Thursday, August 5, 2021

Innercapacityplanning

Capacity planning will not lower the workload, but give management a true picture of activities so a decision can be made on the ideal workload.

Capacity implies quantity, throughput is a quantity. Capacity Management refers to a process used to manage assets, resources, talent and time. A process which lacks sufficient resources to do a given amount of work is a lack of capacity.

The capacity can reflect the gap in capability: Capability is the ability to do something. Either individually or collectively, we have limited assets, resources, talent, and time; the capacity reflects the gap in building up capability. That might either be a throughput gap or it might be a resource/ process gap for the capability to deliver expected results. The resources could be CPU power or people; not having sufficient resources is a capacity problem, not a capability problem. Processes underpin capability, and processes streamline business capacity. Capacity planning needs to be part of the initiatives around continuous improvement.

Capability vs. capacity: Capability is the ability to solve problems or achieve certain goals. Capacity is the management process to planning, scaling up by using resources and time effectively. Capability enables strategy implementation, capacity makes the management more effective and under control. Capability development takes talent and discipline. Capacity planning allows for a transparent view across the disciplinarily that should help level the playing field. In the corporate scope, capability development is an integral component of strategy management. Capacity management is the proactive and collaborative effort of management and governance for achieving pre-planned results. The key to effective capability development is to discover strength and integration of multiple success factors. The key to successful capacity planning is to know what you are doing, being transparent, and clear leadership at all levels and governance so everyone knows what they are to execute on.

Initiating proactive capacity planning:
A quality capacity planning program will enable us to switch to a proactive mode and bring us in control when experiencing high velocity and uncertainty. Tactically, capability seems to be more open to considering sourcing (internal or external) as a subsequent consideration; while capacity is about using assets/resource/talent scientifically. Capacity planning will not lower the workload, but give management a true picture of activities so a decision can be made on the ideal workload. To make capacity planning effective and practical, it is important to get the bigger picture, make decisions about the ideal workload, and be clear on what, who, when, and how to achieve goals based on the financial value and available resources/talent/time, etc. Any minute saved fixing issues will enable you to spend another minute preventing one and supporting business initiatives.

Capacity planning and management improves organizational transparency, allows the management to make effective decisions for leveraging corporate assets or resources scientifically, building capabilities and achieving business value with continuous deliveries.





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