Session 14 Capacity Management http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 15 - PowerPoint PPT Presentation

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Session 14 Capacity Management http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 15

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Capacity Planning Issues To determine the capacity required to achieve the MPS relative to the capacity available To make necessary capacity adjustments before ... – PowerPoint PPT presentation

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Title: Session 14 Capacity Management http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 15


1
Session 14 Capacity Management http//www.pom.edu/
mpc/lectures_in_manufacturing_planning.htm lecture
session 15
  • Capacity Planning Issues
  • Finite Capacity Planning Example
  • Twin Disc Capacity Bills Example
  • Applicon Capacity Bills Example
  • Concluding Principles

2
Capacity Planning Issues
  • To determine the capacity required to achieve the
    MPS relative to the capacity available
  • To make necessary capacity adjustments before
    creating crises
  • To determine an the appropriate level of safety
    capacity
  • To determine the required level of detail and the
    critical machines and work centers
  • To use an appropriate technique given the
    tradeoff between accuracy and computational effort

3
Finite Capacity Planning Example
  • The Single Square Company summarizes the
    capacity requirements for three of its key
    resources from each of its three product lines. A
    typical report (before any action is taken) is
    shown on the next slide.

4
Finite Capacity Planning Example (Continued)
  • Key resource type Percent capacity by line
  • Machine Number Shifts A B C Total Remarks
  • Drill 1 1 3 22 13 24 59
  • Drill 2 2 3 36 48 36 120
  • Drill 3 1 1 52 24 21 97
  • Filer 1 2 3 2 0 14 16
  • Filer 2 3 3 12 20 8 40
  • Dryer 1 2 2 28 36 51 116
  • Dryer 2 2 2 72 51 43 116
  • Dryer 3 2 1 84 27 24 135
  • What actions would you recommend? (Assume each
    machine type is equivalent in terms of capacity.)
  • What other observations would you have for
    management, based on the preceding report?

5
Finite Capacity Planning Example Single Square
Company
  • Key Resource Type Capacity by Line
  • Machine Number Shifts Total A B C Tot. Equiv. Rem
    arks
  • Drill 1 1 3 3 22 13 24 59 1.77 Req'd.
  • Drill 2 2 3 6 36 48 36 120 7.20 Move
  • Drill 3 1 1 1 52 24 21 97
    .97 from
  • 10 9.94 2 to 1
  • Filer 1 2 3 6 2 0 14 16 .96
    Excess
  • Filer 2 3 3 9 12 20 8 40 3.60
    _ capacity
  • 15 4.56
  • Dryer 1 2 2 4 28 36 52 116
    4.64 Increase
  • Dryer 2 2 2 4 72 51 43 166
    6.64 to three
  • Dryer 3 2 1 2 84 27 24 135
    2.70 shifts
  • 10 13.98

6
Finite Capacity Planning Example Single Square
Company (continued)
  1. There is enough capacity now in the Drill and
    Filer areas. To correct the imbalance in the
    Drills, it is necessary to move some of the load
    from Drill 2 to Drill 1. In the case of the
    Dryers, it is necessary to increase capacity.
    Adding shifts will provide enough for the current
    load.
  2. Why is there so much capacity for the Filers?
    They can be brought back to one shift and are
    okay. Secondly, if there is any upward trend in
    the loads for the Dryers, it behooves management
    to begin to worry about where they can get
    additional dryer capacity.

7
Twin Disc Capacity Bill Report
8
Twin Disc Capacity Bill Example
  • Suppose, in the Twin Disc example, it was
    decided to move all production for product lines
    F and I from the Maag grinder (CEA) to the
    Reishauer grinder (CAB). What's the resulting
    total percentage of capacity for each machine and
    the amount for product lines F and I? (Note the
    Reishauer is three times faster than the Maag
    grinder so the Maag takes three times as many
    hours to complete a job.) Assume setup time is
    negligible.

