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Apics Capacity Management and PAC
Apics Session 5 Capacity Management and Productions Activity Control
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12/24/2013

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Term
CRP (Capacity Requirement Planning)
Definition
provides a check on the validity of the priority plan: Are resourses available to accomodate the planned due dates for components and the final product ?
Term
Capacity management at sales and operations planning (S&OP)level is called
Definition
resourse planning
Term
Capacity management at the master scheduling level is called
Definition
rough-cut capacity planning (RCCP)
Term
Capacity Management consist of 2 major phases:
Definition
1.Planning
2.Controlling
Term
Planning phase occurs at all priority levels (S&OP, Master Scheduling and MRP) and goal is to:
Definition
1.determine resourses needed for the capacity plan
2.validate that they will be available and select methods to ensure availability when needed
3.Links priority schedule with available manufacturing resourses
Term
Controlling phase occurs during production activity control (PAC) and:
Definition
1.Monitor output
2.Compare it with the plan
3.Taking corrective actions
Term
2 Major components in defining capacity are:
Definition
1.The capability of a system to perform its expected function
2.The capability of a worker, mashine, work cener or organisation as measured in output per time period
Term
Can value of goods (EUR, USD etc.) can be used to measure capacity ?
Definition
No, these are used to measure the value ot output.
Term
Which parameters can be used to measure capacity ?
Definition
standart hours, units, kilograms
Term
To calculate capacity we need following information:
Definition
available time
utilization
efficiency
Term
calculation formula for available time =
Definition
number of machines (workers) x hours per day x days per week
Term
Calculation formula for utilization =
Definition
hours actually worked / hours of available time (x 100%)
Term
Utilization is determined from
Definition
historical data or a work sampling study
Term
Calculation of efficiency formula =
Definition
standart hours of work produced / hours actually worked (x100%)
Term
Efficiency is
Definition
a measure shown as a persentage of the actual output compared with the standart expected output.
Term
Calculation of rated capacity formula =
Definition
available time x utilization x efficiency
Term
Calculation of demonstrated capacity formula =
Definition
sum of standart house for "n" past periods / "n" past periods
Term
Demonstrated capacity is
Definition
proven capacity calculated from actual past performance data. Result is an avarage capacity estimate for a resourse.
Term
Operation time per work center =
Definition
number of pieces x run time per piece + set up time
Term
Key inputs to CRP (further to available capacity) are:
Definition
Load
data requirements
shop calendar
lead-time elements
Term
Components of manufacturing lead times are:
Definition
Queue - time spent waiting before operation begins
Set up - time spent getting ready for the operation
Run - time spent performing an operation
Wait - time spent waiting after operation ends
Move - time spent physically moving materials between operations
Term
Load on the work center consist of:
Definition
Set up time
Run time
Term
Time spent between operations include:
Definition
Queue time
Wait time
move time
Term
Steps of CRP process are:
Definition
1.Scheduling orders simulation
2.Establishing load profile
3.Resolving differencies
Term
Scheduling Orders Simulation determins following:
Definition
1.When orders should be started and completed at each work center
2.Impact of queue, wait and move times on timing of load on work center
3.Operation time required at each work center.
Term
Load profile is:
Definition
a graphic comparison of each work center's available capacity and the load established by the planned and released orders for each time period of the plan.
Term
Objectives of Production Activity Control (PAC) are:
Definition
1.execute the MPS and MRP
2.Optimize use of resources
3.Minimize work in process (WIP)
4.Maintain customer service
Term
Functions of PAC with their relation also known as "closed-loop system" are:
Definition
1.Plan/ Replan
2.Implement
3.Control
Term
Basic scheduling and loading techniques are:
Definition
1.Forward scheduling - activities are schedules from a nown start date through the finish date
2.Backward scheduling - activities are schedules back from the due date
3.Inifitite laoding assumes that capacity is infinite at any work center
4.Finite lading assumes that there is a definite limit to capacity and any work center
Term
Key characteristics and principles of bottlenecks and bottleneck management:
Definition
1.Throughput: The throughput volume of a system during a specified time period is constrained by the bottleneck (drum that controls the throughput of the entire system.
2.Rope: The rope communicates the schedule of raw material releases to the gateway operation;This establishes a flow of materials to the bottleneck that ensures the bottleneck will never be short of work.
3.Time buffer: The Time between the release of materials to the gateway operation and receipt of WIP at the bottleneck is equal to the manufaturing lead time plus some safety time.
4.Work centers after bottleneck: these should produce at the rate of the bottleneck as well.
Term
Implementation function of PAC involves:
Definition
1.Preparation of the shop order packet
2.Release of the shop order to the factory
Term
Critical Ration (CR) is a commonly used dispatching rule. It is based on:
Definition
the ration of the time ramining to complete an order (time to due date)to work remaining (work hours to due date). Work ramining also is called "lead time remaining".
Term
Flow control is used in
Definition
continuous manufacturing system. Production control requirement and activities are not as complex and demanding as in intermitttent batch production routed through functional deparments.
Term
In Lean production, Flow control is faciliated by:
Definition
1.Producion rate tat is based on the rate of customer demand or takt time.
2.Kanban signals that trigger the pull of materials
3.a production floor layout that enables managers to observe WIP levels at work stations and make adjustments to work center resourses
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