There are many types of capacity in the business world, from the ability to sell to the intellectual of the staff through the capacity of reaction to unforeseen events, etc. But the capacity that today in day focuses attention is the productive capacity.

While in the economic good times, inefficiencies in the production process are not considered as a priority because the business ensured its continuity by own inertia in the market. In times with a deep economic crisis which are suffering today, is essential to manage the productive capacity and eliminate inefficiencies to offset the decrease in or lack of business.

It’s true that when we speak of productive capacity and ratios of productivity only one thinks in the effort that the workforce can make in a given period of time. But the productive capacity and productivity is something else. We tend to forget when spoken ability, material resources or the tools provided by the companies to produce faster and faster.

But the most important productive capacity and almost always forgotten, is the productive process itself. Provide an efficient, documented process and permanent information its execution state, allows eliminate inefficiencies and make better use of resources.

The challenge of a good Manager, is to optimize the production process through the use of all resources for yielding to the best of their ability. This objective is essential to control and manage correctly all the elements involved in the process on the basis of its nature:

  • Employees. Put the necessary means so that the workforce is motivated and committed or which is flexible enough to allow its rolling from activities with little work to others with greater load.
  • Productive activities. Many times productive processes run as they have always done because all those involved feel comfortable. Adapt production to the changing needs of the market or the incorporation of new media technicians, improve quantitatively and qualitatively the productivity.
  • Media production. It should not be forgotten that before putting them into operation, it is necessary to quantify productive capacity and adapt the production process to fit them in the activities concerned.
  • Relations with suppliers. Plan properly when other departments or suppliers involved in the process, avoids unnecessary waiting times by improper coordination.

In addition to controlling all the elements involved in the process and manage the production, it is necessary to how information is produced, employees time and produce, the units produced, the resources used or the expected demand.

This makes it necessary to measure the process to meet their productivity level. But in many cases are often fall into a very serious mistake, production oriented process data is conditioned in a compulsive and obsessive way. So bad is the lack of information, such as the excess of it.

Measurement / control points must be located at strategic points of the process and performed with the frequency or periodicity required for proper control.

Finally, there is a widespread belief by which it is believed is managed properly the capacity when the expected profit margin. Nothing further from the truth!, you can obtain the target margin and not properly exploit the productive capacity or have it rated below.

It is essential to have a defined management method that controls the installed capacity, both on a global basis, as each one of the activities to execute or used material means. It is essential to know how much I can produce.

Once you know how much I can produce, it is essential to know the forecasts of production, either by agreements reached with customers I historical demand data.

This information, well analyzed and managed will make capacity being managed properly and productivity rate reaches 100% of installed capacity.

What is your best advice for manage the Productive Capacity of your Services?
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Author: Alfonso Berrón Escudero (All Rights Reserved by the author).
Source: Original Text (based upon first hand knowledge).
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Alfonso Berrón with over 20 years of experience in the world of the IT in different markets such as telecommunications, energy, banking, industry and insurance, in recent years he has specialized in the startup of Outsourcing operations, management of project offices and improvement process projects. He also collaborates regularly in different forums and Masters of improvements processes, and he is associate professor at the European University of Madrid. He currently has professional accreditations in CMMi and iTIL process models. As summary of the principal positions in different companies are: • Indra as manager and process/development consultant at Indra. • Skill soft as Computer systems analyst. • ACB Systems as Co-Founder and CEO. • Group Interpres as Technical Director.He can be reached on LinkedIn.