Planning Production Capacity Print

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How much you can make.

WHAT CAPACITY MEANS

Output achievable in a period, given equipment, people and hours.

WHAT LIMITS IT

The slowest step.

WHY THAT MATTERS

Adding capacity anywhere except the constraint changes nothing.

WHAT TO IDENTIFY

The bottleneck: the step where work accumulates.

HOW TO FIND IT

Look for where material waits.

WHAT TO DO ABOUT IT

Maximise its utilisation before investing anywhere else.

HOW

Ensure it never waits for material, people or setup Move work off it that could be done elsewhere Reduce its downtime Reduce defects that consume its time

WHY DEFECTS AT THE BOTTLENECK MATTER MOST

Time lost there is lost to the whole factory.

WHAT TO ESTABLISH

Actual output per hour, measured.

WHY MEASURED

Rated capacity from equipment specifications is never achieved.

WHAT TO CALCULATE

Available hours, less downtime, setup and breaks.

WHAT THAT PRODUCES

Realistic capacity.

WHAT TO PLAN AGAINST

That figure, not the theoretical one.

WHAT TO ESTABLISH ABOUT SHIFTS

Whether additional shifts are viable.

WHAT THAT PROVIDES

More output from the same equipment.

WHAT IT COSTS

Labour, supervision and higher maintenance.

WHY IT MATTERS FINANCIALLY

It spreads fixed costs across more units, which is the largest lever available.

WHAT TO TRACK

Output against capacity Downtime by cause


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