Cost Effective and optimized use of resources is a major objective of any company. Resources could be man, machines, equipments, space etc. To achieve this objective, SAP PP has integrated component called as SAP PP CRP (Capacity Requirement Planning). SAP PP CRP helps to get answers to mainly following questions:


  • What kind of capacity is needed?
  • How much is needed?
  • When is it needed?

Following are major steps in Capacity Planning:

  1. Make educated guess about future capacity requirements based on planned order/production order etc.
  2. Evaluate existing available capacity of resources
  3. Analysis/compare requirements and available capacities i.e. evaluation
  4. Find out alternatives/substitute capacity if any primary resource is full with allocated requirements.
  5. Select alternative capacity if need arises
  6. Plan resources on alternative capacity
  7. Monitor outcome of planning and take corrective action (i.e. leveling) considering business requirements.

Main CRP elements introduced by SAP are:

  • Available capacity
  • Scheduling
  • Capacity Requirement
  • Capacity evaluations
  • Capacity Leveling
  • Capacity reduction

We need to maintain master data related to capacities in Work Center (CR01) in Capacities Tab Page. There we maintain capacity category like Machine, Labor, Processing unit, Electricity, Transport, external processing etc along with formulas (i.e. Setup, processing, teardown, pooled capacities etc) and Capacity requirement is based on these Set up, processing and Teardown time factors all together based on actual process and requirement of planned or production order. These different time factors are assigned to operation via routing .And further resources is attached to operation and finally Scheduling is used to determine the times of the capacity requirements.

In production planning requirement is normally consists of Planned Order, Production orders, Process Orders and SOP orders.

Other PP master such as Material master, BOMS, routing and factory calendar are pre- requisites for capacity planning function. The capacity planners responsible for machine loading are obliged to process the scheduled capacity requirements in production on time.

Further standard available capacity is maintained in respective header data of capacity category. Available capacity is the work that can be done by a capacity at a work center per working day.

Operating time of capacity is calculated considering start time and finish time of capacity category minus lengths of break considered for resource/work center multiplied by capacity utilization percentages. For available capacity calculation SAP consider Factory Calendar attached in Header Data of work center capacity category.

For example, let’s say Machine is capacity category. And it is available from 7.00 a.m to 7.00 p.m. and there is one hour break during this available time. And Management anticipates 85% utilization of machine. And no of machine are two no’s of same specification.

So in this case available capacity will be calculated as follows-

Shift hours – [7.00 AM to 7.00 PM] less [Break – 1 hour] * [No of Machine or capacities – 02 nos] * Capacity Utilization (85%)

So Available Capacity = (12-1) * 2 * 85/100 =18.7 hrs

Another important element of CRP is Capacity Evaluation which is used to analyze capacity loads in company. In the capacity evaluations, requirements can be compared with the available capacities.

Capacity Leveling function is used to dispatch operations. Operations are dispatched in order to fix them at a point in time when there is sufficient capacity for them to be carried out. The objectives of capacity leveling include:

  • Leveling overloads and under loads at work centers
  • Achieving optimum commitment of machines and production lines
  • Selection of appropriate resources

And SAP has provided interface called capacity planning table which enables to carry out detailed planning of capacity requirements continuously over time. One can use planning table to carry out simulation.

Capacity reduction is necessary for accurate capacity planning functioning. Capacity reduction occurs when operations are confirmed or order quantities are reduced or cancelled.


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By Manish Agarwal. (on behalf of SAP Consulting Team)

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