Capacity planning

A set of tools, strategies and techniques used to estimate the amount of production required to match projected demand in the short-, medium- and long-term future.

This key data will enable the organisation to calculate the corresponding resource requirements (equipment, workforce, facilities, systems etc.), and minimize idle resources or overproduction, or prevent resource or product shortages.

Some approaches to capacity planning include: lead strategy (increasing capacity to match an anticipated increase in demand), lag strategy (meeting demand increases or decreases as they occur), and match strategy (increase capacity when demand starts to increase, to remain a step ahead of the trend).