Operations Management: An Integrated Approach, 5th Edition

THE ROLE OF CAPACITY REQUIREMENTS PLANNING (CRP)

A company uses a rough-cut capacity planning technique to determine whether a proposed MPS is feasible. In Supplement D, we see how to evaluate the feasibility of a proposed MPS with capacity planning using overall planning factors (CPOPF). Rough-cut capacity planning techniques use data from the proposed MPS. Capacity requirements planning (CRP) uses data from MRP. We calculate workloads for critical work centers based on open shop orders and planned shop orders. Work begins on open shop orders while planned shop orders are scheduled to be done. We translate these orders into hours of work by work center and by time period.

Open shop orders Released manufacturing orders.

EXAMPLE 14.4 Calculating Workloads

Table 14-11 shows items scheduled for Work Center 101. These items are either taken directly from MRP's planned orders or they are already open shop orders. We want to calculate workloads for Work Center 101.

•Before You Begin: Capacity requirements planning (CRP) uses the planned order releases from the MRP output to calculate the workload for specific work centers. The workload associated with a planned order has two parts: the setup to do the job and the processing time for the job. The primary difference between rough-cut capacity planning (RCCP) and CRP is that CRP uses the actual planned orders instead of the quantity needed ...