MRP II
Finance Marketing Production plan MRP
Market Demand
Manufacturing
Master production schedule
Rough-cut capacity planning
Capacity planning
Adjust production plan
Yes
Problems?
No
Requirements schedules
No Problems?
Yes
Adjust master schedule
WHY CAPACITY PLANNING
Raw materials or customer Material and/or labor
Station 1 Material and/or labor
Station 2 Material and/or labor
Station 3 Material and/or labor
Station 4
Finished item
In the above capacity if the production rate of one of the machines is less (say 30 units/ Than the remaining 3 (say 60/hr), then the capacity will be defined as 30units/hr.
WHY CAPACITY PLANNING
Capacity planning and control involves establishing, measuring, monitoring and adjusting limits or levels of capacity to facilitate smoother execution of all manufacturing schedules, including the MPS, MRP and Shop floor control (SFC).
Capacity planning is the process of determining the necessary people, machines and physical resources to meet the production objectives of the firm.
Capacity essentially limits the rate of output possible.
VARIOUS CAPACITIES
Design capacity Maximum obtainable output
Effective capacity, expected variations Maximum capacity subject to planned and expected variations such as maintenance, coffee breaks, scheduling conflicts.
Actual output, unexpected variations and demand Rate of output actually achieved--cannot exceed effective capacity. It is subject to random disruptions: machine break down, absenteeism, material shortages and most importantly the demand.
EFFICIENCY AND UTILIZATION
Actual output Efficiency =
Effective capacity
Actual output Machine Utilization = Design capacity
CAPACITY PLANNING
A major function of capacity planning is to match the capacity of the machine or facility with the demand for the products of the firm. Capacity planning can be classified into three planning horizons: Long range Medium range Short range
1.
2.
3.
PLANNING OVER A TIME HORIZON
Long-range planning Intermediaterange planning Add facilities Add long lead time equipment Subcontract Add personnel Add equipment Build or use inventory Add shifts Schedule jobs Schedule personnel Allocate machinery
Short-range planning
ROUGH CUT CAPACITY EXAMPLE: TABLE SHOW ITEMS SCHEDULED FOR WORK CENTER 101.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
A B C D Table 14-11 Workload for Work Center 101 Setup Time (hours) 3.0 5.0 2.5 3.5 8.0 4.0 2.0 3.0 1.5 0.5 3.0 6.0
E Run Time per Unit in Standard Hours 0.20 0.18 0.30 0.27 0.08 0.22 0.35 0.30 0.12 0.15 0.35 0.27
F Total Item Time (hours) 53.0 50.0 47.5 111.5 88.0 114.0 37.0 78.0 13.5 8.0 73.0 141.0
Period 4
Item Number DN100 DP100 DS119 DT136 EQ555 ER616 ES871 FA314 FF369 FR766 FS119 FY486
Quantity 250 250 150 400 1000 500 100 250 100 50 200 500
Weekly Workload (hours)
262.0
239.0
313.5
Available = 4 machines x 2 shifts x 10 hours x 5 days x 0.85 utilization x 0.95 efficiency per shift per wk. Capacity Available = 323.0 standard hours
ROUGH-CUT CAPACITY PLANNING
Determine required resources & proposed workload:
Planning Factors Direct labor Machine time MPS Model W Model M Model W 0.40 0.12 QRT 1 6,000 10,000 Model M 0.30 0.08 QRT 2 5,500 12,000 QRT 3 9,500 7,500 QRT 4 6,500 10,100 Total 27,500 39,600
Hours/unit
CALCULATE REQUIRED LABOR HOURS
Model Labor Factor MPS Quantity Model W 0.30 Hours Required MPS Quantity Model M 0.40 Hours Required 4,000 4,800 3,000 4,040 15,840 24,090 1,800 10,000 1,650 12,000 2,850 7,500 1,950 10,100 8,250 39,600 QRT 1 6,000 QRT 2 5,500 QRT 3 9,500 QRT 4 6,500 Total 27,500
Labor Capacity Required
Compare with hours available
CALCULATE REQUIRED MACHINE HOURS
Model Machine Factor MPS Quantity Model W 0.08 Hours Required MPS Quantity Model M 0.12 Hours Required 1,200 1,440 900 1,212 4,752 6,952 480 10,000 440 12,000 760 7,500 520 10,100 2,200 39,600 QRT 1 6,000 QRT 2 5,500 QRT 3 9,500 QRT 4 6,500 Total 27,500
Machine Capacity Required
Compare with hours available
