1. For the information below, develop rough cut capacity plan (RCCP) for the MPS
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Question
1. For the information below, develop rough cut capacity plan (RCCP) for the MPS using: (1) a rough cut using routings (capacity bills) method, and (2) a resource profile method (offsetting by lead time) A landing gear mansfacturer laas the follouing MPS for one of its itens (shaft housing), as wet as the accompanying product structure WEEK WEEK 2 WEEK 3 WEEK 4 MPS 200 350 The resource profile for the frame is as follows ITEM Frame Part X Part Y Part Z Part R WORK CENTERSETUP HOURS 201 302 302 400 500 RUN HOURS/UNIT 1.5 1.0 8 1.2 1.0 LEAD TIME 0 weeks 1 week 1 week 2 weeks 1 week Determine the capacity requir ements for alil work centers, assamng all usages are one, and that a mew setup is raquired in each week at each soork center BOM of shaft housing Frame Assembly (0 weeks) Part Y (1 week) Part Z (2 Part X (1 week) Part R (1 week)Explanation / Answer
Rough-cut capacity planning checks whether critical resources are available to support the preliminary master production schedules. Critical resources include bottleneck operations, labor and critical materials. Here the resource bill is for a single product. As before, the only interest is in bottleneck work centers and critical resources.
Basically there are three approaches to perform rough cut capacity planning. These can be summarized as follows;
a) Capacity planning using overall factors (CPOF) :
It is the least detailed approach. Capacity requirement is quickly computed but is insensitive to shifts in product mix.
b) “Bill of labor” (or bill of required types of machine hours) approach :
It involves multiplying two matrices, “the bill of labor” and the “master production schedule”. This approach picks up shifts in product mix, but does not consider lead time offsets. It strictly assumes a lot-for-lot policy for setting lot sizes. When other techniques, such as economic order quantity etc is used, then this approach gives a very rough estimate.
c) “Resource Profile” approach :
It is exactly same as “Bill of labor approach”, except that it takes lead-time offsets into account. Again, it strictly assumes a lot-for-lot policy for setting lot sizes as in the case of “bill of labor approach”.
Suppose a firm manufactures four models of cycle in a work center that is a bottleneck operation. The company wants to schedule to the capacity of the work center and not beyond. Below figure shows the MPS and resource bill.
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