MEETING - 6

ROUGH-CUT
CAPACITY
PLANNING
Capacity:
-manpower
-material
-machine
-tools
-transportation
(truck/MH)
-storage/
warehouse
-shopfloor
INTRODUCTION
• MRP activities do not consider capacity constraints
• A feasible MPS or known as an overstated MPS, which
causes the production flow to not run smoothly
• WIP (work-in-process) inventory is increasing
• Queue of raw materials, parts, sub-assemblies for
processing
• Leadtime increases, delivery time to consumers is
longer than it should be
 INTORDUCTION

• Validating the MPS with respect to available capacity is an extremely important

step prior to MRP. The term used for this validation process is “Rough Cut
Capacity Planning (RCCP)” before carrying out MPS
CONSTRAINTS IN CAPACITY PLANNING

Very detailed data requirements

The capacity planning process is iterative, so it consumes a lot of

time

Many companies have an unstable MPS stability: how sensitive the MPS is to
schedule changes to forecast correction.
MPS, making capacity planning This relates to the determination of the
difficult safety stock policy
CASE STUDY: RCCP

Produk : X Lamp
Work station:
- Assembly - Plastic molding
- Oven - Socket assembly
- Base Forming
Lamps X

Base Socket
Shades
Assembly Assembly

7” 8” 14B 15W 15C One-way Three-Way

RCCP MECHANISM

• Calculate a rough estimate of the resource (workstation)

workload based on the MPS. Then compare the load
requirements with the available capacity of each power
source. This comparison process will determine the feasibility
of the MPS
• MPS is worth it?  forward to MRP
• MPS is not worthy of  MPS revision
WORKLOAD
REPORT:
PLASTIC
MOLDING
MACHINE
 RCCP TECHNIQUE

CAPACITY PLANNING BILL OF LABOR (BOL) RESOURCE PROFILE (RP)

USING OVERALL FACTOR APPROACH APPROACH
(CPOF)
 MPS

INPUT DATA: Total standard time to produce

CPOF 1 unit of product

Proportion of the time required

for each workstation to the
standard time of production
(can be obtained from historical
data)
 • Over the past 3 years, X-Prime, the shoe
manufacturer has produced 75,000 pairs of M
models using 5,000 engine hours.
EXAMPLE : • Therefore:
DETERMINATION
Planning factor: machine hours
OF THE
• Engine : 5000 engine hours / 75000 units =
PLANNING 0.067 hours (standard time)
FACTOR
 Multiply the MPS by the
standard time to get the
Determine the planning
total load required for
factor
each workstation per
time period
CPOF
PROCEDURE
Allocate the required
capacity for each work
Evaluate the workload for
station based on the
each workstation to
historical proportion of
validate the MPS
the time required for
each work station
 CPOF TECHNIQUE
Planning factor : machine hours, standard time 0.22 hours/unit

MPS for X Lamp Products

  Month
1 2 3 4 5 6 7 8 9 10 11 12
Production
15 15 15 15 15 15 15 16 19 19 19 19
(x 1000 unit)

Historical proportion of time needed for workstations

Work Historical
Center Proportion
Lamp Assembly 0.455
Oven 0.046
Base Forming 0.227
Plastic Molding 0.091
Socket Assembly 0.182
 2 Historical Proportion 1 MPS in January

0.455 x 3300 = 1501.5 0.22 x 15000 = 3300

Work  Historical Jan Feb Mar Apr May

Center Proportion
Lamp Assembly 0.455 1501.5 1501.5 1501.5 1501.5 1501.5
Oven 0.046 148.5 148.5 148.5 148.5 148.5
Base Forming 0.227 749.1 749.1 749.1 749.1 749.1
Plastic Molding 0.091 300.3 300.3 300.3 300.3 300.3
Socket Assembly 0.182 600.3 600.3 600.3 600.3 600.3
Total Requirement 3300 3300 3300 3300 3300

Jun Jul Aug Sep Oct Nov  Dec Total

Hours
1501.5 1501.5 1601.6 1901.9 1901.9 1901.9 1901.9 19720
148.5 148.5 158.4 188.1 188.1 188.1 188.1 1950.3
749.1 749.1 799.1 948.9 948.9 948.9 948.9 9838.2
300.3 300.3 300.3 380.4 380.4 380.4 380.4 3943.9
600.3 600.3 600.6 760.8 760.8 760.8 760.8 7887.9
3300 3300 3520 4180 4180 4180 4180
BILL OF LABOR APPROACH

• The procedure is the same as for CPOF

• Actual time data are used for each workstation

Data Bill of labor

Lamp LAXX
Lamp Assembly 0.10 Hr
Oven 0.01 Hr
Base Forming 0.05 Hr
Plastic Molding 0.02 Hr
Socket Assembly 0.04 Hr
Total Requirement 0.22 Hr
 Lamp assembly workstation
needs in January Total needs for January

