Hi there,

This is not a good framework (sorry)

First: We need to know the client question to help!

Imagine having this same answer for Tesla trying to expand their gagafactory production in Australia versus a workshop in Italy with highly-skilled workers struggling to find workers in order to increase their output.

Or, Ukraine trying to increase the production of tanks while being hit by missle from Russia.

Or, me trying to increase the “capacity” of my work/output.

See my point?

The QUESTION is the most important there. There is no generic framework for capacity increase. Rather, you need a customized framework for each one.

Your framework listed is OK but not really that good.

1) Why do we need demand analysis? Just ask right upfront: how much do we need to increase output by? Bucket done…therefore, it's a bad bucket (can be eliminated by a single clarifying question)

2) Assessing….of course…every project assesses things…but that's not what the client is paying millions of dollars to have you do

3) Nowhere have you actually talked about how we can increase capacity

4) Risks/mitigating actions is not a bucket

I'm sorry to be so direct, but this framework is generic, it is NOT objective-driven, it is NOT MECE, and it doesn't actually address our problem.

Please read this: https://www.preplounge.com/en/articles/how-to-shift-your-mindset-to-ace-the-case

And please read this AND watch the videos in both cases so you can see how to framework effectively:

https://www.preplounge.com/en/articles/candidate-led-cases-what-to-expect-and-example-cases

Here is a capacity constraint framework for a very SPECIFIC client prompt (shoemaker with worker constraints):

https://drive.google.com/file/d/1Lb9CH98VH6YSkIPhXEQn6XJYlx68FNG0/view?usp=drive_link

^have to request access

(edited)

Your framework for tackling the case seems quite comprehensive and covers the key aspects that need to be considered.

Starting with the demand analysis, it's important to assess both the present scenario and future projections. Understanding the current market conditions and competitive landscape will provide insights into the demand dynamics. Additionally, evaluating the anticipated market growth and trajectory of competition will help in determining the need for capacity expansion.

Assessing the client's existing capabilities is a crucial step. This involves establishing a baseline understanding of the client's current capacity and identifying any potential bottlenecks that could hinder performance. It's important to consider operational efficiency and identify areas where productivity enhancements can be made.

Estimating the financial requirements for capacity expansion is an essential aspect. This includes evaluating the expansion costs and strategizing for productivity enhancements to optimize the investment. It's important to consider both the upfront investment costs and the potential return on investment.

Lastly, identifying and mitigating risks is a critical part of the framework. Examining potential operational risks that may arise during the expansion process will help in developing risk mitigation strategies and ensuring a smooth implementation.

Overall, your framework seems to cover the necessary aspects for tackling a capacity expansion case. It demonstrates a structured approach and highlights the key considerations. Just make sure to adapt the framework to the specific details of the case and ask relevant questions to gather more information.

I hope this feedback is helpful! If you have any further questions, feel free to ask. Good luck with your future interviews!

This is not how cases work. It is impossible to give you feedback on your approach without knowing the question.

A good framework is TAILORED to the question at hand (or even better, developed specifically for the question and hand). 

While I can say that in general, it's a matter of: how much it costs to expand capacity vs. how much capacity you need (which can be a matter of how much you have vs. expected demand).

But there are so many variables there. Are there multiple expansion options? Is there an option to outsource? Can we manage demand? Is this a matter of high upfront CAPEX or just of margin optimization? 

Finally: cut the risks. You don't evaluate risks only at the end. Risks should be assessed in every part of your framework.

I am missing the strategic perspective here, what's the strategic imperative for considering the capacity expansion in the first place? Is it a growth motivation, competitor response, motivation to benefit from scale economies? I'd always start with a bucket strategic imperative first and many interdependencies will flow from here.

Warm regards,

Frederic 

High-level, this sounds like an ok way to approach a capacity expansion case.

But without knowing the actual case, it's difficult to give you feedback. 

A structure is good when it's relevant. It's great when it's tailored specifically to the client situation i.e., the prompt. 

Feel free to add the prompt or re-post the question and happy to provide a revised perspective.

Best,
Cristian

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Practicing for interviews? Check out my latest case based on a first-round MBB interview >>> SoyTechnologies  

We need to know the question to assess your framework…

Just curious, which MBB was this at?