Capacity planning in QA is just like any other capacity planning activity done for agile teams - it accounts for the demand vs supply to align resources and optimize efficiencies in the QA team. Suppose as a functional or line manager you are handling a large pool of QA talent catering to various internal/external projects in the organization, you may want to understand what is the pipeline of activities for QA. Availability of QA resources, their leave plans, and organizational/project alignments and then perform allocation of resources accordingly to avoid under or over-utilization. Capacity planning helps facilitate the decision-making process to align QA resources to respective projects and also focuses on hiring, backfills, and proactive engagement of team members.