Matching capacity to plans

• providing sufficient capacity to execute the plan or

adjusting the plan to meet available capacity?

Marketplace implications of faster

throughput times
• at the expense of reduced capacity utilization
 Long range

Resource Sales and operations Demand

Planning planning management

Enterprise Resource Planning (ERP) System

Front End
Rough-cut capacity Master production
planning scheduling (MPS)

Medium range

Capacity requirement Detailed material Engine

planning planning

Short range

Finite loading

Back end
Shop-floor Supplier
Input / output analysis
systems systems

Capacity planning in the Manufacturing Planning and Control System

Capacity Planning
Using Overall Capacity Bills
Factors (CPOF)

Capacity
Planning
and Control

Capacity
Resource Profiles Requirements
Planning
 Choice of specific techniques
Rough-cut methods Capacity APS Systems
requirements
planning

• CPOF • Most general • Requires more • Highest levels of

• Capacity bills • Widely data and effort
applicable computational • High levels of
• Resource profiles effort
• Easier to accuracy possible
implement but • Only applicable with good data
less powerful in conjunction and flawless
with MRP execution
• Useful in JIT
situations • Unnecessary
under JIT
Q7-1: A firm makes car seats for S7-1: Given:
an automaker in two varieties: Week 1 2 3 4 5 6 Total hours
leather and fabric. The standard Leather 15 20 18 21 15 13 Leather 1.2
labor hours for these are 1.2 and Fabric 65 60 62 59 65 67 Fabric 1.0
1.0 hours, respectively. The seats Calculate:
are made in two work centers, 1. Calculate the hours spent at each WC for each
sewing and assembly, where the product (total hours should equal to the total hours given).
average percentage of work has Hours required Sewing Assembly Total
been 55 percent for sewing and @ WC (55%) (45%) Hours

45 percent for assembly. Given the Leather 55% 1.2 hr = 0.66 45% 1.2 hr = 0.54 1.2

following schedule for the next six Fabric 55% 1.0 hr = 0.55 45% 1.0 hr = 0.45 1.0
weeks, calculate the labor hours 2. Calculate labor hours needed at each WC.
needed in each of the two work Week 1 2 3 4 5 6
centers: Sewing 45.65 46.2 45.98 46.31 45.65 45.43
Assembly 37.35 37.8 37.62 37.89 37.35 37.17
Week 1 2 3 4 5 6
i.e.
Leather 15 20 18 21 15 13
Sewing @wk 1: (15 x 0.66) + (65 x 0.55) = 45.65 hrs
Fabric 65 60 62 59 65 67
Assembly @wk 6: (13 x 0.54) + (67 x 0.45) = 37.17 hrs
Q7-9: A company with three S7-9: Given: WC A B C Working
product lines has estimated its 100 35 28 12 hours / week
weekly capacity requirements for 200 25 37 56 = 40
three work centers as follows. 300 46 35 33
Work Product Line
Center A B C Calculate:
1. Calculate the total hours WC Total hours
100 35 hours 28 hours 12 hours
for each WC 100 75
200 25 hours 37 hours 56 hours
200 118
300 46 hours 35 hours 33 hours
300 114
a. How many workers (and a. WC Workers Machines Workers @ WC100:
duplicate machines) are 100 2 2 Total hours required / weekly
needed in each work center if 200 3 3 working hours
300 3 3 = 75 ÷ 40 = 1.875 ~ 2
they are to work 40 hours per
week? Machine @ WC100: Workers required / shift = 2 ÷ 1 = 2
b. What is the difference if the b. Total workers required still the
firm decides to work two shifts WC Workers Machines same, however now shift = 2,
(80 hours per week)? 100 2 1 hence the number of machines
200 3 2 could be reduced. i.e. machine @
300 3 2 WC100 = workers/shift = 2/2=1
Production Activity Control (PAC) concerns the
execution of material plans.

A number of MPC activities, including Shop-floor

Scheduling and Control (SFC), Vendor Scheduling and
Follow-up, Order Release, and Purchasing fall partly
or completely within the realm of Production Activity
Control.
 Resource Sales and operations Demand
Manufacturing Planning and Control System
Planning planning management

Enterprise Resource Planning (ERP) System

Front End
Rough-cut capacity Master production
planning scheduling (MPS)

Detailed capacity Detailed material

planning planning
Engine

Material and capacity

Production Activity Control in the

plans

Shop-floor systems Supplier systems Back end

Order release Purchasing

Production
Shop-floor scheduling Vendor scheduling and
and control (SFC) Activity follow-up
Control
 Basic Shop-floor Control
Theory of
Priority Sequencing
Gantt Charts Constraints
Rules
Scheduling

Provides graphic Selecting the order Scheduling to

representation of the of job processing minimize impact of
system bottleneck resources
Q8-3: Jobs A, B, C are waiting to be started on machine center X and then be completed on
machine center Y. The following information pertains to the jobs and work centers.
Hours allowed for Hours allowed for
Job Day when due
machine center X machine center Y
A 36 20 10
B 96 24 17
C 60 28 25
Machine center X and machine center Y have 40 hours of capacity per week (5 working
days per week, eight hours/day). Two days are allowed to move jobs between machine
centers.

