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Production Planning and Control (TKI 2409): 5 Capacity Planning

Scopes of PPC
FORECASTING
Capacity planning MRP Inventory Management

PLANNING

CONTROLLING

Production
APP Scheduling and Sequencing

Capacity Planning
RRP (Resource Requirement Planning) z RCCP (Rough Cut Capacity Planning) z CRP (Capacity Requirement Planning)
z

Materials and Capacity


Materials Plan
Production Plan Realistic?

Capacity Plan
Resource Requirement Plan

Master production plan

Realistic?

Rough-cut capacity plan

Materials plan

Realistic?

Capacity requirement plan

Production Plan Details


Resource Planning Rough-cut capacity plan Capacity requirement planning Production Plan Master production scheduling Detailed material planning Demand management

Input/output analysis

Shop-floor systems

Vendor systems

Capacity - Definitions
Capacity is the amount of a system output in any given period There are several terms regarding capacity:
Designed Capacity is the maximum capacity that can be achieved under ideal condition Effective Capacity is the number of design capacity that is actually expected Available Capacity is maximum usable capacity of a particular facility

Available Capacity = Capacity * Utilization * Efficiency

Capacity Management
Capacity Management have 4 categories: 1. RRP (Resource Requirements Planning) 2. RCCP (Rough Cut Capacity Planning) 3. CRP (Capacity Requirement Planning) 4. Input/Output Control Capacity Planning task of determining how much output is needed from plant facilities and from supplier. Capacity Control the comparison between planned levels and actual output achieved and the identification of significant variances above and below plan.

Rough Cut Capacity Planning (1)


RCCP is the process of determining if the plan is feasible (realistic) with the actual condition (capacity). It determines whether the organization has sufficient capacity to carry out the plan. The process of RCCP including converting the production plan and/or MPS into capacity needs for key resources: manpower, machinery, and (in some case) money.

Rough Cut Capacity Planning (2)


Need to see if MPS is feasible RCCP finds approximate capacity needs in each work-center given the MPS If capacity overloads, redo MPS

Rough Cut Capacity Planning (3)


In capacity planning, RCCP calculates the critical work center capacity requirements for all items on MPS. It provides an early warning of insufficient capacity and the need for capacity actions.

Bill of Labor Approach

RCCP techniques
Resource Profile Approach

RCCP (Bill of Labor Approach)


Definition (by Conlon, 1977):
Listing by item of the amount of labor required by a major labor category to produce that item or group of part numbers. It is not intended to be a routing, but merely a means of estimating the capacity requirements for a particular item.

This approach doesnt consider lead time offsets assumed that all component are built at the same time.

An example BoL (1)


Bill of Labor
Work Center Product Prod 1 Prod 2 Product Month Month 1 Month 2

Master Schedule B11 B21 B12 B22

WC 1 WC 2

a11 a21

a12 a22

Prod 1 Prod 2

RCCP
Work Center Month Month 1 Month 2

WC 1 WC 2

C11 C21

C12 C22

An example BoL (2)


Bill of Labor
Work Product Prod 1 Center WC 1 WC 2 Prod 2 Product Month Month 1 Month 2

Master Schedule 0.2 0.7 100 300 200 400

0.3 1.0

Prod 1 Prod 2

RCCP
Work Center Month Month 1 Month 2

WC 1 WC 2

90 310

140 480

Example BoL (3)


Month Forecast (ribuan) 1 22 2 8 3 10 4 10 5 20 6 14 7 8 8 8 9 12 10 15 11 30 12 40
Total 197

MPS (ribuan) 15 15 15 15 15 15 15 16 19 19 19 19
197

SOH (ribu) 15 8 15 20 25 20 21 28 36 43 47 36 15

Bill of Labors Lamp Assembly Base Forming Plastic Molding Socket Assembly Hours needed 0.1 0.01 0.05 0.02 0.18

ExampleBoL(4)
Work Center Lamp Assembly Base Forming Plastic Molding Socket Assembly Total Capacity Req. M1 1500 150 750 300 2700 M2 1500 150 750 300 2700 M3 1500 150 750 300 2700 M4 1500 150 750 300 2700 M5 1500 150 750 300 2700 M6 1500 150 750 300 2700 M7 1500 150 750 300 2700 M8 1600 160 800 320 2880 M9 1900 190 950 380 3420 M10 1900 190 950 380 3420 M11 1900 190 950 380 3420 M12 Total Hours 1900 19700 190 1970 950 9850 380 3940 3420

RCCP Consideration
Since BOL assumes that all components are built in the same time, thus resource profile technique is the most detailed rough cut approach. Resource profile approach considers each work station or process is associated with a specific time period, reflecting the lead time of the part produced.

