Capacity Planning

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Capacity Planning

• In Capacity planning is used in the following areas of SAP :

• Production planning and control (PP)
• Process manufacturing (PI)
• Plant maintenance (PM)
• Project systems (PS)
• Quality management (QM)
• Personnel planning and development (PD)

• Using master data such as material masters, routings and work

centers, as well as planned orders and production orders, data is
created that represents the available capacity and the capacity
requirements.

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Capacity Planning: Environment

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What is Capacity Planning?

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Basics

• Available capacity is the capability of a resource to produce a

quantity of output in a particular time period. You define the
available capacity at a work center per capacity category.
• Capacity requirements are calculated when we perform lead-time
scheduling.
• Capacity requirements are the resources needed to produce the
projected level of work over a time horizon. Planned orders (with
lead-time scheduling) and production orders generate capacity
requirements and therefore a load for the resources where they are
processed.
• In capacity evaluation, the system determines the available capacity
and the capacity requirements.
• Capacity leveling is the process of adjusting capacity overloads and
underloads at work centers. Capacity reduction occurs as a result of
confirmations.

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 Capacity Planning in MRP
We can carry out capacity planning in three different ways, depending
on the function called up:

– From within planning as capacity leveling

– From the evaluation "current stock/requirements list" as the

capacity situation

– From within planned order processing as the capacity check

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Available Capacity

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 Available Capacity
• The duration of the start and finish times for a capacity category in a work center is called the
work time. The work time minus the length of breaks is stored in the work center as the
operating time.

• Technical and organizational disruptions are reflected in the capacity utilization factor. For
example, setting the capacity utilization factor to 90%, then an 8-hour operating time is
reduced to 7.2 hours. This is called the productive operating time.

• If a work center has 4 resources that perform a similar function, then we say it has 4 individual
capacities. This has the effect of multiplying the productive operating time in the work center
by 4. Thus, in this example, the available capacity at this work center for this capacity category
is 28.8 hours (that is, the operating time * capacity utilization in percent * the number of
available capacities). This definition in the work center is the standard available capacity.

• Intervals can be defined of available capacity at a work center. These are sometimes referred to
as shift calendars. For example, a work center may work two 10-hour shifts from July 1 through
July 31 although at other times it works a single 9½-hour shift. By specifying this condition at a
work center, available capacity during that time period can be adjusted.

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 Scheduling

• In lead-time scheduling the precise production dates are calculated using the routing. Lead-
times scheduling takes place when a planned order is converted to a production order or when
a production order is created manually. It also takes place during the MRP run when specified
in the MRP control parameters. Capacity requirements are created during lead-time scheduling.

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Capacity Requirements

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 Capacity Requirements
• Capacity requirements come from planned orders, production orders
and so on.

• The routings of these objects contain operations that are performed at

work centers. These operations contain standard values that you have
established.

• Capacity requirements are updated with completion confirmations.

When the operation being confirmed is marked as a final confirmation,
any remaining capacity requirements are set to zero.

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 Capacity Evaluation & Leveling

• The results of the capacity evaluation in various displays as well as in a

tabular and graphical planning table.
• Capacity leveling can be done using either the tabular or graphical
planning table.
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Rescheduling function

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Operation Dispatching in Capacity Leveling

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 Operation Dispatching

• Dispatching operations is the main function of capacity leveling. Operations

are dispatched to the time when sufficient capacity exists for them to be
performed.
• In manual dispatching you can specify the dispatching date by overwriting
the default date determined by scheduling.
• Operations are dispatched according to their scheduled dates. However, if
operations have the same scheduled dates the system determines the
dispatching sequence.
• The system can dispatch operations in sequences that minimize the overall
setup time.
• With finite scheduling operations, are dispatched at times when remaining
available capacity exists.
• When dispatching is saved, midpoint scheduling is always carried out. In
midpoint scheduling the system starts from the operation dispatched and
schedules backwards

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Capacity Planning Stages SAP ERP

CO-PA SOP (for one year)

Transfer planning data

(for 1Yr) to
Demand Management

MRP RUN

No

Capacity Planning / Satisfi

Evaluate Capacity ed?

Release Demand Yes

Management

MRP run Trigger actions

Procurement Production
No

Satisfie
Capacity Leveling d?

Convert planned order Yes

to production order

Capacity Evaluation

MTS Scenarios 16