a. If these jobs are rescheduled by earliest due date, can they be completed on time?
b. Can they be completed on time using the critical ratio technique?
c. Can the jobs be completed on time (using the earliest due date or critical ratio
techniques) if 20 hours of overtime are run in work center X each week?
d. Can the jobs be completed on time (using the earliest due date or critical ratio
techniques) if only one day is required between operations?
S8-3: Hours allowed for Hours allowed for Working
Job Day when due
Given: machine center X machine center Y hours / week
A 36 20 10 = 40
B 96 24 17 5d/wk
C 60 28 25 8hr/d
Calculate: Days allowed for Days allowed for
a. Using EDD Job machine center X* machine center Y**
A 4.5 2.5 8ℎ𝑜𝑢𝑟𝑠
Calculate the days needed 36ℎ𝑜𝑢𝑟𝑠 ÷ = 4.5 𝑑𝑎𝑦𝑠
B 12.0 3.0 𝑑𝑎𝑦
(hour allowed ÷ ℎ𝑜𝑢𝑟𝑠/𝑑𝑎𝑦) C 7.5 3.5

Move: 2d
MC X MC Y

Machine Center X Machine Center Y For EDD, job will start immediately
Move Due with job A, as it is the earliest due
Job Start Days* Done Start Days** Done (in 10 days). Job will be completed
by 9 days.
A 0 4.5 4.5 2 6.5 2.5 9 10
However, job B and C will be
B 4.5 12.0 16.5 2 18.5 3.0 21.5 17 delayed (i.e. job B done 21.5 days
while it is due on day 17)
C 16.5 7.5 24 2 26 3.5 29.5 25
S8-3: Days allowed for Days allowed for
Job machine center X* machine center Y** Day when due
A 4.5 2.5 10
B 12.0 3.0 17
C 7.5 3.5 25

Calculate:
10−0 10 17−0 17
b. Using Critical Ratio: 𝐶𝑅𝐴 = = = 1.11 ; 𝐶𝑅𝐵 = = = 1.00 ; 𝐶𝑅𝐶 =
4.5+2.0+2.5 9 12+2.0+3.0 17
25−0 25
= = 1.92 Using CR, Job B have to be completed first, then A, and C
7.5+2.0+3.5 13
Move: 2d
MC X MC Y

Machine Center X Machine Center Y

CR Job Move Due
Start Days* Done Start Days** Done

1.00 B 0 12.0 12.0 2.0 14.0 3.0 17.0 17

1.11 A 12.0 4.5 16.5 2.0 18.5 2.5 21.0 10

1.92 C 16.5 7.5 24.0 2.0 26.0 3.5 29.5 25

S8-3: Working hours / week = 40
Given: 5d/wk; 8hr/d
ℎ𝑟𝑠 𝑑𝑎𝑦𝑠 ℎ𝑟𝑠
But for MCX, OT 20hrs / week (20 ÷5 =4 ) so MCX have 12 hours/day
𝑤𝑘 𝑤𝑘 𝑑𝑎𝑦

Calculate: c. With 20hrs/ wk OT at MCX, we have to revise the data for Days allowed for MCX
Days allowed for Days allowed for
Job machine center X* machine center Y** Day when due
A 3.0 2.5 10
B 8.0 3.0 17
C 5.0 3.5 25

Move: 2d
MC X MC Y

Machine Center X Machine Center Y Using EDD with OT hours applied

Move Due for MCX
Job Start Days* Done Start Days** Done

A 0 3.0 3.0 2 5.0 2.5 7.5 10

B 3.0 8.0 11.0 2 13.0 3.0 16.0 17

C 11.0 5.0 16.0 2 18.0 3.5 21.5 25

S8-3: Days allowed for Days allowed for Then we continue with
Job machine center X* machine center Y** Day when due finding CR values
A 3.0 2.5 10
B 8.0 3.0 17
C 5.0 3.5 25

10−0 10 17−0 17 25−0

Using Critical Ratio: 𝐶𝑅𝐴 = = = 1.33; 𝐶𝑅𝐵 = = = 1.31; 𝐶𝑅𝐶 = =
3.0+2.0+2.5 7.5 8.0+2.0+3.0 13 5.0+2.0+3.5
25
= 2.38 Using CR: Job B > A > C
10.5

Move: 2d
MC X MC Y

Machine Center X Machine Center Y

CR Job Move Due
Start Days* Done Start Days** Done

1.31 B 0 8.0 8.0 2.0 10.0 3.0 13.0 17

1.33 A 8.0 3.0 11.0 2.0 13.0 2.5 15.5 10

2.38 C 11.0 5.0 16.0 2.0 18.0 3.5 21.5 25

S8-3: Days allowed for Days allowed for
Given: Job machine center X* machine center Y**
A 4.5 2.5
B 12.0 3.0
C 7.5 3.5

Calculate:
d. Using EDD with move only 1day
Move: 1d
MC X MC Y

Machine Center X Machine Center Y Using EDD with Move = 1 day

Move Due Still does not meet the due date
Job Start Days* Done Start Days** Done for Job B and C
A 0 4.5 4.5 1.0 5.5 2.5 8 10

B 4.5 12.0 16.5 1.0 17.5 3.0 20.5 17

C 16.5 7.5 24.0 1.0 25 3.5 28.5 25