Let’s stick with the 400 hours example. As eyeroll-inducing as the process might be to many PM’s, accurate capacity planning is vital to the success of your team in the long term. Configure the optimal system for satisfying service levels for this period. The exploded demand is then exploded by the process routing. Hence, there was a need to add these 5 units beyond the full capacity of 170 units. Otherwise, the bottom line may suffer. We’ve made this guide so you could become better at capacity planning and never find yourself at the end of the two above-mentioned extremes.

As an overview, we spoke about the meaning and definition. Capacity is then changed to match demand.

Minimizing resource costs.

A large part of a company's success is in planning for the future. It’s not news that here in Forecast, we think capacity planning is extremely important for the success of any service company, so we've built resource management tools in a connected platform to make this complicated process more accurate. Checklist Category: ITIL Templates If so, you’re going to want to cut your expectations of their productive hours. The actual output volume of work varies, depending on the product. So, the choice of interval or bucket size needs to be made carefully. Granted, incorrect or off base assumptions by management can result in overstaffed teams and have a significant negative impact on the bottom line. So, capacity planning is measured with units of work.

More specifically, “capacity” is the maximum amount of work that can be completed in a given period. If you’re a team lead or project manager concerned with making progress on projects and turning in high-quality work, the capacity planning process can be painful. Definition: The Capacity Plan is used to manage the resources required to deliver IT services. Throwing too much work on your resources’ shoulder (to the extent that it exceeds their ability to deliver) can be a direct result of not understanding your bandwidth in real time.

This is the period over which we are planning capacity. This blog features about the three main strategies in capacity planning. The company has more than 300 employees worldwide with offices in the United States, Canada, and India.

Using time, planners can calculate the amount of work required to meet demand and the number of resources required to perform that work. And no matter how many times you tell your CEO that your team or department is overworked, you rarely get the approval to hire the number of new employees you request each year. As an overview, we spoke about the meaning and definition. Capacity Planning is the process in which organizations or teams match available employee hours against the needs of a project or program. (This is often measured in hours available to be worked by employees.) 3. Establishing Capacity These capacity planning strategies are Match, Lag, and Lead. The more projects your team members are working on, the more time is lost to context switching. There are a few numbers you’ll need on hand—and a few vocabulary words you’ll need to know—when you get started with your capacity planning process.

Then, capacity requirements planning weighs this schedule against the company's actual production capabilities to see if the current capacity can successfully meet the existing production schedule.