Section H: Capacity Management

Question 1

What two modules encompasses Capacity Management?

Answer 1

Capacity management includes capacity planning and capacity control.

Question 2

Capacity

Answer 2

Capacity : The capability of a worker, machine, work center, plant, or organization to produce output per time period. Capacity required represents the system capability needed to make a given product mix (assuming technology, product specification, etc.). As a planning function, both capacity available and capacity required can be measured in the short term (capacity requirements plan), intermediate term (rough-cut capacity plan), and long term (resource requirements plan). Capacity control is the execution through the I/O control report of the short-term plan.

Question 3

Capacity management

Answer 3

Capacity management : The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules (i.e., the production plan, master production schedule, material requirements plan, and dispatch list).

Question 4

Capacity planning

Answer 4

Capacity planning : The process of determining the amount of capacity required to produce in the future. This process may be performed at an aggregate or product-line level (resource requirements planning), at the master-scheduling level (rough-cut capacity planning), and at the material requirements planning level (capacity requirements planning).

Question 5

Capacity available

Answer 5

Capacity available : The capability of a system or resource to produce a quantity of output in a particular time period.

Question 6

Capacity required

Answer 6

Capacity required : The capacity of a system or resource needed to produce a desired output in a particular time period.

Question 7

Load

Answer 7

Load : The amount of planned work scheduled for and actual work released to a facility, work center, or operation for a specific span of time. Usually expressed in terms of standard hours of work or, when items consume similar resources at the same rate, units of production.

Question 8

What is the unit of Capacity?

Answer 8

Capacity is a rate, not a quantity.

Question 9

standard time

Answer 9

standard time as follows: The length of time that should be required to (1) set up a given machine or operation and (2) run one batch or one or more parts, assemblies, or end products through that operation. Used in determining machine requirements and labor requirements. Assumes an average worker who follows prescribed methods, and allows time for personal rest to overcome fatigue and unavoidable delays. Also frequently used as a basis for incentive pay systems and as a basis of allocating overhead in cost accounting systems.

Question 10

the general steps in the iterative capacity planning process…

Answer 10

1. Calculate the capacity available. (This will be the rated or demonstrated capacity, as calculated in the next topic.)
2. Calculate the load per time bucket (capacity required), and determine differences between capacity available and capacity required.
3. Resolve differences. Adjust available capacity first, and, if necessary, change the priority plan to match capacity available.

Question 11

capacity requirements planning (CRP)

Answer 11

capacity requirements planning (CRP)

The function of establishing, measuring, and adjusting limits or levels of capacity. In this context, the term refers to the process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production. Open shop orders and planned orders in the MRP system are input to CRP, which through the use of parts routings and time standards translates these orders into hours of work by work center by time period. Even though rough-cut capacity planning may indicate that sufficient capacity exists to execute the MPS, CRP may show that capacity is insufficient during specific time periods.

Question 12

routing

Answer 12

routing in part as follows: Information detailing the method of manufacture of a particular item. It includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. In some companies, the routing also includes information on tooling, operator skill levels, inspection operations and testing requirements, and so on.

Question 13

manufacturing (shop) calendar

Answer 13

manufacturing calendar, also called a shop calendar, which the Dictionary defines as follows: A calendar used in inventory and production planning functions that consecutively numbers only the working days so that the component and work order scheduling may be done based on the actual number of workdays available.

Question 14

work center

Answer 14

work center, also called a load center, as follows: A specific production area, consisting of one or more people and/or machines with similar capabilities, that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling.

Question 15

lead time

Answer 15

lead time in part as follows: A span of time required to perform a process (or series of operations).… Individual components of lead time can include order preparation time, queue time, processing time, move or transportation time, and receiving and inspection time.

Question 16

queue

Answer 16

Queue : A waiting line. In manufacturing, the jobs at a given work center waiting to be processed. As queues increase, so do average queue time and work-in-process inventory.

Question 17

setup time

Answer 17

Setup time : The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B.

Question 18

Setup

Answer 18

Setup : 1) The work required to change a specific machine, resource, work center, or line from making the last good piece of item A to making the first good piece of item B. 2) The refitting of equipment to neutralize the effects of the last lot produced (e.g., teardown of the just-completed production, preparation of the equipment for production of the next scheduled item).

Question 19

run time

Answer 19

Run time : The time required to process a piece or lot at a specific operation. Run time does not include setup time.

Question 20

wait time

Answer 20

Wait time : The time a job remains at a work center after an operation is completed until it is moved to the next operation. It is often expressed as a part of move time.

Question 21

move time

Answer 21

Move time : The time that a job spends in transit from one operation to another in the plant.

Question 22

transit time

Answer 22

Transit time : A standard allowance that is assumed on any given order for the movement of items from one operation to the next.

Question 23

Internal setup time

Answer 23

Internal setup time : The time associated with elements of a setup procedure performed while the process or machine is not running.

Question 24

External setup time

Answer 24

External setup time : The time associated with elements of a setup procedure performed while the process or machine is running.

Question 25

process batch

Answer 25

process batch , which the Dictionary defines as The quantity or volume of output that is to be completed at a workstation before switching to a different type of work or changing an equipment setup.

Question 26

In a job shop environment (also known as a functional or intermittent layout, discussed in section A of the learning system text), which one of these lead time elements typically accounts for most of the lead time?

Answer 26

In a job shop or functional layout, queue is typically the largest element of lead time, accounting for 85 percent to 95 percent of the total manufacturing lead time.

Question 27

Why is queue typically the largest element of lead time?

Answer 27

There are many reasons, but most of them center on the problem of coordinating and organizing material flow. This is a problem, particularly in a job shop environment, where orders take different times in different work centers, which also are being scheduled to make other components and subassemblies.

Question 28

How can queue be managed?

Answer 28

Production activity control is responsible for managing the queue by regulating the flow of work into and out of work centers. IF the number of order waiting to be worked on (load) is reduced, so is the queue time, the lead time, and work-in-process. Increasing capacity also reduces queue. Production activity control must manage both the input of orders to the production process and the available capacity to control queue and work-in-process

Question 29

Available time

Answer 29

Available time (hours) = number of machines x hours per day x days per week

Question 30

Utilization rate

Answer 30

Utilization = hours actually worked ÷ available time

Question 31

Efficiency

Answer 31

Efficiency = Standard Hours Produced ÷ Hours Actually Worked

Question 32

Rated capacity

Answer 32

Rated capacity in standard hours = available time × utilization × efficiency