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Capacity Management

Capacity management is concerned with supplying the necessary resources

A production system consists of inputs, processes, outputs and information flows that connect with customers and the external environment.

Operating decisions, sometimes called the operations infrastructure, deal with operating the facility after it has been built. The types of decisions in this category often require long-term commitments.

The course explains and discusses how resources should be planned for and organized in order to supply required service.

Objectives: The purpose of the course is to provide you with insights into how to conduct capacity management needed to coordinate resources of the production and distribution functions in an efficient and professional manner meeting the customers’ needs.

Participants: This course is for you, who need a basic introduction to the subject supply service. You work with these issues as an order or sales administrator, inventory operator, economist, logistics planner, purchaser or with quality issues.

Qualifications: No previous knowledge is required, but it is preferable if you have some work experience from production planning.

Training Method: Capacity Management is a Premium course and is studied over the internet via our e-learning platform Instant education. Read more about the training method E-learning - Premium courses.

Course Length: Approximately 20 hours active study time, depending on previous knowledge. Each student has access to the course for 6 months.

Price: 432 Euro / student
480 USD / student

Prices excluding VAT.
For large-scale education projects request quotation.

Online price:

417 EURO / student
463 USD / student

Prices excluding VAT.

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Course contents:

Part 1

The Operations Management System

Operations management is part of a production system of several functional areas within an organization.

Managing the Operation

Planning for and controlling the resources used in the process to get the most value out of them.

The Concept of Manufacturing Strategy

The strategy seeks to ensure that the right things are being done and that the right things are done well.

What is Manufacturing?

Production processes are as varied as the products they produce.

Basic Production Systems

The production system used by a company should be the one that is best able to provide the manufacturing outputs demanded by the customers.

Definition of Production Systems

Overview of the basic production systems.

Manufacturing Planning and Control System

To be profitable it is essential to have a good planning and control system.

Capacity Management

Capacity management occurs at all levels of the planning process.

Part 2

Basic Production Strategies

There are three basic strategies that can be used in developing a production plan.

Available Capacity

The capacity of a resource to produce a quantity of output in a given time period.

Required Capacity

The capacity needed to produce a desired output in a given time period.

Capacity Concepts

Description of different kinds of capacities.

Capacity Planning

The process of determining the resources required to meet the priority plan.

Capacity Planning Levels

The three planning levels and the methods needed to make that capacity available.

Capacity Strategies

Operations managers have to examine three dimensions of capacity strategy before making capacity decisions.

Timing and Sizing Expansion

One important issue of capacity strategy is when to expand and by how much.

Linking Capacity and Other Decisions

Capacity decisions should be closely connected to strategies and operations throughout the organization.

Resource Requirements Planning

The process of converting the production plan into the demand on key resources of the company.

Part 3

Aggregate Production Planning

The aggregate plan specifies how the company will work for the next year within existing facility constraints.

Use of Organizational Resources

The input from functional areas to the aggregate plan has conflicting objectives for the use of the resources.

Preparing Aggregate Plans

Preparing the aggregate plans is dynamic step by step process new information becomes available.

Meeting Delivery Times

Introductory description of various methods used to make the organization more efficient and to meet the agreed upon date of delivery.

Demand Management

Demand management is the function of recognizing and managing all demand for products.

Inventory Management

Good inventory management is essential for the company’s result and the customers’ satisfaction.

Objectives of Inventory Management

The objectives a company should have if it wants to maximize profit.

Order Quantities

Management must establish decision rules to answer how much and when should an order be placed.

Capacity Requirements Planning

The capacity requirements plan occurs at the level of the material requirements plan.

Making the Capacity Requirements Plan

This plan should be a detailed workable plan that meets the priority objectives and provides the capacity to do so.

Planning Horizon

The planning horizon is the time span for which plans are made.

Production Activity Control

It is responsible for executing the master production schedule and the material requirement plan.

Scheduling Bottlenecks

Work centers, fed by bottlenecks, have their throughput controlled by the bottleneck.

Managing Bottlenecks

Scheduling and controlling the bottlenecks is extremely important for the throughput of a system.

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