Capacity Management Project Report

A Mini Project

Content
o Script (Included in Q&A section)
o MS Project
o Presentation Slides

Team Members
Yang You
Jayanth Reddy
Javad Ataiy

Yang You
11/22/2015

Script of Capacity Management Project

Problem Statement
Capacity management is a process used to manage information technology (IT). Its primary goal
is to ensure that IT capacity meets current and future business requirements in a cost-effective
manner. The high level capacity management activities are: application sizing, workload
management, demand management, modelling, capacity planning, resource management and
performance management.
In this project, we will utilize capacity management in order to solve a companys IT issue. We
are going to focus on capacity planning, more specifically, resource reallocation. Since capacity
management is most popular in IT area, we want to focus on the Internet Bandwidth
Management. For instance, a mid-sized company, has fifteen different business departments (IT,
HR, Research, Accounting, Marketingetc.), its daily Internet bandwidth is provided by a thirdparty Internet Service Provider (ISP). Since the company has decided to expand its business,
people start complaining about constant drops of Internet connection happening every day and
they are getting worse. This bandwidth overload problem need to be fixed and adding another
Internet connection line has proven to be too costly to be considered.
The most ideal method to solve the problem is to adapt Internet Bandwidth Management
technique, more specifically, Internet bandwidth analyzing, categorizing and reassigning. First
of all, the company needs to use a software to collect the Internet bandwidth usage of different
departments daily and continue to do it for about a month. Second, analyze the data collected
and categorize different departments by the amount of bandwidth used average daily and rank
them by number from 1 to 10, 1 is the largest using one and 10 is the least using one, in the
meantime calculate and note the percentage of daily usage of each department. Third, categorize
each department based on their Internet bandwidth needs and priority. Fourth assign each
department bandwidth according to collected data, monitor bandwidth as real-time traffic occurs.
Fifth program the software if in any case overload still occurs, traffic should be first allocated to
departments with higher priority. Sixth, monitor traffic in real-time for any unexpected issues.
In the meantime, there is one more solution to the bandwidth reallocation. We need to collect
data and find out that if there is significant amount of Internet traffic generated by watching or
downloading same content. If so (and it usually is) it will occupy unnecessary resources. We can
save a lot of bandwidth by implementing a web caching service. What web caching service does
is that, it store every content which is requested by every user in our company, if the same data is
requested again, cache server will not fetch that data from the Internet, instead it serves the user
itself since web caching service already have a copy of that data. To expand this, we label the
traffic of departments into two categories: useful traffic (content never been visited before),
unwise traffic (content has been stored in caching). The unwise traffic will automatically been
stopped and redirect to the content stored in caching.

Above is one capacity management solution for network bandwidth resources, it involves in
resources analyzing, categorizing, reallocation and leveling. We will explain it in details later.

What We Want to Do
Focus our project on component capacity management, especially on capacity planning
and resource management
Traditional solutions to resource management
o

Resource Sizing

Resource Reallocation

New solutions we want to bring

Resource Labeling and Categorizing

Assign Resource By Need (Rank Resources By Categorizing)

Use Caching Server to Eliminate Unwise (Repeated Searched) Traffic

Resource Reallocation
Major Activities
Sizing Resources Needs of Different Departments
Collect the Usage of Unwise (Repeat to Search/Watch Same Content) Traffic
Data Analysis
Rank Departments By Resources Needs
Assign Resources to By Percentage Needs
If In conflicts, give priority to Highly Ranked Departments
Install Caching Server
Real-Time Monitoring

Major Steps
o Use a software to collect the usage of bandwidth of different departments daily and
continue to do it for about a month
o Use Software to Collect Unwise Traffic Usage

o Analyze the data collected and categorize different departments by the amount of
bandwidth used average daily
o Rank them by number from 1 to 10 and calculate the percentage daily usage of difference
department
o Program the server to assign real-time bandwidth usage to departments by percentage
calculated and assign bandwidth first to higher ranked department if conflicts still occur
o Run Caching Server
Real-time monitor bandwidth usage of departments in case anything happens

