What is capacity planning and how to improve it in 2023. Project Portfolio Management.

What is capacity planning and how can it be improved in 2023?

As a project managerAs a project manager, you are probably aware that capacity planning is a very important process. It helps project managers explore possible scenarios for projects and determine what the team needs to do to achieve the objectives.

Capacity planning may seem like a simple task. In this article, we'll look at what capacity planning is and how to improve it in 2023.

However, it is sometimes difficult for project managers and support departments to agree on a plan of action. 

1. Why capacity planning?

The capacity planning is a common practice in business management. And yet, even companies that are aware of its effectiveness don't always know how to implement it. Let's be honest, there's a reason why capacity planning is often difficult to implement: there's no magic bullet or formula.

Capacity planning is a complicated and interesting field that requires a specific set of skills. 

Generate accurate alerts

When you use a capacity management software, you can set up numerous alerts. This allows you to receive alerts regarding capacity overload or shortage.

This allows you to receive numerous alerts, which allow you to better control your resources.

Determine capacity targets

When planning capacity, it is important to determine capacity goals. You need to build on criteria you have determined in the past.

You must also take into account the margin objectives. You also have to consider production goals. If you are producing more products, you need to be able to do it efficiently.

You must therefore determine the number of products you can produce in a given time.

Define a capacity management policy

When planning your capacity, it is important to define a clear policy that is easily understood by everyone. This will allow you to deal with all scenarios and to have an efficient management of the company's capacities. 

A good example of a capacity management policy is to define a load limit for your servers. This will ensure that you don't have to deal with too many requests from your users that can sometimes be difficult to satisfy.

2. The evolution of capacity planning

Cloud capacity planning is a topic that has changed significantly over the past 10 years. Back in the day, companies had to manage their IT resource needs upfront to ensure they had enough capacity to meet future growth. 

Today, the principles are different, and companies must strive for flexibility and ease of use. 

Capacity planning tools

One of the most commonly used capacity planning tools is the histogram representation. This makes it easy to visualize the different consumption trends in your company.

For example, you can track your company's various consumptions, especially for the different services you offer. This allows you to easily ensure that you are not exceeding your capacity.

The different stages of capacity planning

When planning your capacity, you need to consider all the steps. In particular, it's important to have an idea of the workload you're going to have. This will allow you to know if you need to buy new servers or if you can make do with the servers you have. 

You also need to determine the cost of the investment you will have to make. This will allow you to know if you can afford to invest in new servers or not.

3. How to plan for capacity

What is Capacity Planning? Capacity planning is a time management method that allows companies to set production, sales and service objectives. 

It consists in determining the production objectives according to the market objectives and the cost price, in order to optimize the global output.

Identify the necessary capabilities

In order to identify the necessary capacities, you need to use a planning tool. This tool allows you to determine capacity and staffing requirements. This ensures that you have the necessary resources to meet the demand.

It's also important to make sure you have enough capacity. If you have too much, you may be faced with additional needs. This may require you to hire new employees, which is costly.

Define the lifetime of each capacity

When determining the life of your capacity, there are several factors to consider. One of them is the cost of the capacity. If the capacity is too expensive, it's better to choose a cheaper capacity that lasts longer. This will save you money. 

You also need to consider the usage of the capacity in question. If it is used year-round, then it makes sense that it will last longer.

Determine the necessary capacity

When planning the capacity of your website, it is important to determine the capacity you need to offer. This will ensure that you don't have a problem if you have a peak in traffic. 

This allows you to determine the capacity you need to offer based on the traffic you have. 

This will help you avoid having too many people on a website that uses a large volume of data.

Define the frequency of planning

One of the steps in planning for capacity is to define the frequency of your planning. This can be once a week, but you can also choose to plan weekly. 

It all depends on your needs and the business you are in. One example that can help you determine this frequency is to consider the amount of events you have. If you have a large number of events, you may need to plan more often.

4. Challenges to capacity planning

Unfortunately, some companies do not have the possibility to plan their capacity needs. Indeed, these companies are subject to periods of intense activity or seasonal peaks. 

However, whether it is a service or manufacturing company, companies need to plan and forecast their capacity needs. 

Information exchange policies

It is important to exchange information between the different departments of your company. This will allow you to better plan the different tasks to be done.

It will also allow you to better estimate capacity needs, so you can anticipate future challenges.

A new level of collaboration between teams

One of the challenges of capacity planning is the collaboration between different departments. In the case of a company, they may have different areas of expertise, which can be problematic

This is particularly the case when the production department has to ask the maintenance department, for example, to make a modification to a piece of equipment. In this case, the two departments have to coordinate, which can be difficult.

More secure processes

For many companies, capacity planning is a very important process. This is especially true for companies that sell many products.

In order to guarantee an optimal quality of service, it is necessary to know which products are sold, how often and in what quantity. This ensures that the demand is met.

More predictable processes

One of the main challenges in capacity planning is process predictability. This is especially true if you are using capacity planning tools. 

If you are using more predictable processes, you can afford to use a simpler capacity planning method.

In particular, this can help you reduce the risk of making mistakes in your estimates. However, it is important to note that more predictable processes can also allow you to use more advanced capacity planning tools.

5. Some good practices

We have presented you the best practices for an e-merchant. An article that has been read more than 30,000 times and on which we received very positive comments. We invite you to read it again if you want to know more about the best practices of e-commerce.

Secure your server park

To increase the availability of your server farm, you need to ensure that you have enough servers. This ensures that you do not have availability problems if one of your servers goes down.

You can also use these servers in case of urgent needs. This ensures that you can meet all the needs of your users.

Do not leave servers unused

During an upgrade operation, for example, you must also make sure that you do not have any unused servers. It is important to make sure that during this operation, you do not have an impact on the capacity of your system. 

If you have unused servers, you may have trouble using your infrastructure.

Carry out preventive maintenance

When you perform preventive maintenance, you need to ensure that several tasks are completed. This will allow you to perform many operations, including optimizing your infrastructure. It will also allow you to optimize the performance of your server. 

This is something you should focus on first. You can think about optimizing your server and upgrading it. This will allow you to enjoy a better performance of your server, while allowing you to reduce the risk of downtime.

6. The perspectives

Once your blog has been published, it's time to move on to the SEO phase. Of course, you can't expect your content to rank well in search engines right away, especially if you don't have much experience with SEO. 

But this can take time and you need to be patient. However, there is one thing you can do to increase your traffic right away: promote your content.

Monitoring of resource consumption 

Today, it is important to be able to monitor resource consumption. This allows you to avoid significant additional costs and to face difficulties in using the infrastructure.

That's why you need to make sure you have good methods for tracking resource consumption.

Conclusion

The capacity planning is one of the keys to business success. It is a means to develop an integrated and sustainable business model.

Thanks to this process, companies limit costs and optimize their productivity. Finally, they can demonstrate their progress and maturity to their partners.

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