PPC 5 - Capacity Planning (1)

7/30/2019 PPC 5 - Capacity Planning (1)

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Production Planning and Control(TKI 2409):

5 – Capacity Planning



Scopes of PPC

Production

PLANNING CONTROLLING

FORECASTING

APP

MRP

Schedulingand Sequencing

InventoryManagementCapacity

planning



Capacity Planning

z RRP (Resource Requirement Planning)

z RCCP (Rough Cut Capacity Planning)

z CRP (Capacity Requirement Planning)



Materials and Capacity

Materials Plan Capacity Plan

ProductionPlan

ResourceRequirement

Plan

Masterproduction

plan

Materials plan

Rough-cutcapacity plan

Capacityrequirement plan

Realistic?

Realistic?

Realistic?



Production Plan Details

ProductionPlanResourcePlanning

Masterproduction

scheduling

Rough-cutcapacity plan

Capacityrequirement

planning

Demandmanagement

Detailed materialplanning

Input/output

analysis

Shop-floorsystems

Vendorsystems



Capacity - DefinitionsCapacity 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 conditionEffective Capacity is the number of design capacity that isactually 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 Æ task of determining how much

output is needed from plant facilities and fromsupplier.

Capacity Control Æ the comparison between plannedlevels 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 capacityneeds 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 onMPS.

It provides an early warning of insufficient capacity

and the need for capacity actions.

RCCP techniques

Bill of Labor Approach

Resource Profile Approach



RCCP (Bill of Labor Approach)Definition (by Conlon, 1977):

Listing by item of the amount of labor required by amajor 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 doesn’t consider lead time offsetsÆ

assumed that all component are built at thesame time.



An example BoL (1)

a11 a12

a21 a22

B11 B12

B21 B22

C11 C12

C21 C22

ProductWork Center Prod 1 Prod 2

WC 1

WC 2

Bill of Labor Master Schedule

Prod 1

Prod 2

ProductMonth

Month 1 Month 2

RCCPMonth

Month 1 Month 2Work Center

WC 1

WC 2



An example BoL (2)

0.3 0.2

1.0 0.7

100 200

300 400

90 140

310 480

ProductWork Center Prod 1 Prod 2

WC 1

WC 2

Bill of Labor Master Schedule

Prod 1

Prod 2

ProductMonth

Month 1 Month 2

RCCPMonth


WC 1

WC 2



Example BoL (3)

Month Forecast MPS SOH (ribu)

(ribuan) (ribuan) 151 22 15 8

2 8 15 15

3 10 15 20

4 10 15 25

5 20 15 20

6 14 15 21

7 8 15 28

8 8 16 36

9 12 19 43

10 15 19 47

11 30 19 36

12 40 19 15

Bill of Labors

Hours needed

Lamp Assembly 0.1

Base Forming 0.01Plastic Molding 0.05

Socket Assembly 0.02

0.18

197 197Total



Example BoL (4)Work Center M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total Hours

Lamp Assembly 1500 1500 1500 1500 1500 1500 1500 1600 1900 1900 1900 1900 19700

Base Forming 150 150 150 150 150 150 150 160 190 190 190 190 1970Plastic Molding 750 750 750 750 750 750 750 800 950 950 950 950 9850

Socket Assembly 300 300 300 300 300 300 300 320 380 380 380 380 3940

Total Capacity Req. 2700 2700 2700 2700 2700 2700 2700 2880 3420 3420 3420 3420



RCCP Consideration

Since BOL assumes that all components are built inthe same time, thus resource profile technique is the

most detailed rough cut approach.

Resource profile approach considers each work stationor process is associated with a specific time period,

reflecting the lead time of the part produced.



RCCP Tables

A112 A111 A110

A212 A211 A210

B11 B12 B13

B21 B22 B23

C11 C12 C13

C21 C22 C23

Time to due date

2 1

Resource Profile Master Schedule

Prod 1

Prod 2

Product MonthMonth 1 Month 2

RCCPMonth


WC 1

WC 2

Month 30

A122 A121 A120

A222 A221 A220 Month 3

Prod 1

Prod 2

Product

Prod 1

Prod 2



Example Resource Profile (RP)

Work Center M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total Hours

Lamp Assembly 1500 1500 1500 1500 1500 1500 1500 1600 1900 1900 1900 1900 19700

Base Forming 150 150 150 150 150 150 160 190 190 190 190 0 1820

Plastic Molding 750 750 750 750 750 800 950 950 950 950 0 0 8350

Socket Assembly 300 300 300 300 300 300 320 380 380 380 380 0 3640

Total Capacity Req. 2700 2700 2700 2700 2700 2750 2930 3120 3420 3420 2470 1900

2 1 0Lamp Assembly 0 0 0.1

Base Forming 0 0.01 0

Plastic Molding 0.05 0 0

Socket Assembly 0 0.02 0

Month before due date



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 meetthe 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 MRPsystem and used to perform a deterministicsimulation 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 capacityavailable at that workstation.



