Balancing Capacity

There are 2 ways of balancing capacity available and load: alter the load or change the capacity available.

Altering the load means shifting orders ahead or back so the load is levelled. If orders are processed on other work stations, the schedule and load on the other work stations have to be changed as well.
It may also mean that other components should be rescheduled and the MPS changed.
For these reasons, changing the load may not be the preferred course of action.

In the short run, capacity can be adjusted. Some ways that this may be done are as follows:

- Schedule overtime or under-time;
- Adjust the level of the workforce by hiring or laying off workers. The ability to do so will depend on the availability of the skills required and the
training needed;
- Shift workforce from under-loaded to overloaded work centers;
- Use alternate routings to shift some load to another work center;
- Subcontract work when more capacity is needed or bring in previously
subcontract work to increase required capacity.

The result of CRP should be a detailed workable plan that meets the priority objectives and provides the capacity to do that. Ideally, it will satisfy the MRP and allow for adequate utilization of the workforce, machinery and equipment.