How can you compare Capacity Planning scenarios?

1 Define your objectives

The first step to compare capacity planning scenarios is to define your objectives and criteria. What are you trying to achieve with your capacity planning? For example, you might want to minimize costs, maximize service levels, or balance both. You also need to specify how you will measure your success, such as by using key performance indicators (KPIs), service level agreements (SLAs), or return on investment (ROI). These objectives and criteria will help you evaluate and rank your scenarios.

2 Identify your variables

The next step is to identify the variables that affect your capacity planning. These are the factors that can change or influence your demand, supply, or resources. For example, some common variables are seasonality, customer behavior, market trends, product features, technology changes, or staff availability. You need to collect data and analyze these variables to understand their patterns, impacts, and uncertainties. You can use tools such as histograms, scatter plots, or trend lines to visualize and explore your data.

3 Create your scenarios

The third step is to create your scenarios based on your variables. A scenario is a hypothetical situation that describes how your demand, supply, or resources might change in the future. You can create scenarios using different methods, such as brainstorming, forecasting, or simulation. You can also use tools such as spreadsheets, formulas, or software to model and calculate your scenarios. You should create at least two scenarios: a baseline scenario that reflects your current situation, and an alternative scenario that reflects a possible change.

4 Compare your scenarios

The fourth step is to compare your scenarios using your objectives and criteria. You need to compare how each scenario affects your performance, costs, risks, and opportunities. You can use tools such as tables, charts, or graphs to display and compare your results. You should also consider the sensitivity and robustness of your scenarios, which means how much they depend on or vary with your assumptions and inputs. You can use tools such as sensitivity analysis, scenario analysis, or Monte Carlo simulation to test and adjust your scenarios.

5 Select your scenario

The final step is to select your scenario based on your comparison. You need to choose the scenario that best meets your objectives and criteria, and that is feasible and realistic. You should also consider the trade-offs and implications of your choice, such as how it affects your stakeholders, customers, competitors, or environment. You can use tools such as decision matrices, SWOT analysis, or cost-benefit analysis to weigh and justify your decision.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?