Capacity Available VS. Load

Monitoring our capacity is something many businesses do not do. If you look at how capacity needed and load is calculated, you find out in a hurry it’s very dynamic and thus very difficult to manage. What happens it seems like, is most businesses just don’t manage it. They take orders and scramble, and deal with the consequences of taking on too much work when they bump up against the problem. We usually find out we’re in trouble on a Friday or a day or two before a holiday. Now we’re faced with offering double time to employees for holiday pay to work or we go to mandatory overtime and get everyone angry because we messed up their personal plans. My experience has been the scheduler has identified the capacity shortage a couple weeks earlier but when brought to everyone’s attention, it gets ignored or blown off. This happens because every time we’ve hit the crunch for capacity, we get all the work done with double time or mandatory work. We think this is the best way to solve it. “I have to see it before I’ll believe it. Otherwise I’ll schedule overtime and not need it” Rarely does a business stop to think that waiting to the last minute is costing them a fortune. The work will get done but pay me now or pay me later but you WILL pay.