Rough Cut Capacity Planning (RCCP): what it is, how it works, and mistakes to avoid

Planning plant capacity isn’t just about adjusting shifts or opening a new line. If done inefficiently, it can lead to bottlenecks, delays, cost overruns and a gradual loss of competitiveness. This is where Rough Cut Capacity Planning (RCCP) becomes a critical tool to connect sales strategy with operational reality. But what exactly does it involve? And why do so many companies struggle to implement it effectively?

In this article, we’ll explore in detail what RCCP is, how to apply it properly, common mistakes to avoid, and the tangible benefits it can bring to your organisation.

What is Rough Cut Capacity Planning (RCCP) and how does it fit into supply chain planning?

RCCP is a capacity planning methodology used to verify whether critical production resources can support the Master Production Schedule (MPS). Unlike detailed capacity planning, RCCP works with aggregated levels of demand, products or product families, and mid-term horizons.

Its main goal is to validate early in the planning process whether the defined plan is feasible in terms of capacity, without needing to delve into operational detail. Can the plant deliver the volume the MPS demands? Will subcontracting or shift adjustments be necessary? Rough Cut Capacity Planning helps answer these kinds of questions.

Link with MPS and S&OP

RCCP acts as the bridge between the Master Production Schedule and the Sales & Operations Planning (S&OP) process. While the MPS outlines what needs to be produced, in what quantities, and when, RCCP checks whether the necessary resources are available to carry it out.

S&OP sets the strategic framework for balancing demand and supply and relies on RCCP to translate strategy into operational capacity. In short, RCCP is essential for ensuring consistency between what you plan to sell and what you can actually produce.

What decisions does it support?

Applying RCCP systematically enables companies to anticipate and make informed decisions such as:

• Adjusting production volumes or redefining priorities.
• Identifying additional resource requirements (shifts, machinery, subcontracting, etc.).
• Detecting potential bottlenecks.
• Redesigning the product mix based on available capacity.

In other words, it aligns business plans with real-world production constraints.

Common mistakes when implementing Rough Cut Capacity Planning

RCCP is a highly valuable tool, but used incorrectly, it can lead to the opposite outcome: plans that look feasible on paper but collapse in practice. Here are some of the most common mistakes:

Planning without considering real capacity constraints

A frequent error is working with theoretical or ideal capacities, without factoring in maintenance, downtime, absences, training, actual line speeds or scrap rates. This results in false optimism and poorly grounded decisions.

Manual adjustments without reliable data

When RCCP is updated manually in Excel without integrated models or up-to-date data, the risk of mistakes, duplication and lack of traceability increases. The process becomes less robust and objective.

Failing to review RCCP frequently enough

RCCP shouldn’t be a one-off exercise. Conditions change constantly, urgent orders, shift changes, machine breakdowns… Without regular reviews, the plan loses validity.

Using outdated or misconfigured data

Incorrect data about lead times, efficiency rates, work calendars or capacity can completely skew the analysis. RCCP is only as reliable as the data behind it.

Lack of alignment between RCCP and MPS

If RCCP and the MPS are built with inconsistent logic, a business may end up planning products it can’t manufacture, or worse, committing to deliveries it cannot fulfil.

How to build a robust Rough Cut Capacity Planning (RCCP) process step by step

To implement Rough Cut Capacity Planning effectively, the process must be structured with a clear methodology and tools that ensure consistency and reliability.

Required inputs for RCCP

The first step is consolidating all the necessary data:

• The Master Production Schedule (MPS).
• Data from the MRP or ERP system.
• Up-to-date working calendars.
• Theoretical and actual capacity for critical resources.
• Efficiency rates, scheduled downtime, and scrap levels.

The more accurate this information, the more realistic the capacity analysis.

Critical resource analysis: lines, work centres, shifts

It’s essential to identify the true constraints, overloaded work centres, high-demand lines, bottlenecked processes, etc. Rough Cut Capacity Planning should focus on these critical areas and assess how their workload varies across different production scenarios.

Tools that support automation

Automating RCCP with Supply Chain Planning software enables:

• Simulating different scenarios in seconds.
• Detecting overload alerts.
• Visualising load vs. capacity by resource or centre.
• Recalculating automatically when the MPS changes.

This not only saves time but greatly improves decision quality.

Real-world benefits of implementing Rough Cut Capacity Planning (RCCP) in your planning process

RCCP isn’t a luxury or a nice-to-have. In complex industrial environments, it becomes a core element in ensuring a smooth-running supply chain. Here are its main benefits:

Improved on-time delivery

In complex settings, Rough Cut Capacity Planning is essential to ensure the supply chain remains agile and reliable helping increase delivery performance.

More efficient use of installed capacity

RCCP helps maximise the use of available resources, identify improvement opportunities and reduce downtime or workload imbalances between centres.

Fewer stockouts and emergencies

Better capacity planning reduces last-minute production runs, anticipates potential stockouts and allows for more efficient order consolidation.

When should you use RCCP? Examples by business type

While Rough Cut Capacity Planning is advisable for most organisations, it’s especially critical in certain contexts:

Companies with complex production and long lead times

Industries like automotive, industrial machinery or pharma deal with long processes and interdependent resources. A capacity mismatch can have a cascading effect lasting weeks. For these sectors, RCCP is a vital tool for maintaining control and avoiding disruption.

Environments with high customisation or variability

Project-based manufacturers or those with highly configurable products need to constantly validate whether their resources can handle the planned combinations. RCCP helps identify gaps before it’s too late.

Rough Cut Capacity Planning (RCCP): Capacity planning starts here

In today’s fast-paced supply chains, RCCP is essential to bridge commercial strategy and operational reality. It’s not enough to know what you want to sell, you need to know if it can be produced, how and when.

Implementing it properly requires reliable data, a clear methodology and ongoing review. But the benefits are clear: fewer emergencies, better delivery performance, optimised resource use and a supply chain that’s more robust and ready to grow.

At Imperia, we help our clients improve planning and increase supply chain efficiency. If you’d like to know how we can support you, book a free consultation with our experts.