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Capacity Planning

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Capacity definition2

Capacity is the amount of work that can be done in

a specified time period.

capacity is defined as the capability of a worker,

machine, work center, plant, or organization to

produce output per time period.

Capacity is a rate of doing work, not the quantity of

work done.

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Basic Capacity Definitions

Capacity Requiredcapacity needed toproduce a desired output in a given time period

Capacity Planningdetermining the resourcesand methods needed to meet the priority plan

Capacity Controlmonitoring production,comparing with the capacity plan, and takingappropriate corrective actions

Capacity Managementdetermining capacity

needed as well as providing, monitoring, andcontrolling the capacity

Capacity versus Load

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Capacity Planning Levels

Resource PlanningLong range resource

requirements linked to the production plan

Rough-cut Capacity PlanningUsed to check

feasibility of MPS

Capacity Requirements PlanningDetailed

work center capacity plans linked to MRP

Capacity Planning Levels

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Capacity Requirements Planning (CRP)

Inputs

Open Order Filefound as scheduled receipts on

MRP

Planned order releases from MRPPotential

future orders

Work Center file

Information on capacity in the work center

Move, wait, and queue time information

Capacity Requirements PlanningInputs - Continued

Routing filethe path that the work will follow

Operations to be performed

Operation sequence

Work centers used

Potential alternative work centers

Tooling needed Standard setup times and run times

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Sample Routing File

Figure 5.3 Routing file

Capacity Available

Impacted by:

Product specification

Product mix

Methods used to make product

Pace of work

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Planning calender11

Finding Capacity Available

Rated Capacity = (available time) x (utilization) x

(efficiency)

Available timenumber of hours a work center can be

used

Utilization = [(hours worked)/(available hours)] x

100%

Efficiency = [(actual production rate)/(standard

production rate)] x 100%

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Soal (rated capacity)13

A work center consists of 4 machines and is

operated 8 hours per day for 5 days a week.

Historically, the utilization has been 85% and the

efficiency 110%. What is the rated capacity?

Demonstrated capacity14

Over the previous 4 weeks, a work center produced

120, 130, 150, and 140 standard hours of work.

What is the demonstrated capacity of the work

center?

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Capacity required (load)15

Capacity required (load)16

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Capacity LoadSum of all time required for

orders on a work center - Example

Example Load Profile

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Scheduling Orders

Back scheduling (the typical approach)Start

with the due date, use lead time to find the

proper start date for each operation

Forward schedulingLaunch the order into

the first (gateway) work center, then use the lead

times to find when the order will be completed at

each work center

Back Scheduling Example

An order for 150 of a component is due on day

135

An order starts at the beginning of a day and

finished at the end of a day

Operation times for the 150 ordered: Operation 104 days in work center 12

Operation 205 days in work center 14

Operation 301 day in work center 17

Operation 402 days in work center 03

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Data from the work center file

The resulting work schedule

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The work schedule shown graphically

Making the plan

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Managing the PlanAdjusting Capacity

Use Overtime or Undertime

Adjust the number of workers

Shift workers from other work centers

Use alternative work centers to shift load

Subcontract work

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