CRP

A method used to determine whether an organization’s available production capacity is sufficient to meet the demands outlined in its manufacturing schedule. It bridges the gap between production planning and actual execution by aligning labor, machinery, and work center resources with forecasted workloads. CRP ensures that the manufacturing process operates efficiently without overloading or underutilizing resources.

At its foundation, CRP analyzes time-phased production orders and translates them into specific capacity demands for each work center or production line. It calculates the time and resources required to complete planned operations, accounting for setup time, runtime, machine availability, and shift schedules. By comparing these requirements with available capacity, CRP identifies potential bottlenecks or idle periods before they disrupt production.

This proactive approach allows planners to adjust workloads, reschedule operations, or allocate additional shifts to maintain smooth production flow. When integrated with materials planning, CRP provides a complete picture of both material and capacity constraints, ensuring that production orders are not only feasible but also optimized for efficiency.

CRP operates at two primary levels:

• Rough-cut capacity planning provides a high-level overview of capacity versus demand for critical resources.
• CRP drills down into specific work centers and time frames. Both levels work together to balance short-term scheduling needs with long-term production goals.

Modern CRP systems often leverage real-time data, automation, and advanced analytics to simulate scenarios, track performance, and dynamically adjust plans. This integration enhances agility, allowing manufacturers to respond to unexpected events such as equipment downtime, rush orders, or supply chain disruptions.

Ultimately, CRP is essential for achieving consistent production output, efficient resource utilization, and on-time delivery. It aligns operational capability with business demand, helping manufacturers meet customer commitments while maintaining control over costs and capacity.