3 Capacity Bill ExampleSarah Reed. master scheduler at Walnut Hill, has developed a master production schedule for the XYZ boom box:PeriodMPSDept. Capacity Hours per Unit of End ProductCircuit BoardAssemblyThe 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 Problem 4. Sarah Reed Period: 1 2 3 4 MPS: 450 300 625 890 Capacity RequirementsCapacity CapacityBill Dept Available(.2 hr/unit) Circuit Board hr/per.(.3 hr/unit) Assembly hr/per.Requires: MPS, setup time and run time information from product routing file.
5 Resource Profile Example Determine the capacity requirements in all work centers atErben Fabricators using the MPS, resource profile, productstructure, and lead time information given below for product Zand all of its components. (Assume all usages are one andthat a new setup must be made in each period at each workcenter.)PeriodProduct Z MPSProduct Z resource profilePart Work center Setup hours Run hours/unit Planned Lead timeZ periodsM periodN periodO periodsP periods
6 Resource Profile Solution Requires: MPS, setup and run time information from the product routing file, and lead time information.
7 Capacity Requirements Planning (CRP) Example The Kuczma Company makes sign mountsfor commercial customers. Oneproduct is the H mount which is made up of apainted surface on both sides of a wooden Hframe. The H mount is put together in finalassembly. The surfaces are painted in thepaint shop, and frame is made in the frameshop. Kuczma wants to estimate the H mountcapacity needs for next five periods in finalassembly, the paint shop, and the frame shop.SetupOperation Work Center Time Run timeMount assembly Final Assembly 2 hours 1.0 hoursFabricate H frame Frame Shop 3 hours 0.5 hoursPaint surfaces Paint Shop 4 hours 0.4 hours
8 Capacity Requirements Planning (CRP) Example (continued)
9 Capacity Requirements Planning (CRP) Example (continued) * In hours
10 Capacity Requirements Planning (CRP) Example (continued) PeriodDeptH Mount AssyH FramePainted SurfaceNote: 28.5 = (15) (30)Requires: Planned order and schedule receipt information from the MRP system, and setup and run times from the product routing file.
11 Capacity DefinitionsRequired capacity: Estimated using capacity planning techniquesRated capacity: Available capacity considering staffing equipment capabilitiesDemonstrated capacity: Actual (or realized) capacity based on actual production output
12 Capacity Planning Techniques: Pros and Cons Capacity BillsPros ConsEasy to use Doesn’t consider lead times, inventoryMinimal computational information, or gross-to-nettingrequirementsConsider product mix Less accurateResource ProfilesEasy to use Doesn’t consider inventory informationMinimal computational or gross-to- nettingConsiders lead times Less accurateConsider product mixCapacity Requirements PlanningConsiders: gross-to-netting, Requires MRP system, Time-phasedInventory information, records, Extensive computationallead times requirementsMore accurateConsiders product mix