Managing capacity: managing transforming resources
All operations managers must face the challenge of managing the organization’s resources so that outputs are delivered to customers and clients in the right amount, at the right time. In particular, operations managers are responsible for managing the resources used in the transformation process so that the supply of the operation’s outputs is aligned with customer or client demand for goods and services. When this not performed well, outputs are produced for which there is no immediate demand, or not enough outputs are produced to meet demand. Sometimes this can be a deliberate strategy – there is always one toy at Christmas whose desirability is enhanced by its short supply – but a mismatch either way often means lost revenues or increased costs for the organization.