Production capacity planning is an element linked directly with the demand for the product. The effective planning of the products contributes to the profitability of the business.
A company produces a product that is a seasonal demand pattern. Capacity planning is required to ensure that the company always has the ability to fulfill the required customer demands. For the management production schedule, you must require these templates.
- Manage business resources through capacity planning
- Expense management to production management
- MS-Excel base template (Dashboard)
Usually production capacity planning process template in Excel spreadsheet helpful after forecasting the demand for the coming season. Then, the production schedule is required to avoid any delay and unseen costs.
Key Features of Production Capacity Planner
The capacity of a production process is related to all the capabilities and limitations. It involves the machinery, human skills, management, and technology and supply chain.
Moreover, the supply chain process involves material requirement planning, production planning, and product distribution system.
- There are several advantages of continuous improvement and enhancement in the production capacity of the process by monitoring and capacity management. Also, it enhances the operational efficiency, run rate and utilization of available production resources.
- The key benefit of managing the production capacity using the capacity planning template in excel is having the same product inventory along with enhanced product output.
- Use in restaurant production management
The ultimate advantage is the leverage in a production facility to positively respond to the fluctuation in production demand.
Types of Production Capacity Planning Spreadsheet:
There are several strategies used for capacity planning. Although each strategy has its own pros and cons. However, the three most commonly used one is;
As the name suggests, this approach is based on the anticipation of upcoming gush in product demand.
- This strategy is helpful if the direct competitors are at risk to face shortages due to a surge in product demand.
However, due to the aggressive nature of this approach. A decline in the expected demand can be very costly for the business.
This strategy based on the concept to wait for the surge in demand before enhancing the production capacity. The advantage is the surety of lower inventory costs.
However, the major disadvantage is the risk of losing business due to slower response to surge as compared to competitors.
This strategy is a balanced approach to enhancing the production capacity and waiting for the demand surge. It actually responds to the symptoms in demand gush.
However, the risk of a rise in the inventory cost of losing the business opportunity is difficult to balance in this approach.
How to use PCP Template?
After fulfilling the pre-requisites to proceed for capacity planning. The process flow of the capacity planning is;
- Do the estimation of upcoming capacity requirements.
- Evaluation of current capacity.
- Identification of the approaches to enhance the capacity.
- Look for alternatives to meet the surge in demand.
- Perform feasibility analysis for each alternative.
- Do a qualitative analysis of the alternatives.
- Select the optimum way of increasing capacity.
- Monitor and Track the performance of a new system.
In addition, the production capacity template is integrated to use the above approach multiple times for business growth over time.