Operations Management Graduate MBA Course Lectures - Lecture 5 Strategic Capacity Planning for Products and Services

Operations Management Chapter 5: Strategic Capacity Planning for Products and Services This lecture explores: Capacity Decisions Are Strategic Defining and Measuring Capacity Determinants of Effective Capacity Strategy Formulation Forecasting Capacity Requirements Additional Challenges of Planning Service Capacity In-House or Outsource? Developing Capacity Strategies Constraint Management Evaluating Alternatives Operations Strategy This lecture is ideal for MBA students, business majors, and professionals seeking a clear, structured introduction to how operations support organizational strategy and leadership. 📚 Whether you’re preparing for an exam, teaching a course, or strengthening your leadership toolkit, this session provides a practical and conceptual foundation for managing operations in today’s complex environment. The textbook for this course is Operations Management by William J. Stevenson: https://amzn.to/4ruYWF5 https://amzn.to/3ZNxFkR https://amzn.to/3MJ5KiZ https://amzn.to/4at9s9J As an Amazon Associate, I earn from qualifying purchases. If you found this helpful, please like, subscribe, and share with others studying business and leadership. 0:00 Introduction 0:08 Introduction 1:30 Capacity Planning Questions 2:08 Capacity Decisions Are Strategic 3:05 Defining and Measuring Capacity 4:11 Measuring System Effectiveness 5:06 Example - Efficiency and Utilization 5:58 Determinants of Effective Capacity 6:25 Strategy Formulation 6:48 Capacity Strategies 7:34 Capacity Cushion 8:30 Forecasting Capacity Requirements 9:29 Service Capacity Planning 9:55 Demand Management Strategies 11:55 In-House or Outsource! 14:41 Diseconomies of Scale 15:25 Facility Size and Optimal Operating Level 16:25 Constraint Management 17:47 Resolving Constraint Issues 19:06 Evaluating Alternatives 19:31 Cost-Volume Analysis 21:05 Break-Even Point (BEP) 21:40 Cost-Volume Relationships 25:54 Lecture 5 Summary