If capacity management has been a problem recently, we're probably not alone. According to DevPro Journal, every fourth management considers capacity as their company's most difficult obstacle. Developers admit that dealing with a backlog is difficult when capacity is restricted. Understanding capacity management and related processes is, therefore, more crucial than ever. This article contains recommended practices for improving your capacity management plan.
What do we mean by capacity management?
Capacity management refers to a set of approaches used to ensure that resources are available to satisfy projected business demands cost-effectively. Capacity, on the other hand, is the entire production that a company is capable of with its resources, and it is attained by fully employing those resources.
Therefore, the goal is to maximize the value gained within such constraints to ensure that the business optimizes its capacity to the fullest extent if the firm has restricted hours for a few of the resources.
Best strategies for capacity management
- Track competency across the entire company using a single platform.
In an organization, resource managers must constantly be aware of the skills of the staff. It assists them in assigning the proper resource—one with the appropriate training, competence, qualifications, and experience—to the project. To complete this work, a centralized platform is essential.
- Manage the projects in the pipeline.
Efficient resource capacity management entails shorter hiring/firing cycles and the intelligent fulfilment of short-term and long-term future demands. Resource managers should know the anticipated future projects and the resulting resource demands. It will assist you in balancing your resource pool with the right talents for any open position.
- Project your future capacity to maximize chargeable utilization.
Thanks to centralized visibility with a robust capacity management tool, managers may shift resources from non-billable to billable and strategic initiatives. Furthermore, anticipating resource use will enable managers to take a proactive rather than reactive strategy to increase billability.
- Workflows should be created for resource requests and allocations.
Two of the most critical phases of resource capacity management are resource requisition and resource allocation. However, if this is done over the phone or by email, it may get out of hand.
In order to receive the resource on time, keep it documented, and make it auditable, a well-designed workflow is essential. Additionally, it will keep everyone informed. The stakeholders will be updated on their resources and allocations, preventing unneeded inconsistencies.
- With efficient capacity management techniques, increase profitability by minimizing bench time.
For resource managers, having too many benched resources is a nightmare. Therefore, forecasting bench time is the best way to take remedial action in front of the curve. A reliable capacity planning tool offers clear information on the number of individuals on the bench and open positions.
Resource managers can anticipate surpluses or shortages and take preventative measures. To make the appropriate resourcing decisions, they can gain insight into the gap between capacity and demand.
Key Notes
Ensuring that your firm has an appropriate capacity management procedure can benefit it in terms of income, efficiency, and production.
Resource capacity management is a defining characteristic of successful organizations and long-lasting businesses. The aforementioned best practices for efficiently managing capacity can assist in reducing project risks and bottlenecks while making sure that the staff is fully used.
To gain insight into their production capacity, managers need the right resource management tools. eResource Scheduler is a robust resource management software that gives them real-time data to make smart business decisions.
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