C/M/455. Capacity management is a vital technique for planning and control of operations that all organisations must engage in. What do you understand as 'capacity'? How do different types of organisation manage capacity? What are the implications of getting capacity management wrong?

Capacity management is essential to the success of an organisation. This essay looks at how 'capacity' can be defined and the different levels of capacity that exist. The differences between capacity management in manufacturing, services and non-profit organisations are also examined. Finally, it is recognised that achieving an ideal balance of capacity and demand is impossible therefore there are many circumstances where capacity management can go wrong. These implications are discussed in depth.