Understanding capacity underpins operations and leads to the proper accounting for operations and underutilization of productive resources.
Capacity is the cornerstone measure of operational performance. It is complemented by other measures, such as capability. Although these two terms are used synonymously, they are subtly very different.
The point of origin is the document, usually the business case, which sets out the competitive advantage of the organization. To achieve the competitive advantage will need a body of work generally known as operations. Operations includes two key plans: material plans and capacity plans. Material plans describe where the input resource will come from, its grade and the overall state of the resource. The resource can be either tangible or intangible. Capacity plans describe the ability to do the operations work. The two plans are the Foundation of Operations and determine the technology plan required to meet the competitive advantage. Once the material plans, capacity plans and technology plans are in place this sets the baseline for the capability plan.
We provide a service to align the competitive advantage of the organization to the Foundations of Operations. This alignment sets in place subsequent performance measures such as capability, dependability and durability to achieve competitive advantage. That is a closed loop system to achieve the competitive advantage with the capacity plan as the cornerstone plan.
We work with you to develop these key plans to achieve operations.
For information about this service please email Adrian Stephan to request information.
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