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Capacity Management Business Processes

Capacity Management Business Processes

Victor Portougal
Copyright: © 2006 |Pages: 26
ISBN13: 9781591409793|ISBN10: 1591409799|ISBN13 Softcover: 9781591406143|EISBN13: 9781591406150
DOI: 10.4018/978-1-59140-979-3.ch009
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MLA

Victor Portougal and David Sundaram. "Capacity Management Business Processes." Business Processes: Operational Solutions for SAP Implementation, IGI Global, 2006, pp.194-219. https://doi.org/10.4018/978-1-59140-979-3.ch009

APA

V. Portougal & D. Sundaram (2006). Capacity Management Business Processes. IGI Global. https://doi.org/10.4018/978-1-59140-979-3.ch009

Chicago

Victor Portougal and David Sundaram. "Capacity Management Business Processes." In Business Processes: Operational Solutions for SAP Implementation. Hershey, PA: IGI Global, 2006. https://doi.org/10.4018/978-1-59140-979-3.ch009

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Abstract

The company is always aware of what it wants to produce because it is definedby the market pressures or by demand. However, what the company wants tomake must be rationalised against what it can make. The issue of balancebetween requirements and capacity relates to a type of trade off. On one hand,the company wants to satisfy demand, but on the other hand, it may not havethe capital resources to do so. At the senior management strategic planninglevel, long-range investment decisions are made that can increase the company’scapacity resources. Commonly however, the additional capacity lags behindthe pressure to produce more product more quickly. In these cases, manage-ment must make choices. A company must select carefully how to manage itslimited asset of resources to achieve the greatest benefit to the company.

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