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This Equipment module consists of five steps. Click on Get Started to learn more about this module.


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innovation cycle



  1. Challenges with Equipment Management
  2. Why is it important?
  3. What factors need to be considered?




Manufacturing organizations have many priorities to manage but one of the most important is the aspect of capacity.  Capacity – or a lack thereof – has an impact on the nature and purpose of the strategic plan because actually producing the product is critical to being able to achieve any other objective.  Capacity has strategic, technological, and structural implication. In general, manufacturing organizations want to grow their market share.  There can be a balance – maximizing existing manufacturing capacity can reduce some costs and increase profits while growing beyond existing capacity can lead to over-use of existing equipment and human resources which can increase costs and erode profits.


One of the key elements in creating capacity is equipment.  Does the organization have the right equipment to manufacture efficiently, with minimal waste?  Is the equipment in good repair or does it require an extensive maintenance schedule?   When equipment is under-utilized, what is the lost opportunity cost?  When it is pushed beyond recommended operating procedures, does it simply require more maintenance or is there risk of a shortened life span?