Managing capacity means Capacity planning and Capacity control (Capacity Management). The main issues of managing capacity will be, when to change capacity, how much capacity of the sites are to be changed and what type of a change is to be initiated. Whether new sites are to be constructed and/or if old ones are to be reconstructed. These five factors may be considered as the performance objectives in the capacity issue. If the company analyses these factors that lead to proper resource usage, it would lead to market competitiveness (Resource usage). Another factor that plays a major part is to bring right materials at the right time to the right place since the plants are to be built at different places(Advanced Capacity Planning).
The forecast for the next few years is for more product that can be met by the five plants which have only a capacity of 25 million kgs per year. The forecast demand by 2012 for both Britton and brittleness is 39 million kgs per year with a tendency to rise in future for Britton and just residual sales for brittleness. So it is out of the question that new sites are to be constructed and commissioned. But it has to be done in such a way as not to obstruct cash flow, without troubling the present market sales, without employment problems and as competing with the immediate neighbors in the field.
As it is we should start by introducing a new site at Bradford and start building at the beginning of 2007.