What do you mean by capacity building? can anybody give materials on it help me
From India, Madras
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From India, Madras
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Dear Karthick,
Imagine you own a theatre without a balcony. Then what is your capacity? Seats are your capacity. When you add a balcony, you increase the capacity of your business.
A few other examples:
- A hotel adds rooms.
- Airlines add aeroplanes.
- A manufacturing plant adds a few more machines to increase the volume of production.
In the above examples, capacity can also be increased by:
- Adding more hotels.
- Establishing more manufacturing plants at the same or multiple locations.
- Taking over business units from the same industry.
Management science teaches us to increase capacity and utilize it optimally to gain a competitive advantage.
Capacity can also be built by utilizing human and physical resources optimally. A classic example is Southwest Airlines. With the same number of aeroplanes as their competitors or even fewer, they are able to operate more flights.
Higher capacity always provides a competitive advantage by bringing economies of scale. Walmart is a classic example of this.
Another important aspect of increasing capacity is capturing and recording knowledge. Knowledge is also a capacity. Businesses in the 21st century are more knowledge-intensive than physical capacities. Understanding what led to success or failure for you or your competitors is crucial to sustaining a competitive advantage.
Human resources have turnover, physical resources have wear and tear, but knowledge remains intact. Companies like Microsoft that have built knowledge assets could expand their empire in a short span.
I hope the above reply satisfies you.
Dinesh V Divekar
From India, Bangalore
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8036Imagine you own a theatre without a balcony. Then what is your capacity? Seats are your capacity. When you add a balcony, you increase the capacity of your business.
A few other examples:
- A hotel adds rooms.
- Airlines add aeroplanes.
- A manufacturing plant adds a few more machines to increase the volume of production.
In the above examples, capacity can also be increased by:
- Adding more hotels.
- Establishing more manufacturing plants at the same or multiple locations.
- Taking over business units from the same industry.
Management science teaches us to increase capacity and utilize it optimally to gain a competitive advantage.
Capacity can also be built by utilizing human and physical resources optimally. A classic example is Southwest Airlines. With the same number of aeroplanes as their competitors or even fewer, they are able to operate more flights.
Higher capacity always provides a competitive advantage by bringing economies of scale. Walmart is a classic example of this.
Another important aspect of increasing capacity is capturing and recording knowledge. Knowledge is also a capacity. Businesses in the 21st century are more knowledge-intensive than physical capacities. Understanding what led to success or failure for you or your competitors is crucial to sustaining a competitive advantage.
Human resources have turnover, physical resources have wear and tear, but knowledge remains intact. Companies like Microsoft that have built knowledge assets could expand their empire in a short span.
I hope the above reply satisfies you.
Dinesh V Divekar
From India, Bangalore
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Thank you for your fabulous information and your valuable comments on queries. I appreciate your willingness to take risks on this site to solve queries and dedicate your precious time to helping us. We are all thankful to you for the same.
Thanks & Regards,
Manjunath
From India, Bangalore
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Thanks & Regards,
Manjunath
From India, Bangalore
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Chapter X - Building Human resource.ppt
Six Sigma Training Creating Competitive Advantage.zip
Prabodhan - Capacity Building.pdf