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Capacity planning can be defined as the production capacity needed by an organization to meet changing demands for its products and infrastructure.
In the context of capacity planning, “capacity” is the maximum amount of traffic the infrastructure is capable of completing in a given period of time.
A discrepancy between the capacity of an infrastructure and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers.
The goal of capacity planning is to minimize this discrepancy. Demand for infrastructure capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Better utilization of existing capacity can be accomplished through improvements in overall equipment effectiveness (OEE). Capacity can be increased through introducing new technologies and equipment.
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