Operations Management Exam 3 Notes

Operations Management Exam 3 Notes - Operations Management...

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Unformatted text preview: Operations Management Exam 3 Notes Capacity Requirements Planning pp. 695-699- Capacity requirements planning (CRP) – computerized system that projects the load from a given material plan onto the capacity of a system and indentifies underloads and overloads.- I t is up to the MRP planner to LEVEL THE LOAD – smooth out resource requirements so capacity constraints are not violated o Accomplished by shifting requirements, reducing requirements, or temporarily expanding capacity. - There are 3 major inputs to CRP o Planned order releases from MRP process o Routing file – specifies which machines or workers are required to complete an order from MRP plan, in what order the operations are to be conducted, and length of time each operation should take o Open Source File – contains information on status of jobs that have already been released but have not been completed. - With this information a load profile can be created. A load profile compared released orders and planned orders with work center capacity. Calculating Capacity- Capacity – maximum capability to produce. Measured as units of output, dollars of output, hours of work, or number of customers processed over specified period of time. o Affected by: Mix of products and services Choice of technology Size of facility Resources allocated - Rated Capacity is theoretical output that could be attained if a process were operating at full speed without interruption, exceptions, or downtime. - Effective Capacity takes into account efficiency with which a particular product/consumer can be processed, and utilization of scheduled hours of work.- Calculated As: - Utilization – percentage of available working time that worker actually works or machine actually runs. - Efficiency – how well a machine or worker produces compared to standard output level o 100% efficiency is considered normal o Efficiency is also dependent on product mix – some orders will take longer to process, some workers better at processing certain orders. - Load – standard hours of work assigned to a production facility. - Load Percent Formula: - Centers with above 100% load will not be able to complete scheduled work without adjustment in capacity or load. Load Profiles- Load Profiles – graphical comparison of load versus capacity- Underloaded conditions can be leveled by: o Acquiring more work o Pulling work ahead that is scheduled for later periods o Reducing normal capacity- Additional work can be acquired by: o Transferring similar work from other machines in same shop that are near or over capacity o Making components in house that are normally purchased from outside suppliers o Seeking work from outside sources- Feasibility of scheduling work in an earlier time period is contingent on availability of required materials or components....
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Operations Management Exam 3 Notes - Operations Management...

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