Capacityplanning is the process by which a business determines the capacityrequired to encounter its dynamics in demand and supply of productsand services. Similarly, it can be termed as the total amount of workthat a business is capable of carrying out within a particular periodof time. Notably, capacity planning is a long-lived choice thatcreates a company’s total level of resources. Any organizationshould consider its capacity decision since it adversely affects thecompany’s ability to compete, operative cost and consumer reactions(Heizer et al, 2013). Therefore, the paper presents the differencesbetween capacity planning, product manufacturing and servicedelivery.
Inan organization, the primary concern whether the required resourcesand tools are in place to tackle the increasing number ofinteractions within an enterprise is necessary and all these factorsare determined by the process of capacity planning. Additionally,capacity can be increased by presenting modern ways such as improvingmachines and material that will result in increased production.Finally, capacity planning mainly focuses on minimizinginefficiencies that may exist between consumer demand and companycapacity.
Contrary,product manufacturing is the process by which tangible goods that arephysical products are produced. In general, goods are produced in astandardized way during product manufacturing one finished productis typically the same as the next. On the other hand, servicedelivery involves the operations of providing intangible servicesthat may not be simply recognizable. Service delivery can becategorized into some businesses such as hospitality, banking amongothers (Heizer et al, 2013). Conclusively, service deliveryprocedures may not always be the same hence has more chances tomodify the services offered. Additionally, product manufacturing andservice delivery satisfy consumer needs through capacity planning.
Heizer,R., & Barry, R. (2013). Operation Management, Sustainability andSupply Chain management (Vol. 11). Pearson, UK.