Capacity management refers to the process of designing the operations in an n organization so as to offer the appropriate and enough capacity that meets the changing needs or demand of customers. It involves both proactive and reactive measures that will align the business process and operations of an organization to the changing market landscape, in terms of business competition and changes in technology and the various dynamics that impact on growth and profitability of a business. The case of Colorscope involved a need to adapt to the changing environment , evidenced in business trends that involved price pressures resulting from cheaper Mac- based  and PC-based microcomputers, devices that were equipped with  sophisticated soft-wares  having improved functionality. It also involves evaluating the capacity of services offered by the firm against the customer requirements in the midst of significant changes in technology.

As a result of capacity management, Cha had had to capitalize on Colorscope employees who formed the biggest assets, were well trained and their team work was very effective in meeting deadlines. Through the use of such teams, Cha planned on increasing marketing efforts which could look for new businesses during lean months after a good business due increased demands for catalogs pre-press. The use of these teams would enable Colorscope to avoid running out of business during fall season before the start of holiday shopping. Though profits could not be improved, improvement on operational efficiency and cost containment were important in minimizing the amount of rework. The firm was also able to improve on product pricing as similar price per page were quoted for various customers. Hence, customers were able to place varying demands on resources of the firm.

Reference

Cha,J., Narayanan, V., (1996).Colorscope, Inc. Harvard Buiness School