Learning Goal: Calculate available capacity and balance the load across lines to meet order deadlines.

Complete Lesson Content:
Capacity = Number of machines/operators × Working hours × Efficiency factor. For example, 20 operators working 8 hours at 80% efficiency give 128 standard hours per day. The workload is the total SMV of the order divided by capacity. If workload > capacity, you need overtime, outsourcing, or renegotiate the deadline.

Scheduling assigns orders to specific lines and time slots. Use a load chart: each line’s capacity is plotted, and orders fill available slots. Prioritise orders based on delivery date and customer importance.

Definitions:

  • Standard Hour – the amount of work achievable in one hour at 100% efficiency under standard conditions.
  • Load Levelling – distributing orders evenly to avoid overloading a line.

Step‑by‑step Explanation:

  1. Calculate total standard hours available per line per week.
  2. Sum the SMV of all orders to be delivered in a period.
  3. Compare total workload with total capacity.
  4. If overloaded, either increase capacity (overtime, extra shift, subcontract) or smooth load by shifting non‑critical orders.
  5. Create a weekly production schedule with line assignments.

Best Practices: Keep about 85–90% capacity utilisation to accommodate sudden machine breakdowns or absenteeism.

Common Mistakes: Scheduling at 100% theoretical capacity; real‑world interruptions make it impossible to meet.

Real Industry Example: A knitwear factory uses an Excel macro to auto‑colour cells in the schedule when a line is overloaded.

Mini Case Study: A factory took an urgent order without checking capacity; the subsequent overtime and weekend work cost more than the order’s profit. Now they run a quick capacity check before accepting any new order.

Practical Activity: Calculate the available weekly standard hours for a line with 25 operators, 48 hours/week, at 75% efficiency. Then determine if an order of 2000 standard hours can be completed within one week.

Assignment: Create a weekly production schedule for three orders with different SMV totals and deadlines, using a provided capacity template. Write a 200‑word justification for your schedule.

Lesson Summary: Capacity planning prevents overcommitment; realistic scheduling keeps deliveries on track.

Key Takeaways:

  • Capacity = machines × hours × efficiency.
  • Never plan at 100%.
  • Load levelling smooths the workflow.