MS Project
ID

Task
Mode
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
61

WBS

Task Name

Duration

an 31, '16
T
W

Feb 21, '16

T
F
S

1
CompanyNetworkBandwidthCapacityManagement
139days
1.1
Initiation
25days
1.1.1
IdentifytheProblem
6days
1.1.2
StudyandAnalyzetheProblem
6days
1.1.3
ResearchandFindoutSolutions
4days
1.1.4
DiscussandDecidedtoDoBandwidthReallocation
3days
1.1.5
PrepareProjectProposal
6days
1.1.6
ProposalApprovedbyManagement
0days
1.2
SoftwareDesignandInstall
21days
1.2.1
DesignSoftwareCanCollectRealTimeBandwidthUsageData
15days
1.2.2
InstalltheSoftwareonMainServer
6days
1.3
DataCollection
30days
1.3.1
CollectRealTimeDailyBandwidthUsageDataofEachDepartment
30days
1.3.2
CollecttheDataUsageofUnwiseTraffic
30days
1.4
DataAnalysis
7days
1.4.1
AnalyzeUsageDataofEachDepartment
3days
1.4.2
CalcualtePercentageofAverageDailyBandwidthUsageofEachDepartment
2days
1.4.3
RankEachDepartmentByPercentageUsage
2days
1.4.4
AnalyzethePercentageofUnwiseTraffic
3days
1.4.5
DecideSolutionstoApply
0days
1.5
BandwidthReallocationandLeveling
15days
1.5.1
ProgramServertoAssignRealTimeBandwidthUsagetoEachDepartmentbyPercent15days
1.5.2
ProgramServertoGiveHigherPrioritytoHigherRankedDepartmentWhenConflictS15days
1.6
IntroductCachingService
21days
1.6.1
DesignWebCachingServer
15days
1.6.2
InstallCachingServeronMainServer
6days
1.7
RealTimeMonitoring
30days
1.7.1
MonitorBandwidthUsageofEachDepartmenttoMakeSureReallocationSolutionsW30days
1.7.2
StopMonitoring
0days
1.8
FollowUp
5days
1.8.1
FinalReport
5days
1.8.2
ReporttoManagement
0days
1.9
ProjectManagement
131days
1.10
ProjectClose
0days

Mar 13, '16

S
M

Apr 3, '16
W
T

Apr 24, '16

F
S
S

May 15, '16

M
T

Jun 5, '16
W
T
F

Jun 26, '16

Jul 17, '16
S
S
M
T
W

Aug 7, '16
T
F
S

Aug 2
S

3/11

6/1

8/11

8/18
8/18

Q&As Related to Capacity Management

1. What is capacity and what is capacity management?
Answer:
Capacity is defined as the maximum amount or number that can be received or contained. For
example, the amount of data that a computer hard disk can store is the disks capacity. The
maximum possible data rate received over a communication channel under ideal conditions is its
capacity. It can also refer to nontechnical things such as the maximum amount of work that an
organization is capable of completing in a given period of time or the maximum number of
people that can physically occupy a room.

Capacity Management is a set of work processes associated with the provisioning and
management of IT infrastructure resources, such as servers, printers and telecommunications
devices, used to support business processes in a cost effective manner. Capacity Management
has three distinct aspects:

Resource Capacity Management

Resource Capacity Management looks at the use and performance of individual infrastructure
resources. These resources could be servers, telecommunication lines, printers, scanners, routers
and PCs. This is the lowest level approach. The work only addresses each individual units
performance and capacity positions.
Although very effective in managing individual units, this approach has shortcomings because of
its narrow view. Adding capacity on one infrastructure unit can have unforeseen implications on
others. For example, upgrading a telecommunications line can permit more transactions to be
performed during a set period of time, potentially flooding a server with unexpected transaction
volumes. This possibility can result in poor performing transactions or even worse, cause the
server to shut down unexpectedly due to overwork.

