Capacity Management Article Capacity management Is used to manage a company’s information technology. The primary goal of capacity management is to make sure that the information technology capacity meets current and future business requirements in a cost- effective manner. Not all companies are familiar with capacity management but those that are familiar with the concept seem to be quite happy with the benefits it provides. One company that recently became familiar with the concept of capacity management is TTL, otherwise known as Texas Instruments.
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Texas Instruments assigns lord to the different levels of capacity states. They use green for productive capacity, red for non-productive capacity, and yellow for idle capacity. One benefit from adding these colors of capacity states was that it initiated a company-wide campaign to get all the red colored capacity ones out. This campaign utilizes the capacity management model to show the need to reduce nonproductive uses of capacity throughout the company. For Texas Instruments the Operations team is in charge of changing red capacity to yellow capacity while the Management teams are
In charge of changing yellow capacity to green capacity, thus creating additional sales. Another benefit that Texas Instruments gained from capacity management was their ability to do more things. Texas Instruments explains that their ultimate objective by Implementing this system was to Improve their ability to do things and thus make more sales and become more profitable. They were able to achieve this goal because of their successful capacity management implementation. Another company that has also recently become familiar with the concept of capacity management is Lexemes.
Lexemes was going through a major transformation that took them from being a manufacturing and supply chain organization to a printing solutions and software provider. This transition called for a major organizational change. They realized that within their IT department they needed to be “more agile and support the business by helping it develop and deploy solutions faster”. In order to achieve this, Leaser’s IT department decided to hire a capacity management company in order to avoid bottlenecks and to remove silos across the organization.
One benefit that Lexemes encountered for implementing a capacity management system Is that they were able to Improve the performance of applications and infrastructure. Another benefit is that Lexemes was able to enhance their services to their end users. This enabled Lexemes to refine and improve those services thus making things easier for the consumer. Overall, capacity management provides many benefits to the companies that decide to implement such a system. Texas Instruments benefits included providing additional sales and additional profits for companies as well as providing them to be able to do more things.