
To support this goal, Capacity Management has Objectives to:
- Ensures the Capacity Plan, reflecting the current and future needs of the business, is available and up to date
- Provide advice and guidance to all other areas of the business and IT on all capacity and performance related issues
- Ensure that service performance achievements meet or exceed all of the agreed targets, by managing the performance and capacity of both services and resources
What is capacity management and why is it important?
They are: It translates business needs and plans into requirements for IT services and infrastructure. It is the driving force for the whole process. The updates to the business plans encapsulate the long-term strategy of an organization. Capacity management should understand the resources, working patterns, peaks, and lows of the IT services.
What should be included in the scope of capacity management?
The scheduling of human resources, staffing levels, skill levels and capability levels should therefore be included within the scope of capacity management. Capacity management ensures that the capacity and performance of the IT services and systems match the evolving agreed demands of the business in the most cost-effective and timely manner.
What is cap capacity management?
Capacity management is balancing the requested level of capacity by customer with the operating resources and planned resources. Capacity analysis as starting point, based on Service definitions, SLAs and patterns of business activity (PBA) helps to define the customer requirements on Capacity level.
What is strategic capacity planning in operations management?
Strategic capacity planning in operations management requires businesses to: For example, if a production line can theoretically assemble 500 goods per hour but assembles only 400 most of the time, there must be a bottleneck. How to Provide Attribution?

What is capacity management discuss objectives of capacity management 10 process?
The capacity of an organization shows its ability to do work. Capacity management is the process that is used to ensure that the IT capacity is capable of continual provision of consistent and acceptable service levels at a known and controlled cost.
What is capacity management and examples?
The capacity of a business measures how much companies can achieve, produce, or sell within a given time period. Consider the following examples: A call center can field 7,000 calls per week. A café can brew 800 cups of coffee per day. An automobile production line can assemble 250 trucks per month.
What is objective capacity?
Capacity objectives should be statements of the results to be achieved and they are, therefore, much more specific, and achievable in less time than the goal. The most common guidance for writing objectives is to make them SMART: specific, measurable, achievable, results-oriented, and time-bounded.
What are 5 the capacity management strategies?
5 CAPACITY MANAGEMENT STRATEGIES5.1 Recognizing Capacity Problems. ... 5.2 Incorporating Capacity Issues Into Management. ... 5.3 Incentive Blocking Capacity Mitigating Measures. ... 5.4 Incentive Adjusting Capacity Correcting Measures. ... 5.5 Strategic Capacity Management.
What are the types of capacity management?
The different types of capacity managementWorkforce capacity management. ... Production capacity management. ... Resource capacity management. ... Lag strategy. ... Lead Strategy. ... Match Strategy. ... Adjustment Strategy. ... The benefits of capacity management.More items...•
How is capacity management defined?
Capacity management is managing the available capacity to ensure that resources are used optimally. Simply put, businesses have a certain number of available hours from resources and the goal here is to maximize the value gained within the given limits.
What are the objectives of capacity building?
The main objective of the capacity building and training activities is to create, enhance and develop constituents capacity at country level to design, implement and supervise social protection and social security schemes.
How can capacity management be improved?
What Are the Next Steps?Promote development of a capacity process. The CoP should be the catalyst in building a capacity process that meets IT service objectives. ... Develop a capacity plan. ... Execute the capacity plan. ... Hold formal capacity plan reviews and update the plan. ... Provide reports.
What are the types of capacity?
There are three ways to categorize capacity, as noted next.Productive Capacity. This is the amount of work center capacity required to process all production work that is currently stated in the production schedule.Protective Capacity. ... Idle Capacity.
What are the 8 steps in capacity planning process?
How to create a capacity planning processStep 1: Assign a process owner. ... Step 2: Identify what resources will be measured. ... Step 3: Measure current resource performance. ... Step 4: Assess maximum resource capacity. ... Step 5: Forecast the workload. ... Step 6: Transform forecasts to work requirements. ... Step 7: Map out resource usage.More items...•
What is a best practice for capacity management?
5 Best Practices for Capacity Management3.3 Forecast your future capacity to maximize billable utilization. ... 3.4 Implement a workflow for resource requisition and allocation. ... 3.5 Increase profitability by reducing bench-time with effective capacity management. ... The takeaway. ... Saviom Solution.More items...•
What are 3 capacity strategies?
There are three commonly recognized capacity strategies: lead, lag, and tracking. A lead capacity strategy adds capacity in anticipation of increasing demand. A lag strategy does not add capacity until the firm is operating at or beyond full capacity.
What are the 3 components of capacity management?
This is reflected by the three subprocesses of capacity management: business capacity management, service capacity management, and component capacity management.
What are the different types of capacity?
