![]() ![]() ![]() The first step of capacity planning is to determine how much capacity you need to meet demand. To gain a better grasp on how each applies to the planning process, let us take a closer look at each one individually. Planning for capacity breaks down into three steps: determining capacity requirements, analyzing current capacity, and planning for the future. This type of planning can apply to a company’s computer network, storage, workforce maintenance, and product manufacturing. What is Capacity Planning?Ĭapacity Planning is a method of management that features the efficient use of resources through a projection of production needs. ![]() This is why capacity planning is essential for the success of your manufacturing facility. On the other hand, having excess capacity means that you are not utilizing your production facility to its full extent and losing money. On one hand, having insufficient capacity results in an inability to meet your delivery dates, unhappy customers, excess work-in-progress inventory, and frustrated personnel that must deal with expedited orders on a constant basis. Mistakes made at this stage of production planning can be extremely costly. This process ensures that you are creating production plans and schedules that are feasible, given the available capacity and constraints of the system. ![]() Any manufacturing facility benefits from the financial and logistical capabilities of capacity planning, no matter the size of the business. ![]()
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May 2023
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