Effective capacity planning ensures you can meet demand without overcommitting.

Understanding Production Capacity

Calculate Your Capacity:

• Daily/weekly production output by product type
• Number of shifts operated
• Equipment capabilities and limitations
• Labor availability
• Raw material supply constraints

Capacity Metrics:

• Units per day/week/month
• Machine hours available
• Labor hours available
• Square footage utilization
• Bottleneck operations

Capacity Planning Process

Step 1: Current Orders Review

Review existing commitments:

• Orders in production
• Confirmed orders awaiting production
• Pending RFQs likely to convert
• Recurring order commitments

Step 2: Capacity Assessment

Calculate available capacity: ` Total Capacity - Committed Capacity = Available Capacity `

Step 3: Order Evaluation

For new orders, evaluate:

• Does it fit within available capacity?
• What is the impact on existing orders?
• Can overtime or additional shifts help?
• Should we extend lead time?
• Is outsourcing an option?

Managing Capacity Constraints

When at Full Capacity:

• Extend lead times for new orders
• Prioritize high-value orders
• Consider outsourcing (if quality maintained)
• Hire temporary workers
• Add production shifts
• Upgrade equipment

Seasonal Fluctuations:

• Plan for peak seasons
• Build inventory during slow periods
• Hire seasonal workers
• Communicate seasonal lead time adjustments
• Offer discounts during slow periods

Capacity Buffer

Maintain 10-20% capacity buffer for:

• Rush orders from key customers
• Rework requirements
• Equipment maintenance
• Quality issues
• Employee absences
• Supply chain disruptions

Production Scheduling

Scheduling Methods:

First Come, First Served:

Simple but may not optimize for profitability.

Priority-based:

Rank by customer tier, order value, or strategic importance.

Shortest Processing Time:

Do quick orders first to clear backlog.

Constraint-based:

Schedule around bottleneck resources.

Using the Platform

1. Access Production Calendar
2. View scheduled orders
3. Identify available slots
4. Schedule new orders
5. Set milestone dates
6. Track progress

Communication

• Update order status regularly
• Notify buyers of any delays immediately
• Provide revised delivery dates
• Explain capacity constraints when needed
• Be proactive, not reactive

Capacity Expansion

Consider expansion when:

• Consistently at capacity
• Turning away profitable orders
• Long-term demand growth
• Equipment utilization >85%

Expansion options:

• Add equipment
• Increase shifts
• Hire more staff
• Outsource non-core processes
• Expand facility