There are three ways to categorize capacity, as noted next.Productive Capacity. This is the amount of work center capacity required to process all production work that is currently stated in the production schedule.Protective Capacity. ... Idle Capacity.
What is capacity management in healthcare?
Hospital capacity management can be described as optimizing a hospital's bed availability to provide enough capacity for efficient, error-free patient evaluation, treatment, and transfer to meet daily demand.
How do you manage capacity management?
What Are the Next Steps?Promote development of a capacity process. The CoP should be the catalyst in building a capacity process that meets IT service objectives. ... Develop a capacity plan. ... Execute the capacity plan. ... Hold formal capacity plan reviews and update the plan. ... Provide reports.
What is capacity management?
Implementation activities are fulfilled and headed by Change Management – Capacity Management is only assisting and supporting regarding the Capacity aspects and functions. Capacity Management can be defined as agent by Change Management for some implementation steps.
What is information capacity management?
Information Capacity Management is dealing with the implementation and monitoring of a predefined Capacity level for the IT environment. Capacity management is balancing the requested level of capacity by customer with the operating resources and planned resources. Capacity analysis as starting point, based on Service definitions, SLAs and patterns of business activity (PBA) helps to define the customer requirements on Capacity level. Internal, minimal Capacity requirement is named IT basic capacity level. Additional Capacity requirements of the customer has to be defined on individual base.
What is the basic constraint of the capacity?
Basic constrain of the capacity is to keep required SLAs balanced with reasonable costs and efforts.
What is a capacity auditor?
Capacity Auditor is providing the verification of capacity plan. Auditor should be altering an external and internal resource to provide independent and reliable audit.
What is capacity plan monitoring?
Capacity Plan Monitoring is responsible for the monitoring and update of availability planing.
What is interface to service level management?
Interface to the Service Level Management. If service is known, all further parameters like service responsible person and expert group are known
When a capacity improvement is authorized and approved by Change Management, all actions functional descriptions and implementation procedures described in the improvement?
If a Capacity improvement is authorized and approved by Change Management, all actions functional descriptions and implementation procedures described in the improvement proposal need to be detailed , tested and approved in cooperation with the Change Management. Afterwards the implementation should be assisted to provide help in case of emergency or implementation issues.
What is capacity management?
The Goal of Capacity Management process is to ensure that Cost-justifiable IT capacity is matched to the current and future agreed needs of the business in a timely manner. To support this goal, Capacity Management has Objectives to: 1 Ensures the Capacity Plan, reflecting the current and future needs of the business, is available and up to date 2 Provide advice and guidance to all other areas of the business and IT on all capacity and performance related issues 3 Ensure that service performance achievements meet or exceed all of the agreed targets, by managing the performance and capacity of both services and resources
Is the cost of upgrading a component in a distributed environment less than the cost of upgrading a component in?
While the cost of the upgrade to an individual component in a distributed environment is usually less than the upgrade to a component in a mainframe environment, there are often many more components in the distributed environment that need to be upgraded .
Is human resource management a line management responsibility?
In general, human resource management is a line management responsibility, although the staffing of a service desk should use identical capacity management techniques. The scheduling of human resources, staffing levels, skill levels and capability levels should therefore be included within the scope of capacity management.
What is capacity management?
Capacity management refers to the strategy applied by businesses to maximize production efficiency owing to the overall demand for a product or service in the market. Its goals include identifying and eliminating bottlenecks in the manufacturing process and increasing the production speed by optimizing available resources and removing time and capacity constraints.
Why is capacity management important?
Using capacity management helps plan production cycles ahead of time to maximize production efficiency. It will reduce the overall costs of doing business. As such, a company can identify parts of its business not optimized and remove the bottlenecks.
How does capacity management help businesses meet consumer demand?
Capacity management helps businesses meet consumer demand by cost-effectively improving their production efficiency over a set period. It is accomplished by removing bottlenecks in the production process and utilizing available resources, which leads to maximum output.
Why is it important to analyze the availability of resources?
In doing so, an organization must analyze the availability of its resources to ensure it achieves the production output within the given period. This practice is common in industries like manufacturing, retail, service, and information technology.
Capacity management in IT
The methodologies and processes used for IT capacity management may vary, but however it is accomplished, at minimum, it requires the ability to monitor IT resources closely enough to be able to gather and measure basic performance metrics.
Capacity management vs. capacity planning
capacity planning is typically based on the results and analysis of the data gathered during capacity management activities. By examining performance variances over time, IT management can use those performance statistics to help develop models describing anticipated processing which can be used for short- and long-term planning.
How capacity management works
Capacity management tools measure the volumes, speeds, latencies and efficiency of the movement of data as it is processed by an organization's applications.
Components of capacity management
Capacity management could have a fairly narrow scope, providing high-level information on a variety of infrastructure components or, perhaps, providing detail metrics related to one segment of the computing environment.
