mix
Process factors
Quantity capabilities
Quality capabilities

Human factors
o Job context
Job design
Training and experience
Motivation
Compensation
Learning rates
Absenteeism and turn over
Policy factors
shifting of work
o

Operational , Supply chain & External factors

Operational factors
Scheduling
Materials management
Quality assurance
Maintenance policies
External factors
Product standards
Safety regulations
Unions
Pollution control standards.

Challenges of planning service capacity

The need to be near in customers: convenience for

customers is often an important aspect of services.

The inability to store services: speed of delivery or

customers waiting time became a major concern in

capacity planning.
The degree of volatility of demand: present problem

for capacity planners.

1. Available capacity
2. Expertise
3. Quality considerations
4. Nature of demand
5. Cost
6. Risk