Definition: What Is Capacity Planning?
Capacity planning (also: resource management ) refers to the forward-looking allocation of all available resources (time, budget, materials, personnel, machines, rooms, etc.) in coordination with the expected capacity requirements for projects or productions. The aim of resource planning is to ensure the maximum possible yield within a planned time window with optimal utilization of all capacities . The planning is based on reference values such as the number of employees, man-days, availability, deadlines and costs.
Capacity planning (colloquially Kapa planning or Kapa ) is an important part of time management , especially in production, but also in project management , project portfolio management and in the agency and consulting area . The importance of this discipline results in particular from its complexity. Resource management must take and unite diverse perspectives at product, project and company level.
1. What Is Particularly Important In Capacity Planning?
In capacity planning, the main focus is on the sustainable allocation and allocation of resources , especially employees. Therefore, forward-looking project planning in coordination with team leaders, project managers and management, among others, is essential.
Companies are in constant change and can no longer act statically. In order not to jeopardize the strategic corporate goals, you must be able to react flexibly. At the same time, you need a certain understanding of your own capacity requirements and operational prospects.
Capacities: Supply And Demand
In day-to-day project work, this means, for example, comparing and aligning capacity requirements and available capacity . If around 20 employees with full man-hours are required for a project, but only 15 employees are available, it is up to resource management to work out optimal planning. This also includes identifying existing bottlenecks.
Tasks In Resource Planning
The key tasks in long-term planning include:
- Employ employees according to their qualifications
- Identify vacancies and fill them with suitable staff
- Align capacities with strategic corporate goals
- Plan activities realistically, including buffer and utilization control
Balance Magic Triangle
In project management, the magic triangle stands for three of the most important dimensions that significantly influence success: time, costs and performance. These factors are at the core of capacity management, which is why the magic triangle is an ideal measuring tool.
As with resource management, the goal is at the center of the triangle. In order to achieve this, the resource units must be balanced as they affect each other. If one corner of the triangle is pulled, the others must follow suit, otherwise conflicts of interest arise . If, for example, the deadline is pushed back, the costs also increase because the order has to be worked on for longer.
Because both instruments involve trade-offs between variables, the magic triangle can be used to test the effectiveness of resource planning.
Respond Flexibly To Deviations
In multi -project management, it can make sense not to fully utilize employees in order to reschedule if necessary when there are unforeseen changes to more important projects. In such cases, resource management provides for a capacity comparison as well as capacity, order and deadline adjustments and avoids resource conflicts.
Other options for companies to act more flexibly include using contract workers for temporary employment, outsourcing tasks or production, or outsourcing other processes entirely.
2. What Advantages Does Capacity Planning Offer You?
Balanced Employee Workload
In day-to-day operations, capacity planning ensures that employee utilization is balanced . This is how you increase productivity and commitment: If employees are underutilized, they are dissatisfied, and at the same time the organization has costs without revenue.
You also prevent the other extreme – overwhelmed employees – you protect the health of your team and ensure that tasks are completed on time and with high quality , while you do not overstrain many days and shifts.
Reliable And Reliable Data
The plus points of good resource planning also include resilient and reliable results . The employee workload is balanced, deadlines, expenses and costs have a buffer , and last but not least, demand and supply are coordinated. This means that planning absorbs fluctuations and orders are exposed to fewer risks.
Especially long-term capacity planning is an essential support for the competitiveness of organizations . It is a safety net in case of deviations and ensures that enough resources are available for each activity.
This helps with the optimization of existing processes , with new projects and also with major changes as part of change management. Companies know what they can use to plan, where there is freedom and how this can be used profitably, for example to drive innovation .
3. What Dangers Lurk If Resources Are Not Allocated?
Processes without resource planning harbor many risks. On the one hand, fluctuation and illness among employees cannot be ruled out, on the other hand, delays or deviations in everyday business can occur at any time. This in turn is associated with costs, restructuring and, in the worst case, declining quality or even the discontinuation of the order.
In detail, these effects can be reflected in various areas. The consequences include:
- Unable to react to unplanned changes
- Deadlines can not be met
- Employee absences are not compensated
- Costs exceed the framework
- competitiveness is lost
- Orders can not be accepted
4. Which Software Supports Me In Managing The Workload Of My Employees?
In everyday life, planning is usually done with suitable project management software or time recording software. Excel tables or e-mails are no longer up-to-date due to the lack of transparency, low flexibility and high maintenance effort .
Manage Resource Planning With Software
A real PM tool, on the other hand, is designed to organize projects and tasks and thus also to record availability, responsibilities and necessary capacities.
5. Conclusion: Capacity Planning Is A Strategic Must
Strategic capacity planning is a must so that companies can operate competitively, innovatively and economically. It ensures that not only are all types of resources available in sufficient quantities, but that they are also divided according to need.
Also Read: The Management Of Human Resources In SMEs