December 2018
Intermediate to advanced
178 pages
4h
English
Content preview from Strategic Cost Transformation
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Fundamentals of Capacity Dynamics
As mentioned in Chapter 6, capacity is one of the largest, most pervasive, and arguably most ignored aspects of an organization. The purpose of this chapter is to increase the awareness of the operational dynamics of capacity so that it can be managed more effectively. By operational dynamics, I mean how capacity functions within your organization. This is critical when thinking about, planning, and managing capacity; the means. How you use capacity and the demand for it can affect how much you need and, therefore, how much you buy. This, of course, affects cashOUT when pay for what you buy.
Ideally, you will want appropriate supporting capacity metrics that describe how to use capacity and create output. ...
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