Importance Of Capacity Planning

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To remain competitive in the business, with the changing atmosphere of technology and economies a company should create a flexible environment. Flexibility means the company is ready for whatever changes occur in the business or in the market. The world is changing according to the needs of the people and it is not going to stop. With the change in the technology and in the market trends, it is very difficult to maintain a standard position in the market. Changes won’t wait for the companies to adjust and to start new programs. To create a flexible atmosphere in the company, follow the following steps: • Listen the ideas of employees, customers, and the workers. Focus on the feedback to know what customers actually want. • A company can also…show more content…
• Overtime work. • Accidents. • Performance of labors. • Break down of machines • Absentees. Importance of capacity planning: In order to gain competitive advantage or maintain a sustainable position in the market capacity planning is very important. With efficient capacity planning company becomes ready for any kind of future changing in the demands of customers. Capacity planners should focuses to plan such type of capacity plan to face every kind of difficulties in future or in the changing demands of customers. Inventory planning: “Inventory planning is the process in which in which optimal quantity and inventory timing for the purpose of adjusting with sales and capacity (Husch, 1971).” EOQ model is used while planning the inventory: Objectives of inventory planning: Quality: The quality of product should be good so that it can be stored for a long time. Flexibility: It is important to manage the stock, so that operations become flexible. Dependability: To satisfy customer the stock must be at right place and at right time. Speed: To satisfy customers the inventories must be at right time. Cost: important to minimize the managing stock cost. Project…show more content…
The term quality assurance means to ensure that the quality is according to demands of customers or according to the market needs. Every step involves in this process has given a special importance. It is necessary for the companies that developed their brand strength to respond the sudden customer needs. Quality control means to maintain the quality of products. Once the item launched in the market, companies get feedbacks from consumers to remove flaws and errors. Capacity planning and control in GSK: With good capacity planning company becomes ready for any kind of change in the demands of customers. The mission of GSK’s is to deliver right thing at right time, they are ready to face every kind of problem in future. Capacity planners of GSK’s plans to handle every kind of hurdles as they have enough products or raw materials to respond the demands of the customers. They review their capacity plan in short term basis or in long term basis to get themselves ready to handle any kind of future problem. Learning outcome 4: Task 1: Outcome achieved by using performance

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