COURSE OVERVIEW:

Capacity management refers to the act of ensuring a business maximises its potential activities and production output—at all times, under all conditions. The capacity of a business measures how much companies can achieve, produce, or sell within a given time period.

Since capacity can change due to changing conditions or external influences — including seasonal demand, industry changes, and unexpected macroeconomic events — companies must remain nimble enough to constantly meet expectations in a cost-effective manner. For example, raw material resources may need to be adjusted, depending on demand and the business's current on-hand inventory.

Companies that poorly execute capacity management may experience diminished revenues due to unfulfilled orders, customer attrition, and decreased market share. As such, a company that rolls out an innovative new product with an aggressive marketing campaign must commensurately plan for a sudden spike in demand. The inability to replenish a retail partner's inventory in a timely manner is bad for business.

Businesses thus face inherent challenges in their attempts to produce at capacity while minimising production costs. For instance, a company may lack the requisite time and personnel needed to conduct adequate quality control inspections on its products or services. Furthermore, machinery might break down due to overuse and employees may suffer stress, fatigue, and diminished morale if pushed too hard.

Capacity management is of particular concern to large companies because it's relatively easy to purchase additional hardware for smaller organisations at a low cost; however, when a business grows, adding new software becomes exponentially more expensive. Thus capacity management must take into account several different aspects related to growth and production costs.

This course begins with an introduction to capacity and capacity management by defining capacity and the pervasiveness of capacity within a company. Then discusses how capacity impacts the organisation’s cash flow, its capabilities and competencies, the products and services delivered, and brand image.

After completing this course you will be able to: Define capacity and capacity competence; Understand how capacity impacts an organisation’s cash flow; Understand how capacity management impacts brand image; Develop an appreciation for how capacity impacts organisational capabilities; and Articulate a basic approach for managing capacity.

LEARNING OUTCOMES:

By the end of this course, you will be able to understand:

• What is capacity?
• What is capacity management?
• What is capacity competence?
• What capacity competence is comprised of?
• Why is capacity management important?
• Why capacity is one of the most important aspects of managing an organisation?
• How capacity is a significant component of a firm’s costs?
• How capacity is a significant contributor to the value of cost of goods sold?
• How capacity is a significant contributor to the value of sales, general, and administrative?
• How capacity is a significant contributor to the value of property, plant, and equipment?
• How capacity represents a large amount of a firm’s assets?
• How capacity impacts a firm’s ability to manage cash flow?
• How to get the most from the organisation’s capacity from a revenue perspective revenue?
• How to develop capacity knowledge as an asset?
• Capacity and organisational working capital
• Capacity and organisational accounts receivables
• Capacity and organisational inventory
• How the organisation’s capacity impacts overall ability to operate and perform?
• How the organisation’s capacity and capacity competence impacts its ability to perform activities?
• How the organisation’s capacity and capacity competence impacts its ability to develop new products and services?
• How the organisation’s capacity and capacity competence impacts its ability to respond to changes in demand?
• The changes in demand-volume
• The changes in demand-type
• How capacity influences everyday operations?
• How capacity impacts the brand and brand image?
• Why not underestimate the role of capacity management?
• What will make capacity management more prominent?
• How capacity is not difficult to manage?
• How to get the most from a firm’s capacity?
• How to set organisational objectives and priorities?
• How to forecast the demand for capacity?
• How to plan and respond to expected demand?
• Why the organisation must close the loop to find ways to improve?

COURSE DURATION:

The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.

COURSE REQUIREMENTS:

You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.

COURSE DELIVERY:

Purchase and download course content.

ASSESSMENT:

A simple 10-question true or false quiz with Unlimited Submission Attempts.

CERTIFICATION:

Upon course completion, you will receive a customised digital “Certificate of Completion”.