0.10 x 15000 = 1500

0.22 x 15000 = 3300

Work 
Center Jan Feb Mar Apr May Jun Jul
Lamp Assembly 1500 1500 1500 1500 1500 1500 1500
Oven 150 150 150 150 150 150 150
Base Forming 750 750 750 750 750 750 750
Plastic Molding 300 300 300 300 300 300 300
Socket Assembly 600 600 600 600 600 600 600
Total Requirement 3300 3300 3300 3300 3300 3300 3300

Total
Aug Sep Oct Nov  Dec Hours
1600 1900 1900 1900 1900 19700
160 190 190 190 190 1950
800 950 950 950 950 9850
320 380 380 380 380 3942
640 760 760 760 760 7880
3520 4180 4180 4180 4180
BILL OF LABOR APPROACH - BOL (2)

• If there are n products, then:

• Required capacity =                         for all i,j

Where:
• aik = time required by product k at the station
work i
• bkj = number of products k to be produced in
period j
BOL : 2 TYPES OF PRODUCTS, 2
MONTHS, 2 WORKSTATIONS
• If the number of products is more than one, the
standard time for each product in each
workstation must be known
• The required capacity for each workstation is
the sum of the requirements for all products

• A
BOL : 2 TYPES OF PRODUCTS, 2
MONTHS, 2 WORKSTATIONS
Bill of labor Master Schedule
Produk Month
P1 P2 M1 M2
Work Center Produk
WC 1 a11 a12 P1 b11 b12

WC 2 a21 a22 P2 b21 b22

RCCP
M1 M2
Work center
C11 C12
WC 1

WC 2 C21 C22

• A
EXAMPLE
Master Schedule
Bill of labor
Produk
Month
P1 P2 M1 M2
Work Center Produk

WC 1 0.3 0.2 P1 100 200

WC 2 1 0.7 P2 300 400

RCCP
Month
M1 M2 • C11 = (0.3 x 100) + (0.2 x 300) = 90
Work Center
WC 1 90 140 • C12 = (0.3 x 200) + (0.2 x 400) = 140
• C21 = (1.0 x 100) + (0.7 x 300) = 310
WC 2 310 480 • C22 = (1.0 x 200) + (0.7 x 400) = 480
 The CPOF and Bill of Labor methods
assume that all components are
produced at the same time as the
production of the final product

RESOURCE
Resource profile is the most specific RCCP
PROFILE technique compared to the other two
APPROACH techniques

The calculation method is similar to

BOLm but takes the lead-time offset into
account
EXAMPLE: RESOURCE
PROFILE
Period Before Due date
2 1 0
Lamp Assembly  0 0 0.1
Oven  0 0.01 0
Base Forming  0.05 0 0
Plastic Molding  0 0.02 0
Socket Assembly  0 0.04 0

• Bill of Labor dengan Lead Time

RESOURCE PROFILE: X LAMP
PRODUCTS
Work 
Center Jan Feb Mar Apr May Jun Jul
Lamp Assembly 1500 1500 1500 1500 1500 1500 1500
Oven 150 150 150 150 150 150 150
Base Forming 750 750 750 750 750 750 750
Plastic Molding 300 300 300 300 300 300 300
Socket Assembly 600 600 600 600 600 600 600
Total Requirement 3300 3300 3300 3300 3300 3300 3300

Total
Aug Sep Oct Nov  Dec Hours
1600 1900 1900 1900 1900 19700
160 190 190 190 0 1820
800 950 950 0 0 8350
320 380 380 380 0 3642
640 760 760 760 0 7280
3520 4180 4180 3230 1900
 RESOURCE PROFILE: MATRIX FORMULATION 2
PRODUCTS, 3 PERIODS, 3 LEAD TIME, 2
WORKSTATION
Time to Resource Profile MPS
Month
due date
2 1 0 1 2 3
Product Product
a112 a111 a110 b11 b12 b13
P1 P1

P2 a212 a211 a210 P2 b21 b22 b23

Work Center 1

2 1 0

a122 a121 a120

P1

P2 a222 a221 a220

Work Center 2
 Time to Resource Profile MPS
Month
due date
2 1 0 1 2 3
Product Product
a112 a111 a110 b11 b12 b13
P1 P1

P2 a212 a211 a210 P2 b21 b22 b23

Work Center 1

2 1 0

a122 a121 a120

P1

P2 a222 a221 a220

Work Center 2
RCCP
Month
c11
 a110 b11  a111 b12  a112 b13  a 210 b21  a 211 b22  a 212 b23
Work 1 2 3
c12
 a110 b12  a111 b13  a 210 b22  a 211 b23 Center
c  a110 b13  a 210 b23 c11 c12 c13
13 WC 1
c 21
 a120 b11  a121b12  a112 b13  a 220 b21  a 221b22  a222 b23

c 22
 a120 b12  a121b13  a 220 b22  a221b23 WC 2 c21 c22 c23
c 23
 a120 b13  a 220 b23
EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Bill of Labor
Week until due
Work Center Product 1 Product 2
1 0 1 0
A 20 0 15 0
B 0 30 0 25

MPS (in week)

1 2 3 4
Product 1 100 200 250 100
Product 2 150 250 100 300
 EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Time to Resource Profile
MPS
due date week
Product 1 0 1 2 3 4
Product
P1 20 0 100 200 250 100
P1

