Capacity planning


Calendars and resources must be set up in the Organization administration module prior to using the Production control module. Resources are the physical equipment (more generally referred to as the resources) that are used to create finished items.

Because capacity on resources is limited, you need to consider the time that the resources are available (their working times) when assessing the amount of time it will take to complete the item.

This unit explains the capacity planning in manufacturing.

The process of setting up resources and working time calendars in Supply Chain Management is sequential:

  1. Create working time templates.
  2. Create working time calendars.
  3. Create capabilities.
  4. Create resources.
  5. Create resource groups.

Working time templates

The first step in the process of setting up resources and calendars for use in the Production control module is to set up the working time templates. Working time templates are defined on the Working time templates page, located by selecting Organization administration > Setup > Calendars > Working time templates.

You can use this page to set up templates that reflect normal working times in your company. This can be a 24-hour production sequence in which the resources are machines, or it can be a work week of 9 to 5 for the Purchasing department, where the resources are employees.

Organization administration > Setup > Calendars > Working time templates

Screenshot of the Working time templates page.

The templates will help you create and manage working time calendars for your resources. Working time calendars use the work times that you define in this template.

For example, one period might be equal to the time that the work day officially begins to the lunch break, while the other period might be the time from the end of lunch to the official end of the work day. This is completed for each day that the Legal entity is in operation. The scheduled hours are copied to the working time calendar.

You can specify the normal or most used hours of operation. Use the From field to specify the time that the work period begins, and the To field to specify the time that the work period ends. You can also use the Efficiency and Property fields to further define the use of each of the time periods that you set up.


You can use the Efficiency field to specify the efficiency percentage to be used in scheduling for the period in question, where:

Scheduling time = Time * 100/Efficiency percentage.

For example, if the evening shift operates at an efficiency level of 75 percent (versus the day shift, which operates at 90 percent), you can note this here. The effects of these rates are factored into the available capacity on the resources and throughout the system.


You can use the Properties field to assign properties to your templates. Properties are used in the scheduling and structuring of production. The idea is that productions that share the same properties can be produced simultaneously. Properties are used by resources to help optimize production schedules and are set up on the Properties page. This is often useful in setting up properties on your calendars for use in setting up properties on resources.

Creating resource properties

Resource properties are attributes that you can assign to your resources for use in the scheduling process. Properties are tied directly to the working time template. For example, if you assign the property red to a paint machine on Monday, when you run the schedule, this resource will paint items red only on Mondays.

Resource properties are not required when you set up working times calendars. However, if you want to use properties, it is more efficient to set them up at the same time.


The second step in the process of setting up calendars and resources is to create the calendar. Calendars must be set up before you create resource groups. This is because when you create a resource group or a resource, you will have to specify which calendar should be used. In this sense, calendars serve as the basis for calculating the capacity of the individual resources.

Use the Calendars page to create one or more calendars to manage the working hours that are used in resources and resource groups. If you create more than one calendar, it is best to create a base calendar first.

Go to Organization administration > Setup > Calendars > Calendars.

Screenshot of the Working time calendars page.

If you edit the base calendar, the changes are reflected in all other calendars that you create. However, if you make changes to individual working time calendars, the changes are not updated in the base calendar.

The Base calendar field defines that the current calendar inherits from the defined base calendar or possible base calendar. When changes to the calendar are updated, the current calendar inherits operation times from the base calendar. However, the operation times template that is defined for the update will control the update. You can clear the base calendar when you update operation times.

The Standard work day in hours is only required for Lean manufacturing.

Once a calendar record is created, you can configure the working times by selecting the Working times button.

Composing working times

The Working times page is used to contain a record for each calendar day of the year. You can define working times by entering times individually or by copying the information in the calendar and making relevant changes. Enter the typical work days and times that are used in your production, and any consistent variations to these times such as holidays or weekends. You can use the Compose working times button on the Working times page to specify which calendar to use to create the working times, and then define the period of time for which the calendar is to be updated, or you can select an already-defined working time template.

When the calendars and the resources groups are set up, they can be associated with each other. This is done by selecting the appropriate resource group in the Calendars tab of the Resource groups page.

Resource capabilities

The third step in the process is to create the resource capabilities that describe what resources can do. When you are designing a route, the requirements that resources need to perform the various operations in the route can be expressed as the set of resource capabilities. This allows the allocation of resources to be deferred until production is scheduled.

  • Capabilities - A capability is the ability of a resource to perform a given activity that is relevant to production. Capabilities are assigned to an operations resource. A resource can have more than one capability assigned to it, and a capability can be assigned to more than one resource. Capabilities can also be assigned to resources on a temporary basis by defining a start date and expiration date on the capability assignment. Capabilities that have expired on a resource will prevent the resource from being scheduled for production if the production requires that capability. A capability that has expired can be later renewed. Also, a capability can be assigned to any type of resource.
  • Skills - On the Skills page, you can create and manage competencies that you will specify for employees or jobs. An operation might require a resource with a specific skill. The scheduling engine can find resources with specific skills by searching for the skill information on the worker to which the resource is linked. This is only applicable for job scheduling, not operation scheduling. To set up skills, open: Human resources > Competencies > Setup > Skills.
  • Courses - Courses can be created and maintained. This lets you track what courses your employees have attended. An operation might require a resource with a specific course. The scheduling engine can find resources with specific courses by searching for the course information on the worker to which the resource is linked. This is only applicable for job scheduling.
  • Certificate - Certificates can be added to a user, which lets you track what certificate your employees have. An operation might require a resource with a specific certificate. The scheduling engine can find resources with specific certificates by searching for the certificate information on the worker to which the resource is linked. This is only applicable for job scheduling.
  • Title - The title of an employee can also be a requirement for a job. An operation might require a resource with a specific title. The scheduling engine can find resources with specific titles by searching for the title information on the worker to which the resource is linked. This is only applicable for job scheduling.

