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Basics of Supply Chain ManagementSession 5Capacity Management and Production Activity ControlCourse OutlineSession 1: Introduction to Supply Chain ManagementSession 2: ForecastingSession 3: Master PlanningSession 4: Material Requirements PlanningSession 5: Capacity Management and Production Activity ControlSession 6: Inventory FundamentalsSession 7: Inventory Management Session 8: Physical DistributionSession 9: Quality Management and PurchasingSession 10:Just-in-Time Manufacturing5-1a5-Session 5 ObjectivesCapacity management and its relation to priority planningRated or calculated capacityCapacity required for a shop orderPurpose and activities of production activity control (PAC)5-1b5-Session 5 Objectives (cont.)Process of order preparation and data requirements for a PAC systemTechniques of schedulingPurpose of a shop order and necessary informationImplementation and control of work ordersInput/output reports5-25-Capacity ManagementPlanning and controlling resources needed to meet production objectivesPlanning: Determining resources needed to meet the priority plan Selecting methods to make that capacity availableControlling: Monitoring output, comparing with the plan, and taking corrective actionCapacity management occurs at each planning level5-35-Planning LevelsPriority Management TechniquesCapacity Management TechniquesProductionPlanResource RequirementsPlanning(RRP)Rough-CutCapacity Planning (RCCP)MasterProductionScheduleMaterial Requirements Planning (MRP)CapacityRequirements Planning (CRP)Input/Output ControlProduction Activity Control (PAC)Operation SequencingFigure adapted from CPIM Exam Content Manual, APICS, 19975-5-4Defining CapacityThe capability of a system to perform its expected functionThe capability of a worker, machine, work center, plant, or organization to produce output per time period5-55-Capacity Planning ProcessDetermine the capacity availableTranslate the released and planned orders into capacity required Sum up capacitie
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