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Capacity Planning

Capacity planning is a critical process in production and logistics, where available resources are optimally utilized to achieve the desired production output. It includes the planning of machinery, personnel, materials, and storage capacities to avoid bottlenecks and increase the efficiency of the production process. Through targeted capacity planning, companies can increase their productivity, reduce costs, and enhance their competitiveness.


Capacity planning is an essential part of production and logistics planning for companies. It involves the optimal use of available capacities in terms of machinery, personnel, materials, and storage to achieve the desired production volumes while simultaneously minimizing costs. Effective capacity planning can help improve the competitiveness of companies by avoiding bottlenecks and increasing productivity.

Objectives of Capacity Planning

Capacity planning pursues several goals related to the optimization of production processes:

  • Efficient use of existing resources
  • Minimization of lead times and inventory levels
  • Avoidance of bottlenecks and capacity overloads
  • Continuous improvement of production processes
  • Increasing customer satisfaction through on-time delivery
  • Cost reduction and increased competitiveness

Types of Capacity Planning

Capacity planning can be conducted at various levels and over different time horizons:

  1. Strategic Capacity Planning: This type of planning takes place at the top level of management and relates to long-term decisions, such as investments in new production facilities, relocation of sites, or entering new markets.
  3. Tactical Capacity Planning: At this level, medium-term decisions are made that concern the use of existing capacities. These include the adjustment of shift schedules, optimization of material flows, or introduction of new production methods.
  5. Operational Capacity Planning: Operational capacity planning deals with the short-term allocation of resources and the control of the production process. This includes the detailed scheduling of machine occupancy, the assignment of employees to workstations, or the ordering of materials and inventory management.

Methods of Capacity Planning

Various methods are employed in capacity planning, which can be applied depending on the situation and objectives:

  • Static Capacity Planning: With this method, capacity is determined based on historical data and average values. It is particularly suitable for companies with a stable and consistent workload.
  • Dynamic Capacity Planning: This method takes fluctuations in workload into account and adjusts capacity accordingly. It is especially suitable for companies with seasonal fluctuations or significant demand variability.
  • Simulative Capacity Planning: Simulative capacity planning involves playing out different scenarios to analyze the impact of changes on capacity. For example, the consequences of investments or personnel measures can be better assessed.

Software Support in Capacity Planning

Capacity planning can be supported by the use of specialized software that automates the planning process and facilitates decision-making. Such systems can calculate capacity needs based on historical data or forecast models, optimize machine occupancy, or create shift schedules. Often, these systems are integrated into ERP or MES systems that enable comprehensive planning and control of production.


Capacity planning is a decisive factor for the success of companies in production and logistics. Through effective planning and management of resources, costs can be reduced, productivity increased, and bottlenecks avoided. Various methods are employed, which can be applied depending on the situation and objectives. Support through software solutions can further optimize planning processes and facilitate decision-making. Overall, successful capacity planning helps to strengthen the competitiveness of companies and thus to succeed in the market over the long term.