Why Capacity Planning Is Important to an Educational Institution

2818 Words Dec 19th, 2010 12 Pages


Learning and education has become an imperative cause which facilitates individuals to gain knowledge and to enhance the prospects of employability. Educational institutions play a significant role and are the perennial source of knowledge and quality education. Having said that, it is also to be noted that maintaining the standard of these institutions is of paramount importance which lay a platform for a good institution. The corner stone of this essay is to determine the role of capacity planning in educational institutions which forms a very important part of strategic plan.

Capacity planning is the known as the process of determining the production capacity needed by an organization to meet changing demands of
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It can be noted that many universities have become famous for the sheer capabilities of its faculties and specific teaching staffs.

The constant shift in trends of methodology of education and demand for certain courses also determines the requirements and future direction of an institution. In case of institutions, the mere availability of teaching staff and supporting equipments can change the perspective of its potential students. For example, the New York University’s Stern school of Management is perceived to have the best Finance department; this perception comes from the Nobel laureates who teach there and the advanced research labs there (Johnson, D. M., 2001).

Figure 1 (Source: Johnson, D. M., 2001)

Capacity Planning in Educational institutions:

Capacity is calculated based on the formula:
Capacity = number of machines or workers × number of shifts × utilization × efficiency.

The Impact of maximum capacity depends on how effectively the institution defines the capacity. Few institutions which usually offer higher education classes in week days and in evening are now expanding their classes to weekends. And other institution with their normal students offers class on week day and occasionally in weekends (Chan, T. C., 2002).


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