ERP & MRP Planning worked example

Machine Plan Requirement with planned production units of 3,000 units: a worked example

Push planned production units up to 3,000 units and the picture changes. This example computes every intermediate figure at that operating point. a capacity planner needs machine hours required by planned orders

The inputs for this scenario

  • Planned production units: 3,000 units (raised for this scenario; the documented default is 1,200)
  • Standard machine hours per unit: 0.28 machine-hr / unit (unchanged)
  • Load or efficiency factor: 1.05 x (unchanged)
  • Setup and changeover multiplier: 1.18 x (unchanged)

Working through the calculation

  • Applying the documented formula (Machine requirement = planned production units × standard machine hours per unit × load factor × setup/changeover multiplier) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,041 hr for required machine hours, the number this scenario is built around.
  • At this operating point the engine returns 882 machine-hr for machine hours before setup multiplier.
  • At this operating point the engine returns 1.18 x for setup and changeover multiplier.
  • At this operating point the engine returns 840 machine-hr for planned units × standard machine hours.

How this compares with the baseline

  • Against the tool's baseline example, where planned production units sits at 1,200 units and the headline result is 416 hr, this scenario comes in 150% above the baseline at 1,041 hr.
  • It computes total required machine hours by multiplying planned units, standard machine hours per unit, a load/efficiency factor, and a setup/changeover multiplier. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Required machine hours: 1,041 hr (headline result)
  • Machine hours before setup multiplier: 882 machine-hr
  • Setup and changeover multiplier: 1.18 x
  • Planned units × standard machine hours: 840 machine-hr

Run it with your numbers

  • Every input above is editable in the live Machine Plan Requirement calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.