ROUGH-CUT CAPACITY PLANNING

Validating The MPS (Sort Of) Bills Of Materials & Routings Capacity Planning Using Overall Factors Capacity Bills Picking A RCCP Technique

CORE MRP II

MANUFACTURING RESOURCE PLANNING

Business Plan Aggregate Forecast

Aggregate Production Plan

Detailed Forecast

Master Production Schedule

Confirmed Orders Material Require ments Planning

Rough-Cut Capacity Planning

Capacity Requirements Planning

Purchasing

Dispatching

Input/Output Control

VALIDATING THE MPS (SORT OF)

Need to ensure that MPS is feasible
MPS must not require more capacity then is available

1. Use rough-cut capacity planning techniques to estimate capacity needs in each workcenter
Labor requirements Machine requirements

2. Compare capacity needed to planned available capacity 3. Adjust MPS if workcenters are overloaded

VALIDATING THE MPS (SORT OF)

RCCP eliminates MPS's which drastically overload some workcenters Low computational expense
Rapid calculation for what-if analysis

Not 100% accurate

Does not use material plans All RCCP ignores actual lot-sizing, beginning inventory, work-in-process

VALIDATING THE MPS (SORT OF)

1.

Information requirements for all RCCP techniques Bills of Materials (BOMs)

Show how products are put together

2.

Routings
Show where products and component parts are made

BILLS OF MATERIALS
BOM's show how parts combine to create a product Representation may be graphical
X Y

B(2)

BILLS OF MATERIALS
Indented BOMs are common as computer printouts X A B A
A B X Y

B(2)

Y
B(2) A

ROUTINGS

A routing lists the

Operations necessary to make a part Workcenters where the operations are performed

The routing also lists the expected capacity needed at each operation
Per setup Per unit

Part X Y B

Workcenter W101 W101 W101 W102

Operation # DLH/Setup DLH/Unit 10 0 1.00 10 15 2.00 10 0 0.25 20 30 0.50

STANDARD TIMES

A standard time per unit includes the runtime and an allocated portion of the setup time
Standard times assume an average lot size Used in RCCP since actual lot sizes for parts ignored

Standard Time = DLH/Unit +

DLH/Setup Avg. Lot Size

Part X Y B

Work- Operation DLH / DLH / Average Standard center # Setup Unit Lot Size Time W101 10 0 1.00 50 1.00 W101 10 15 2.00 30 2.50 W101 10 0 0.25 100 0.25 W102 20 30 0.50 100 0.80

CAPACITY PLANNING USING OVERALL FACTORS

Simplest and least accurate RCCP method

For N products, W workcenters, and a planning horizon of T periods, requires only N +W + 1 rows and T columns in a spreadsheet

Ignores current product mix, lead times

Therefore appropriate if lead time is short and product mix is steady over time

CAPACITY PLANNING USING OVERALL FACTORS

1. Determine cumulative standard times for each product 2. Apply cumulative standard times from (1) to MPS to determine total required capacity per period for facility 3. Determine planning factors expressing % of facilty capacity historically used in each workcenter 4. Apply planning factors from (3) to facility capacity from (2) to determine capacity requirements per period for each workcenter

CUMULATIVE STANDARD TIMES

The Cumulative Standard Time is the time required to make a unit of a part from scratch STi,j Incremental standard time to make part i in workcenter j CSTi,j Cumulative standard time to make part i and all component parts in workcenter j

CSTi Cumulative standard time to make part i and all component parts in all workcenters

CUMULATIVE STANDARD TIMES

STX,W101=1.00 STX,W102=0.00

STY,W101=2.50 STY,W102=0.00

STB,W101=0.25 STB,W102=0.80

B(2)

CUMULATIVE STANDARD TIMES

CSTX,W101=1.25 CSTX,W102=0.80 X STX,W101=1.00 STX,W102=0.00 CSTY,W101=3.00 CSTY,W102=1.60 STY,W101=2.50 STY,W102=0.00 Y

STB,W101=0.25 STB,W102=0.80

B(2)

CUMULATIVE STANDARD TIMES

CSTX=2.05 X CSTX,W101=1.25 CSTX,W102=0.80 STX,W101=1.00 STX,W102=0.00 CSTY,W101=3.00 CSTY,W102=1.60 STY,W101=2.50 STY,W102=0.00 CSTY=4.60 Y

STB,W101=0.25 STB,W102=0.80

B(2)

CAPACITY PLANNING USING OVERALL FACTORS

1. Determine cumulative standard times for each product: CSTX = 2.05 ; CSTY = 4.60

CAPACITY PLANNING USING OVERALL FACTORS

2. Apply cumulative standard times from (1) to MPS to determine total required capacity per period for facility [CSTX = 2.05 ; CSTY = 4.60]
Period MPS-Product X MPS-Product Y Total Capacity Required 1 2 3 50 4 5 30 6

CAPACITY PLANNING USING OVERALL FACTORS

2. Apply cumulative standard times from (1) to MPS to determine total required capacity per period for facility [CSTX = 2.05 ; CSTY = 4.60]
Period MPS-Product X MPS-Product Y Total Capacity Required 1 2 3 50 4 5 30 138 6

0 102.5

CAPACITY PLANNING USING OVERALL FACTORS

3. Determine planning factors expressing % of facilty capacity historically used in each workcenter
Workcenter W101: 70% Workcenter W102: 30%

