Posted in Operations and Supply Chain Terms, Total Reads: 2653
Definition: Capacity Management
Capacity management refers to the ability to meet a customer’s requirements with the available resources (machinery, factory, labour, raw materials etc) at hand. Generally the required outputs during manufacturing resource constraints are met by working overtime or redeploying the workforce. Capacity planning is done on the basis of projections for future product demand, labour and equipment requirements. Time and Capacity are the two main constraints in capacity management.