Question & Answer: Explain Capacity Planning and give examples……

When an organization works and tries to deliver some product then during the process it gets changing demands of the product and in order to be on the mark with the delivery and keeping the changes along a process needs to be in place to determine the production capacity to meet this need and the process is called capacity planning.

Basically capacity can be calculated (number of resources like machine or workers) × (number of shifts) × (utilization) × (efficiency).