Show Some Profile!
As we have seen with the yearly planning in Strategic Planning, there is a repeating capacity pattern. We call it a capacity profile. It is similar from year to year, even if its amplitude may change (increase or drop).
Weekly and Daily Profiles
The same is true for weekly and daily profiles: In many fulfillment centers, there is a “typical Monday”, a “typical Tuesday”, and so on.
And within those days, there are “typical hours”: A typical “hour 8:00 to 9:00” on a “typical Monday” requires a particular capacity.
Thinking in Planning Periods Instead of Months and Weeks
In Strategic Planning, we used the “classic” planning procedure: Start with the yearly planning and break it down to months and weeks.
We change that by introducing the simple yet flexible concept of planning periods. A planning period is a sequence of calendar weeks.
What does that mean? We defined a planning period of four weeks. The capacity required each week for “Goods Receipt” is 23 FTEs, for “High Bay” 15, and so on.
A Perfect Match: Planning Periods and Profiles
Combined with periods, profiles become a brilliant planning tool: The weekly profile repeats itself within a planning period, and the daily profile repeats within the weekly profile.
The weekly profile named "Weekly Profile 1-4” repeats itself. The planning period can be easily adjusted, e.g., to quarterly periods (= 12 CWs), depending on your business needs.
In the sample above, we assumed that the capacity is equally distributed across the four weeks, i.e., every week, we need 23 FTEs at “Goods Receipt”, 15 at “High Bay,” etc.
We could, optionally change the capacity distribution:
Now, the weekly profile still repeats for four weeks, but the capacity for each week changes; it is no longer equally distributed.
This means, for example:
- First week
- Capacity Goods Receipt = (23 _ 4) _ 20%
- Capacity High Bay = (15 _ 4) _ 20 * 20%
- Second week
- Capacity Goods Receipt = (23 _ 4) _ 24%
- Capacity High Bay = (15 _ 4) _ 20 * 24%
- And so on for the other weeks
The following image shows the final result: When we change the capacity distribution, the pattern of the profile still stays the same, but its amplitude, so to speak, changes: