Question

1. Capacity planning is generally viewed in three categories of time duration – long range, short range, and intermediate range planning.
   1. Capacity planning that involves new tooling and the hiring of new personnel would fall into which of these three planning timeframes?
   2. Provide an example of capacity planning elements that would require a long range planning horizon.

Answer 1

Capacity Planning: Is generally defined as the process that determines the production capacity for an organization to meet the changing production demand for its products.

In simple terms it’s the time taken required for the organization to manufacture a product with in a given time.

Because every company set a time to meet the demand in the market for a product. Based on that the time that is required to manufacture and supply a product in a timely manner is very important to meet the market demand. In such cases if the capacity is not properly calculated according to the time required to complete a process than it would fail to meet the demand.

Short Range: Is a capacity that has issues in the short run like scheduling, labour shifts and proper use of resources. The intention behind the short range is to meet the unexpected issues in an efficient way. The short range is basically referred to short term like weekly or quarterly. The capacity planning followed to rectify the issues with in that time frame.

Intermediate Range: In simple terms it is defined as it is the capacity that match the capacity and demand. Basically its range is limited to two to three years. Because these are considered as an intermediate capacity that requires the organization on that particular time range.

Long Range: Is basically set by the management in the organization. It is actually determined by keeping the long term goals of the organization. The capacity basically consider can long range because it combines with the organization capacity like effective, design, production and sustainability.

1. Answer: Long range because new tools and the hiring of new personal are considered for long run results. The training of new personnel is for present and future use. Whereas new tools are very important for the organization to improve and meet its desired quality standards. This is applicable for long terms results or benefits to the organization. The time frames are considered by keeping future projects. At the same time to meet the production, organization sustainability and design new process and its effectiveness all can be meet.

2. Answer: The capacity planning elements that that require for a long range planning horizon are:

• Capability
• Gap management
• Business Integration
• Beyond thinking

Every organization need to understand its capability to organize the things in such a way to achieve the organizational goals. Most of the organizations fails to perform due to non-capability in handling the resources.

If there are any gaps between the management and low level staff is also another reason for the organization to meet the required demand. Proper planning and communication is more important in the organization for smooth process. Communicating with various management builds great relationship and helps to easy communicate. All the information will be moved throughout the management towards organizational goals.

If there are any issues in the organization that can be solved due to all level integration. Because all included have immediate solution for all the problems in the organization.

Beyond thinking process helps the management to think out of the box in solving different issues in the organization. Every project has its own issues so every time the issues are not same and sometimes unexpected issues occurs that need beyond thinking to resolve.