// ROBOTICS AND SMART FACTORIES TERM

Capacity Planning

Capacity planning is the process of determining the production capacity a company needs to meet changing demand for its products or services. It involves assessing current capacity and forecasting future needs.

Capacity Planning — illustration from Wikipedia
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TECHNICAL DEFINITION

Capacity planning is the strategic process of assessing and determining the optimal production capacity (resources, equipment, labor) required to meet forecasted demand for goods or services, ensuring efficient resource utilization and avoiding bottlenecks or underutilization.

BACKGROUND

The Fourth Industrial Revolution, also known as 4IR, Industry 4.0 or the Intelligence Age, is a neologism describing rapid technological advancement in the 21st century. It follows the Third Industrial Revolution. The term was popularized in 2016 by Klaus Schwab, the World Economic Forum founder and former executive chairman, who asserts that these developments represent a significant shift in industrial capitalism.

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SYNONYMS & ALIASES

  • Production capacity management
  • Resource planning
  • Manufacturing capacity
  • Demand-capacity matching

USAGE NOTE

Effective capacity planning prevents both overproduction and underproduction, optimizing resource allocation.

DEVELOPERS

Organizations developing technology related to Capacity Planning.

  • SAP

    A global leader in enterprise software, SAP's ERP and supply chain management (SCM) solutions provide robust capacity planning, production scheduling, and resource optimization tools for manufacturing.

  • Oracle

    Oracle offers comprehensive cloud-based ERP and Supply Chain Management (SCM) solutions that include advanced planning and scheduling, vital for capacity planning in manufacturing and Industry 5.0.

  • Siemens Digital Industries Software

    Siemens provides a broad portfolio of software, including Manufacturing Operations Management (MOM) and Advanced Planning & Scheduling (APS) systems, which are critical for optimizing manufacturing capacity and resources.

  • Dassault Systèmes

    Through its DELMIA brand, Dassault Systèmes offers solutions for manufacturing operations management, including planning, scheduling, and optimization tools that directly address capacity planning and resource allocation.

  • Blue Yonder

    A leader in supply chain management, Blue Yonder offers AI-powered solutions for demand forecasting, production planning, and resource optimization, which are core to effective capacity planning in dynamic manufacturing environments.

  • Plex Systems (a Rockwell Automation company)

    Plex provides a cloud-native smart manufacturing platform (MES/ERP) that helps manufacturers plan and manage production, including detailed capacity planning and scheduling to maximize efficiency and responsiveness.

  • Kinaxis

    Kinaxis specializes in concurrent planning, providing solutions that integrate demand, supply, and production planning, enabling real-time capacity planning and scenario analysis for manufacturers.

  • Infor

    Infor offers industry-specific cloud solutions for manufacturing, including advanced planning and scheduling (APS) systems that support detailed capacity planning and optimization for complex production environments.

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