 Service Capacity Management

Service Capacity Management takes Resource Capacity Management to the next level.
Individual resource information is aggregated into pools as it relates to IT services. Printing,
email, telephone, and online transaction processing are just a few examples of IT services. This
approach looks at capacity positions across the IT infrastructure components supporting and
sustaining IT services. For example, an online transaction processing service could have server,
telecommunications, desktop and printing components, just to name a few. Managing at a service
view ensures that upgrading any one component does not adversely impact the others. The
shortcoming of this approach is that although those in IT understand the work and its value to the
organization, the business cannot relate to the technical terminology. As a result, there are
usually communication disconnects between technical and business staff.
Business Capacity Management
This is the highest level approach to Capacity Management. Instead of aggregating usage and
performance into IT services, we aggregate into business processes. This approach looks at
capacity positions across the IT infrastructure components supporting and sustaining Business
services. Sales order entry, claims adjudication, customer relationship management and general
ledger are just a few examples of business processes.
For example, a Sales Order Entry system could have telephone, server, telecommunications,
database, desktop and printing components, just to name a few. There is a lot of value in
employing a business-oriented approach. Results are expressed in business terms so all
understand. Conversations are transformed from ones of expense to ones of business investment.
Reaching this level should be any organizations long term goal.

2. Where capacity management is used?

Answer:
Capacity management is used everywhere. With the increasing number of businesses and offices
capacity management has become more important than ever. Wherever a computer is used,
wherever people work in teams, wherever there is a transaction, wherever there is need to store
data etc.

3. Why is capacity management important?

Answer:
Capacity Management is an important issue, with effects over the long term. Its importance is
growing as an increasing number of businesses insist that IT maximize existing assets, support
year on year increases in business volume, accommodate the increasing reliance of business

processes on IT and enable shorter time to market for new initiatives. The potential benefits for
any organization that has good capacity management are:

o
o
o
o
o
o

Solid projections for IT expenditure

Improved utilization of assets
A solid business case
Streamlined procurement
Business agility
Business confidence

4. Capacity is not really an absolute limit on the output from a process, but it is a measure of
management performance. Do you agree with this?
Answer:
Yes to a large extent. The evidence to support this comes from different organizations and
even different managers can use exactly the same facilities and get different levels of output.
The implication is that some managers can use facilities more efficiently, increasing production
and effective capacity. Further evidence comes from the observation that capacity changes over
time. If managers can control these changes more efficiently, then they can increase effective
capacity.

5. Is it always possible to find the capacity of a process? How can you find the capacity of a
shopping mall, national park or a shipping lane?
Answer:
Not really. Capacity of the shopping mall can be measured by the number of visitors it attracts
each period. Basically it all depends on the situation and the subject we are considering.

6. Why does capacity change over time?

Answer:
There are many reasons for this. These can be because of the systematic changes due to learning
effects, maintenance, replacement policies and the business cycle. Superimposed on these
patterns are short term variations due to staff illness, interruptions, break-downs, weather,
holidays, enthusiasm of employees, fatigue, and so on. And then there are apparently random
variations that cannot be explained.

7. Who takes care of the capacity management and how?

Answer:
Project management professionals. Their work includes predicting capacity conditions, factoring
risk assessments, calculating and capering the existing capacity as well as the future capacity
based on the available resources and decision making.

ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Task
Mode

WBS

Task Name

Duration

1
CompanyNetworkBandwidthCapacityManagement
139days
1.1
Initiation
25days
1.1.1
IdentifytheProblem
6days
1.1.2
StudyandAnalyzetheProblem
6days
1.1.3
ResearchandFindoutSolutions
4days
1.1.4
DiscussandDecidedtoDoBandwidthReallocation
3days
1.1.5
PrepareProjectProposal
6days
1.1.6
ProposalApprovedbyManagement
0days
1.2
SoftwareDesignandInstall
21days
1.2.1
DesignSoftwareCanCollectRealTimeBandwidthUsageData
15days
1.2.2
InstalltheSoftwareonMainServer
6days
1.3
DataCollection
30days
1.3.1
CollectRealTimeDailyBandwidthUsageDataofEachDepartment
30days
1.3.2
CollecttheDataUsageofUnwiseTraffic
30days
1.4
DataAnalysis
7days
1.4.1
AnalyzeUsageDataofEachDepartment
3days
1.4.2
CalcualtePercentageofAverageDailyBandwidthUsageofEachDepartment
2days
1.4.3
RankEachDepartmentByPercentageUsage
2days
1.4.4
AnalyzethePercentageofUnwiseTraffic
3days
1.4.5
DecideSolutionstoApply
0days
1.5
BandwidthReallocationandLeveling
15days
1.5.1
ProgramServertoAssignRealTimeBandwidthUsagetoEachDepartmentbyPercentageCalcula15days
1.5.2
ProgramServertoGiveHigherPrioritytoHigherRankedDepartmentWhenConflictStillOccur 15days

