Pipeline Accelerator Insight #81: Prioritize Smartly When Plant Capacity Limits Your Growth
If plant capacity is your constraint, don’t treat all new product opportunities equally.
When you have more orders than your plant can fulfill, you make more money by producing the products that spend the least time in your bottleneck, and the same approach works for new product development.
In the case where your plant has extra capacity, choose the new product opportunities that deliver the most revenue per hour of constrained development time.
But when your plant is over capacity, it doesn’t make sense to change your product mix for the worse. So prioritize the ones that deliver the highest return per hour of plant capacity and offer better contribution margin than your current products.
That force ranking is how you maximize throughput and drive faster, more profitable growth.
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