RCCP Tables
Time to due date Product Prod 1 Prod 2 2

Resource Profile
1 0 Product Month

Master Schedule
Month 1 Month 2 Month 3

A112 A212 A122 A222

A111 A211 A121 A221

A110 A210 A120 A220

Prod 1 Prod 2

B11 B21

B12 B22 RCCP

B13 B23

Prod 1 Prod 2

Work Center

Month Month 1 Month 2 Month 3

WC 1 WC 2

C11 C21

C12 C22

C13 C23

Example Resource Profile (RP)


Lamp Assembly Base Forming Plastic Molding Socket Assembly Month before due date 2 1 0 0 0 0.1 0 0.01 0 0.05 0 0 0 0.02 0

Work Center Lamp Assembly Base Forming Plastic Molding Socket Assembly Total Capacity Req.

M1 1500 150 750 300 2700

M2 1500 150 750 300 2700

M3 1500 150 750 300 2700

M4 1500 150 750 300 2700

M5 1500 150 750 300 2700

M6 1500 150 800 300 2750

M7 1500 160 950 320 2930

M8 1600 190 950 380 3120

M9 1900 190 950 380 3420

M10 1900 190 950 380 3420

M11 1900 190 0 380 2470

M12 Total Hours 1900 19700 0 1820 0 8350 0 3640 1900

RCCP Decisions (1)


In deciding whether the capacity planning is realistic, then we need to examined the actual capacity available for the process. By this mean, there must be adjustment for calculating the available capacity
Available Capacity = Capacity * Utilization * Efficiency

RCCP Decisions (2)


When regular capacity is inadequate, there are four basic options available to increase capacity to meet the capacity: 1. Overtime 2. Subcontracting 3. Adding personnel 4. Alternate routing

Capacity Requirement Planning


Definition (APICS dictionary) :
The function of establishing, measuring, and adjusting limits or levels of capacity; the process of determining how much labor and machine resources are required to accomplish the task of production

Planned Order (Release and Receipt) are the input to CRP, which translated into hours of work, by work center, by work period.

CRP Logic
MPS is exploded via MRP system Planned order releases are taken from the MRP system and used to perform a deterministic simulation that uses lead times to determine the time each order passes through each work station. From this simulation, the machine load report for each work station is produced Then, the load will be compared to capacity available at that workstation.

AnExample#3(1)
Bill of Material
Level 0 1 2 2 Part 100 110 121 122 Qty/parent 1 2 6 10 description Finished Good SubAssembly Comp A Comp B

Item Master Record As of Saturday, July 01

Routing Files
Part 100 Part 110 Part 121 Work Center Setup time/lotRun Time/Piece 1 30 min 2.5 min 2 10 min 0.75 min 1 15 min 0.5 min 3 15 min 0.3 min 1 25 min 0.25 min 2 15 min 0.25 min 2 25 min 0.75 min 3 30 min 0.15 min 1 75 min 0.5 min 3 30 min 0.75 min

Work Center Master Files Work Center Available Utilization Efficiency 1 2500 mins 100% 100% 2 2500 mins 100% 100% 3 2500 mins 100% 100% 4 2500 mins 100% 100% MPS Files
Quantity 1 250 5 200 Week 2 200 Week 6 300 3 250 7 150 4 150

Part 122

Quantity

An Example #3 (2)
RCCP

Week Work Center 1 2 3 4 5 6 7 Average 1 2,604 2,083 2,604 1,562 2,083 3,125 1,562 2,232 2 2,657 2,125 2,657 1,594 2,125 3,118 1,594 2,267 3 2,734 2,187 2,734 1,640 2,187 3,281 1,640 2,343
3,500 3,000 2,500 2,000 1,500 1,000 500 0 1 2 3
WC1

4
WC2

5
WC3

An Example #3 (3)
MRP
Item 100 Lot Size L4L 0 Gross Requirement Scheduled Receipt Projected on Hand Planned Order Received Planned Order Release Item 110 Lot Size Lead Time 1 week Period 1 250 250 0 200 2 200 0 200 250 3 250 0 250 150 4 150 0 150 200 5 200 0 200 300 6 300 0 300 150 7 150 0 150 250

