Capacity planning is the performance of deciding the constructing limit required by utilizing a business undertaking to justify changing over requests for its objects. With regards to scope quantification, planning capacity is the most extreme volume of work that a business can complete in a set period. Samples of this are the regularity of items. Capacity describe as “the greatest level of value– included action over an end of the time frame”. Therefore, three principle factors come into strength here – the capacity of supplies and employment power, the procedure activity which itself provokes justifying clients through organizing requirement. It is essential to design and organize every one of the three factors sufficiently in light of the fact that a distinction in limit and execution effortlessly influences: costs, incomes, working capital, adaptability, attribute of stock, the speed of reaction and others.