An Example

#3

(1)

Level Part Qty/parent description

0 100 1 Finished Good

1 110 2 SubAssembly

2 121 6 Comp A

2 122 10 Comp B

Work Center Setup time/lot un Time/Piece

Part 100 1 30 min 2.5 min

Part 110 2 10 min 0.75 min

1 15 min 0.5 min

Part 121 3 15 min 0.3 min

1 25 min 0.25 min2 15 min 0.25 min

Part 122 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 Available Utilization Efficiency1 2500 mins 100% 100%

2 2500 mins 100% 100%

3 2500 mins 100% 100%

4 2500 mins 100% 100%

Bill of Material

Routing Files

Item Master Record As of Saturday, July 01

Work Center Master Files

1 2 3 4

Quantity 250 200 250 150

5 6 7

Quantity 200 300 150

Week

Week

MPS Files



An Example #3 (2)

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

Week

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1 2 3 4 5 6 7

WC1 WC2 WC3

RCCP



An Example #3 (3)Item 100

Lot Size L4L Lead Time 1 week

0 1 2 3 4 5 6 7Gross Requirement 250 200 250 150 200 300 150

Scheduled Receipt 250

Projected on Hand 0 0 0 0 0 0 0 0

Planned Order Received 200 250 150 200 300 150

Planned Order Release 200 250 150 200 300 150 250

Item 110

Lot Size 400 Lead Time 2 weeks

0 1 2 3 4 5 6 7

Gross Requirement 400 500 300 400 600 300 500



Planned Order Received 400 400 500 400 400Planned Order Release 400 400 500 400 400 400 400

Period

Period

MRP



Item 121


0 1 2 3 4 5 6 7




Planned Order Received 2400 2400 0


Item 121


0 1 2 3 4 5 6 7




Planned Order Received 6000


Period

Period

An Example #3 (4)MRP (Cont’d)



An Example #3 (5)

Part 1 2 3 4 5 6 7

100 200 250 150 200 300 150 250

110 400 400 500 400 400 400 400

121 2400 0 2400 0 2400 2400 0

122 6000 0 0 6000 0 0 0

Week

Planned Order Release



An Example #3 (6)

Part 1 2 3 4 5 6 7

WC 1 100 30 30 30 30 30 30 30110 0 15 15 15 15 15 15

121 0 25 0 25 0 25 25

122 0 0 75 0 0 75 0

30 70 120 70 45 145 70

WC 2 100 0 0 0 0 0 0 0

110 10 10 10 10 10 10 10

121 0 0 15 0 15 0 15

122 25 0 0 25 0 0 0

35 10 25 35 25 10 25 WC 3 100 0 0 0 0 0 0 0

110 0 0 0 0 0 0 0

121 15 0 15 0 15 15 0

122 0 30 0 30 30 0 30

15 30 15 30 45 15 30

Week

CRP Computation1. Setup Time Matrices



An Example #3 (7)

Part 1 2 3 4 5 6 7

WC 1 100 500 625 375 500 750 375 625110 0 200 200 250 200 200 200

121 0 600 0 600 0 600 600

122 0 0 3000 0 0 3000 0

500 1425 3575 1350 950 4175 1425

WC 2 100 0 0 0 0 0 0 0

110 300 300 375 300 300 300 300

121 0 0 600 0 600 0 600

122 4500 0 0 4500 0 0 0

4800 300 975 4800 900 300 900 WC 3 100 0 0 0 0 0 0 0

110 0 0 0 0 0 0 0

121 720 0 720 0 720 720 0

122 0 900 0 4500 900 0 4500

720 900 720 4500 1620 720 4500

Week

CRP Computation2. Run Time Matrices



An Example #3 (8)

1 2 3 4 5 6 7

WC 1 530 1,495 3,695 1,420 995 4,320 1,495

WC 2 4,835 310 1,000 4,835 925 310 935

WC 3 735 930 735 4,530 1,665 735 4,530

Week

Part WC Week Setup Time Run Time Total Run Time Total Time

100 1 1 30 250 x 25 625 655

110 2 1 10 400 x 0.75 300 310110 1 2 15 400 x 0.5 200 215

121 1 1 25 2400 x 0.25 600 625

121 2 2 15 2400 x 0.25 500 515

122 1 1 75 6000 x 0.5 3000 3075

122 3 2 30 6000 x 0.75 4500 4530

Capacity Requirement of Planned Order Release

Capacity Required by Released Order



An Example #3 (9)

Week 1 Week 2

WC 1 4355 215

WC 2 310 515

WC 3 0 4530

1 2 3 4 5 6 7 WC 1 4,885 1,710 3,695 1,420 995 4,320 1,495

WC 2 5,145 825 1,000 4,835 925 310 925

WC 3 735 5,460 735 4,530 1,665 735 4,530

Week

Released Order Capacity Requirement (Summary)

Capacity Requirement Planning



Documents

PPC 5 - Capacity Planning (1)