<aside> <img src="/icons/wrench_gray.svg" alt="/icons/wrench_gray.svg" width="40px" /> Capacity planning process is used by organizations to determine their production capacity in order to meet the changing needs of their products.

</aside>

Four Main Aspects of Capacity Planning

People

• Analyze current personnel skills and capacity
• Forecast future personnel needs for hiring, training, or downsizing
• Ensure the right number of people with the right skills for strategic objectives
• Example — Hiring seasonal employees for holiday retail demand

Technology

• Assess current technology resources and their usage
• Predict future technology demands
• Consider scalability and potential investments in new technology
• Example — Ensuring an e-commerce platform can handle traffic spikes

Infrastructure

• Plan for physical spaces and utilities to support operations
• Includes office spaces, data centers, and more
• Optimize space and power consumption
• Example — Data center capacity planning for server installations

Process

• Optimize business processes for varying demand levels
• Streamline workflows, improve efficiency and consider outsourcing