S Capacity Planning

As companies become excellent in project management, the benefits of performing more work in less time and with fewer resources becomes readily apparent. The question, of course, is how much more work can the organization take on? Companies are now struggling to develop capacity planning models to see how much new work can be undertaken within the existing human and nonhuman constraints.

Figure 19-9 illustrates the classical way that companies perform capacity planning. The approach outlined in this figure holds true for both project- and non-project-driven organizations. The "planning horizon" line indicates the point in time for capacity planning. The "proposals" line indicates the manpower needed for approved internal projects or a percentage (perhaps as much as 100 percent) for all work expected through competitive bidding. The combination of this line and the "manpower requirements" line, when compared against the current staffing, provides us with an indication of capacity. This technique can be effective if performed early enough such that training time is allowed for future manpower shortages.

The limitation to this process for capacity planning is that only human resources are considered. A more realistic method would be to use the method shown in Figure 19-10, which can also be applied to both project-driven and non-project-driven organizations. From Figure 19-10, projects are selected based upon such factors as strategic fit, profitability, who the customer is, and corporate benefits. The objectives for the projects selected are then defined in both business and technical terms, because there can be both business and technical capacity constraints.

The next step is a critical difference between average companies and excellent companies. Capacity constraints are identified from the summation of the schedules and plans.


Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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