Manufacturing Operations · Capacity planning · Component
The demand plan
What will be needed, over a horizon that matches how long capacity takes to add.
The deliverable
What it is
The horizon has to exceed the lead time of capacity. A demand signal arriving later than that cannot be responded to whatever anyone decides.
Averages conceal peaks, and capacity has to serve the peak or the peak becomes a queue.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The volumes
Expected demand by period and by product family.
3 attributes: Volume · Product family · Committed or forecast
LearnThe peaks
Where demand concentrates, as distinct from where it averages.
3 attributes: Peak level · When · Response
LearnThe horizon check
Whether the plan reaches far enough ahead to act on.
3 attributes: Planning horizon · Capacity lead time · Adequate
Learn
Compare the planning horizon with capacity lead time. Where the first is shorter, capacity is being decided by default.
The other components in capacity planning
The capacity model
Practical output per period, per resource, with the constraint identified — because output is set by one step and not by the average.
LearnThe capacity decision
Whether to lead or lag demand, and what triggers the next change — a choice rather than a drift.
Learn