MRP2

Manufacturing Resource Planning
Santhosh & Gautham Krishnan
Capacity Planning in the MPC System

Long Range Resource (requirements) planning (RRP) Rough-cut Capacity Planning (RCCP) Medium Range Capacity Requirement Planning (CRP) Short Range Finite Loading Input/output analysis Shopfloor systems Supplie r system s Sales and operations Planning (SOP) Master production Scheduling (MPS) Detailed material Planning (MRP) Demand manageme nt
Links to Other MPC System Module (Summary)
2. Capacity Planning and Control Techniques

Capacity planning using overall factors (CPOF) Capacity bills more Resource profiles sophisticated Capacity requirements planning (CRP)
The first three procedures are for rough-cut capacity planning (RCCP) and can be used with or without MRP. Capacity requirements planning (CRP) has to be used in conjunction with time-phased MRP records.
2.1 Capacity planning using overall factors (CPOF)

1. 2. 3.
MPS as the input Based on standards or historical data for end products Overall labor and/or machine-hour capacity requirements are estimated.
Pros: ease of calculation and minimal data requirements Cons: valid only when the product mixes or historical divisions of workload between work centers remain constant.
CPOF Example
Total required capacity = (33*0.95)+(17*1. 85) = 62.80
Work center capacity = Total required capacity *Historical percentage (e.g., 62.8 * 60.3%=37.87)
2.2 Capacity Bills Rough-cut capacity planning method that provides more direct link to individual end products Bill of capacity indicates total standard time to produce one unit of an end product (by work center) Master production schedule data is then used to estimate capacity requirements for each work center Requires more data than CPOF procedure
2.2 Capacity Bills In addition to whats provided by CPOF, capacity bills takes into account any shifts in product mix. As a result, more data (e.g., BOM, routing, labor or machine hour for each operation) must be available.
Capacity bills is more desirable than CPOF especially for firms experience significant period-toperiod product mix variation.
Capacity Bill Example
Std. Setup hours are spread over the standard lot size
Total hours include both std. run time and std. setup time
Capacity Bill Example
MPS quantities are multiplied by bill of capacity to determine work center capacity requirements by period (33*0.05 + 17*1.30 = 23.75)
2.3 Resource Profiles

The standard hours of load placed on a resource by time period. That is, production lead time data has to be taken into account to provide time-phased projection of the capacity requirements for individual production facilities. Synonym : bill of resources, product load profile
Bill of Resources: A listing of the required capacity and key resources needed to manufacture one unit of a selected (typical) item or family. The resource requirements are further defined by a lead-time offset so as to predict the impact of the item/family scheduled on the load of the key resource by time period.
Resource Profile Example

Production of one unit of product A in period 5 requires production activity in periods 3, 4, and 5 and in work centers 100, 200, and 300
Resource Profile Example (Fig. 7.8)

Requirement s (by work center and period) for one unit of end product are multiplied by the MPS plan to determine capacity requirements These requirements are then summed over all periods to finalize the process
2.4 Capacity Requirements Planning (CRP) Capacity requirements planning differs from the rough-cut planning procedures Utilizes time-phased material plan from MRP Takes into account materials in inventory Accounts for the current status of workin-process Accounts for service parts and other demands not accounted for in the MPS Requires more inputs and more computational resources
2.4 Capacity Requirements Planning

l
Capacity Requirements Planning (CRP): Input includes BOM + routing + time standards + lead time (note: these are required by Resource Profiles) plus MRP (i.e., planned orders, WIP, scheduled receipts). Example, Fig. 7.10.
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Capacity Requirements Planning Example
Detailed MRP Data
Scheduled/plann ed quantity multiplied by processing time for work center
This process is repeated for each work center to complete the plan
3. Scheduling Capacity and Materials Simultaneously
Capacity requirements planning doesnt consider capacity when planning materials

Assumes that capacity can be adjusted, given sufficient warning
Planning capacity and materials at the same time allows construction of a plan that works within current capacity constraints
Finite Capacity Scheduling Simulates job order start and finish times in each work center Establishes a detailed schedule for each job in each work center When a work centers capacity is not sufficient for all planned jobs, prioritization rules determine which jobs will be shifted to later times
3. Scheduling Capacity and Materials Simultaneously Finite loading/scheduling can be seen as an extension of the approach used by CRP systems, except CRP calculate only capacity needs and it does not make adjustments for infeasibility. Finite scheduling determines which jobs will first be processed/completed based on various priority rules, though it does not solve the under-capacity problem. The result of finite loading is a set of start and finish dates for each operation at each work center based on work center capacities and the other scheduled jobs.
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Finite Capacity Scheduling

Product A does not consume all available capacity Combination of all products consumes all available capacity in several periods Planned orders are shifted to stay within capacity limitation
3. Scheduling Capacity and Materials Simultaneously Finite loading/scheduling approaches:

Vertical loading: deciding on which job to schedule next in a work center with a focus on planning and utilizing the capacity of a work center independently. Horizontal loading: the focus is on the entire shop orders with the highest priority shop order or job is scheduled in ALL of its centers. The horizontal loading may be in conflict with vertical loading, as horizontal loading may create more holes in the schedule (i.e., capacity utilization at work centers may not be as high). Nevertheless, horizontal loading will complete whole jobs faster than vertical loading. Back scheduling: scheduling job backward from their due dates. Front scheduling: scheduling job into the future, starts with the current date, so each job is completed as soon as possible. e.g., Advanced Production Scheduling (APS) .
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Manufacturing Resource Planning

Santhosh & Gautham Krishnan

Capacity Planning in the MPC System

Links to Other MPC System Module (Summary)

2. Capacity Planning and Control Techniques

2.1 Capacity planning using overall factors (CPOF)

Total required capacity = (33*0.95)+(17*1. 85) = 62.80

Capacity Bill Example

Capacity Bill Example

2.3 Resource Profiles

Resource Profile Example

Resource Profile Example (Fig. 7.8)

2.4 Capacity Requirements Planning

Capacity Requirements Planning Example

Detailed MRP Data

Scheduled/plann ed quantity multiplied by processing time for work center

3. Scheduling Capacity and Materials Simultaneously

Capacity requirements planning doesnt consider capacity when planning materials

Finite Capacity Scheduling

3. Scheduling Capacity and Materials Simultaneously Finite loading/scheduling approaches:

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Total required capacity = (330.95)+(171. 85) = 62.80