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​Briefly describe a business you are familiar with


Briefly describe a business you are familiar with and explain how it might use each of the five ways to adjust its short-term capacity levels.


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The capacity of an operation is the maximum level of value added activity over a period of time that the process can achieve under normal operating conditions. In the short term, capacity planning concerns issues of scheduling, labor shifts, and balancing resource capacities. The goal of short-term capacity planning is to handle unexpected shifts in demand in an efficient economic manner. The time frame for short-term planning is frequently only a few days but may run as long as six months.

I just want to give an example of a hospital. Here are the five ways to adjust short-term capacity levels.

  • Add or share equipment- a group of several hospitals might be set up in which each hospital focuses on a particular specialty and shares services
  • Sell unused capacity- hospital chains often develop partnership arrangements to accommodate their guest when they are overbooked
  • Change labor capacity and schedules- Overtime, outsourcing, temporary employees, and extra shifts are general ways of increasing capacity. Adjusting workforce schedules to better match with demand patterns is another.
  • Change labor skill mix- Hiring the right staff that can learn quickly and adjust to changing job requirements and cross-training them to perform different tasks provides the flexibility to meet fluctuating demand. It is common for employees to cover each other’s shifts depending on the demands of the position.
  • Shift work for slack periods- hospital employees prepare bills and perform other paperwork at night, when check-in and check-out activity is light. This allows more time during the daytime hours to service hospital guest.

I just gave my own perception. If you like my answer,please leave an up-vote.It is highly appreciated.Thanks in advance.

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