The collection of processes associated with developing a comprehensive plan to make products and service to support the supply chain operations plan. This process determines net capacity requirements, considering make/production asset availability, maintenance plans, Material Sourcing Plans, and existing work-in-process.
The capacity planning process is based on three dimensions:
- Determining demand for production (e.g. orders, forecasted orders, inventory levels (including linearity)
- Available capacity (e.g. fixed and flexible capacity)
- Time-phasing of raw materials, sub-assemblies, and/or semi-finished products
Alternative names for Plan Make include: Production Planning, MPS (MPS).
- In a repair/refurbishment center: Capacity planning
- In a manufacturing plant: Production capacity planning
- In a MTS manufacturing plant: Production Order REQ determination
MPS or MPS is a commonly used term to describe the production plan. This originates in the incorrect use of the word schedule in supply chain. A schedule is a fine-tuning of a plan.