Question 1

What is a capacity forecast?

Accepted Answer

A capacity forecast is an estimate of the work expected in the future and the time available to complete it. By comparing these figures on a weekly or monthly basis, you can identify whether you have enough people and machines available, where capacity shortages might occur and when there's room to take on additional work.

Question 2

What is the difference between capacity forecasting and capacity planning?

Accepted Answer

Capacity forecasting helps you predict whether you have enough capacity to handle future work. Capacity planning focuses on allocating that work across people, machines and available time slots. If your forecast shows a busy period ahead, you can adjust your schedule in advance or arrange additional support.

Question 3

How do you calculate a capacity forecast?

Accepted Answer

Start by calculating the hours available for project work. Deduct annual leave and other activities from the total scheduled hours. Then compare the remaining capacity with your confirmed and expected workload. The calculation is simple: available hours minus expected workload (in hours). A negative result indicates a potential capacity shortage based on your forecast.

Question 4

What is the difference between gross and net capacity?

Accepted Answer

Gross capacity is the total number of scheduled working hours. Net capacity is the time remaining for project work after deducting absences and other activities. For example, if you have 400 scheduled hours and 55 hours unavailable, your net capacity is 345 hours.

Question 5

How do you forecast workforce capacity?

Accepted Answer

Start by looking at your employees' working hours and account for time lost to annual leave, public holidays and other activities. Compare the remaining hours with your expected workload. It's also important to consider the skills and expertise required, as not every available employee will be qualified to carry out every task.

Question 6

How do you create a capacity forecasting for manufacturing?

Accepted Answer

Estimate how much time your expected orders will require for each machine or production process. Compare this with the available hours over the same period. Account for scheduled maintenance and the time needed to prepare machines for the next order. Pay particular attention to machines that frequently become bottlenecks in your production process.

Question 7

How far should you forecast capacity, and how often should you update it?

Accepted Answer

Look far enough ahead to give yourself time to reschedule work or arrange additional support. If your workload changes frequently, review your forecast weekly. You should also update it whenever a major new project is confirmed, an employee becomes unavailable or your schedule changes. For more predictable workloads, less frequent updates may be sufficient.

Question 8

Do you need software for capacity planning?

Accepted Answer

No, for a small team, you can start with Excel. Planning software becomes particularly useful when you're managing multiple teams and projects or dealing with frequent changes. Either way, you'll need up-to-date information and realistic time estimates to create an accurate capacity forecast.