It was a great welcome to the New Year with our Cricket team winning World Cup and our Tennis doubles player retaining the number one position. Here I am continuing my sharing of knowledge of ERP. In the last blog we talked about Material Requirement Planning. In this Blog lets discuss on Capacity Planning.
Capacity planning is nothing but planning of left out 2Ms i.e. Machine and Manpower. Again for the planning of these two resources to execute the production and give out the output, base is The Delivery Plan or the Monthly Production Plan.
We have understood from MRP execution is that each product will have BOM (Bill Of Material) which provides the data for calculation of material requirement as per production qty of the product. Now in the same for each product there must be some master which will define the utilization of manpower and machine. This master is called Routing Card.
Routing Card will define the process sequences for the production of the product, the machines required for each process. Usually machines in an industry are capable of doing multiple processes and multiple products. So each machine will have process wise and product wise timings required for completion. This time is called as cycle time. In simple words if a Machine produces N number of a product in t time then cycle time is N/t. This cycle time is the measure of Machine resource required.
Each machine requires an operator or more to operate the machine for completion of process. In most of the cases this manpower requirement for the machine is independent of processes or the products. So the manpower requirement for the machine is constant all the time. Hence based on the machines and production forecast manpower is already recruited. So that manpower planning for each monthly production plan is nothing but Machine utilization planning.
With these data of we will get the Production-Hour requirement for the Monthly Production plan by the following formula
In the Monthly Production Plan delivery dates of product are the target time dead lines which are to be achieved based of Total Production Time calculated. Following are the thumb rule steps for this planning
This is brief of capacity planning. If this looks complex, there are more complex things to be considered in planning. You must have understood that synchronized MRP and Capacity Planning is the one which will meet the Monthly Production Plan Target Dates and produces the products ready of delivery. Also in an continuously running industries there will be already products may be in finished status or in between some processes. So these are also to be considered.
Relax, I will not be confusing you more in this blog. We will see these complex synchronization and Final Planning which is ready for execution in the upcoming blog on next Monday. Keep watching..
Capacity planning is nothing but planning of left out 2Ms i.e. Machine and Manpower. Again for the planning of these two resources to execute the production and give out the output, base is The Delivery Plan or the Monthly Production Plan.
We have understood from MRP execution is that each product will have BOM (Bill Of Material) which provides the data for calculation of material requirement as per production qty of the product. Now in the same for each product there must be some master which will define the utilization of manpower and machine. This master is called Routing Card.
Routing Card will define the process sequences for the production of the product, the machines required for each process. Usually machines in an industry are capable of doing multiple processes and multiple products. So each machine will have process wise and product wise timings required for completion. This time is called as cycle time. In simple words if a Machine produces N number of a product in t time then cycle time is N/t. This cycle time is the measure of Machine resource required.
Each machine requires an operator or more to operate the machine for completion of process. In most of the cases this manpower requirement for the machine is independent of processes or the products. So the manpower requirement for the machine is constant all the time. Hence based on the machines and production forecast manpower is already recruited. So that manpower planning for each monthly production plan is nothing but Machine utilization planning.
Now we have routing card for the products in which sequence of processes required for producing the product is defined. Each process will have machine to do the processing. Each machine will have manpower defined for operating the machine. With these data in background capacity planning is to be done for the Monthly Production Plan.
With these data of we will get the Production-Hour requirement for the Monthly Production plan by the following formula
Total Production Time= Sum (Quantity of the product as in Planning X Cycle Time)
In words each product will have routing card with process sequence defined, each process in the routing card will have machine cycle time defined. Total of Cycle Time X Production Qty of all the processes is Production Time required for a product. By summing up the production hour for all the products Total Production Time required is obtained.
In the Monthly Production Plan delivery dates of product are the target time dead lines which are to be achieved based of Total Production Time calculated. Following are the thumb rule steps for this planning
1. Higher Production time and earlier Delivery date products are started first
2. Lower Production time and earlier Delivery date comes next
3. Next is Higher production time and later delivery date products
4. Lastly lower production time and later Delivery date products This is brief of capacity planning. If this looks complex, there are more complex things to be considered in planning. You must have understood that synchronized MRP and Capacity Planning is the one which will meet the Monthly Production Plan Target Dates and produces the products ready of delivery. Also in an continuously running industries there will be already products may be in finished status or in between some processes. So these are also to be considered.
Relax, I will not be confusing you more in this blog. We will see these complex synchronization and Final Planning which is ready for execution in the upcoming blog on next Monday. Keep watching..
No comments:
Post a Comment