Capacity Development: An Approach to Integrate Critical Success Factors of Industrial End Users and Producers

Capacity planning has been developing into more and more complicated issue, since the speed of change in the market and in the content and parameters of critical success factors has been increasing. Development in B2B markets emphasizes growing customer orientation, but at the same time there is a conflicting pressure to improve the economic performance of production units. In the most cases companies have several customers and several products, which mean that the effective operating model taking into account the needs of several customers and critical success factors of several products or services is difficult to build. In this paper we develop qualitative and quantitative decision model to improve capacity development in the industrial sector with the improved match between customers' and producers' needs. The model takes into account conflicting requirements of customers and producers. The introduced decision model employs the learned lessons of several well known approaches such as transaction cost theory, PIMS, strategic management or AHP and QFD. Finally, our focus is on both products and services.