Project: Implementation_Capac
Date: 11/22

Task

Inactive Summary

External Tasks

Split

Manual Task

External Milestone

Milestone

Duration-only

Deadline

Summary

Manual Summary Rollup

Critical

Project Summary

Manual Summary

Critical Split

Inactive Task

Start-only

Progress

Inactive Milestone

Finish-only

Manual Progress

Page 1

, '16
S

Jan 31, '16

T

ID
24
25
26
27
28
29
30
31
32
33
61

Task
Mode

WBS

1.6
1.6.1
1.6.2
1.7
1.7.1
1.7.2
1.8
1.8.1
1.8.2
1.9
1.10

Task Name

Duration

IntroductCachingService
DesignWebCachingServer
InstallCachingServeronMainServer
RealTimeMonitoring
MonitorBandwidthUsageofEachDepartmenttoMakeSureReallocationSolutionsWork
StopMonitoring
FollowUp
FinalReport
ReporttoManagement
ProjectManagement
ProjectClose

Project: Implementation_Capac
Date: 11/22

Task

Inactive Summary

External Tasks

Split

Manual Task

External Milestone

Milestone

Duration-only

Deadline

Summary

Manual Summary Rollup

Critical

Project Summary

Manual Summary

Critical Split

Inactive Task

Start-only

Progress

Inactive Milestone

Finish-only

Manual Progress

Page 2

21days
15days
6days
30days
30days
0days
5days
5days
0days
131days
0days

, '16
S

Jan 31, '16

T

Feb 21, '16

T
F

Mar 13, '16

S
M

Apr 3, '16
W

Apr 24, '16

F
S

May 15, '16

M
T

Jun 5, '16
W
T

Jun 26, '16

S
S

3/11

6/1

Project: Implementation_Capac
Date: 11/22

Task

Inactive Summary

External Tasks

Split

Manual Task

External Milestone

Milestone

Duration-only

Deadline

Summary

Manual Summary Rollup

Critical

Project Summary

Manual Summary

Critical Split

Inactive Task

Start-only

Progress

Inactive Milestone

Finish-only

Manual Progress

Page 3

Jul 17, '16

T

Aug 7, '16
T
F

Feb 21, '16

T
F

Mar 13, '16

S
M

Apr 3, '16
W

Apr 24, '16

F
S

May 15, '16

M
T

Jun 5, '16
W
T

Jun 26, '16

S
S

Jul 17, '16

T

Aug 7, '16
T
F

8/11

8/18
8/18

Project: Implementation_Capac
Date: 11/22

Task

Inactive Summary

External Tasks

Split

Manual Task

External Milestone

Milestone

Duration-only

Deadline

Summary

Manual Summary Rollup

Critical

Project Summary

Manual Summary

Critical Split

Inactive Task

Start-only

Progress

Inactive Milestone

Finish-only

Manual Progress

Page 4

Capacity Management
A Mini Project
Team Member
Yang You
Jayanth Reddy
Javad Ataiy

What is Capacity Management

o
o

Capacity management is a process used to manage information technology

Its primary goal is to ensure that IT resources are right-sized to meet current
and future business requirements in a cost-effective manner

It is to identify:

what services are (or will be) required

what IT infrastructure is required to support these services

what level of Contingency will be needed, and

what the cost of this infrastructure will be

Major Sub-Processes
o

Business Capacity Management

Strategic

Service Capacity Management

Tactical

Component Capacity Management

Operational

High Level Activities

Application Sizing

Workload Management

Demand Management

Modelling

Capacity Planning

Resource Management

Performance Management

Major Solutions

Analysis

Modeling

Optimizing

Change Initiation

Monitoring

What We Want to Do

Focus our project on component capacity management, especially on capacity

planning and resource management

Traditional solutions to resource management

Resource Sizing

Resource Reallocation

New solutions we want to bring

Resource Labeling and Categorizing

Assign Resource By Need (Rank Resources By Categorizing)

