CPIM-BSCM-CRP

BasicsofSupplyChainManagementCPIMTestReviewCourse10-14Jul2003VisualBasicsofSupplyChainManagement,Version2.1–August2001Session1:IntroductiontoSupplyChainManagementSession2:ForecastingSession3:MasterPlanningSession4:MaterialRequirementsPlanningSession5:CapacityManagementandProductionActivityControlSession6:InventoryFundamentalsSession7:InventoryManagementSession8:PhysicalDistributionSession9:QualityManagementandPurchasingSession10:Just-in-TimeManufacturingCourseOutline4-1aVisualBasicsofSupplyChainManagement,Version2.1–August2001Session5ObjectivesCapacitymanagementanditsrelationtopriorityplanningRatedorcalculatedcapacityCapacityrequiredforashoporderPurposeandactivitiesofproductionactivitycontrol(PAC)5-1bVisualBasicsofSupplyChainManagement,Version2.1–August2001Session5Objectives(cont.)ProcessoforderpreparationanddatarequirementsforaPACsystemTechniquesofschedulingPurposeofashoporderandnecessaryinformationImplementationandcontrolofworkordersInput/outputreports5-2VisualBasicsofSupplyChainManagement,Version2.1–August2001Visual5-3CapacityManagementMPS,MRParePriorityPlanningsystem:whattodoandwhentodoitTheseplansmustbematchedwiththeabilitytoproduceaworkableplanCapacityManagementisconcernedwiththeabilitytoworkaplanningphaseandacontrolphaseVisualBasicsofSupplyChainManagement,Version2.1–August2001CapacityManagementPlanningandcontrollingresourcesneededtomeetproductionobjectivesPlanning:DeterminingresourcesneededtomeetthepriorityplanSelectingmethodstomakethatcapacityavailableControlling:Monitoringoutput,comparingwiththeplan,andtakingcorrectiveactionCapacitymanagementoccursateachplanninglevel5-3VisualBasicsofSupplyChainManagement,Version2.1–August2001CapacityManagementTechniquesCapacityRequirementsPlanning(CRP)PriorityManagementTechniquesResourceRequirementsPlanning(RRP)ProductionPlanRough-CutCapacityPlanning(RCCP)MasterProductionScheduleMaterialRequirementsPlanning(MRP)ProductionActivityControl(PAC)OperationSequencingInput/OutputControlPlanningLevels5-4FigureadaptedfromtheCPIMExamContentManual,APICS,1997IncreaseinlevelofdetailsanddecreaseinplanninghorizonsVisualBasicsofSupplyChainManagement,Version2.1–August2001DefiningCapacityWhatisthedefinitionofcapacity?CapacityistheamountofworkthatcanbedoneinaperiodoftimeItisusuallystatedinstandardhoursofwork,why?Non-homogenousinproductstructureItmustbedeterminedatplant,department,andworkcenterlevelsVisual5-5VisualBasicsofSupplyChainManagement,Version2.1–August2001DefiningCapacityThecapabilityofasystemtoperformitsexpectedfunctionThecapabilityofaworker,machine,workcenter,plant,ororganizationtoproduceoutputpertimeperiod5-5VisualBasicsofSupplyChainManagement,Version2.1–August2001CapacityPlanningProcessDeterminethecapacityavailableTranslatethereleasedandplannedordersintocapacityrequiredSumupcapacitiesrequiredforeachworkcenterResolvedifferencesbetweenavailablecapacityandrequiredcapacity5-6VisualBasicsofSupplyChainManagement,Version2.1–August2001DeterminingCapacityAvailableCapacityavailableis“Thecapabilityofasystemorresourcetoproduceaquantityofoutputinaparticulartimeperiod”—APICSDictionaryAvailablecapacitycanbecalculatedormeasuredTocalculateavailablecapacity,identifyAvailabletimeUtilizationEfficiency5-7VisualBasicsofSupplyChainManagement,Version2.1–August2001DemonstratedandRatedCapacityDemonstratedcapacitydeterminedfromhistoricaldataItisanaverageoutputRatedcapacitycalculatedbytakingintoaccountworkcenterutilizationandefficiencyRatedcapacity=availabletimexutilizationxefficiencyVisualBasicsofSupplyChainManagement,Version2.1–August2001AvailableTimeAvailabletime:dependsonthenumberofmachines,numberofworkers,andhoursofoperationNumberofmachines(ornumberofworkers)×hoursofoperationWhatistheweeklyavailabletimeforaworkcenterthathasfourmachinesandworkseighthoursadayforfivedaysaweek?5-8VisualBasicsofSupplyChainManagement,Version2.1–August2001UtilizationUtilization:PercentageofthetimethattheworkcenterisactiveExample:Workcenterisavailable120hoursaweek,butactuallyproducesgoodsfor90hours100%hoursAvailableorkedactuallywHoursnUtilizatioutilization75%100%12090=×5-9VisualBasicsofSupplyChainManagement,Version2.1–August2001EfficiencyEfficiency:ActualoutputratedagainststandardoutputExample:Aworkcenterisutilized100hoursperweekandproduces110standardhoursofwork5-10%100workedactuallyHoursworkofhoursStandard×efficiency%110%100100110=×=VisualBasicsofSupplyChainManagement,Version2.1–August2001EfficiencyA=hoursactuallyworkedB=standardhoursofworkproducedC=actualrateofproductionD=standardrateofproductionE=availabletimeF=actualquantityC=(F/A)xED=(F/B)xEEfficiency=(C/D)x100%=(B/A)x100%Efficiency=(actualrateofproduction/standardrateofproduction)x100%=(standardhoursofwork/hoursactuallyworked)x100%VisualBasicsofSupplyChainManagement,Version2.1–August2001Problem5.1Aworkcenterproduces90standardhoursofworkinoneweek.Thehoursscheduledare80,and70areactuallyworked.Calculatetheutilizationandefficiencyoftheworkcenter.Utilization=Efficiency==100%orkedactuallywHoursworkofhoursStandard×100%hoursAvailableorkedactu