Guide to Capacity Planning

Capacity Planning is a critical aspect of project management and is central to the success of any project. It is the process of determining the production capacity needed by an organization to meet changing demands for its products or services.

Importance:

Without proper capacity planning, businesses risk not being able to meet customer demands resulting in lost sales, dissatisfied customers, and potential business loss. It helps in optimizing resources, managing costs, and ensuring delivery within the given timeline.

How it works:

Capacity planning typically involves the identification of capacity requirements, analysis of capacity resources and a plan for increasing or decreasing capacity to meet demand.

Exam Tips: Answering Questions on Capacity Planning

* Understand the definitions and concepts thoroughly.
* Apply real-world examples if possible.
* Diagrammatic representations can help explain your understanding.
* It’s important to relate your answer to the question asked, don't wander off-topic.
* Show your understanding of the balance required between demand and capacity.