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Operations Management: An Integrated Approach, 5th Edition by Nada R. Sanders, R. Dan Reid

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ROUGH-CUT CAPACITY PLANNING

images Rough-cut capacity planning (RCCP)

The process of converting the master production schedule into requirements for key resources such as direct labor and machine time.

images Demonstrated capacity

Proven capacity calculated from actual performance data.

images Capacity planning using overall planning factors (CPOPF)

A rough-cut capacity planning technique. MPS items are multiplied by historically determined planning factors for key resources.

Rough-cut capacity planning (RCCP) calculates a rough estimate of the workload placed on critical resources by the proposed MPS. This workload is compared against demonstrated capacity for each critical resource. This comparison enables the master scheduler to develop a feasible MPS. Among the several approaches to rough-cut capacity planning is capacity planning using overall planning factors (CPOPF).

Capacity planning using overall planning factors (CPOPF) is a simple, rough-cut capacity planning technique. CPOPF develops a planning factor for each critical resource based on historical data. A planning factor shows how much of a resource is needed for one completed unit. Table D-4 shows the procedure for using CPOPF. Next, we will ...

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