GoConqr has a new look! Let us know what you think.

Mind map

Chapter 7: Balancing Productive Capacity and Demand

tyansoon English

Map content

Chapter 7: Balancing Productive Capacity and Demand

  1. Productive Capacity is the maximum number of products or services that can be produced, given a fixed number of resources and constraints.

    • Goal is not to utilize staff or facilities as much as possible, but to use them as productively as possible
    • Forms of Productive Capacity
      • Physical Facilities to host customers
        • Hotels
        • Clinics
        • Classrooms
      • Physical Facilities for storing or processing goods
        • Warehouses
        • Carparks
        • Pet Grooming Salons
      • Service Provision Equipment (To process people or information)
        • To ease bottleneck in services
        • Telephones
        • Hairdryers
        • Cash Registers
        • Toll-gates
      • Number, Expertise and Experience of Personnel
        • Constraints in High or Low contact services
          • Insufficient staffing causes customers to wait or else quality of rushed services diminishes
        • Waiters
        • Nurses
        • Doctors
    • Measuring Productive Capacity
      • Percentage of total time facilities, staff and equipment in use
      • Percentage of total space used in revenue operations
    • Demand variability interfering with productive use of capacity
      • Request Variability
        • Changing of Cooking Method
      • Capability Variability
        • Knowledge and experience - seasoned customer VS first timer
      • Effort Variability
        • Effort of student putting into assignments
      • Subjective Preference Variability
        • High Attention Service VS Low Attention Service
  2. Capacity Challenge

    • Stretching or Shrinking Capacity
      • Stretch capacity of personnel during peak hours
      • Extend Opening Hours
      • Minimizing Slack Time
      • Cutting Level of Services During Peak Hours
    • Adjusting Capacity to Meet Demand
      • Schedule downtime during low peak periods
        • To ensure 100% capacity during peak period
        • Maintenance to be done during downtime
      • Cross-train employees
        • To ease bottle-necks to increase total capacity
      • Use Part-Time Employees
        • Extra manpower to ease workload
        • More flexibility
      • Self-Service
        • Customers as co-producers
          • Set up self-service kiosks
      • Asking Customers to Share
        • To share one unit of capacity during peak hours
          • Sharing tables or sharing of taxi
      • Create Flexible Capacity
        • Two or more tables combined to accommodate more customers
      • Rent extra facilities or equipment
        • To limit investments in fixed assets
          • Rent out extra space or machines during peak hours
  3. Strategies For Managing Demand

    • Demand and Supply Imbalance
      • Excess Demand
        • Customers have to be turned away
      • Demand Exceeds Optimum Capacity Level
      • Demand and Supply Well Balanced
      • Excess Capacity
        • Customers question viability
    • Approaches for Managing Demand
      • Take No Action and let demand find its own levels
        • Customers learn from experience and Word of Mouth
      • Reduce demand in peak periods
        • Encourage customers to shift demand
      • Increase Demand in low periods
        • Introduce Pricing incentives
        • Special Promotional Offers
        • Additional or Modified Services
      • Inventory Demand until supply available
        • Introducing Booking or Reservation Systems

Information

Description
Services Marketing
Created by
tyansoon · Mar 2014
Updated
Feb 19, 2016
Views
73
Rating

Feedback

What is it about?

What do you think of the new look?

How do you like it?