• Productive capacity, in economics, management and engineering, refers to the maximum possible output of a system…

• Capacity management deals with the capacity of an organization's processes – for example, new product development or marketing – as well as with capacity constraints that arise when various resources are combined…

• Capacity planning – the process of determining the production capacity needed by an organization to meet changing demands for its products…

• Lead strategy is adding capacity in expectation of an increase in demand. Lead strategy is an aggressive strategy with the goal of making customers away from the company's competitors by improving the service level and reducing lead-time. It is also a

strategy aimed at

reducing stockout.

• Lag strategy refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand This is a more conservative strategy. It decreases the risk of waste, but it may result in the loss of possible customers either by stockout or low service levels.

• Match strategy is adding capacity in small amounts in response to changing demand in the market. This is a more moderate strategy.

• Adjustment strategy is adding or reducing capacity in small or large amounts due to consumer's demand, or, due to major changes to product or system architecture.

• Capacity available- capacity of system or resource to produce a quantity of output in a given time.

• Capacity required- capacity of a system or resource needed to produce desired amount of product in a given time.

Do I Need Capacity Management?

Capacity management, is a way of putting yourself back in control. It enables CIOs:

• to plan ahead

• to respond to business requirements

speedily

• to manage resources efficiently.