Capacity Planning

“How do we ensure we have enough capacity to meet demand?”

Capacity planning is where supply meets demand. The best new product or service will fail if your company is unable to process orders. Likewise, over-investing in inventory can lead to ongoing financial constraints.

Capacity planning is where supply meets demand. The best new product or service will fail if your company is unable to process demand. Likewise, over-investing in inventory can lead to ongoing financial constraints.

Impacts of Capacity Planning Failures – Case Study

Impossible Foods, maker of the Impossible Burger, launched their product largely through local and family owned businesses. Then came a major deal with a fast food outlet, expanding reach to 9,000 restaurants, and introduction of Impossible Burger 2.0. Many loyal customers quickly discovered that the Impossible Burger was impossible to find. The company started to address its production challenges, even though the significant increase in sales outlets was a clear indication they were ill-equipped to deliver. Additional labor resources were added and the main plant began a 24-hour production schedule versus 12. The company also acquired investment funds to expand production quickly, and brought on an expert in scaling manufacturing processes.

Capacity Planning Success – Mercedes Benz Stadium Case Study

The management team for Mercedes Benz Stadium in Atlanta engaged Integrated Insight during the construction process to help design the front entrance sequence. Guests must pass through bag check, magnetometers, and ticket validation as they enter. A delay at any station creates a bottleneck. Through capacity planning analysis, we were able to identify the number of stations for each function, where they should be located, required communication for guests to find their way to the closest entrance, and levers to pull to increase or decrease capacity as demand warrants.

When to Perform Capacity Planning

– The risk of demand exceeding supply is a possibility and “plan B” supply chain scenarios need to be identified.

– Investment in infrastructure to deliver the new product or service is substantial and capacity planning will help identify how much to build.

– Optimizing production will help save costs.

The Integrated Insight Difference

– We work iteratively with our clients, identifying issues as we see them arise, and incorporating changes as we go to help develop the optimal product launch.

– We study the whole process, not just one component, given hand-offs between processes are where most issues will arise.

– We provide recommendations for subtle changes that we know can have significant impacts based on past experience.

– We develop risk assessments for the most impactful factors in capacity planning, to help in identifying fallback positions if the need arises.

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