P2 15 0 P2 150 250 100 300

Work Center A

1 0

P1 0 30

P2 0 25

Work Center B
 EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Time to Resource Profile
MPS
due date week
Product 1 0 1 2 3 4
Product
P1 20 0 100 200 250 100
P1

P2 15 0 P2 150 250 100 300

Work Center A
RCCP:
1 0 Product 1, week 1, WC1:
P1 0 30
= (0 x 100) + (20 x 200) = 4000

Product 2, week 1, WC1:

P2 0 25
= (0 x 150) + (15 x 250) = 3750
Work Center B
Total for WC 1, week 1 = 7750 (column c11)
 EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Time to Resource Profile
MPS
due date week
Product 1 0 1 2 3 4
Product
P1 20 0 100 200 250 100
P1

P2 15 0 P2 150 250 100 300

Work Center A
RCCP:
1 0 Product 1, week 2, WC1:
P1 0 30
= (0 x 200) + (20 x 250) = 5000

Product 2, week 2, WC1:

P2 0 25
= (0 x 250) + (15 x 100) = 1500
Work Center B
Total for WC 1, week 2 = 6500 (column c12)
 EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Time to Resource Profile
MPS
due date week
Product 1 0 1 2 3 4
Product
P1 20 0 100 200 250 100
P1

P2 15 0 P2 150 250 100 300

Work Center A
RCCP:
1 0 Product 1, week 3, WC1:
P1 0 30 = (0 x 250) + (20 x 100) = 2000

Product 2, week 3, WC1:

P2 0 25
= (0 x 100) + (15 x 300) = 4500
Work Center B
Total for WC 1, week 1 = 6500 (column c13)
 EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Time to Resource Profile
MPS
due date week
Produk 1 0 1 2 3 4
Produk
P1 20 0 100 200 250 100
P1

P2 15 0 P2 150 250 100 300

Work Center A
RCCP:
1 0 Produk 1, week 3, WC1:
P1 0 30 = (0 x 100) + (0) = 0

Produk 2, week 3, WC1:

P2 0 25
= (0 x 300) + (0) = 0
Work Center B
Total utk WC 1, week 1 = 0 (kolom c14)
 EXAMPLE:
2 PRODUCT, 4 PERIODS, 2 LT, 2 WC
Time to Resource Profile
MPS
due date week
Product 1 0 1 2 3 4
Product
P1 20 0 100 200 250 100
P1

P2 15 0 P2 150 250 100 300

Work Center A
RCCP
week
1 0 Work 1 2 3 4
Center
P1 0 30 7750 6500 6500 0
WC 1

P2 0 25 WC 2 6750 12500 10000 10500

Work Center B
 CPOF requires a little data, but
it is not suitable to be applied
when the product mix
composition changes

SELECTION
OF THE BOL is better in terms of
accuracy than CPOF, but only
RCCP when using up-to-date data

METHOD

RP is suitable for products with

long manufacturing lead times
(eg airplane, machine tools),
but RP is more complex in
calculation
CAPACITY AVAILABLE
• Factors-factors :
• Available working time, Utilization {1, 0}, Efficiency
• Available capacity =
Available time x Utilization x Efficiency
• Capacity required: RCCP
• Assumption:
• 5 working days/week & 21 working days/month
• Number of plastic molding machines  = 3 units
• Utilization = 0.756, efficiency = 1.05
• Available capacity (regular) = [3*8 hours*21 days)]*0.756*1.05
                                                 = 400 hours
Available capacity + overtime = 3*(8+2 hours)*21 days *0.756*1.05
    =  500 hours
RCCP DECISIONS
• Comparing capacity required to capacity available

Alternatives to increase capacity: (1) over time, (2)

subcontracting, (3) additional workforce. If the additional
capacity cannot meet the capacity required  Revise MPS
QUESTION
Month Product
The master production schedule for 2007 for (units)
Table Furniture products is given in the table on January 1400
the right. To assemble a table, 4 table legs need Feb 1200
to be turned into a lathe, the table board needs to
March 1200
be smoothed (ground) and 4 holes on the board
need to be drilled. The total time (hours) April 1300
required for each work center to complete the May 1500
components for 1 unit table: June 1800
July 1800
month before due
Workstation
2 1 0
Assembly line 0.61
Lathe 0.44
Crab 0.25
Drill 0.1
There are 6 assembly workstations, 5 (five) units of lathe, 2
(two)  units of grinding machines (planers), and one drilling
machine. Workshop work time is 1 shift per day, 5 working days
per week, and 8 working hours per day with an average working
day per month 22 days. Overtime hours are set at a maximum of
12 hours per week or 48 hours per month. So far, the average
utilization rate of the four workstations is 95%, while the
efficiency level is 100% for assembly workstations, 105% for
lathes, 102% for planar machines (plan) and 112% for drilling
machines.

Duty:
Calculate the capacity requirements for each work center during
2007.
Can the existing capacity meet the specified master production
schedule? If there is a lack of capacity, and the option to increase
capacity is only allowed with an overtime policy, what decisions
should be taken?
THANK
YOU