The document discusses various concepts related to manufacturing resource planning including capacity management, capacity requirements planning, rough cut capacity planning, distribution resource planning, scheduling, and loading methods. It defines key terms and describes strategies and processes for planning manufacturing capacity and resources to meet production demands and schedules.

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Presented By
Dr. Niraj Chaudahri
Assistant Professor,
Sanjivani College of Engineering ,
Dept.of MBA,
Kopargaon
1
Sanjivani College of Engineering, Kopargaon
Department of MBA
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309- Manufacturing Resource Planning
CRP & DRP

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Capacity Management
Capacity management refers to the wide variety
of planning actions used to ensure that a
business infrastructure has adequate
resources to maximize its potential activities
and production output under any condition.

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Capacity Management
• Capacity management theory consists of the planning,
IT monitoring, and administration actions undertaken
to ensure that information technology resources have
the capacity to handle data processing requirements
across the entire service lifecycle.
• The goal of capacity planning management is to
ultimately balance costs incurred against resources
required, and balance supply against demand. The
capacity management procedure concerns
performance, memory, and physical space.

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Capacity requirements planning (CRP)
• Capacity requirements planning (CRP) is the
process of discerning a firm's available
production capacity and whether it can meet
its production goals. The CRP method first
assesses the company's planned
manufacturing schedule. Then, capacity
requirements planning weighs this schedule
against the company's actual production
capabilities to see if the current capacity can
successfully meet the existing production
schedule.

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Capacity Requirement Planning Strategies

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Capacity Expansion Strategies
• Identify capacity requirements to meet
current and future projected workloads
• Develop and maintain a capacity management
plan
• Ensure performance goals are met on time
and within budget
• Monitor capacity continuously to support the
service level management
• Assist in diagnosing and resolving incidents

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Rough cut capacity planning
• Rough Cut Capacity Planning (RCCP) is a
process that allows you to predict future
capacity needs and take proactive steps to
ensure your organization has the resources it
needs to meet those demands. By
anticipating growth and changes in your
business, RCCP can help you avoid costly
oversights and keep your company running
smoothly.

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Rough cut capacity planning

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Difference between RCCP and CRP
• In the beginning planning stage for the master
production schedule, RCCP( rough cut capacity
planning) is usable. Whereas CRP (capacity
requirement planning) is usable for final capacity
check for master production schedule.
• RCCP gives rapid feedback, CRP gives feedback
slowly.
• CRP is more precise, whereas RCCP is less precise
compared to CRP.

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Distribution Resource Planning (DRP)
• Distribution resource planning (DRP) is a process for
the management of material requirements for
distribution centers. Distribution resource planning
can integrate the demands of a number of
distribution centers with the source of supply, or a
centralized management of supply distribution.

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Distribution Resource Planning (DRP)

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Distribution Resource Planning (DRP)
• Distribution resource planning, like the MPS, uses a
time-phased record. The DRP requirement can be
factored into the MPS to show the total distribution
demand The MPS displays the distribution demands for
the product, and the DRP display shows the demand
for each product at the distribution centre. This gives
the master scheduler the visibility to make decisions
about the conflicts of supply and demand with best
practice logistics.

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Scheduling
Scheduling is the process of arranging, controlling and
optimizing work and workloads in a production process
or manufacturing process. ... In manufacturing, the
purpose of scheduling is to minimize the production
time and costs, by telling a production facility when to
make, with which staff, and on which equipment.

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Scheduling

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The Importance of Scheduling
• Scheduling is the art of planning your activities so that
you can achieve your goals and priorities in the time you
have available. When it's done effectively, it helps you:
• Understand what you can realistically achieve with your
time.
• Make sure you have enough time for essential tasks.
• Add contingency time for "the unexpected."
• Avoid taking on more than you can handle.
• Work steadily toward your personal and career goals.
• Have enough time for family and friends, exercise and
hobbies.
• Achieve a good work-life balance

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Forward scheduling
Forward scheduling is planning with the primary
objective of completing a task as soon as possible,
with plenty of lead time. In production and
manufacturing, forward scheduling typically means
planning to ensure that each step in a process is
completed immediately when the time or resources
are available

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Forward scheduling

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Backward scheduling
• Backward scheduling is planning with the
primary objective of completing tasks right on
time. Backward scheduling is optimized for
flexibility and allows businesses to easily
incorporate last-minute changes or
customizations.
• For a planning , this would mean scheduling
to be arranged as close to the delivery
window as possible.

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Backward scheduling

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Finite loading
• Finite loading occurs when only a set amount of
work is allocated to a work center, which is capped at
its estimated capacity level. Doing so minimizes the
queue of work waiting in front of a work center.
Finite loading requires the use of detailed computer-
based planning, based on the normal usage
requirements of all jobs and the normal capacity
levels of work centers

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Infinite loading
• Infinite capacity planning is a method of
production planning that shows the load on
the resource of a work center is over or
under the available capacity in a given
period.
• It is a method of production planning that
shows the maximum amount of product that
can be produced over a given period of time,
even if demand for the product were to
increase or decrease.

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Finite & Infinite loading