Industry Capacity — Matching Marketplace Realities

For my company, Rickard Bindery, this means we look at the amount of work we have suited to an operation in the slowest time of the year and size that capacity to be 80 percent of that slowest period.

This allows us to outsource the work that doesn't fit well and keep outside vendors at least somewhat busy during slow periods, which has many loyalty benefits. It also gives us a department that is always contributing to its share of overhead and, as we all know, things just run better and with fewer errors when running at or very near capacity.