Priority and level

Priority is used to determine which resource should be allocated first if more than one resource can perform the same capability at the same level within the given period. For a certain capability, the resource with the lowest priority number is selected first. In other words, the lower the priority number for a certain capability is, the higher the priority.

Level is a qualification of a capability that allows system search of a suitable resource if multiple capable resources exist. Level does not have any units and is a numeric value solely for the purpose of finding a resource. It is not used in capacity calculations in any manner.

For example, if a level value of 100 is entered in the route, then it means that all resources that can perform at more than or equal to 100 can be used. If a resource R1 has a level of 300, then that resource can perform the operations that need up to 300.


Resources are assigned to jobs and operations. Resources can be different types, including machines, tools, human resources, vendors, facility, or locations. The scheduling engine aligns with the new resource model and can schedule resources based on their capabilities.

Resources and capabilities replace work centers and task groups to provide for more flexibility in setup and maintenance. In Supply Chain Management, resources can be allocated to jobs and operations by matching the capabilities of the resources with the requirements of the operation.

Alternative resources with the same capabilities are considered, unless there are requirements for a specific resource or resource group. This applies whether you select to run job scheduling or operations scheduling. The selection process consists of matching the requirements of the operation with the capabilities of the resources. Other requirements, such as location, resource working time, and resource type are also considered when you are planning the production.

Setting up resources

Operation resources are used throughout the production or project processes. They can be machines, tools, people, or vendors that contribute to the production of an item. They are considered as one unit for managing the planning of capacity requirements and detailed scheduling. After an operations resource is created, you can assign it to a resource group and specific productions.

You can reassign resources to different resource groups. However, a resource can only be assigned to one resource group at a time. The Effective and Expiration date fields on the Resource groups tab represent when the resource in question can be used for production.

This setup lets you share a resource across many sites. When a resource becomes a member of the resource group, it represents the physical move from one site to another.

Resource groups

After you create capabilities and resources, the next step in the process is to create the resource groups. The way in which resource groups are set up depends on the complexity of the manufacturing process. If several demands must be met, and multiple classifications exist that are based on the capacity or the capability of individual resources, then these factors must be reflected in the resource group setup.

Production control > Setup > Resources > Resource groups

A screenshot of the Resource groups page highlighting the Capacity fields.

For example, you can post information on resources to the ledger by using the resource group instead of having to post financial data for each resource individually.

As another example, a resource group can be viewed as representing a physical area where resources are located on the production floor, often delineated by a yellow line on the floor.

Companies can determine the operating scheduling percentage and the efficiency percentage for their resources and resource groups. These percentages specify the extent to which capacity is available in the resource or resource group that is associated with operation scheduling.

Organization administration > Resources > Resources

Screenshot highlightiing the Exclusive check box on the Operation tab of the Resources page.

Operation scheduling percentage

The Operation scheduling percentage field on the Operation tab of the Resources groups and the Resources pages show the maximum percentage of the daily capacity that can be scheduled for each production on either the group or the resource level. This means that if, according to the calendar, a resource group or a resource is available eight hours a day, and the operation scheduling percentage is set to 50 percent, the availability for scheduling is four hours. Note that this is for each production order.

For example, you can schedule two production orders, at 4 hours each, in a full 8-hour working day.

Efficiency percentage

The Efficiency percentage field on the Operation tab of the Resources or the Resources group pages is used to reduce or increase the duration of the individual jobs that are scheduled on the resource or the resource group.

For example, if the efficiency percentage is set to 50 percent, a job that is scheduled on the resource or resource group requires 50 percent of the capacity that is available according to the calendar, which means that the processing time is two times as long. The following formula applies:

Scheduling time = timeƗ100/efficiency percentage.

The efficiency percentage allows for the default operating efficiency of this resource to be changed. Changes to this setting either increase or decrease the duration of the individual jobs that are scheduled on the resources or the resource groups.


Another configuration option in resources that affects scheduling and calendars is Exclusivity. Exclusivity is only available on the resources and not on the resource groups.

When you use primary and secondary operations, select the Exclusive option to reserve the resource exclusively for a job. Ongoing jobs for the resource will not be interrupted by other jobs.

For example, a primary resource is exclusive. When a break in the scheduling of the secondary resource occurs, the primary resource cannot be reserved for other jobs.

As another example, a secondary resource is exclusive. Performing an operation requires a 50-percent load on the secondary resource. The secondary resource is reserved at 100-percent load, even though it is operating at 50 percent and no other jobs can be scheduled on that resource until the job is completed. If this option is cleared, when there is a gap between reservations or a resource is not being used at 100-percent capacity, it can be reserved for other jobs.

To define a resource as exclusive, select the Exclusive check box on the Operation tab of the Resources page.

Capacity planning and finite capacity

The planning of production orders in Supply Chain Management is determined by the amount of capacity that is available in the resource groups and/or specific resources, based on production calendars and requirements. The Resource groups and Resources pages contain a Finite capacity check box. If you select the Finite capacity check box, you limit the scheduling of operations or jobs to the actual capacity that is available on the resource group or resource.

If the Finite capacity check box is selected, the capacity is limited. This means that operations or jobs are scheduled based on the actual capacity that is available on the resource group or resource. If the check box is cleared, operations or jobs are scheduled with unlimited capacity and the already reserved capacity on a resource or resource group is not considered.

When finite capacity is set either on the resource group or resource level, the next time that the master scheduling is run, Supply Chain Management views the current orders as scheduled and the requirement dates of the new orders, and then automatically schedules them based on availability.

Make sure you define finite capacity in the resource group, resource, or master planning if you want to run finite capacity during scheduling.