capacity planning and storage
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Capacity Management
Planning and controlling resources needed to meet
production objectives
Planning: Determining resources needed to meet
the priority plan
Selecting methods to make that capacity
available
Controlling: Monitoring output, comparing with the
plan, and taking corrective action
Capacity management occurs at each planning level
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Capacity Management
Techniues
Capacity
!euirements
Planning "C!P#
Priority Management
Techniues
!esource!euirements
Planning
"!!P#
Production
Plan
!ough$Cut
Capacity
Planning "!CCP#
Master
Production
Schedule
Material
!euirements
Planning "M!P#
Production
%ctivity Control
"P%C# &peration
Seuencing
'nput(&utput
Control
Planning )evels
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De*ining Capacity
The capability o* a system to per*orm itse+pected *unction
The capability o* a worker, machine, work
center, plant, or organiation to produceoutput per time period
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Capacity Planning Process
Determine the capacity available Translate the released and planned orders
into capacity reuired
Sum up capacities reuired *or each work
center
!esolve di**erences between available
capacity and reuired capacity
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Determining Capacity %vailable
Capacity available is-The capability o* a system or resource to produce a uantity o*output in a particular time period.
APICS Dictionary
%vailable capacity can be calculated or measured
To calculate available capacity, identi*y %vailable time /tiliation
0**iciency
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%vailable Time
%vailable time: depends on the number o*machines, number o* workers, and hours o*
operation
1umber o* machines "or number o* workers# 2 hours o* operation
3hat is the weekly available time *or a workcenter that has *our machines and works eight
hours a day *or *ive days a week4
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/tiliation
/tiliation: Percentage o* the time that the workcenter is active
0+ample: 3ork center is available 567 hours
a week, but actually produces goods *or 87 hours
5779hours%vailable
orkedactually w:oursn/tili,atio =
utiliation;
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Problem 5
% work center produces 87 standard hours o*work in one week> The hours scheduled are
?7, and ;7 are actually worked> Calculate the
utiliation and e**iciency o* the work center>
/tiliation =
0**iciency = =5779orkedactually wours
worko*hoursStandard
=5779
hours%vailable
orkedactually w:ours
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!ated Capacity
!ated capacity = available time + utiliation + e**iciency
0+ample: % work center consists o* three machines and is
operated eight hours a day *or *ive days a week>Past utiliation has been ;
%vailable time =
!ated capacity =
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Problem 6
% work center consists o* si+ machines thatare available 5@ hours per day *or *ive days a
week> /tiliation is ?79, and e**iciency is
5579> 3hat is the rated weekly capacity4
!ated weekly capacity =
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Demonstrated Capacity
Proven capacity calculated *rom actual per*ormancedata
0+ample: &ver the previous *our weeks, a work
center produced 557, 5A7, 567, and 5B7
standard hours o* work> 3hat is the
demonstrated capacity4
Demonstrated weekly capacity = standard hours(week
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)oad
enerated by the priority planning system"M!P#
Translates the priorities, given in units, into
time reuired at each work center in eachtime period
Takes place at each planning level
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Capacity !euirements Planning
Need to Know Take Information From&pen shop orders &pen order *ile
Planned order releases M!P
3here work is done !outing *ile
Time needed "standard hours# !outing *ile
)ead times !outing *ile
3ork center *ile
3ork center capacity 3ork center *ile
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Sun.Week Mon. Tues. Wed. Thurs. Fri. Sat.Month
July
56; 56? 568 5B7 5B5
8 57 55 56 5B 5A 5