Rough Cut Capacity Planning

Three methods of RCCP

Master production schedule (MPS)
• Is a plan for individual commodities to be produced in
each time period production, staffing, inventory, etc.
• The plan indicates when and how much of each product
will be demanded
• Also plan quantifies significant processes, parts, and
other resources in order to optimize production, to
identify bottlenecks, and to anticipate needs and
completed goods.
• its accuracy and viability dramatically affect profitability.
• schedules do not include every aspect of production, but
only key elements that have proven their control
effectivity,
– forecast demand, production costs, inventory costs,
lead time, working hours, capacity, inventory levels,
available storage, and parts supply.
 Bill of Material (BOM)
• The MPS translates the customer demand (sales
orders, PIR’s), into a build plan using planned
orders in a true component scheduling
environment. Using MPS helps avoid shortages,
costly expediting, last minute scheduling, and
inefficient allocation of resources.
• Working with MPS allows businesses to
consolidate planned parts, produce master
schedules and forecasts for any level of the Bill of
Material (BOM) for any type of part.
 Material requirements planning
(MRP)
• is a production planning, scheduling, and
inventory control system used to manage
manufacturing processes. Most MRP systems are
software based
– Ensure materials are available for production and
products are available for delivery to customers.
– Maintain the lowest possible material and product
levels in store
– Plan manufacturing activities, delivery schedules and
purchasing activities.
• MRP runs backward from a production plan
for finished goods to developed requirements
for components and raw materials – what ,
how much and when
• MRP breaks down inventory requirements
into planning periods so that production can
be completed in a timely manner which
inventory levels are related carrying costs are
kept to a minimum
• helps capacity planning and allocate
production time
 Manufacturing resource planning
(MRP II)
• It initiates the idea of extending the value
stream all the way through the manufacturing
and shipping processes.
• That extension brings production planning,
machine capacity scheduling, demand
forecasting and analysis and quality tracking
tools into the mix.
 ERP
• It is a software system designed to
integrate the main functional areas
of an organization's business
processes and data into a unified
system.