Welcome to Rough Cut Capacity Planning (RCCP)

A master production schedule (MPS) is based on forecasts and firm orders. Before this can be released to production, it must be checked to see if the targets in the MPS can in fact be achieved. Rough-cut capacity planning is one of the methods used to check the feasibility of the proposed MPS. RCCP is used to make a quick check on the capacity of the key resources to meet the proposed MPS.

During the RCCP process, a bill of resources is attached to each item on the MPS. A bill of resources is a listing of resources required to produce one unit of the item (including labour and machines / equipment, and so on). The MPS is exploded on the key resources (labour hours, machine hours, storage costs, etc.). It is important to use accurate lead-times in this process.

If the RCCP output indicates that the proposed MPS is not feasible, then either additional resources are proposed (for example, overtime, new machinery, out-sourcing), or the MPS is revised.

Welcome to Capacity Requirements Planning (CRP)

Capacity requirements planning (CRP) generates a more detailed report than an RCCP report. CRP is used as a verification tool after an MRP run. CRP developes a load profile for each workstation. This profile lists the available capacity (surplus/deficit) that would be required for each workstation to meet a given MPS. Capacity planning can be carried out using two methods:

Forward scheduling Backward scheduling

Welcome to Optimised Production Technology (OPT)

Optimised Production Technology (OPT) is based on the philosophical approach that the primary goal of any business is to make money. In order to achieve the primary goal, certain rules are to be followed. In the manufacturing process area, the criteria used to evaluate the progress of OPT towards the ultimate goal are defined as:

Throughput; Inventory; and Operating expenses

In the OPT context, “throughput” is defined as the rate at which finished goods are sold, rather than the rate of production. “Inventory” is considered to include everything from raw material to fully finished goods (unsold). “Operating expenses” include the cost of labour, and all other

input costs (such as power). In the OPT context, the goal of manufacturing involves increasing the level of throughput, with a simultaneous decrease in inventory and operating expenses.

Welcome to Production Activity Control (PAC)

A Production Activity Control (PAC) report is generated by an MRP II system that would list the process routing for the order with details of the workstations and standard times for the various operations. Prioritising of jobs is done by generating a critical ratio report. 'critical ratio' is defined as the ratio of the time remaining until the due date, to the sum of operation times remaining.