tech
May 10, 2026
How Microsoft Makes Capacity Planning a Dynamic Strategy
Dayan Rodriguez, Corporate Vice President of Manufacturing and Mobility at Microsoft, on making capacity planning an agile, dynamic execution model
TL;DR
- Capacity becomes a strategic lever when it's dynamic, requiring real-time visibility and the ability to act quickly.
- Intelligent AI systems show what is actually happening on the factory floor, unlike standard processes that show what should be happening.
- AI's biggest return on investment is in areas with high variability such as downtime, scrap, schedule adherence, inventory, and safety.
- AI design should prioritize user needs, answer simple questions about 'what to do next and why,' and be integrated into existing systems.
- AI agents are effective at monitoring inventory and supplier commitments, and can automate low-risk decisions within defined policy limits.
- Manufacturers should focus on a few high-impact use cases, invest in data, people, and change management.
- Capacity planning is moving closer to execution, using live production data for frequent what-if scenarios rather than static forecasts.