Workshop capacity
Confirmed quantity or hours by period, process and product group.
ERP Guides
Production planning guide
How to Plan Subcontracting Capacity
Subcontracting capacity planning aligns the work external workshops can take on, their open jobs, delivery dates and required materials with the production plan. This makes it easier to see when an outsourced operation can start and when work is expected back for the next production steps.
Consider these factors together
Open subcontracted work
Work already in progress and dates committed by the workshop.
Material readiness
Materials required, reserved and ready to dispatch for the operation.
Next production step
Capacity and due-date needs of the operation that follows the subcontracted work.
Steps for subcontracting capacity planning
- 1
Define subcontractors and process scope
Identify which operations are subcontracted and which workshops can perform them. Record the subcontractor, process and product match alongside contacts, working calendars and any technical requirements.
- 2
Collect capacity and open-work information
Ask for the quantity or working hours the workshop can accept by period, its current jobs and confirmed delivery dates. Specify which period and product group the capacity applies to; do not treat unconfirmed estimates as committed capacity.
- 3
Calculate the work to subcontract
Match planned quantities with the relevant operation and batch information. When deciding what to send, consider preceding and following in-house operations, available work in progress and the customer due date.
- 4
Plan materials and dispatch readiness
Identify the raw materials, semi-finished goods and supporting materials needed for the subcontracted operation. Check on-hand stock, reservations and lead times to plan what quantity can be sent and when.
- 5
Confirm the work and delivery dates
Confirm the quantity, work description, quality expectations and target delivery date with the workshop. If partial deliveries are planned, record quantities and dates separately and agree on a checkpoint for early notice of schedule risk.
- 6
Update the plan with actual progress
Track dispatched, in-process, completed and returned quantities separately. When delays, shortages or scrap occur, reassess remaining workload, material reservations and dates for subsequent production steps.
A simple subcontracting plan example
Example: a coating operation for a 500-unit order will be performed by a subcontractor. Before confirming the plan, check the workshop’s open work and confirmed capacity for the period, material readiness, dispatch time and assembly capacity after coating. Track quantities and dates separately if partial deliveries are planned.
- 1. Confirm work and due date
- 2. Reserve and dispatch materials
- 3. Track workshop progress
- 4. Receive and pass to next operation
Check before dispatching work
- Have workshop capacity and delivery date been confirmed?
- Has existing subcontracted work been included in the new load?
- Are material quantities and dispatch dates clear?
- Are quality and acceptance requirements clear in the work description?
- Are partial delivery quantities and dates recorded?
- Is there an agreed notification point if delays occur?
Frequently asked questions
What information is needed for subcontracting capacity planning?
Core information includes the operations a workshop can perform, period capacity, open jobs, confirmed dates, required materials and dispatch lead times. Routes and operation times are also needed to estimate workload by product and quantity.
How can a subcontractor’s capacity be tracked?
Compare the quantity or hours confirmed by the workshop for a period with its open subcontracted jobs and actual deliveries. Validate capacity regularly with the workshop and track it by period and, where possible, by process or product rather than as one total figure.
When should materials for subcontracting be planned?
Plan material needs against the date work is due to start at the workshop and the procurement or dispatch lead time. Check whether on-hand quantities are reserved for other jobs, balancing timely delivery against tying up stock unnecessarily.
How should the plan change if subcontracted work is delayed?
First confirm the delayed quantity and revised expected date. Then review downstream capacity and dates, customer due dates and any alternative workshop options; update the plan and material reservations accordingly.
Keep subcontracting capacity plans current with workshop confirmations and actual delivery records. Tracking capacity, materials and dates within the same work-order flow helps assess delay risks earlier.