Capacity and Priority Planning

Capacity and Priority Planning

Relating the Three Levels of Priority Planning To Capacity Planning

The resource planning level is the first to be addressed. The level relates to a long-range capacity resource need and is directly associated with production planning. In detail, the resource planning level entails translating product priorities in the production plan into total capacity measures such as labour hours. Regarding time horizon, resource planning translates monthly, quarterly, and annual plans. The second priority level is rough-cut capacity planning, which advances capacity planning to a detailed level. In terms of detail, this level of priority planning ensures that MPS is feasible by advising vendors in capacity management, ensuring effective utilization of work centres, and offering warnings on any bottleneck. Notably, this priority planning level has no time horizon. Finally, the capacity requirement planning level is considered, which refers to capacity planning that pays attention to parts and computing work centre loads and individual work centres. Essentially, this planning level is a short-range type in terms of time horizon.

Inputs To The CRP Process

The capacity requirements planning (CRP) process occurs at the material requirement planning level. According to Chapman et al. (2017), it refers to a process through which machine resources and the labour required to attain the projected production are determined in detail. Various inputs inform the process. The capacity requirements planning (CRP) process inputs include open shop orders, work centre capacities, lead times, time standards, routings, and planned order releases. Essentially, information relating to these inputs can be obtained from the materials requirements plan and open orders. The process is detailed from the inputs information obtained from the materials requirements plan and open orders making it accurate through computations of the great detail involved.

Theoretical Capacity, Rated Capacity, Utilization, And Efficiency

Theoretical capacity is a type of available capacity that refers to the level of production that will be achieved if the machines and equipment work at their maximum efficiency levels. Rated capacity, also known as calculated, on the other hand, refers to the optimum working load that is allowed by the producer for given working conditions. Utilization refers to the usage of a work centre’s available capacity. Finally, efficiency refers to comparing a work centre’s output to the standard output. All these four aspects are related because they are used in measuring capacity and capacity management. They are used in various aspects of capacity management, such as determining the available capacity and the available capacity usage in various work centres.

The Process Of Backward Scheduling

The process of backward scheduling entails the establishment of the start date for each operation by working backwards. It normally starts with the due date and goes back to the start date using lead times. Notably, essential details about every order should be known for the process to work effectively. They include the work centre capacity available, queue, wait, and move times, setup and run times for each operation, sequence of operations and work centres required, and the quantity and due date (McNair & Vangermeersch, 2020). The process works by calculating the required capacity for each work centre and work order. The following step entails commencing with the due date and scheduling back to acquire all operations’ completion and commencement dates.

Two Ways of Balancing Capacity Available And Load

Two ways can be used to balance the available capacity and load. The two are changing the capacity available and altering the load. Changing the capacity available and load occurs when orders are processed in various stations, making it necessary to change the load and schedule in other workstations. On the other hand, altering the loan refers to shifting orders back and forth to ensure a level load is attained. Altering the load is preferred more between the two ways of balancing capacity available and load. Essentially, this method is preferred because a change in one component does not result in changes in other components, which is the case with the way of changing the capacity available. For instance, when rescheduling a component by changing the capacity available to a later date, the priority for other components is also affected.

References

Chapman, S. N., Arnold, J. T., Gatewood, A. K., & Clive, L. M. (2017). Introduction to Materials Management. Pearson Education Limited.

McNair, C. J., & Vangermeersch, R. (2020). Total Capacity Management: Optimizing at the Operational, Tactical, and Strategic Levels. CRC Press.

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Capacity and Priority Planning

Each response should be 100-250 words, with pages from the book attached for help.

1)Relate the three levels of priority planning to capacity planning. Describe each level in terms of the detail and the time horizons used.

2)What are the inputs to the CRP process? Where is this information obtained?

3)What are theoretical capacity, rated capacity, utilization, and efficiency? How are they related?

4)Describe the process of backward scheduling.

5)What are the two ways of balancing capacity available and load? Which is preferred? Why?

Chapman, S. N., Arnold, J. T., Gatewood, A. K., & Clive,
L. M. (2017). Introduction to materials management. Pearson Education Limited.