-
Essay / Reconciling Capacity and Demand - 1689
The IT services industry is a highly competitive cost-based operating sector, where the availability of resources, both tangible and intangible, is key to project success. This makes it difficult to accurately reconcile capacity and demand. OpenText is a leader in providing enterprise content management solutions and we will analyze the consulting services provided in the European market as well as their effect on demand in today's changing economic environment. Slack et al (2009, p. 248) define the relationship between capacity and demand as: "Capacity is the output that an operation can deliver in a defined unit of time. Demand is the quantity of products and services that customers request from an operation or process at any time. Capacity management is a continuous effort in the industry by reducing costs through repeated business activities and engaging new potential markets and customers; This while managing customer expectations and guaranteeing the quality of service. Customer engagement and service delivery are essential to OpenText's economic competitiveness in the market. Employee development and attracting highly qualified people to the organization is essential to providing quality service. When considering potential projects, OpenText needs to know the availability of resources to complete the tasks. This resource demand is weighted against available people (capacity) to determine whether additional resources are needed to meet the demand and, if necessary, what types of resources are needed. Accordingly, planning for resource availability (capacity) is important in project planning and delivery (demand). This request is based on existing and new proposals for OpenText. Demand elements such as opportunity, project portfolio, ...... middle of paper ...... supply uncertainty. IIE Transactions 34 717-728. Slack, N., Chambers, S., Johnston, R., Betts, A., (2009). Operations and Process Management: Second Edition. Harlow: Pearson Education Limited Roth, AV and Velde, MV D. (1991), “Operations As Marketing: A Competitive Service Strategy”, Journal of Operations Management, Vol. 10, no. 3, pp 303-328 Chiang, W. K. and Feng, Y. (2007). The value of information sharing in the presence of supply uncertainty and demand volatility. International Journal of Production Research, 45 (6), 1429-1447. Hum, Sin Hoon (2000), “A Hayes-Wheelwright Framework Approach to the Strategic Management of Third Party Logistics Services”, Integrated Manufacturing Systems, Vol .11/2 , pp 132-137 Buxey, G. (1993). Production planning and scheduling for seasonal demand. International Journal of Operations and Production Management, 13(7),4-21.