CAPACITY MANAGEMENT - Learn and Gain

Purushothaman D

6 Aug 201604:24

Summary

TLDRThis video session delves into ITIL's capacity management, emphasizing its goal to ensure cost-justifiable IT capacity meets current and future business needs in a timely manner. It explains capacity as the maximum throughput a service can deliver and uses the pizza service analogy to illustrate the importance of balancing supply and demand for optimal performance. The video guides on choosing the right capacity for services based on business demands and managing resources efficiently to mitigate risks due to change or growth, ultimately optimizing running costs.

Takeaways

📘 Capacity Management is the process of ensuring IT infrastructure can deliver the maximum throughput required by the business.
🎯 The goal of capacity management is to provide cost-justifiable IT capacity that matches current and future business needs in a timely manner.
🔍 Capacity management focuses on managing service capacity in a cost-effective manner to meet agreed levels.
🍕 An analogy used in the script is a pizza service, emphasizing the importance of having the right amount of ingredients to meet demand without waste.
⚖️ Capacity is closely tied to business demands, requiring a balance between supply and demand for optimal performance.
📉 Planning capacity involves assessing whether resources, such as ovens and staff, can meet the demand, like preparing and delivering 500 pizzas a day.
🛠️ Managing oven settings and the number of associates are examples of capacity planning to ensure timely delivery of services.
📏 The quantity of ingredients is a critical factor in capacity planning, ensuring there is enough to meet the preparation needs without excess.
🔄 Capacity management involves managing demands and supplies to achieve an optimal costing solution.
🛡️ Leveraging the capacity management process at every stage of development helps mitigate risks due to change or growth and optimize running costs.
⚖️ It's a balancing act, ensuring that the purchased processing capacity is cost-justifiable and that resources are used efficiently, balancing supply against demand.

Q & A

What is the definition of capacity as discussed in the ITIL context?
-In ITIL, capacity refers to the maximum throughput that a configuration item or an IT service can deliver. For some CI types, capacity can be represented by size or volume, such as a disk drive.
What is the primary goal of capacity management?
-The goal of capacity management is to ensure that a cost-justifiable IT capacity exists in all areas of IT, matching the current and future needs of the business in a timely manner.
What is the purpose of capacity management in relation to services and resources?
-The purpose of capacity management is to provide a point of focus and management for all capacity and performance-related issues relating to both services and resources.
How does capacity management relate to the pizza service example provided?
-Capacity management in the pizza service example is about managing the service to meet the agreed capacity in a cost-effective manner, ensuring the right amount of ingredients are available without excess that could lead to waste.
What is the importance of balancing supply and demand in capacity management?
-Balancing supply and demand in capacity management is crucial for optimal capacity. It ensures that the IT processing power matches the demands made by the business both currently and in the future, preventing over or under provisioning.
How does capacity management help in planning for business demands such as making 500 pizzas a day?
-Capacity management helps in planning for business demands by ensuring that the oven is capable of delivering the required number of pizzas, managing oven settings, having the right number of associates for preparation and delivery, and having sufficient ingredients to meet the demand.
What is the significance of managing demands and supplies in the context of capacity management?
-Managing demands and supplies is significant in capacity management as it helps in achieving an optimal costing solution. It prevents issues like customers calling again due to insufficient space or underutilization of storage if too much space is provided.
How can leveraging the capacity management process at every stage of development mitigate risks due to change or growth?
-Leveraging the capacity management process at every stage of development allows for proactive planning and adjustment of IT capacity to meet changing business needs or growth, thus mitigating risks associated with unexpected demand or resource shortages.
What is the balancing act that capacity management essentially performs?
-Capacity management essentially performs a balancing act between cost and resources, ensuring that the processing capacity purchased is cost-justifiable in terms of business need and that resources are used efficiently.
How can one find more videos on capacity management and related topics?
-For more videos on capacity management and related topics, one can visit the website www.wlp.com/learn-and-gain, follow on LinkedIn, or follow on Twitter.

Outlines

00:00

📚 Introduction to ITIL Capacity Management

This paragraph introduces the concept of capacity management within the ITIL framework. It defines capacity as the maximum output a service or configuration item can deliver, such as the storage capacity of a disk drive. The goal of capacity management is to ensure that IT capacity is available to meet current and future business needs in a cost-effective and timely manner. The purpose is to focus on managing capacity and performance issues for services and resources. The paragraph uses the analogy of a pizza service to illustrate the importance of balancing supply and demand to prevent waste and ensure customer satisfaction. It emphasizes the need for capacity planning to meet business demands, such as ensuring the oven can produce 500 pizzas and managing the number of staff and ingredients required.

