Mar 11, 2019

Posted by in Supply Chain Management | Comments Off on Distinguishing Capacity Planning Options

Distinguishing Capacity Planning Options

Distinguishing Capacity Planning Options

Running a manufacturing system means walking a fine line. Even the most careful planning can still lead to your team producing far too many products or much too little. The former mishap can lead to the waste of valuable resources, while the latter risks massive upset for your consumer base. Either of these scenarios can result in a sharp loss of money. If you’re in charge of a retail manufacturing plant, you may have found yourself falling into the belief it’s nigh impossible to plan the appropriate amount of products for any marketing period. Yet the truth of the matter is there is an affordable and easy to implement solution, known officially as capacity planning. Read on to learn more about how you can incorporate this useful strategy into your manufacturing processes.

Resource Profiles

A major part of capacity planning involves knowing the time and the amount of resources you need to create the various products your manufacturing plant produces on a regular basis. With the right information and programs, capacity planning can help you track how long it takes your team to construct a particular product, as well as how much of a specific resource your team needs to use to make it. This can help you better plan out production schedules so you can release products to the consumer market on a consistent basis.

Capacity Bills

Capacity bills work in a similar manner when it comes to capacity planning. This concept involves creating a bill for each production period based on the amount of resources consumed and how long they’ve been running. The final number comes from the number of products created during a specific period.

CRP (Capacity Requirements Planning)

Capacity requirements planning combines all the elements used in capacity planning to calculate how much of a given resource you and your team should keep on hand throughout a typical production period.

Contact Demand Solutions by visiting their website or calling 800-886-3737 in order to gain access to a breadth of capacity planning resources.

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