CAPACITY PLANNING USING OVERALL FACTORS

4. Apply planning factors from (3) to facility capacity from (2) to determine capacity requirements per period for each workcenter
Workcenter W101: 70% Workcenter W102: 30%

Period MPS-Product X MPS-Product Y Total Capacity Required W101 Capacity Required W102 Capacity Required

3 50

5 30 138

0 102.5

CAPACITY PLANNING USING OVERALL FACTORS

4. Apply planning factors from (3) to facility capacity from (2) to determine capacity requirements per period for each workcenter
Workcenter W101: 70% Workcenter W102: 30%

Period MPS-Product X MPS-Product Y Total Capacity Required W101 Capacity Required W102 Capacity Required

3 50

5 30 138 96.6

0 0

0 102.5 0 71.75

0 0

0 0

CAPACITY PLANNING USING OVERALL FACTORS

4. Apply planning factors from (3) to facility capacity from (2) to determine capacity requirements per period for each workcenter
Workcenter W101: 70% Workcenter W102: 30%

Period MPS-Product X MPS-Product Y Total Capacity Required W101 Capacity Required W102 Capacity Required

3 50

5 30 138 96.6 41.4

0 0 0

0 102.5 0 71.75 0 30.75

0 0 0

0 0 0

CAPACITY BILLS

Slightly more computationally complex and more accurate than CPOF

For N products, W workcenters, and a planning horizon of T periods, requires N(W + 1) + 1 rows and T columns in a spreadsheet

Ignores lead times

Therefore appropriate if lead time is short

CAPACITY BILLS
1. Determine cumulative standard workcenter for each product times per

2.

Apply cumulative standard times per workcenter from (1) to MPS to determine capacity requirements per period for each workcenter

CUMULATIVE STANDARD TIMES

CSTX=2.05 X CSTX,W101=1.25 CSTX,W102=0.80 STX,W101=1.00 STX,W102=0.00 CSTY,W101=3.00 CSTY,W102=1.60 STY,W101=2.50 STY,W102=0.00 CSTY=4.60 Y

STB,W101=0.25 STB,W102=0.80

B(2)

CAPACITY BILLS
1.

Determine cumulative standard workcenter for each product

CSTX,W101 = 1.25 CSTX,W102 = 0.80 CSTY,W101 = 3.00 CSTY,W102 = 1.60

times

per

CAPACITY BILLS
2. Apply cumulative standard times per workcenter from (1) to MPS to determine capacity requirements per period for each workcenter
[CSTX,W101 = 1.25; CSTX,W102 = 0.80; CSTY,W101 = 3.00; CSTY,W102 = 1.60]

Period MPS-Product X MPS-Product Y W101 Capacity Required-X W101 Capacity Required-Y W101 Capacity Required W102 Capacity Required-X W102 Capacity Required-Y W102 Capacity Required Total Capacity Required

3 50

5 30

CAPACITY BILLS
2. Apply cumulative standard times per workcenter from (1) to MPS to determine capacity requirements per period for each workcenter
[CSTX,W101 = 1.25; CSTX,W102 = 0.80; CSTY,W101 = 3.00; CSTY,W102 = 1.60]

Period MPS-Product X MPS-Product Y W101 Capacity Required-X W101 Capacity Required-Y W101 Capacity Required W102 Capacity Required-X W102 Capacity Required-Y W102 Capacity Required Total Capacity Required

3 50 62.5

5 30 0

CAPACITY BILLS
2. Apply cumulative standard times per workcenter from (1) to MPS to determine capacity requirements per period for each workcenter
[CSTX,W101 = 1.25; CSTX,W102 = 0.80; CSTY,W101 = 3.00; CSTY,W102 = 1.60]

Period MPS-Product X MPS-Product Y W101 Capacity Required-X W101 Capacity Required-Y W101 Capacity Required W102 Capacity Required-X W102 Capacity Required-Y W102 Capacity Required Total Capacity Required

3 50 62.5 0

5 30 0 90

0 0

0 0

0 0

0 0

CAPACITY BILLS
2. Apply cumulative standard times per workcenter from (1) to MPS to determine capacity requirements per period for each workcenter
[CSTX,W101 = 1.25; CSTX,W102 = 0.80; CSTY,W101 = 3.00; CSTY,W102 = 1.60]

Period MPS-Product X MPS-Product Y W101 Capacity Required-X W101 Capacity Required-Y W101 Capacity Required W102 Capacity Required-X W102 Capacity Required-Y W102 Capacity Required Total Capacity Required

3 50 62.5 0 62.5

5 30 0 90 90

0 0 0

0 0 0

0 0 0

0 0 0

CAPACITY BILLS
2. Apply cumulative standard times per workcenter from (1) to MPS to determine capacity requirements per period for each workcenter
[CSTX,W101 = 1.25; CSTX,W102 = 0.80; CSTY,W101 = 3.00; CSTY,W102 = 1.60]

Period MPS-Product X MPS-Product Y W101 Capacity Required-X W101 Capacity Required-Y W101 Capacity Required W102 Capacity Required-X W102 Capacity Required-Y W102 Capacity Required Total Capacity Required

3 50

5 30 0 90 90 0 48 48 138

0 0 0 0 0 0 0

0 62.5 0 0 0 62.5 0 40 0 0 0 40 0 102.5

0 0 0 0 0 0 0

0 0 0 0 0 0 0

PICKING A RCCP TECHNIQUE

Stable demand and product mix?

Use CPOF

Changing mix but short lead times?

Use capacity bills

Changing mix and long lead times?

Use resource profiles