Question

HELPPPPP Write 2 full paragraphs (half page): Explain how to plan capacity.

Answer 1

Capacity planning I quite important for any organization as it helps it in meeting the future demand and addressing any unforeseen event. The effective capacity planning can be done by following the below-mentioned steps=

The first step in having an effective capacity plan is to select a responsible manager who will take care of designing, implementing and maintaining the capacity plan. The next step will be to find out the different resources for which the capacity planning has to be made. This can be raw material, equipment, semi-finished product or the finished product. Once the different resources are identified, now we have to estimate the probable requirement or the utilization of these resources for the planning period.

It is advisable to compare the estimated resource utilization with the maximum capacity as it will provide s a better point of view of capacity development. Now the different forecasting will be done so that we can predict the future requirement of various resources and we will also find out the total workload required to fulfill the forecasted quantity. With the help of various tools and graphs, the forecasted requirements are made that will depict the new number or quantities of the resources to be created to meet the expected demand.

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