Question: Strategic Capacity Management

As global competition in manufacturing and services both increases and evolves, we are experiencing profound changes in the way organizations are approaching their strategies on capacity management. Multiple events such as the great global recession, labor disputes, increasing terrorist threats, increasing piracy activities as well as natural disasters like earthquakes, hurricanes, tsunamis and hazardous materials spills have all caused major disruptions in globally sourced supplies. We are globally connected; a tsunami in Japan interrupts the supply chain for companies here in the USA. All these events, in turn, have a negative impact on capacity and production for many operations around the globe. As managers and leaders in business and society, we must consider and develop strategies to offset these ongoing problems and to take advantage of any opportunities presented.

Senior level leaders view capacity management and capacity planning from a global perspective and consider long range, intermediate range, and short range planning processes. Capacity management is generally referred to as the management of the available resource inputs relative to the required output over a specific period of time. Recent examples of shortages include the availability of drywall for the construction industry and refined rare earth materials for the defense industry.Recent examples of shortages include the availability of drywall for the construction industry and refined rare earth materials for the defense industry.

What is the impact of capacity management, finance, and marketing functions on the operations of a manufacturing and service based organization? Examples of such industries include the energy, hospitality, auto manufacturing, medical supplies, healthcare, or Internet provider industry.

Use the Hotel Industry industry and address the question posted above, referencing the following points:

• Identify the industry: HOTEL INDUSTRY
• Capacity increases, decreases, and flexibility
• Capacity focus
• Service capacity as compared to manufacturing capacity
• Finance and marketing functions