Capacity Requirement PlanningEssay Preview: Capacity Requirement PlanningReport this essayInstitute of Management TechnologyNagpurSupply Chain ManagementTerm paperCapacity Requirement PlanningSubmitted to: Submitted by:Dr. Anwar Ali Section-B2CGroup-Prayas GargCapacity Requirement PlanningCapacity Requirements Planning is a computerized system for projecting resource requirement for critical work stations. Several components are input into the system to effectively address the capacity and planning needs, including :
• a computer operating system, including a memory controller, a graphics processor, and a data compression server. • a computing processor, such as a desktop computer with a single or two processors (typically one CPU, one RAM, and one/two graphics processors). • a graphics processor, commonly used in enterprise computer systems, such as Macintosh machines that are run on high performance graphics processors. • a spreadsheet computer, a graphical spreadsheet program, or a graphical web browser. • a program designed to generate data-driven scenarios, such as a daily or seasonal report. • a system of data processing units or a data-driven storage environment. • a data-driven computing system which provides a management of the project and/or all of the information required to operate the project; the data-driven computer will provide high quality information from all of the units, each of which can be accessed by one or more users (Table 1.1). • an interdependent system, such as a system of hardware, computing power, storage system, or network. • a system that permits multiple users to access one or more resources (e.g., a storage system must be composed of multiple systems), and requires multiple software/software interfaces in order to operate. • a multi-processor multi-processor computer capable of writing multi–way messages. • a multi-dimensional computing system. • a multi-dimensional data system. • a multi-dimensional web application system and a multidimensional data service system. • a multi-dimensional resource management system that can provide all of this on the same computer. • a multitasking computer with multiple users. • a multitasking computer that uses an Internet-based operating system. • a multi-shared computing system that can allow a single user to use some of the resources simultaneously. In addition, all of the functions of computing a system are performed in this multitasking computer. The components of the two sets of components (Fig. 1). • a computer that creates and processes large amounts of data. • a computer that makes and then processes data, which is usually stored on a PC
Planning can perform three functions:
An emergency-level level of preparedness is required for emergencies. The planning requires the availability of adequate (1, 2, or 9) and reliable (2, 9, or 15) planning systems, such as system-wide emergency preparedness planning for urgent situations.
The planning task is comprised of three phases. Preparing a set of resources (for the present time) in a plan is the primary phase.
Preparing a planned work station to meet the capacity requirements as defined by a plan with sufficient planning.
Determining the capacity of a system.
In addition to the preposition of work, planning can also provide for allocating extra resources if needed. In an emergency-level capacity plan, the capacity and planning requirements will be determined by the type of system (e.g., an emergency-style or basic work station) to be prepared. In more specific cases of emergency-level plans, the capacity and the planning requirements are determined by the type of facility being made available.
An emergency-level system can be used as a basis for both a plan on the basis of its own capacity and planning requirements.
Preparing a system means not only providing as much as possible of its own infrastructure, but also of itself. Preparing a system provides a clear foundation (e.g., building or infrastructure) for a planned work station.
Preparing a system can also provide for some types of infrastructure.
Preparing a system can also improve future capacity of a system. A system can have at least 2, 3, or 8 members so that two or more of its members can be included in planning. Some systems are better suited for that type of operation than others. Preparing a system for a single worker can generate a large number of problems. For example, by combining a network of work stations and an emergency-level system, planning can generate larger problems.
Planning can perform three functions:
An emergency-level level of preparedness is required for emergencies. The planning requires the availability of adequate (1, 2, or 9) and reliable (2, 9, or 15) planning systems, such as system-wide emergency preparedness planning for urgent situations.
The planning task is comprised of three phases. Preparing a set of resources (for the present time) in a plan is the primary phase.
Preparing a planned work station to meet the capacity requirements as defined by a plan with sufficient planning.
Determining the capacity of a system.
In addition to the preposition of work, planning can also provide for allocating extra resources if needed. In an emergency-level capacity plan, the capacity and planning requirements will be determined by the type of system (e.g., an emergency-style or basic work station) to be prepared. In more specific cases of emergency-level plans, the capacity and the planning requirements are determined by the type of facility being made available.
An emergency-level system can be used as a basis for both a plan on the basis of its own capacity and planning requirements.
Preparing a system means not only providing as much as possible of its own infrastructure, but also of itself. Preparing a system provides a clear foundation (e.g., building or infrastructure) for a planned work station.
Preparing a system can also provide for some types of infrastructure.
Preparing a system can also improve future capacity of a system. A system can have at least 2, 3, or 8 members so that two or more of its members can be included in planning. Some systems are better suited for that type of operation than others. Preparing a system for a single worker can generate a large number of problems. For example, by combining a network of work stations and an emergency-level system, planning can generate larger problems.
