What is Capacity Planning in Manufacturing ERP?

Capacity Planning used in conjunction with an ERP system can improve the accuracy of planning and help control costs as well as plan for future expansion and growth.

Capacity Planning is the process of understanding and managing the capacity required to produce the throughput necessary to meet the requirements of production based on the company’s order position. It means that a company understands the production resources at its disposal to determine how many units can be produced at a given time.

Capacity planning is also a medium- or long-term tool used to determine what capacity is available when required. Because it can be used to look further out into the future, it can help managers and other decision-makers determine when to add additional capacity through overtime, subcontracting, or additional equipment.

An ERP system can be a game-changing platform for a small to medium-sized manufacturing company. It offers an opportunity for smaller manufacturers to utilize the same tools that larger competitors do and allow them access to the same automation and analytical tools that help level the playing field. One key capability available in most ERP systems today is that of capacity planning.

Timecode:
0:00 Introduction
1:27 Why is capacity planning important?
2:33 Things to consider when capacity planning within an ERP system
5:38 Benefits of using ERP for capacity planning

#manufacturing #capacityplanning #manufacturingERP #mrpsystem #mrpsoftware #mrpeasy #manufacturingsoftware #manufacturingsystem