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Case Study

Capacity Modeling
Changing business demand is inherent in the way operations function. Very often they are required to react swiftly to the cause. It is generally observed that operation do not get the necessary lead time for rigorously strategizing its plan of action. This leads to not only inefficient resource utilization but quite often business discontent arising out of unstable operational environment impacting production and service quality.

  • Our experience generally reveals the following weaknesses in an operation environment

    • Lack of data and quality assumptions driven execution planning with timing of various events
    • A missing governance forum that brings business and operations for ongoing dialogue on capacity
    • Unidentified levers that impacts capacity situations both positively and negatively
    • Limited relook of the original assumptions and validation of the same with the actual result
  • Our solution framework introduces the following interventions in reaction to the generally observed weaknesses:

    • A structure for capturing key decisions and their impact
    • Capacity model with the flexibility to configure values and key levers
    • A snapshot of production performance with appropriate annotations for decision making
    • Option to plan configure upcoming campaigns and associated impact on operation

We have created an array of solutions packaged together in a coherent way that are used for governance purpose for the smooth running on the operation. Our solution has the following critical elements:

  • Inputs and Assumptions

    • Productivity Assumptions
    • Campaign Plans
    • Hiring plans
    • Learning curve
    • Desired quality and service levels
  • Model Outcomes

    • Production capacity estimates at various time points
    • Inventory drawdown and FTE ramp up curves
    • Business decision logs and audit trail
    • Annotations of key events impacting production performance
Some of the benefits are as follows:

  • Reduced total cost of operation [generally observed to be 15-20%]
  • Improved internal quality and external service quality
  • Significant improvement in governance, stakeholder engagement and communication

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