400 0

Lead Time 2 weeks Period 1 400 100 400 2 500 400 0 400 3 300 100 400 500 4 400 100 400 400 5 600 0 500 400 6 300 100 400 400 7 500 0 400 400

Gross Requirement Scheduled Receipt Projected on Hand Planned Order Received Planned Order Release

500

An Example #3 (4)
MRP (Contd)
Item 121 Lot Size 2400 0 Gross Requirement Scheduled Receipt Projected on Hand Planned Order Received Planned Order Release Item 121 Lot Size Lead Time 3 weeks Period 1 1200 300 2400 2 1200 2400 1500 0 3 1500 0 2400 4 1200 1200 2400 0 5 1200 0 2400 6 1200 1200 2400 2400 7 1200 0 0 0

1500

600 0

Lead Time 3 weeks Period 1 2000 500 6000 2 2000 6000 4500 0 3 2500 2000 0 4 2000 0 6000 5 2000 4000 6000 0 6 2000 2000 0 7 2000 0 0

Gross Requirement Scheduled Receipt Projected on Hand Planned Order Received Planned Order Release

2500

An Example #3 (5)
Planned Order Release
Part 100 110 121 122 1 200 400 2400 6000 2 250 400 0 0 3 150 500 2400 0 Week 4 200 400 0 6000 5 300 400 2400 0 6 150 400 2400 0 7 250 400 0 0

CRP Computation 1. Setup Time Matrices


Part 100 110 121 122 100 110 121 122 100 110 121 122

An Example #3 (6)
1 30 0 0 0 30 0 10 0 25 35 0 0 15 0 15 2 30 15 25 0 70 0 10 0 0 10 0 0 0 30 30 3 30 15 0 75 120 0 10 15 0 25 0 0 15 0 15 Week 4 30 15 25 0 70 0 10 0 25 35 0 0 0 30 30 5 30 15 0 0 45 0 10 15 0 25 0 0 15 30 45 6 30 15 25 75 145 0 10 0 0 10 0 0 15 0 15 7 30 15 25 0 70 0 10 15 0 25 0 0 0 30 30

WC 1

WC 2

WC 3

CRP Computation 2. Run Time Matrices


Part 100 110 121 122 100 110 121 122 100 110 121 122

An Example #3 (7)
2 625 200 600 0 1425 0 300 0 0 300 0 0 0 900 900 3 375 200 0 3000 3575 0 375 600 0 975 0 0 720 0 720 Week 4 500 250 600 0 1350 0 300 0 4500 4800 0 0 0 4500 4500 5 750 200 0 0 950 0 300 600 0 900 0 0 720 900 1620 6 375 200 600 3000 4175 0 300 0 0 300 0 0 720 0 720 7 625 200 600 0 1425 0 300 600 0 900 0 0 0 4500 4500

WC 1

WC 2

WC 3

1 500 0 0 0 500 0 300 0 4500 4800 0 0 720 0 720

An Example #3 (8)
Capacity Requirement of Planned Order Release

WC 1 WC 2 WC 3
Part 100 110 110 121 121 122 122

1 530 4,835 735


WC 1 2 1 1 2 1 3

2 1,495 310 930


Week 1 1 2 1 2 1 2

3 3,695 1,000 735


Setup Time 30 10 15 25 15 75 30

Week 4 1,420 4,835 4,530

5 995 925 1,665

6 4,320 310 735

7 1,495 935 4,530

Capacity Required by Released Order

Run Time Total Run Time Total Time 250 x 25 625 655 400 x 0.75 300 310 400 x 0.5 200 215 2400 x 0.25 600 625 2400 x 0.25 500 515 6000 x 0.5 3000 3075 6000 x 0.75 4500 4530

An Example #3 (9)
Released Order Capacity Requirement (Summary)

WC 1 WC 2 WC 3

Week 1 4355 310 0

Week 2 215 515 4530

Capacity Requirement Planning

WC 1 WC 2 WC 3

1 4,885 5,145 735

2 1,710 825 5,460

3 3,695 1,000 735

Week 4 1,420 4,835 4,530

5 995 925 1,665

6 4,320 310 735

7 1,495 925 4,530

An Example #3 (10)
6,000 5,000 4,000 3,000 2,000 1,000 0 1 2 3
WC 1

Available Capacity

4
WC 2

5
WC 3