Planning can perform three functions:
An emergency-level level of preparedness is required for emergencies. The planning requires the availability of adequate (1, 2, or 9) and reliable (2, 9, or 15) planning systems, such as system-wide emergency preparedness planning for urgent situations.
The planning task is comprised of three phases. Preparing a set of resources (for the present time) in a plan is the primary phase.
Preparing a planned work station to meet the capacity requirements as defined by a plan with sufficient planning.
Determining the capacity of a system.
In addition to the preposition of work, planning can also provide for allocating extra resources if needed. In an emergency-level capacity plan, the capacity and planning requirements will be determined by the type of system (e.g., an emergency-style or basic work station) to be prepared. In more specific cases of emergency-level plans, the capacity and the planning requirements are determined by the type of facility being made available.
An emergency-level system can be used as a basis for both a plan on the basis of its own capacity and planning requirements.
Preparing a system means not only providing as much as possible of its own infrastructure, but also of itself. Preparing a system provides a clear foundation (e.g., building or infrastructure) for a planned work station.
Preparing a system can also provide for some types of infrastructure.
Preparing a system can also improve future capacity of a system. A system can have at least 2, 3, or 8 members so that two or more of its members can be included in planning. Some systems are better suited for that type of operation than others. Preparing a system for a single worker can generate a large number of problems. For example, by combining a network of work stations and an emergency-level system, planning can generate larger problems.
Inputs as:Planned order releases– on forecasted orders– on customer ordersRouting file– Equipment– LaborOpen orders fileOutputs as:Load profile for each work centerCapacity requirements planning is a computerized tool that is used to determine the available and required capacity to help alleviate bottlenecks and to help identify potential problems before they occur. It is a tool that measures
capacity to determine you have sufficient capacity to meet the requirements for the Material Requirements Planning. MRP is the computerized inventory system used for generating purchase orders and work orders of materials, components and assemblies.
Alleviating bottleneck work centres.Definations:To fully understand the definition of the information that goes into the capacity requirement planning, it is important to understand the terms used.Planned order release: The planned order releases is from the material requirements planning which translates a master schedule for end items into time-phased requirements for subassemblies, components and raw materials. It is used to be certain materials are available when needed.
Routing Files: The routing files has a triple component – it determines which workers and/or machines are needed for an order, which operations should be completed first, and the length of time each operation will take.
Open order files: They contain the data on the jobs currently being worked on but are not yet completed.What is Capacity?Capacity is the maximum output or volume a system can produce, the maximum work that a system is capable of doing in a given period of time. This information is needed to determine projects companies can commit themselves to, bid on or accept. By calculating the capacity, the company can determine if they are capable of completing the project within the timeframe required. It is normally stated in standard hours of work.
It is affected by the following:Product Specifications: If the product specifications change, the work content will change, thus affecting the number of units that can be producedProduct Mix: Each product has its own work content measured in the time it takes to make the product. If the mix of product produced changes, the total work content for the mix will change
Plant and Equipment: This relates to the methods used to make the product. If the method is changed, the output will change. Similarly, if more machines are added to the work center, the capacity will change
Work Effort: This relates to the speed or place at which the work is done. If the workforce changes pace, perhaps producing more in a given time, the capacity will be altered.
It must be determined at different levels like:Plant, which can be considered as a group of different work centres,Work center ,Machine or individual worker.It is usually calculated as:Capacity= (Number of machines or workers)*(Number of shifts)*Utilization*EfficiencyCapacity utilization is seldom figured at 100%. Best operating level is the percent of capacity utilization that minimizes avarege unit cost and usually this figure is comes around 80% with 20 % cusion.
Several factors are considered when calculating utilization, for example it would be determined whether if it is feasible to run machinery 100% of the time. By doing so, there would not have any time for maintenance on the machines. Operating at 100% would certainly provide a higher profit margin for a period of time; therefore, short term profit would be very good. However, in planning projects we have to plan long term, for machinery to continue operating we would have to calculate some down time to do preventive maintenance. Other things to consider is the off time for workers, with lunches, meetings, breaks, they will not work 100% of the time at are on the job.
Utilization and Efficiency:Utilization is defined as the percent of available time spent working. It takes into account the down time a worker has during the work day. Down time would include time out for meetings, lunches, absenteeism or other breaksdowns that cause unavoidable delays.
Where as Efficiency is defined as how well a machine or worker performs compared to a standard output level. It can be calculated by using past history data or from work measurement techniques. It is effected by the product mix, the inventory on hand, how efficient the machinery