Capacity Management And Resource Planning

1538 Words7 Pages
.0 Introduction Medic-Call is an organisation which provides 24 hour reassurance to the elderly and vulnerable through a personal alarm system which can contact their family and neighbours and should any problems arise. There are many issues facing operations managers within Medic –Call while ensuring they keep their focus on customer service. These issues include, staff training this is very lengthy and costly which is large issue they need to deal with, this interlinks with the fact they have a very high level of staff turnover. Furthermore Medic –Call need to address their staff productivity issues and ensure all their staff are being fully utilized. Specifically, this report critically discusses the view on capacity management and…show more content…
Armistead et al (1994 p 6), states they are as follows; ‘1. The limited ability of the organization to alter capacity in terms of both the extent of the change and response time to make the change while having to deal with rapid fluctuations in demand. 2. The need to deliver consistent levels of customer service. 3. The varying degrees of uncertainty in demand.’ 2.2 Importance of Capacity Management There is a connection associated between, capacity management, resource productivity and quality management which, Armistead et al (1994), argued is at the ‘heart’ of the control and planning process within operations management in the service industry. Capacity management and all its elements including, staff, delivery systems and processes is such a large part of any organisation it is vital to its success. For any organisation being able to manage capacity is critical to the simple business function of providing a service to meet the demand set by customers. (Hill et al, 2011) 3.0 Capacity Decisions It is to be expected that more insightful capacity decisions can be made when demand can be forecasted accurately. Nonetheless, demand can fluctuate through unpredictable factor, such as, weather conditions. When faced with these circumstances even forecasting techniques of the highest standard may not be sufficient enough to provide enough detailed information. (A Betts et al 2000) 3.1 Capacity Utilization As illustrated in
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