Capacity management in services and the influence on quality and productivity performance

Capacity management in services to match supply and demand has a direct influence on the ability of the service delivery system to achieve service quality and resource productivity targets. The paper examines some of the propositions for influences of capacity management on quality and resource productivity and for managing capacity. In addition to the “Chase” and “Level” strategies for managing capacity in services suggested by Sasser (1976) a “Coping” strategy for capacity management is described which aims to improve the overall delivery of service quality to resource productivity targets.