Capacity Requirements Planning (CRP) : Technology Solutions Company

Technology Solutions Company
Capacity Requirements
Planning (CRP)
1
Copyright 2006 Technology Solutions Company
Objectives
Define Capacity Requirements Planning (CRP) and describe

how it relates to priority planning (MRP)
Describe how the Load Profile and Load Detail reports are used
to identify capacity problems in the priority plan generated by
MRP
Distinguish between Planned Capacity and Actual Load
Describe what steps can be taken to ensure that shop capacity
is efficiently utilized
2
CRP answers the question. . .
What do we need to get and when?

Man Hours
Machine Hours
BOM
PM
INV Material Capacity

Requirements Requirements
Planning Planning
RTGs
WCs
3
Capacity Management
HIGH
Capacity
Requirements
Planning
SHOP FLOOR
OPERATIONS
D
E Rough Cut
T Capacity
A Planning
MASTER
I SCHEDULING
L
S Resource
Requirements
Planning
PRODUCTION
PLANNING
LOW
Operational Tactical Strategic
CURRENT RESOURCE PLANNING HORIZON FUTURE 4

Capacity Requirements Planning
The function of establishing, measuring, and adjusting

limits or levels of capacity. The term capacity
requirements planning in this context is the
process of determining how much labor and
machine resources are required to accomplish the
tasks of production. Open shop orders, and
planned orders in the MRP system, are input to
CRP which "translates" these orders into hours of
work by work center by time period.
....APICS DICTIONARY
5
MRP generates a priority DEMAND SUPPLY

plan based on supply and
demand
MRP
The MRP plan is oblivious to
the capability to execute the
plan
Time & In House
Quantity Out House
An effective MRPII system NEED CAPACITY
requires an effective capacity
planning system
CRP
6
CRP is both a function and a tool

As an organizational function, CRP establishes, measures,
and adjusts the limits (or levels) of capacity
As a Capacity Management tool, CRP is used to determine
how much labor and machine resources are required to
accomplish the tasks of production
CRP is a short range analytical tool which determines if the
MRP generated plan is achievable
7
The mechanics of CRP are straightforward

The planned orders from MRP are "blown through the
routings for each order to generate a capacity load profile
and details at each work center defined in the routings
8
Routings
Start Due
Operation
OP 1 OP 2 OP 3 OP 4 OP 5
Sequence
.5 Hrs 1 Hr 3 Hrs .5 Hrs 4 Hrs Standard

Hours
Paint Work
Lathes Drilling Milling Deburr
Shop Center
Load
Profiles
9
Load Profile
A Load Profile is generated for each work center
Average Available
Capacity
H
O PLANNED ORDERS
U
R
S
RELEASED ORDERS
TIME
Planned Orders + Released Orders x WC Standard = Load
10
Load Profile
Load Released and MRP Planned Orders

A single work center may be used in many different routings
The resulting load profile is a sum of all the work actually at
and planned to be at that work center
Order 4,
Order 3, Part D
Part A
Order 5,
Order 2,
Part A
Part B
Order 2, Part B
Order 1, Order 6,
Part C Work Center No. 5100 Part B
Dept 82
11
Load Leveling
Under loaded Work Centers may be just as much of problem as

over loaded Work Centers
Ideally, a Work Center should be "level loaded" and with MRP
there are several things a planner can do to achieve this
Over
Capacity
Under
Work Center No. 5100

Dept 82
12
Load Details
This report tells the planner what a specific order is contributing

to the problem
Other information
which could be Work Center No.: 5100 FINISHING
on this report Ave Daily Cap: 40
Due Date ORDER ST OP ST DT HRS
Load (%) C1RWK1 WIP 031698 15
Operation C2MFG1 REL 031698 10
Number C3MFG1 REL 031698 15
Part Number
C4MFG1 REL 031798 22
C1MFG2 PLN 032398 6
Quantity
C1MFG3 PLN 032498 15
Time
C3MFG1 PLN 032498 11
Remaining
Data 13
Planned Capacity
Planned Capacity may be based on standards or on

demonstrated capacity
Capacity can vary due to vacation periods, holidays, planned
plant shutdowns, new machine acquisition, etc.
The database must be periodically updated with the planned
capacity numbers
Demonstrated Capacity
Planned Orders
Released Orders
Actual Load The sum of released and/or planned shop orders

14
Does Projected load match Available Capacity?
CHANGE SCHEDULE
Split a released order
Use the firm planned order
ADJUST CAPACITY
Subcontract
Off load to a substitute
resource
15
Performance Measurement
What is being measured? Capacity Plan Accuracy
What is the target? 100% +/- 5%
How is the % calculated? Planned Input

Actual Input
x 100
Planned Output
x 100
Actual Output
Performance Criteria:
Standard hours planned to be received
Standard hours actually received
Standard hours planned to be earned
Standard hours actually earned 16
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End of Capacity
Requirements Planning
17

Capacity Requirements Planning (CRP) : Technology Solutions Company

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Technology Solutions Company

Define Capacity Requirements Planning (CRP) and describe

What do we need to get and when?

INV Material Capacity

CURRENT RESOURCE PLANNING HORIZON FUTURE 4

The function of establishing, measuring, and adjusting

MRP generates a priority DEMAND SUPPLY

CRP is both a function and a tool

The mechanics of CRP are straightforward

.5 Hrs 1 Hr 3 Hrs .5 Hrs 4 Hrs Standard

A Load Profile is generated for each work center

Load Released and MRP Planned Orders

Under loaded Work Centers may be just as much of problem as

Work Center No. 5100

This report tells the planner what a specific order is contributing

Planned Capacity may be based on standards or on

Actual Load The sum of released and/or planned shop orders

Does Projected load match Available Capacity?

What is the target? 100% +/- 5%

How is the % calculated? Planned Input

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