Chapter 8 Capacity management

Chapter 8 Capacity management

Figure 8.1 Capacity management is the activity of coping with mismatches between demand and the ability to supply demand

Figure 8.2 Demand–capacity mismatches for an appliance repair service and a frozen spinach business

Figure 8.3 Operating equipment effectiveness (OEE)

Figure 8.4 The nature of capacity management depends on the mixture of predictable and unpredictable demand and capacity variation

Figure 8.5 Enhanced demand and supply market knowledge can make capacity management easier

Figure 8.6 The base level of capacity should reflect the relative importance of the operation’s performance objectives

Figure 8.7 The effect of variability on the utilisation of capacity

Figure 8.8 Managing demand–capacity mismatches using ‘level capacity’, ‘chase demand’ and ‘demand management’ plans

Figure 8.9 The range–response curve for increasing capacity at a call centre

Figure 8.10 Cumulative representation of demand and three capacity plans

Figure 8.11 How should capacity be controlled – the dynamics of capacity management

Figure 8.12 Capacity management strategies are partly dependent on the long-term and short-term outlook for volumes

Figure 8.13 Daily number of visitors in August last year

Figure 8.14 Visitor arrivals – public holiday in August and a Wednesday in February