Capacity-based
Describing a system, strategy, or resource allocation that is determined and optimized by the maximum potential of a specific unit or the available output. This approach prioritizes making use of the maximum resources available to achieve an optimal result. It considers the inherent limits of an asset or individual to ensure efficiency and avoid overextension. capacity-based practices are frequently found in manufacturing, resource management, and strategic planning, where identifying and maximizing output is key to success.
Capacity-based meaning with examples
- The new factory's production schedule is strictly capacity-based. They've optimized their workflow to leverage every hour of operation within the limitations of machine speed, workforce hours and material throughput, without overcommitting. Every stage of manufacture has a capacity to reduce waste and accelerate the output of the manufacturing process.
- To address peak-hour demand on its server, the online retailer has adopted a capacity-based pricing strategy for processing payments. The price would fluctuate depending on the current server load, discouraging over-purchasing during extremely busy times. This strategy helps to prevent crashes and ensures a reasonable service for all its customers.
- The hospital uses a capacity-based scheduling system to organize its patient admissions, ensuring that emergency room capacity is always available, but optimizing elective surgery based on staffing levels and bed availability. This optimizes resources to meet the needs of its community, and make decisions about patient flow, to maximize the care provided to its population.
- Their project management approach is entirely capacity-based, carefully assessing each team member's skills and available hours. Work packages and the assignments are scheduled to avoid burnout or overload while striving to achieve the optimal work flow. This prevents the team from over-committing on projects they can't reasonably deliver.
