Operations Management Theory: Reconciling Capacity and Demand
Draw on appropriate Operations Management theory, concepts and frameworks to examine how your organization, or an organization with which you are familiar, reconciles capacity and demand.
Information technology services industry is a highly competitive cost based operation sector where availability of resources, tangible and intangible is key to successful projects. This makes a significant challenge to accurately reconcile capacity and demand. OpenText is a leader in providing enterprise content management solutions and we will analyse consulting services provided in the European market along with effect on demand with today’s changing economic environment.
Slack et al (2009, p.248) defines relationship between …show more content…
As a professional services organisation (PSO) OpenText require real time visibility into understanding the critical data so as to staff the team to required levels particularly when demand fluctuate with respect to changing customer needs and project requirements. OpenText employs regular staff to meet the core demand for technical and consulting requirements while development and delivery of projects is outsourced to multiple partners who host technical teams. OpenText use multiple outsourcing partners for delivery of service depending on the technology and industry involved. Based on the cost and availability these outsourced resources are sometimes shared between projects and across technologies. In order to reconcile capacity with demand OpenText needs to fully understand what the true capacity of internal resources is and that of its outsourcing partners and suppliers. To accomplish this, the company needs to accurately measure capacity by considering technology capabilities, mix of services in offering and the expected level/quality of service for individual customer.
Technology capabilities include the different specialisation in product and experience in implementation of projects. This is because some technologies are niche and involves a