Why service organizations should consider capacity planning

As a service organization, you must deal with daily installations and (preventive) maintenance appointments. Making efficient planning is undoubtedly one of your most crucial tasks. After all, the more efficient your planning is, the more you can do simultaneously. Yet our experts notice that many installation companies only make operational planning and no capacity planning. We are happy to explain why such a planning is essential for service organizations.

What is capacity planning?

Before we discuss its importance, it’s essential to understand capacity planning, also known as workforce scheduling. This involves determining the available capacity of employees and considering skills, experience, and availability. This method determines how much time and people are needed for a job. Operational planning focuses mainly on availability, materials, and parts.

The consequences of not using capacity planning

Many installation companies only work with operational planning. The reasons vary, but the consequences are often the same. Without a planning, estimating which employee is suitable for a job is challenging, leading to errors. For example, a mechanic may have the right materials but not the proper knowledge. As a result, another employee still has to go to the customer. This costs extra time and money and lowers customer satisfaction.

The effects of working with capacity planning

Capacity planning improves your “First Time Fix.” Because skills and experience are considered, jobs are done faster and more efficiently. This increases customer satisfaction and helps your organization grow. Moreover, laws and regulations like the Gas Boiler Act are becoming increasingly strict. It is, therefore, necessary to record skills and certificates correctly.

Tips for getting started

The transition to a planning takes time. Start with an inventory: what information do you need, and who is leading this process? Check if your current system is compatible. Integration becomes challenging without the right ERP software for the field service industry. Is a new system, not an option? Then, optimize your current processes first to ease the transition and implement capacity planning software later.