An Assignment

on
Managing Service Operations

Submitted To : Prof. Archie D’Souza Submitted By

Devika Kshetrapal
I am the senior operations manager for a consumer durables company that makes
refrigerators and washing machines in a plant. As a senior manager of operations, I think it's
important for the organization to make the most of its capacity.
The goal of capacity management is to improve the performance of an organization by
making sure it has the right amount of resources, using those resources as much as possible,
and keeping costs as low as possible.

There are three main components to capacity management:

Planning resources is the process of figuring out what resources will be needed to meet future
needs.

Capacity utilization is the process of keeping track of and managing how resources are used
to make sure they are being used in the best way possible.

Capacity planning is the process of making plans to meet future resource needs and putting
them into action.

To sum it up in one sentence: we want to maximize the output of a business under all
conditions.

If we talk about the short term and long term techniques to keep our capacity planning intact
we need to proper forecasting of future demands

This includes both short-term and long-term forecasting. Short-term forecasting can be
used to plan for things like staffing levels during busy periods. Long-term forecasting can be
used to make decisions about things like investing in new production capacity.

This is done by analyzing historical data as well as current trends. You can use this
information to make predictions about future capacity needs and make sure you buy the right
amount of stock or raw materials to meet the expected demand.

Optimizing the usage of resources means using the right mix of human, financial, and
physical resources to get the job done efficiently. This can be achieved through process
improvements, better utilization of technology, and better scheduling.

Short-term strategies to bridge gaps:

● Increase capacity: Have people work overtime, or bring in skilled contract

labor.
 ● Increase time: Call the client and push back the deadline.
● Decrease quality: Cut corners (not recommended).

Longer-term strategies to bridge gaps

● Cross-train your staff: The more people with broader skill sets, the easier it
will be to fill gaps as they arise.
● Time-phase the work: By doing a single type of work in phases, you can create
the most efficiencies in that period. However, you may still need to push back
some deadlines with this strategy.
● Hire up: Swapping one of your staff with someone more efficient will create
capacity