Available capacity
Scheduled working time − breaks, maintenance and other planned downtime. Keep calendars and shifts by resource.
ERP Guides
Production planning guide
How to Plan Production Capacity
Production capacity planning compares the work that can be performed by work centers during a period with the workload required by production orders. Considering calendars, shifts, routes and operation times together helps identify overloads and gaps earlier.
Calculate capacity and workload separately
Required workload
Route operation times for the production quantity + setup times. Specify the quantity or batch to which the times apply.
Example: a work center has 40 net available hours per week and a planned workload of 46 hours. After validating time and calendar data, the 6-hour overload can be assessed through sequencing, alternative resources or period and shift options. This simple example does not account for efficiency or product-mix effects.
Steps for production capacity planning
- 1
Choose the planning horizon and scope
Choose whether the plan covers daily, weekly or monthly periods. Define the products, production area and work centers in scope; a long-term master plan and a short-term shop schedule need different levels of detail.
- 2
Validate resource calendars
Check shifts, working days, holidays and planned maintenance for each work center. Apply a consistent rule for deducting breaks and maintenance when determining net available time.
- 3
Calculate load from operations
Match planned quantities with the operations in product routes. Use the quantity or batch basis for setup and processing times to calculate each work center’s load by period.
- 4
Compare capacity with load
Compare available time with estimated workload for each resource and period. Where load exceeds capacity, review the overload; where capacity is unused, consider whether work can be balanced into that period.
- 5
Evaluate alternatives and revise the plan
Consider resequencing work, using a suitable alternative machine, adjusting shifts or overtime, moving work to another period or using subcontracting capacity. Evaluate due dates, cost and material availability with the relevant teams.
- 6
Compare with actual results
As production progresses, compare actual operation times and stoppages with the plan. If deviations occur, review route times, calendars, quantities or recorded production data and update the next plan.
Check before reviewing the plan
- Are work center calendars and shifts current?
- Are setup and processing times based on the correct quantities?
- Are planned maintenance and downtime accounted for?
- Are due-date priorities known for overloaded periods?
- Are alternative resources or subcontracting suitable?
- Are actual production records used to update the plan?
Frequently asked questions
How is production capacity calculated?
A basic approach is to subtract unavailable time, such as breaks and planned downtime, from a resource’s working calendar for the planning period. Workload is calculated from production quantity, routes, operation times and setup times. Time units and efficiency assumptions should be explicit.
What is the difference between capacity planning and production scheduling?
Capacity planning checks whether requested workload fits available resource capacity across periods. Scheduling places jobs into a more detailed sequence on resources and time slots. In practice, the two activities inform each other.
How should capacity utilisation be interpreted?
The ratio of workload to available capacity helps show loading by resource and period. The percentage alone is not enough; maintenance, product mix, variable cycle times, bottlenecks and due-date priorities also matter.
What can be done when capacity is exceeded?
First check the accuracy of time, calendar and route data. Then assess sequencing, alternative resources, shift or overtime options, moving work between periods or subcontracting. Consider each option alongside due dates, cost and material availability.
Capacity plans rely on estimates and should be updated with actual times and downtime once production begins. Start with accurate calendars and routes, then monitor workload and capacity deviations regularly.