What is Capacity Planning?
- Capacity Planning
- Capacity Planning determines the production capacity needed to meet demand, comparing required capacity against available capacity to identify bottlenecks and plan investments.
Capacity Planning Types
Long-term capacity planning (1–5 years): invest in new machines, hire, expand floor space. Medium-term (3–18 months): add shifts, subcontract, hire/retrain. Short-term (days/weeks): overtime, cross-training, work-order sequencing. The bottleneck constraint (Theory of Constraints) limits total system output.
Capacity Planning Tools
ERPNext's capacity planning uses workstation capacity (hours per shift × shifts per day × efficiency %) vs loaded hours from planned Work Orders. The production capacity report shows overloaded and underloaded workstations. Adjusting work order dates or splitting orders resolves capacity conflicts.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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