Two shifts are so arranged that each member of team is present at office to handle both peak hour volumes. The following are illustrative examples of service capacity. Both are short term decisions and pertain to the team and individual level rather than to the organisation as a whole. Long term increases or decreases in capacity such as opening of new RPC and it will have impact on whole branch network under that RPC. DOWNLOADS Open interactive popup. • Evaluate and apply the different strategies for matching capacity with demand in the short, medium and long term. It is the practice to optimally utilize the existing capacity before adding or hiring new resources. #2.The benefits of capacity planning. Bank soon realised that it is losing customers more than creating new customers. It’s about measuring performance and comparing it to requirements that are set in Service Level Agreements (SLAs) or Service Level Requirements (SLRs). The model has been applied in two real cases. Critical Success Factors for Capacity Management in Airline Industry With reference to the three case studies, fours critical factors are needed for a successful capacity … This arrangement is suggested to be most efficient by Slack (2009). Article (PDF-258KB) Significant demand variability is common in many service environments—most notably in call centers, hospitals, field delivery, and retail operations. To increase output by expecting each staff at RPC to be more productive by working fast than his normal speed. With frequent extended working hours for staff at bank to meet demand it is highly probable that staff will commit error. Though operations unit at ICICI bank is not generating business directly but efficient working of this unit ensures customer satisfaction, compliance with central bank regulations and prevention of frauds. “Capacity management is concerned with the matching of the capacity of the operating system and the demand placed on that system.” (Wild, pg304, 2002). If capacity is low bank will not be able to meet the demand resulting into customer dissatisfaction and if capacity is more that demand bank is paying for extra capacity. After collating the inputs taken from line staff and team leads from all RPC’s bank has prepared extensive list of all the task performed at RPC and the average time required to complete particular task. Long term forecast of demand is based on different standard forecast models. It’s also one of five areas of ITIL Service Delivery. You can view samples of our professional work here. To rent this content from Deepdyve, please click the button. Capacity measures the rate that the operation can transform inputs into outputs. Overall task of the team is further divided into series of small tasks, which is formalised and same for all RPC’s. Capacity management and service industry performance, a case of sunset Hotel-Kisumu @inproceedings{Kiswili2016CapacityMA, title={Capacity management and service industry performance, a case of sunset Hotel-Kisumu}, author={Nyile Erastus Kiswili and Swalehe Rehema and B. Chepkulei and S. Odock}, year={2016} } Arrange interdepartmental training so that resources can be developed to support other department. As the name suggests, the lead capacity strategy adds capacity before the demand actually … While overstaffing implies extra costs, insufficient capacity implies a lower level of attention to customer needs and therefore a lack of perceived quality. Using vendor support for less critical service: complying with banking regulation. At ICICI bank long term estimation of demand is done at centralised unit keeping in mind the implementation of new technology, expected market share, change in regulation by central bank (Reserve bank of India) and quality of service offered by competitors etc. Defining capacity planning. Goodale, J.C. and Tunc, E. (1998), “Tour scheduling with dynamic service rates”, International journal of service industry management, Vol.9 No.3, pp. 1 @ 2016 AYAT A. SALEH, submitted as a part of the 'Logistics and Operations Management' course in the University of Warwick, United Kingdom Capacity Management in Airline Industry: A Case Study The purpose of this case study is to analyse the capacity management in three companies, and to identify a set of critical success … The interesting part is to find out that how an individual can increase its capacity. But, it is basically inventory. Service Sector Management. At ICICI bank clearing of high level negotiable instrument has to be done in small time window of four hours from opening hours of bank. Working hours at ICICI bank is 12 hours, whereas working hour for each employee are nine hours. In this post, we discuss the one key difference between inventory in service industry and manufacturing, Previously, ... but there are other more creative labels for “unused capacity”, such as “occupancy rate”, and others. 7. B. AppleyardHas the big apple gone rotten? However with increasing expectations of customer for quality services ICICI bank is forced to maintain quality of service at lower prices in times of economic slowdown where bank need to maintain reputation. Appleyard, 2002. ITIL version 3 views capacity management as comprising three sub-processes: business capacity management, service capacity management, and component capacity management (known as resource capacity management in ITIL version 2). Bank use the method of productivity calculation to identify the capacity to meet demand generated. Bank will not be able to fulfil the service level promised to customer. Risk here is that quality of the service provided to customer will go down. https://doi.org/10.1108/09564230210431983. Hence, capacity planning helps to ensure businesses can meet demand. It’s about measuring performance and comparing it to requirements that are set in Service Level Agreements (SLAs) or Service Level Requirements (SLRs). Mastering the challenge of capacity management. As a sign to develop a coping strategy it is necessary that RPC should find its own combination of the chase and level plan by: In this scenario capacity is chasing demand and demand is high. According to slack(2009) there are three plans available to tackle the issue of demand capacity mismatch, most of the organisations will use mixture of all the plans according to requirement of business. Duygu Akkaya , Kostas Bimpikis, Hau Lee; 23 March 2020 | Manufacturing & Service Operations Management, Vol. The resources at RPC are combination of staff, systems and facility required to produce desired output. Capacity management gives high emphasis on understanding the nature of demand by forecasting and on managing capacity to meet demand (Lovelock, 1984). 0. The problem of capacity management is one of the most difficult to tackle in business management; a situation which is aggravated in the majority of services, due to uncertain demand and personalized requirements, which make it difficult to plan and assign productive capacity. 4 of 35 Capacity Capacity in service operations is generally divided into fixed (long-term) and variable (short-term) … Now, when it is clear that capacity has time dimension the variation in output is affected by all input elements to the RPC. , 13 ( 3 ) ( 2002 ) Google Scholar and services Internet, telephony, blackberry,! 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