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Lecture Manufacturing planning and control for supply chain management (6th Edition) – Chapter 7

The lecture has covered the common structure underlying Advanced Planning System. Also how Planning Tasks are Supported by APS has been explained. Industry Specific Solutions were also explained. Discussion on the Suitability of Software Modules and S&OP software modules were explained in detail. The help APS provides Collaboration Interface and Sales and Procurement Collaboration were also the part of the lecture. | Manufacturing Planning and Control MPC 6th Edition Chapter 7 Capacity Planning and Management Capacity planning and management addresses two managerial problems: Matching capacity to plans–by either providing sufficient capacity to execute the plan or adjusting the plan to meet available capacity. Consider the marketplace implications of faster throughput times–at the expense of reduced capacity utilization. Agenda Role of Capacity Planning in Master Planning & Control The primary objective of capacity planning techniques is to estimate capacity requirements early enough to be able to meet those requirements Flawless execution of the capacity plan allows the firm to avoid unpleasant surprises Insufficient capacity leads to deteriorating delivery performance Excess capacity may be a needless expense Resource planning Sales and operations planning Demand management Master production scheduling Detailed material planning Material and capacity plans Shop-floor systems Supplier systems . | Manufacturing Planning and Control MPC 6th Edition Chapter 7 Capacity Planning and Management Capacity planning and management addresses two managerial problems: Matching capacity to plans–by either providing sufficient capacity to execute the plan or adjusting the plan to meet available capacity. Consider the marketplace implications of faster throughput times–at the expense of reduced capacity utilization. Agenda Role of Capacity Planning in Master Planning & Control The primary objective of capacity planning techniques is to estimate capacity requirements early enough to be able to meet those requirements Flawless execution of the capacity plan allows the firm to avoid unpleasant surprises Insufficient capacity leads to deteriorating delivery performance Excess capacity may be a needless expense Resource planning Sales and operations planning Demand management Master production scheduling Detailed material planning Material and capacity plans Shop-floor systems Supplier systems Capacity Planning in the MPC System Resource planning Rough-cut capacity planning Capacity requirement planning Finite Loading Input/output analysis Long Range Medium Range Short Range Links to other MPC System Modules Capacity Planning Using Overall Factors (CPOF) Simplest rough-cut capacity planning approach Data inputs from master production schedule Based on planning factors from historical data (work center utilization, production standards) Overall labor- or machine-hour capacity requirements are estimated from MPS data Estimate is allocated to work centers based on historical workloads Inherent inaccuracies may limit usefulness CPOF Example Total required capacity = (33*0.95)+(17*1.85) = 62.80 Work center capacity = Historical percentage*Total required capacity 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 .