Section 5 of 10

Capacity Planning

How capacity requirements are calculated, what available capacity consists of, levelling, and how scheduling fits in.

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Capacity planning asks whether a plan is actually executable. MRP works out material shortages but says nothing about whether the equipment or people exist to do the work.

The limitation in MRP

MRP assumes infinite capacity โ€” that whatever is needed can be made on the day it is needed. The result can be a plan that puts three days of work into one day. Material is available; the line is not.

Calculating capacity requirements

An example
Order: 200 units of product X
Routing: setup 1.0 h (fixed)
         machine 0.05 h per unit

Capacity requirement = 1.0 + (0.05 x 200) = 11.0 hours

Available capacity

What determines available capacity
ElementContentExample
Start and finish timesThe operating window08:00โ€“17:00
BreaksDeducted from the window1 hour
Utilisation rateThe proportion genuinely usable85%
Number of capacitiesHow many identical units exist3 machines
Factory calendarWhich days are workedExcluding weekends and holidays
Working it out
9 hours - 1 hour break = 8 hours
8 hours x 85% utilisation = 6.8 hours
6.8 hours x 3 machines = 20.4 hours per day

Evaluation and levelling

Capacity transactions
CodeContent
CM01Load by work centre, standard view
CM02Load by order
CM05Overloaded work centres only
CM21Levelling via the planning table
CM25Graphical levelling

Where overload appears, levelling adjusts it: move orders earlier or later, move them to another work centre, add capacity through overtime, or subcontract.

Scheduling

MethodAnchorBehaviour
BackwardDue dateWork back to a start date; the usual method
ForwardStart dateWork forward to a finish date
Current dateTodayUsed when backward scheduling produces a start date in the past
Only capacity requirementsโ€”Calculate load without setting dates

Backward is the default. Where it produces a start date already passed, SAP switches to current-date scheduling and warns โ€” which means the due date cannot be met.

Focus on the bottleneck

Not every work centre needs planning in detail: throughput is set by the most constrained operation. The work centre master controls whether capacity requirements are generated at all, so planning only bottlenecks is a realistic approach. Planning everything inflates data volume and effort until the plan stops being maintained.

๐Ÿ“– Unfamiliar term? Look it up in the SAP glossary.

Check your understanding

Test what you just read.

Quiz 1

Which transaction is used for Capacity Evaluation (planning overview)?

Quiz 2

Infinite Capacity Planning ignores capacity overloads when scheduling.

Quiz 3

Which is NOT a standard capacity category in PP?

Quiz 4

Capacity planning includes Planned Orders in addition to Production Orders.

Quiz 5

What is the basis for defining work center capacity?

Quiz 6

Arrange the capacity planning steps in the correct order.

Click items in the correct order