Identify Gaps:

The difference between projected demand and current capacity is called as the capacity gaps. Discovering gaps needs use of the right capacity measure. Complications can arise due to multiple operations and several resource inputs involved. For instance, in early year 1990s, the bus manufacturing executives incorrectly concluded that the transportation buses having the larger share of seats attract a large share of total passengers. Several industries applied this policy, but competitors having smaller buses were more successful. The right measure of capacity was the number of departures instead of the number of seats. Therefore, several transporters have to make a balance between the capacity of larger and smaller buses by buying smaller buses and discontinuing the use of larger one.

Overall capacity might be increased by expansions of capacity of some operations. Though, if one operation is an obstacle, the capacity may be expanded only if the capacity of the obstacle operation is extended.