Unit 3: Capacity Requirement Planning (CRP)
Unit 3: Capacity Requirement Planning (CRP)
Unit 3: Capacity Requirement Planning (CRP)
1
Capacity Requirements Planning
Open Orders Files: Information regarding the orders that are currently
started and need to be completed.
Capacity Requirements Planning
A tool for:
determining capacity that is available and required.
Alleviating bottleneck work centers.
Helping planners make the right decisions on
scheduling before problems develop.
Verifies that you have sufficient capacity available to
meet the capacity requirements for MRP plans.
What is Capacity?
The work that the system is capable of doing in a
period of time.
It must be determined at different levels:
plant
department
work center.
It is normally stated in standard hours of work.
What is Capacity?
Capacity = (no. of machines or workers) x (no. shifts) x
(utilization) x (efficiency)
Load
Load percent = x 100%
Capacity
Load % Example
A local road construction company needs to develop engineering specifications
prior to doing any pre-surfacing preparation. The company has been awarded the
bid on four projects. They have one engineer. It takes 4 hours per mile to develop
the engineering specifications. The first project is 30 miles long and must be
started by March 15th to complete on schedule. The second project is 20 miles
long and must be started by April 1st. The third project is 5 miles long and must be
started by May 1st. The fourth project is 15 miles long and must be started by May
23rd. It is now February 15th. The engineer works a 40 hours week and is very
experienced so he operates at 100% efficiency. Assume one project can not be
started until the previous project is completed. Does the engineer have enough time
to accomplish the specifications on time?
Engineering Calculations (Capacity)
Numbers of hours = 40
Shifts = 1
Efficiency = 100%
Utilization = 4/5 = 80%
Capacity = 40 x 1 x 0.8 x 1.00 = 32 hours