9
Twin Disc Capacity Bill Example
  • For Line I
  • Grinding Hours
  • On Maag 3044 x .08 243.52
  • On Reishauer 243.52/3 81.17
  • of Reishauer 81.17/950 9
  • New of Line I on Reishauer 9 1 10
  • New of Line I on Maag 0
  • For Line F
  • Grinding Hours
  • On Maag 3044 x .05 152.20
  • On Reishauer 152.20/3 50.73
  • of Reishauer 50.73/950 5
  • New of Line F on Reishauer 5 2 7
  • New of Line F on Maag 0
  • New Totals
  • New total for Reishauer 69 9 5 83
  • New total for Maag 113- 8 - 5 100

10
Applicon Capacity Status Report
11
Applicon Capacity Bill Example
  • Applicon has the following capacity bills for
    items 207 and 208
  • 207 208
  • Work center Hours/unit Work center Hours/unit
  • ALF-A 0.5 ALF-T 0.3
  • HLT-A 1.0 HLT-T 0.8
  • MIS-A 0.8 MIS-T 0.6
  • MVX-A 0.8 MVX-T 0.5
  • PCB-A 0.5 PCB-P 0.9
  • PCB-P 1.0 PCB-T 1.4

12
Applicon Capacity Bill Example
  1. A customer wants to know if Applicon can deliver
    100 units each of items 207 and 208 during the
    next month (20 working days). Assume there are
    adequate materials, work center MVX-T'S crew has
    been increased to one full person (making
    standard capacity 160), the increase has come
    by reducing MVX-A to 6.5 persons. and no other
    orders have been booked. Use the standard
    capacity data and conditions in the previous
    slides as the basis for your analysis.
  2. Suppose the customer (in part a. above) decided
    to delay the order for several months. How many
    units of item 207 alone could be added to the MPS
    in the next month? How about item 208?

13
Applicon
  • Analysis For Item 207
  • Work Center Units Possible
  • ALF-A (480 - 70)/0.5 820 units
  • HLT-A (800 - 438)/1.0 362 units
  • MIS-A (800 - 270)/0.8 662 units
  • MVX-A (1120 - 80 - 399)/0.8 801 units
  • PCB-A (160 - 52)/0.5 216 units
  • PCB-P (960 - 408)/1.0 552 units
  • BUT this is if only item 207 is made.

14
Applicon
  • If BOTH items are made in equal quantities,
    PCB-P is a shared work center so
  • PCB-P (960 - 408)/(1.0 0.9) 291 of each.
  • For Item 208
  • Work Center Units Possible
  • ALF-T (80 - 5)/0.3 250 units
  • HLT-T (160 - 85)/0.8 94 units
  • MIS-T (80 - 14)/0.6 110 units
  • MVX-T (160 - 79)/0.5 162 units
  • PCB-P (960 - 408)/(1.0 0.9) 291 units
  • PCB-T (1680 - 918)/1.4 544 units

15
Applicon
  1. The analysis says that 100 units of each cannot
    be added to the MPS without something else being
    done. The problem is with item 208 in work center
    HLT-T. To make 100 units of item 208, work center
    HLT-T will have to work overtime-unless capacity
    can be provided from a less highly utilized work
    center or perhaps greater productivity can be
    gained in some other way.
  2. The analysis shows that 216 units of item 207 or
    a total of 94 units of item 208 can be made.

16
Concluding Principles
  • Capacity plans must be developed concurrently
    with material plans if the material plans are to
    be realized.
  • The capacity measure should reflect realizable
    output from the key resources.
  • It's not always capacity that should change when
    capacity availability doesn't equal need.
  • Capacity not only must be planned, but use of
    that capacity must also be monitored and
    controlled.
  • Capacity planning techniques can be applied to
    selected key resources (which need not correspond
    to production work centers).

17
Concluding Principles
  • The particular capacity planning technique(s)
    chosen must match the level of detail and actual
    company circumstances to permit making effective
    management decisions.
  • The more detail in the capacity planning system,
    the more data and data base maintenance are
    required.
  • The better the resource and production planning
    process, the less difficult the capacity planning
    process.
  • The better the shop-floor system, the less
    short-term capacity planning is required.
  • Capacity planning can be simplified in a JIT
    environment.
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