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Session 13 Capacity Planning Techniques

http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm 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

Capacity Planning in the MPC System

Capacity Bill Example


Sarah Reed. master scheduler at Walnut Hill, has developed a master production schedule for the XYZ boom box: Period 1 MPS 450 Dept. Circuit Board Assembly 2 300 3 625 4 890 Hours per Unit of End Product .2 .3

Capacity 130 160

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.

Problem 4. Sarah Reed


Period: MPS: 1 450 2 300 3 625 4 890

Capacity Requirements Capacity Bill (.2 hr/unit) (.3 hr/unit)

Dept 1 Circuit Board 90 Assembly 135

2 60 90

3 4 125 178 187.5 267

Capacity Available 130 hr/per. 160 hr/per.

Requires: MPS, setup time and run time information from product routing file.
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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.)

Product Z MPS Part Z M N O P Work center 201 201 202 202 203

1 10

Period 2 3 4 5 20 15 10 15 Product Z resource profile Setup hours Run hours/unit 8.0 1.5 5.0 1.0 3.0 2.0 2.0 1.0 1.0 0.5

Planned Lead time 0 periods 1 period 1 period 2 periods 3 periods


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Resource Profile Solution

MPS Period Dept Item 201 Z M 202 N O 203 P 201 202 203 -6 -5 -4 -3 -2 -1 15 23 22 6 15 45 6

10

20

15

10

15

11

12 8.5

1 23 25 43 17 8.5 48 60 8.5

2 3 38 30.5 20 15 33 23 12 17

4 5 23 30.5 20 33

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12 8.5

58 45.5 45 40

43 30.5 33

Requires: MPS, setup and run time information from the product routing file, and lead time information.
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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.

Operation Mount assembly Fabricate H frame Paint surfaces

Work Center Final Assembly Frame Shop Paint Shop

Setup Time 2 hours 3 hours 4 hours

Run time 1.0 hours 0.5 hours 0.4 hours


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Capacity Requirements Planning (CRP) Example (continued)


Period 3 4 20 20 0 30 10 30

Item: H frame Gross requirements Scheduled Receipts Projected available balance Planned order release Q = 30, LT = 1, SS = 0 Item: Painted Surface Gross requirements Scheduled Receipts Projected available balance Planned order release Q = 50, LT = 1, SS = 5 Item: H mount Gross requirements Scheduled Receipts Projected available balance Planned order release Q = L4L, LT = 1, SS = 0

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1 15 15 10 30

2 20 20 0

5 20 20 0

6 0 20 0

25

1 30 50 45 0

2 40 5 50

Period 3 4 40 40 15 50 25 50

5 40 35 0

6 0 35 0

1 20 25 5 15

2 20 0 20

Period 3 4 20 20 0 20 0 20

5 20 0 20

6 20 0

Capacity Requirements Planning (CRP) Example (continued)

H Mount Assy

GR SR PAB POR H Frame GR SR PAB POR Painted Surface GR SR PAB POR

S/U Time* Run Time/unit*

15 15 30 50 0

20

20

20

20

30

30

0.5

50

50

50

0.4

* In hours

Capacity Requirements Planning (CRP) Example (continued)


Capacity Requirements
Dept H Mount Assy H Frame Painted Surface 1 17 28.5 24

Period 2 3 22 22 0 18 24 24

4 22 18 24

5 22 0 0

6 0 0 0

Note: 28.5 = 3 + 0.5(15) + 3 + 0.5(30) Requires: Planned order and schedule receipt information from the MRP system, and setup and run times from the product routing file.
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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

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Capacity Planning Techniques: Pros and Cons


Pros Easy to use Minimal computational requirements Consider product mix

Capacity Bills Cons Doesnt consider lead times, inventory information, or gross-to-netting
Less accurate Resource Profiles Doesnt consider inventory information or gross-to- netting

Easy to use Minimal computational requirements 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 12 Considers product mix