Developing an instrumental capacity model for industry

Abstract

Discusses the difficulties of measuring, defining and managing capacity; and develops a model which splits it into two components (resource and ability) plus several sub‐components, and recognizes the interfaces between them. Illustrates and defines the sub‐components and identifies three states of capacity loading: resource‐loaded (over‐resourced), ability‐loaded (e.g. over‐qualified staff) and even‐capacity (i.e. resources compatible with ability). Asserts that the relative capacities of firms within an industry form a “capacity curve” with ability‐loaded small firms, medium firms at even capacity and large firms resource‐loaded. Analyses 1994‐1997 data for the US electronics and electrical equipment industry to plot its capacity curve, explains the methodology used, and shows how the regression model can be applied to individual firms within the industry to improve capacity management. Recognizes the limitations of the study.

A preliminary framework to measure public health emergency response capacity

“…Much depends on who uses it and the context in which it is used. Bayou (2001), Kuban and MacKenzie-Carey (2001), the United Nations Development Programme (UNDP) (1995), Hopkins (1996), Handler et al (2002), and Ebbesen et al (2004) presented several different representative capacity definitions respectively. Of these definitions, the UNDP's is the most clear and comprehensive.…”

Healthcare capacity measurement

“…Working from a management accounting point of view, Bayou (2001) traced the problems of capacity measurement in three main areas:Confusion of capacity with capacity utilization.An incomplete view of capacity that does not consider its two components of resource and ability.A disregard of the interaction between the capacity of a single organization and that of the whole industry.…”

“…The background on performance measurement systems provided in the literature (Kaplan and Norton, 1996;2001;Ghalayini et al, 1997;Kennerley and Neely, 2002) provided inspiration and acted as guiding lines for the development of a performance reporting tool for the outpatient department. In terms of structure the Activity Measurement Framework borrowed from the Balanced Scorecard, although the ensuing system could not be characterised balanced.…”

“…After the readjustment of the clinic capacity (Column D), it was revealed that the real problem facing the clinics was the over utilisation of existing resources and that the so-called unused capacity presented in previous reports was a result of faulty measurement (c.f. Valiris et al, 2005;Bayou, 2001) From the literature on capacity planning/management and performance drivers in healthcare the authors recognised two core challenges:…”

“…The Literature Working from a management accounting point of view, Bayou (2001) traced the problems of capacity measurement in three main areas: i) confusion of capacity with capacity utilization; ii) an incomplete view of capacity that does not consider its two components of resource and ability; and iii) a disregard of the interaction between the capacity of a single organization and that of the whole industry. From an operations perspective Valiris et al (2005) distinguished four main reasons for problematic capacity measurement: i) the product or service mix; ii) the time period -sustainable output does not necessarily equal the outcome of the process during a short period of time; iii) the product or service specification, and iv) capacity leakages.…”