1. Capacity Planning and Utilization
Chapter 10
Vollmann, Berry, Whybark, Jacobs

2. Session 13 Capacity Planning Techniques
Capacity Planning: Role in MPC Systems
Rough Cut Capacity Planning
Capacity Bill Technique
Resource Profiles Technique
Capacity Requirements Planning
Capacity Definitions
Technique Advantages/Limitations

3. Capacity Planning in the MPC System

4. Capacity planning objectives:
Estimation of capacity requirements
Execution

5. Techniques:1 Capacity Planning using Overall Factors (CPOF):
Uses historical data based on end products
Applied to labor and machine hours
The standard rates are applied to work centers
CPOF is stated in terms of weekly or monthly time periods (revised periodically)

6. Figure 10.2 & 10.3

7. Techniques:2 Capacity Bills
Direct estimation between work centers and individual end products.
Takes into account product mix shifts
More data is required
Takes historical trends in consideration

8. Figure 10.4

9. Figure 10.5

10. Figure 10.6

11. Techniques:3 Resource Profiles
Takes into consideration the specific timing of the projected workloads at individual work centers
Time-phased projections
BOM method + production lead time

12. Figure 10.7 Setback Chart

13. Figure 10.8

14. Figure 10.9

15. Techniques:4 Capacity Requirement Planning
Differs from rough-cut capacity techniques by:
Utilizes time-phased material plan info. (MRP record)
Utilizes gross to net feature of MRP
Utilizes open orders capacity (for remaining work)
Demand for service part

16. Figure 10.10

17. Finite Capacity Scheduling
An extension of CRP, with feasibility adjustment
Vertical loading: work centers are scheduled, job by job.
Horizontal loading: a shop order is scheduled according to priority.

18. Finite Capacity Scheduling
Front scheduling: starts from the current date and schedule forward the job
Back scheduling: schedule the job backward from the due date.

19. Figure 10.11 Infinite/finite loading

20. Figure 10.12 Data for APS approach

21. Figure 10.13 Back schedule approach

22. Input/output control Matching capacity and execution
Use shop floor data
Compare input (jobs entering work center) to output (jobs exiting work center)
Use standard to actual hours
Deviation can result from: productivity, breakdown, absence, …etc
Backlog control

23. Figure 10.14: Input/Output control

24. 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

25. Capacity Measures
Available time: the total hours available at a WC. {3 Shifts * 8 Hours* 5 Days}
Utilization: percentage of time a WC is active.
{[Hours actually worked/Available Hours]*100%}
Efficiency:
{[actual rate of production/standard rate of production]*100%}

26. Capacity Measures Rated capacity: result in standard hours
Available time * Utilization * Efficiency
Demonstrated capacity: use previous record to measure capacity.
{sum of previous actual work/number of periods}

27. Capacity Planning Techniques: Pros and Cons Capacity Bills
Easy to use
Minimal computational information
Consider product mix
Cons
Doesn’t consider lead times, inventory, or gross-to-netting
requirements
Less accurate

28. Capacity Planning Techniques: Pros and Cons Resource Profiles
Easy to use
Minimal computational
Considers lead times
Consider product mix
Cons
Doesn’t consider inventory information or gross-to- netting
requirements
Less accurate

29. Capacity Planning Techniques: Pros and Cons Capacity Requirements Planning
Considers: gross-to-netting, Inventory information,
lead times
More accurate
Considers product mix
Cons
Extensive computational requirements
Requires MRP system, Time-phased records

30. End of Chapter 10