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Title:

Capacity Planning

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Capacity is the amount of work that can be done in specified time period. Capacity is a rate of work done, not quantity of work done ... Determining Capacity Available ... – PowerPoint PPT presentation

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Title: Capacity Planning


1
Capacity Planning
2
Capacity
  • Capacity is the amount of work that can be done
    in specified time period
  • Capacity is a rate of work done, not quantity of
    work done
  • Two types of capacity (1) capacity required or
    load and (2) capacity available

3
Diagram of Capacity
4
What Makes Up Capacity
  • Facility
  • Machines
  • Labor Force
  • Hours of Working Time (Shifts, Overtime)
  • Vendors (Materials)

5
Capacity Planning
  • Determine capacity available at each work center
    in each time period
  • Determine the load at each work center in each
    time period
  • Translate MRP or MPS into hours of work required
    at each work center in each time period
  • Sum up capacities for different items on each
    work center
  • Resolve differences between available capacity
    and required capacity

6
Capacity Inputs
  • Open Order File
  • MRP (or MPS)
  • Routing File
  • Work Center File

7
Determining Capacity Available
  • A work center consists of 4 machines and is
    operated 8 hours per day for 5 days a week.
    Utilization (1-idle time) is 85 and labor
    efficiency is 110.
  • Available time (4)(8)(5) 160 hours
  • Rated capacity (160)(.85)(1.1)
  • 149.6 standard hours

8
You Do One
  • Work Days 5
  • Number of 8-Hour Shifts 2
  • Number of Machines 2
  • Labor Efficiency .7
  • Machines Efficiency .7
  • ?? Standard Hours ??

9
Determining Capacity Required or Load
  • A work center processes 150 units of item Z. Set
    up is 1.5 hours and runtime is 0.2 hours per
    item. Efficiency is 120 and utilization is 80.
  • Standard time is 1.5 (150)(0.2)
  • 31.5 standard hours
  • Actual time is 31.5 / (1.2)(0.8)
  • 32.8 hours

10
You Do One
  • Units of Item X 300
  • Set Up 2 Hours
  • Run Time .3 Hours per Item
  • ?? Standard Hours ??

11
Comparing Load with Capacity Available
  • Be consistent with times, either all standard or
    actual
  • Example of work center load report

12
Correcting Capacity Problems
  • Short Term Control Capacity
  • Overtime
  • Outsourcing
  • Alternate Routings
  • Flexible Work Force
  • Reschedule (Expedite)
  • Overlap
  • Lot Splitting

13
Correcting Capacity Problems
  • Medium Term Plan Capacity
  • Make/Buy Decisions
  • Plan Alternate Routings
  • Add Tooling
  • Retrain Work Force
  • Long Term Model Capacity
  • Facility Changes
  • Capital Equipment Changes

14
(No Transcript)
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