Use Caching Server to Eliminate Unwise (Repeated Searched) Traffic

Example of Problem

Network Bandwidth Reallocation

A mid-sized company, has fifteen different business departments (IT, HR,

Research, Accounting, Marketingetc.), its daily network data flow is
provided by a major server in its IT department. Since the company decided
to expand its business, people found out there are constant bandwidth use
conflicts happen daily and they are getting worse. This bandwidth overload
problem need to be fixed and upgrading main server has proven to be too
expensive to be considered

Resource Reallocation

Major Activities

Sizing Resources Needs of Different Departments

Collect the Usage of Unwise (Repeat to Search/Watch Same Content) Traffic

Data Analysis

Rank Departments By Resources Needs

Assign Resources to By Percentage Needs

If In conflicts, give priority to Highly Ranked Departments

Install Caching Server

Real-Time Monitoring

Major Steps
o

o
o

Use a software to collect the usage of bandwidth of different departments

daily and continue to do it for about a month
Use Software to Collect Unwise Traffic Usage
Analyze the data collected and categorize different departments by the
amount of bandwidth used average daily
Rank them by number from 1 to 10 and calculate the percentage daily usage
of difference department
Program the server to assign real-time bandwidth usage to departments by
percentage calculated and assign bandwidth first to higher ranked
department if conflicts still occur

Run Caching Server

Real-time monitor bandwidth usage of departments in case anything happens

MS Project
ID

Task
Mode
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
61

WBS

Task Name

Duration

1
CompanyNetworkBandwidthCapacityManagement
139days
1.1
Initiation
25days
1.1.1
IdentifytheProblem
6days
1.1.2
StudyandAnalyzetheProblem
6days
1.1.3
ResearchandFindoutSolutions
4days
1.1.4
DiscussandDecidedtoDoBandwidthReallocation
3days
1.1.5
PrepareProjectProposal
6days
1.1.6
ProposalApprovedbyManagement
0days
1.2
SoftwareDesignandInstall
21days
1.2.1
DesignSoftwareCanCollectRealTimeBandwidthUsageData
15days
1.2.2
InstalltheSoftwareonMainServer
6days
1.3
DataCollection
30days
1.3.1
CollectRealTimeDailyBandwidthUsageDataofEachDepartment
30days
1.3.2
CollecttheDataUsageofUnwiseTraffic
30days
1.4
DataAnalysis
7days
1.4.1
AnalyzeUsageDataofEachDepartment
3days
1.4.2
CalcualtePercentageofAverageDailyBandwidthUsageofEachDepartment
2days
1.4.3
RankEachDepartmentByPercentageUsage
2days
1.4.4
AnalyzethePercentageofUnwiseTraffic
3days
1.4.5
DecideSolutionstoApply
0days
1.5
BandwidthReallocationandLeveling
15days
1.5.1
ProgramServertoAssignRealTimeBandwidthUsagetoEachDepartmentbyPercent15days
1.5.2
ProgramServertoGiveHigherPrioritytoHigherRankedDepartmentWhenConflictS15days
1.6
IntroductCachingService
21days
1.6.1
DesignWebCachingServer
15days
1.6.2
InstallCachingServeronMainServer
6days
1.7
RealTimeMonitoring
30days
1.7.1
MonitorBandwidthUsageofEachDepartmenttoMakeSureReallocationSolutionsW30days
1.7.2
StopMonitoring
0days
1.8
FollowUp
5days
1.8.1
FinalReport
5days
1.8.2
ReporttoManagement
0days
1.9
ProjectManagement
131days
1.10
ProjectClose
0days

an 31, '16
T
W

Feb 21, '16

T
F
S

Mar 13, '16

S
M

Apr 3, '16
W
T

Apr 24, '16

F
S
S

May 15, '16

M
T

Jun 5, '16
W
T
F

Jun 26, '16

Jul 17, '16
S
S
M
T
W

Aug 7, '16
T
F
S

Aug 2
S

3/11

6/1

8/11

8/18
8/18

Thanks!

Questions?