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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
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Capacity Planning in the MPC System
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Capacity Bill Example
Sarah Reed. master scheduler at Walnut Hill, has developed a master
production schedule for the XYZ boom box:

Period 1 2 3 4
MPS 450 300 625 890

Dept. Capacity Hours per Unit of End Product
Circuit Board 130 .2
Assembly 160 .3

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.
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Problem 4. Sarah Reed
Period: 1 2 3 4
MPS: 450 300 625 890

Capacity Requirements
Capacity Capacity
Bill Dept 1 2 3 4 Available
(.2 hr/unit) Circuit Board 90 60 125 178 130 hr/per.
(.3 hr/unit) Assembly 135 90 187.5 267 160 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.)

Period
1 2 3 4 5
Product Z MPS 10 20 15 10 15
Product Z resource profile
Part Work center Setup hours Run hours/unit Planned Lead time
Z 201 8.0 1.5 0 periods
M 201 5.0 1.0 1 period
N 202 3.0 2.0 1 period
O 202 2.0 1.0 2 periods
P 203 1.0 0.5 3 periods
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Resource Profile Solution
10 20 15 10 15
Dept Item -6 -5 -4 -3 -1 1 2 3 4 5
201 Z 23 38 30.5 23 30.5
M 15 25 20 15 20
202 N 23 43 33 23 33
O 22 17 12 17
203 P 6 11 6 8.5
201 15 48 58 45.5 43 30.5
202 45 60 45 40 33
203 6 11 6 8.5
MPS
Period
-2
12
8.5
12
8.5
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.

Setup
Operation Work Center Time Run time
Mount assembly Final Assembly 2 hours 1.0 hours
Fabricate H frame Frame Shop 3 hours 0.5 hours
Paint surfaces Paint Shop 4 hours 0.4 hours
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Capacity Requirements Planning (CRP) Example (continued)
1 2 3 4 5 6
15 20 20 20 20 0
15
Projected available balance 10 10 20 0 10 20 20
30 0 30 30 0 0
1 2 3 4 5 6
30 40 40 40 40 0
50
Projected available balance 25 45 5 15 25 35 35
0 50 50 50 0 0
1 2 3 4 5 6
20 20 20 20 20 20
Projected available balance 25 5 0 0 0 0 0
15 20 20 20 20 Planned order release
Q = L4L, LT = 1, SS = 0
Item: H mount
Period
Gross requirements
Scheduled Receipts
Gross requirements
Scheduled Receipts
Planned order release
Q = 50, LT = 1, SS = 5
Planned order release
Q = 30, LT = 1, SS = 0
Item: Painted Surface
Period
Item: H frame
Period
Gross requirements
Scheduled Receipts
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Capacity Requirements Planning (CRP) Example (continued)
H Mount Assy S/U Time* Run Time/unit*
PAB
15 20 20 20 20 2 1
H Frame
15
PAB
30 0 30 30 0 0 3 0.5
Painted Surface
50
PAB
0 50 50 50 0 0 4 0.4
GR
SR
POR
GR
SR
POR
GR
SR
POR
* In hours
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Capacity Requirements Planning (CRP)
Example (continued)
Capacity Requirements
Period
Dept 1 2 3 4 5 6
H Mount Assy 17 22 22 22 22 0
H Frame 28.5 0 18 18 0 0
Painted Surface 24 24 24 24 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
Capacity Bills
Pros Cons
Easy to use Doesnt consider lead times, inventory
Minimal computational information, or gross-to-netting
requirements
Consider product mix Less accurate
Resource Profiles
Easy to use Doesnt consider inventory information
Minimal computational or gross-to- netting
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
Considers product mix