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1 Session 13 Capacity Planning Techniques lecture session 14

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1 1 Session 13 Capacity Planning Techniques http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 14 http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm Capacity Planning: Role in MPC Systems Rough Cut Capacity Planning –Capacity Bill Technique –Resource Profiles Technique Capacity Requirements Planning Capacity Definitions Technique Advantages/Limitations

2 2 Capacity Planning in the MPC System

3 3 Capacity Bill Example Sarah Reed. master scheduler at Walnut Hill, has developed a master production schedule for the XYZ boom box: Period1234 MPS450300625890 Dept.CapacityHours per Unit of End Product Circuit Board130.2 Assembly160.3 The XYZ is fabricated in several departments, but the circuit board department and assembly areas are the potential bottlenecks. Prepare a rough-cut analysis of capacity for the MPS.

4 4 Problem 4. Sarah Reed Period:1234 MPS:450300625890 Capacity Requirements Capacity BillDept1234Available (.2 hr/unit)Circuit Board9060125178130 hr/per. (.3 hr/unit)Assembly13590187.5267160 hr/per. Requires: MPS, setup time and run time information from product routing file.

5 5 Resource Profile Example Determine the capacity requirements in all work centers at Erben Fabricators using the MPS, resource profile, product structure, and lead time information given below for product Z and all of its components. (Assume all usages are one and that a new setup must be made in each period at each work center.) Period 1 2 3 4 5 Product Z MPS1020151015 Product Z resource profile Part Work center Setup hours Run hours/unit Planned Lead time Z2018.01.50 periods M2015.01.01 period N2023.02.01 period O2022.01.02 periods P2031.00.53 periods

6 6 Resource Profile Solution Requires: MPS, setup and run time information from the product routing file, and lead time information.

7 7 Capacity Requirements Planning (CRP) Example The Kuczma Company makes sign mounts for commercial customers. One product is the H mount which is made up of a painted surface on both sides of a wooden H frame. The H mount is put together in final assembly. The surfaces are painted in the paint shop, and frame is made in the frame shop. Kuczma wants to estimate the H mount capacity needs for next five periods in final assembly, the paint shop, and the frame shop. Setup OperationWork CenterTimeRun time Mount assemblyFinal Assembly2 hours1.0 hours Fabricate H frameFrame Shop3 hours0.5 hours Paint surfacesPaint Shop4 hours0.4 hours

8 8 Capacity Requirements Planning (CRP) Example (continued)

9 9 * In hours

10 10 Capacity Requirements Planning (CRP) Example (continued) Capacity Requirements Period Dept123456 H Mount Assy17222222220 H Frame28.50181800 Painted Surface2424242400 Note: 28.5 = 3 + 0.5(15) + 3 + 0.5(30) Requires: Planned order and schedule receipt information from the MRP system, and setup and run times from the product routing file.

11 11 Capacity Definitions Required capacity: Estimated using capacity planning techniques Rated capacity: Available capacity considering staffing equipment capabilities Demonstrated capacity: Actual (or realized) capacity based on actual production output

12 12 Capacity Planning Techniques: Pros and Cons Capacity Bills ProsCons Easy to useDoesnt consider lead times, inventory Minimal computationalinformation, or gross-to-netting requirements Consider product mixLess accurate Resource Profiles Easy to useDoesnt consider inventory information Minimal computationalor gross-to- netting requirements Considers lead timesLess accurate Consider product mix Capacity Requirements Planning Considers: gross-to-netting,Requires MRP system, Time-phased Inventory information,records, Extensive computational lead timesrequirements More accurate Considers product mix


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