21st Century Purchasing

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Capacity Management Capacity management is planning controlling resources needed to meetproduction objectives Planning determining resources needed to.
meet the priority plan selecting methods tomake that capacity available Controlling monitoring output comparing itwith the plan taking corrective actionOMGT4743 1.
Matching Capacity and Demand Demand Management vary prices change lead times encourage discourage business.
Capacity Management adjust staffing adjust equipment and processes change methods to facilitate production redesign the product to facilitate production.
OMGT4743 2 Capacity Planning Process Determine the capacity available each work center Translate the released planned orders into thecapacity required each work center in each time.
Sum up the capacities required for each work centerto determine the load on each work center in eachtime period Resolve differences between available capacity andrequired capacity.
OMGT4743 3 Resource Planning RP involves long range capacity resourcerequirements directly linked to production RP involves changes in manpower capital.
equipment product design or other facilitiesthat take a long time to acquire eliminate The production plan RP set the limits andlevels for productionOMGT4743 4.
Rough Cut Capacity PlanningRCCP is the process to check feasibility of the MPS end items provide warnings of any bottlenecks ensure utilization of work centers.
advise vendors of capacity requirementsOMGT4743 5 Capacity Requirements Planning CRP is directly linked to the MRP component items .
CRP is the most detailed complete accurate of the capacity planningtechniques is highly important in theimmediate time periodsOMGT4743 6.
Inputs for Capacity Planning Inputs needed are open shop orders from open order file planned order releases from MRP routings and time standards from the.
routing file lead times and work center capacities fromthe work center fileOMGT4743 7 Inputs for Capacity Planning.
Planned order releases are determined bythe computer s MRP logic based upon thegross requirements for a particular part Used to help assess the total capacityrequired in future time periods .
OMGT4743 8 Inputs for Capacity Planning Routing file is the path that work follows fromwork center to work center as it is completed andshould contain .
Operations to be performed Sequence of operations Work centers to be used Possible alternate work centers Tooling needed for each operation.
Standard times setup times and run times per pieceOMGT4743 9 Inputs for Capacity Planning Work center file is composed of a number of machinesor workers capable of doing the same work and should.
Move time time taken to move material from oneworkstation to another Wait time time a job is at a work center after completion before being moved Queue time time a job waits at a work center before being.
Lead time sum of queue setup run wait move timesOMGT4743 10 Determining Capacity Available To calculate available capacity we need Available time of machines of workers hours of operation.
Utilization of time that the work center is actually activeEfficiency a ratio of the actual output to standard expected outputOMGT4743 11 Utilization and Efficiency ProblemA work center produces 90 standard hours of work in.
one week The hours available are 80 and 70 areactually worked Calculate the utilization andefficiency of the work center OMGT4743 12 Rated Capacity.
Rated capacity measure of the output that can beexpected for a work centerRated Capacity available time x utilization x efficiencyA work center has 3 machines and is operated 8 hours a day for 5 days week Past utilization has been 75 efficiency has been 110 What is the rated.
Available time 3 x 8 x 5 120 hours per weekRated capacity 120 x 0 75 x 1 10 99 standard hoursOMGT4743 13 Demonstrated Measured Capacity Demonstrated capacity proven capacity calculated.
from actual performance data i e average capacity Over the previous four weeks a work center produced 110 140 120 130standard hours of work What is the demonstrated capacity OMGT4743 14 Required Capacity.
Determining required capacity 1 determine time needed for each order at each work center sumsetup time run time i e standard operating time SOT 2 sum capacity required for individual orders to obtain a loadOrder Qty Setup Time Run Time SOT.
Released Orders100 100 0 0 0 2 20 0 Std Hrs 200 150 1 5 0 2 31 5 Std Hrs Planned Orders400 200 3 0 0 25 53 0 Std Hrs .
500 300 2 5 0 15 47 5 Std Hrs Total Time 152 0 Std Hrs OMGT4743 15 Scheduling Orders Calculate SOT each work center.
SOT setup time run time per piece x number of pieces Calculate lead timeLead time SOT queue time wait time move time Back Scheduling start with the due date and using the lead times to work back to find the.
start date for each operationOMGT4743 16 Resolving DifferencesChange Capacity Overtime or undertime Hiring or layoff.
Shift work force Alternate routings SubcontractAlter Load Alter lot sizes RescheduleOMGT4743 17.
Title: 21st Century Purchasing Author: Business/Aerospace Bldg. Last modified by: Kros, John Created Date: 5/11/1998 2:46:18 PM Document presentation format

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