Plan capacity for growth

Who this is for

Founder led lower middle market companies with 5 to 50 million in annual revenue.

The quick answer

Map the path from sale to cash. Find the current bottleneck. Set leading indicators for load and capacity. Add hours, skills, or tools before the bottleneck fails. Protect service levels during peaks.

The framework in six steps

  1. Map the flow
    From order to cash with times and queues.

  2. Find the constraint
    Where work stacks up and rework rises.

  3. Set load and capacity signals
    For example scheduled hours, work in progress, and cycle time.

  4. Choose relief options
    Overtime, cross training, outsourcing, or tooling.

  5. Protect service
    Service level targets and buffers at the constraint.

  6. Review monthly
    Move focus when the constraint shifts.

Example

A service firm added cross training and a simple scheduling tool at the constraint. On time delivery moved from eighty nine to ninety six percent.

Pitfalls and fixes

  • Adding seats without fixing flow. Start at the constraint.

  • No signals. Put leading indicators on a board.

  • Peaks break service. Use buffers and flexible labour.

Checklist

  • Flow mapped

  • Constraint named

  • Signals tracked

  • Relief plan set

  • Service level targets defined

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