CAPACITY PLANNING

WHAT IS CAPACITY PLANNING?

It is the procedure used to conclude
how
much capacity is needed to
construct
greater product or begin product.
e
me tho d is ne e d e d to a chie ve
maximum rm pe ormance.
 4 TYPES OF CAPACITY PLANNING
Long Term Finite Capacity
Capacity Planning
1 3

Planning
2 Sho Term 4 In nite Capacity
Capacity Planning Planning
Long Term Capacity Sho Term Capacity
Planning Planning
is the process of ensuring that concerns issues of scheduling, labor
suf ficient production resources are shifts, balancing resource capacities.
available to meet an organization's It's goal is to handle unexpected shift
long range production needs. demands in an ancient economic
manner.
Finite Capacity Planning In nite Capacity
Planning
a production planning method that a method of planning production
assumes available capacity is a that leave orders on the existing
de nite constant, thereby identifying dates and shows whether the load
the actual capacity limits of your on a resource is over or under its
production facility. d e f in e d c a p a c i t y, w i t h o u t
recommending changes.
 4 TYPES OF CAPACITY PLANNING
TECHNIQUES
Capacity Planning Resource
using Overall Factors
1 3

(CPOF) Pro les

2 Capacity Bills 4 Capacity

Requirements
Planning (CRP)
Capacity Planning using Capacity Bills
Overall Factors
it is a C2 software system that allows this technique takes Bill of Material
commanders to maintain top sight over used and par ts produce, work center
thebattle eld; collaborate with superior, setup andactual run times and
peers and subordinates over live data; computes capacity by multiplying the
andcommunication their intent. number of units required by thetime
needed to produce each.
Resource Pro les Capacity Requirements
this method is one of the techniques T he process of determining the production
that can be used for a company ’s capacity needed by an organization tomeet
resource requirements planning. changing demands for its products. In the
Includes the time-phased prof ile of context of capacity planning, design
the capacity requirements foreach capacityis the maximum mount of work that
an organization is capable of completing in a
end item. given period.
MASTER
PRODUCTION
SCHEDULING
e process of master
production scheduling involves
the planning of activities to
determine whether or not an
operation can achieve the
production objectives
mentioned in the MPS. Material
Requirements Planning (MRP)
and Capacity Requirements
Planning (CRP) are the two
planning activities that are a
Aggregate Planning
it is a process of developing,
analyzing and maintaining a
prelimina , approximate
schedule of the overall
operations of an
organization.
Aggregate Plan
contains targeted sales forecast,
production levels, invento
levels and customer backlogs. Is
an attempt to balance capacity
and demand in such a way that
cost is minimized.
Steps taken to produce and aggregate
plan:
•Determinant of demand
•Determinant of current capacity
 AGGREGATE PLANNING
STRATEGIES
•Level Strategy- seeks an aggregate plan that
maintains a steady production rate and
employment level.
•Chase Strategy- referred to as demand
matching because the strategy varies
production to meet demand.
TECHNIQUES FOR AGGREGATE PLANNING
•INFORMAL TRIAL AND ERROR
TECHNIQUES
is a method of reaching correct solution or satisfacto result by
t ing out various means or theories until error is su ciently
reduced or eliminates.
Mathematical Techniques- symbol used in all P – Product
branches of mathematics a formula or to T – Time
represent a constant. A mathematical concept is OT – Over Time
independent of the symbol chosen to represent X - Female
it.
•Operations Scheduling- establishing time and resources.
•Forward Scheduling- manufacturing items as soon as possible before
the due date.
•Backward Scheduling- make their items available at the last possible
available period before the due date.
•Loading- assigning jobs to work centers and various machines.
•In nite Loading- schedules work ignoring the capacity limits.
•Finite Loading- schedules work up to xed amount of capacity.
Priority rules or heuristics that can be used to select the
order of jobs waiting for processing:
• Random (R)
• First Come/First Se ed (FC/FS)
• Sho est Processing Time (SPT)
• Earliest Due Date (EDD)
• Critical Ratio (CR)
• Least Work Remaining (LWR)
• Fewest Operations Remaining (FOR)
• Slack Time (ST)
• Slack Time per Operation (ST/O)
• Next Queue (NQ)
• Least Setup (LSU)
•Load Cha - displays the loading and idle times
for machines or depa ments
•Schedule Cha - is used to monitor job
progress
 DETERMINATION OF EQUIPMENT
REQUIREMENTS
1 Equipment Selection- identifying suitable
equipments for production.
2 Batch Production- produces multiple
units in a series.
3 Mass Production- produces a larger-
sized products at a time.
• ey have a long-term
impact. DETERMINATION OF
• Capacity determines the
selection of appropriate
CAPACITY
technology, type of labor
andequipments, etc.
• Right capacity ensures
commercial viability of the
business ventures.
• Capacity in uences the
competitiveness of a rm.
MEASURING CAPACITY
Usually obtained by one of the
work measurement methods:
Let the following:
• An estimate of demand for P - Production rate of work station in units of
each period in the planning output
horizon, expressed by the T - Processing time per unit in minutes
number of acceptable or D - Duration of the period in hours
good or conforming units (For three shift, D =8; D=16; and D=24)
needed per period, and E - E ciency of equipment expressed as 5%
obtained from a detailed of running time per period
demand forecast. N - Number of machines required by work
station
• An estimate of processing e requirements base formula is:
time for the work station
where the equipment willbe
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