Mindmap

Keywords

💡Capacity Management

Capacity Management is a key concept in ITIL that focuses on ensuring that IT services have the necessary capacity to meet both current and future business needs in a cost-effective manner. It is the process of managing the maximum throughput that a service or configuration item can deliver. In the video, capacity management is likened to managing the ingredients for a pizza service, where having the right amount is crucial to avoid waste and meet customer demands.

💡Configuration Item (CI)

A Configuration Item (CI) in ITIL is an element of the IT infrastructure that is significant enough to require management. It could be a hardware device, a software application, or a service. In the context of capacity management, CIs have specific capacities, such as a disk drive's size or volume, which must be managed to align with business requirements.

💡Throughput

Throughput in the context of capacity management refers to the rate at which a service or system can process tasks or data. It is a measure of the performance of a CI and is crucial for determining if the service can meet the demands placed upon it. The video script uses the example of an oven's capability to deliver 500 pizzas, which is a measure of its throughput.

💡Cost Justifiable

Cost Justifiable in capacity management means that the IT capacity provided is economically reasonable and aligns with the business's financial capabilities and goals. The video emphasizes the importance of ensuring that the IT capacity is not only sufficient but also cost-effective, avoiding over-provisioning that leads to unnecessary expenses.

💡Service

In ITIL, a Service refers to a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. The video script discusses capacity management in the context of a pizza service, where managing the right amount of ingredients ensures service quality and efficiency.

💡Demand Management

Demand Management is the process of understanding, forecasting, and influencing the demand for IT services to ensure that the supply can meet the demand effectively. The video script mentions demand management as a related process that helps in balancing the supply and demand for optimal capacity planning.

💡Supply and Demand Balance

The balance between supply and demand is a fundamental economic principle that is also applicable to IT services. In the context of the video, achieving the right balance ensures that there is neither over-provisioning nor under-provisioning of IT resources, which is essential for cost-effective service delivery.

💡Optimal Capacity

Optimal Capacity refers to the ideal level of resources and capabilities that a service requires to meet its objectives without waste or inefficiency. The video script uses the example of planning for 500 pizzas a day, which requires calculating the optimal capacity for ovens, staff, and ingredients.

💡Resource Utilization

Resource Utilization is the measure of how effectively and efficiently resources are being used in providing IT services. The video script highlights the importance of making the most efficient use of resources to ensure that the capacity purchased is cost justifiable and meets business needs.

💡Risk Mitigation

Risk Mitigation in the context of capacity management involves taking proactive steps to reduce the potential negative impacts of changes or growth on IT services. The video script suggests that leveraging the capacity management process at every stage of development helps to mitigate risks associated with changes in demand or business growth.

💡Running Costs

Running Costs are the ongoing expenses associated with the operation of IT services. The video script emphasizes the importance of optimizing running costs through effective capacity management, ensuring that the IT infrastructure is not only meeting current needs but also doing so in the most cost-efficient way possible.

Highlights

Capacity management is defined as the maximum throughput that a configuration item or an IT service can deliver.

Capacity can be represented by size or volume, such as in the case of a disk drive.

The goal of capacity management is to ensure cost-justifiable IT capacity exists to meet current and future business needs in a timely manner.

Capacity management aims to provide a focus for managing all capacity and performance-related issues for services and resources.

Capacity management ensures services are managed to meet agreed capacity in a cost-effective manner.

An analogy of a pizza service is used to explain the importance of having the right amount of ingredients to meet demand without waste.

Capacity planning involves checking if resources like ovens, staff, and ingredients can meet the demand for services, such as producing 500 pizzas a day.

Managing oven settings is crucial for timely delivery when demand is high.

The number of associates is a key factor in facilitating preparation and delivery to meet business demands.

A balance between supply and demand is necessary for optimal capacity utilization.

Capacity management helps in managing demands and supplies to prevent over or under provisioning of resources.

The importance of leveraging the capacity management process at every stage of development to mitigate risks due to change or growth is emphasized.

Capacity management is described as a balancing act, balancing cost against resources to ensure efficient use.

The need to ensure that purchased processing capacity is cost-justifiable in terms of business need is highlighted.

Balancing supply against demand is crucial to match IT processing power with business demands both now and in the future.

Capacity management may also involve managing or influencing the demand for a particular resource.

The video concludes by inviting viewers to learn more about capacity management on the provided website and social media channels.