Capacity management in networking
Managing the capacity of IT networks can be a complex process given the number of different networking elements that can be found in an enterprise environment.
Benefits of capacity management
Capacity management provides many benefits to an IT organization and is a factor in overall management of a computing infrastructure.
What Is Capacity Management?
Capacity management refers to the act of ensuring a business maximizes its potential activities and production output —at all times, under all conditions. The capacity of a business measures how much companies can achieve, produce, or sell within a given time period. Consider the following examples:
Why is capacity management important?
Capacity management is of particular concern to large companies because it's relatively easy to purchase additional hardware for smaller organizations at a low cost; however, when a business grows, adding new software becomes exponentially more expensive.
Why do companies need to remain nimble?
Since capacity can change due to changing conditions or external influences — including seasonal demand, industry changes, and unexpected macroeconomic events — companies must remain nimble enough to constantly meet expectations in a cost-effective manner. For example, raw material resources may need to be adjusted, depending on demand and the business's current on-hand inventory.
Why are there inherent challenges in minimizing production costs?
For instance, a company may lack the requisite time and personnel needed to conduct adequate quality control inspections on its products or services. Furthermore, machinery might break down due to overuse and employees may suffer stress, fatigue, and diminished morale if pushed too hard.
How many calls can a call center make a week?
A call center can field 7,000 calls per week.

Principles and Basic Concepts of Capacity Management
- Capacity management is mainly about the management of relationships between the 3 variables – resources, workload, and service levels, which are interconnected. It is a balancing act involving: 1. Balancing the costs incurred against the resources required 2. Balancing the supply against d…
Capacity Management Process
- The primary activities of the whole process are carried out both proactively and reactively. Usually, there is more emphasis placed on proactive capacity management as a lesser amount of effort is required to react to incidents and problems which occur because of issues related to capacity or performance. The proactive activities of capacity management consist of the following: 1. Pre-e…
Roles and Functions
- Capacity Manager
- Team
- Senior Leadership
- Operations Management
Risks & Challenges
- The challenges faced are as follows: 1. Making sure that accurate business plans are provided for basing the capacity plan. 2. Collecting and combining a large amount of data that is available in a way that is supportive of the process.
Conclusion
- This process in an organization identifies the requirements of IT capacity while generating and maintaining accurate plans. It can hence provide guidance and take proactive measures to improve the performance wherever it is cost-effective. Give yourself a chance to grow in your Service Management career with the ITIL 4 Foundation certificationtraining, and gain useful skill…
Description/Summary
Objectives
- To introduce and maintain a required level of Capacity, as defined by the customer and senior management. Information Capacity Management contributes to an integrated Service Management approach by achieving the following activities: 1. Identifying and defining the internal and external Capacity requirements 2. Planning of Capacity procedures 3. De...
Roles & Functions
- Service Specific Roles
Roles depending on the affected service are found in the Service Description. The Service Description including the service specific roles is delivered from the Service Portfolio Management. Service Expert/Service Specialist Service Owner Service User - Customer Specific Roles
Roles depending on the affected customer(s) are found in the Service Level Agreement. The Service Level Agreement for the customer specific roles is maintained by the Service Level Agreement Management. Customer(s) 1. Customers of the affected Service with a valid SLA
Information Artifacts
- Capacity Plan
Set of targets, measures, reports and actions to establish, maintain and audit certain level of Capacity for a set of IT services for a certain time frame (year etc.) The Plan describes the currently available capacity and the expected changes in the demand for IT services. - Capacity Design Record
1. Capacity Design ID 2. Capacity Design Requester 3. Capacity Design Description 4. Capacity Design Agent 5. Capacity Design Owner 6. Service: The Service which has to be (re)designed
Key Concepts
- Capacity Data Base
The CDB contains technical information, business information, service related data and financial information relevant for Capacity Management. This information is basis for the management reports, capacity plan and technical reports. - Demand Management
aims to influence the demands for capacity 1. short term 2. long term
Critical Success Factors
- Critical Success Factors (CSF) define a limited amount of factors influencing the success of a process. For the Capacity Managementfollowing factors can be defined as CSF: 1. Right dimension of Capacity avoiding overcapacity or capacity leaks 2. Management support for Capacity issues 3. Capacity awareness in the company 4. Definition of responsibilities between …
What Is Capacity Management?
What’s Capacity Management?
Components of Capacity Management
The Activities Related to Capacity Management Include
- Designing a service to meet SLA objectives Manage resource performance Diagnosing issues relate to performance Develop a capacity plan that is going to align with the budget cycle of the organization Review of service performance and service capacity Gather and assess service usage data Implementing changes that are associated with capacity Perform...
Functions in Planning
Advantages