Definition
Capacity Planning is the process of determining whether available resources are sufficient to complete planned production while meeting required performance, quality and delivery times.
Human Explanation
Capacity Planning checks whether people, machines and other resources can complete the planned work within the available time.
Why it Matters
Good Capacity Planning reduces resource overload, lowers the risk of delays and makes better use of available production capability.
Conceptual Boundary
Capacity Planning does not set the sequence of tasks. It checks whether the production plan can be completed with the available resources.
Practical Perspective
A lack of free resources does not always require new investment. Removing a constraint or organising work better can often produce a greater benefit.