Capacity Planning Tool
Plan production capacity, identify gaps, and size resources for demand.
Calculator
No signup required. Results are indicative—verify for your standards.
Available capacity: 24.5 hrs/day
⚠ Capacity gap: 3.5 hrs
Formula
Available capacity = Number of machines × Shifts × Hours/shift × Utilisation × Efficiency. Required capacity = Demand × Cycle time. Gap = Required − Available.
Example calculation
2 machines, 2 shifts, 8 hr each, 85% utilisation, 90% efficiency: Available = 2×2×8×0.85×0.9 = 24.5 effective hours. If demand requires 28 hours, gap = 3.5 hours → need a third shift or additional machine.
Engineering notes
Never plan to 100% capacity — allow 15–20% buffer for breakdowns, rework, and demand variability. Use rough-cut capacity planning (RCCP) for medium-term scheduling and detailed capacity requirements planning (CRP) for short-term MRP.
When to use this calculator
- Sales and operations planning (S&OP) — check if capacity can fulfil the agreed production plan
- New order acceptance — confirm capacity is available before committing delivery dates to customers
- Capital investment planning — determine when capacity will be exhausted to time equipment purchase
- Workforce planning — calculate operators required across shifts to meet production demand
- Outsourcing decisions — identify which products to outsource when internal capacity is insufficient
Frequently asked questions
- What is the difference between theoretical and practical capacity?
- Theoretical capacity: 24 hours × 365 days × number of machines — the maximum possible. Practical capacity deducts planned downtime (maintenance, holidays, shift changes): typically 80–85% of theoretical. Demonstrated capacity is what the facility has actually achieved historically. For planning, use practical capacity with a further utilisation buffer of 80–85% to avoid overcommitting.
- How do I handle seasonal demand peaks in capacity planning?
- Options: (1) Level production — produce at average rate and build inventory during low demand. (2) Chase demand — add shifts, overtime, or temporary workers at peak. (3) Hybrid — partially level with some chase. (4) Subcontracting — outsource peak overflow. (5) Demand management — incentivise customers to accept off-peak delivery through pricing. The right mix depends on your product shelf life, customer flexibility, and labour flexibility.
- What is Overall Labour Effectiveness (OLE) and how does it relate to capacity?
- OLE is the labour equivalent of OEE: OLE = Availability × Performance × Quality, where availability is the fraction of scheduled time worked, performance is actual vs expected output rate, and quality is the fraction of good output. While OEE measures machine capacity, OLE measures workforce capacity. Both must be considered in capacity planning for labour-intensive operations.