1. Session 13 Capacity Planning Techniques http://www. pom
Session 13 Capacity Planning Techniques lecture session 14
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. Capacity Planning in the MPC System

3. Capacity Bill Example
Sarah Reed. master scheduler at Walnut Hill, has developed a master production schedule for the XYZ boom box:
Period
MPS
Dept. Capacity Hours per Unit of End Product
Circuit Board
Assembly
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. Problem 4. Sarah Reed Period: 1 2 3 4 MPS: 450 300 625 890
Capacity Requirements
Capacity Capacity
Bill 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 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
Product Z MPS
Product Z resource profile
Part Work center Setup hours Run hours/unit Planned Lead time
Z periods
M period
N period
O periods
P 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 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
Operation Work Center Time Run time
Mount assembly Final Assembly 2 hours 1.0 hours
Fabricate H frame Frame Shop 3 hours 0.5 hours
Paint 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)
Period
Dept
H Mount Assy
H Frame
Painted Surface
Note: 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 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. Capacity Planning Techniques: Pros and Cons
Capacity Bills
Pros Cons
Easy to use Doesn’t consider lead times, inventory
Minimal computational information, or gross-to-netting
requirements
Consider product mix Less accurate
Resource Profiles
Easy to use Doesn’t consider inventory information
Minimal computational or gross-to- netting
Considers lead times Less accurate
Consider product mix
Capacity Requirements Planning
Considers: gross-to-netting, Requires MRP system, Time-phased
Inventory information, records, Extensive computational
lead times requirements
More accurate
Considers product mix