2. Resource Planning OPIM 310-Lecture #7 Instructor: Jose Cruz

3. Enterprise Resource Planning (ERP) Organizes and manages a company’s business processes by sharing information across functional areas Organizes and manages a company’s business processes by sharing information across functional areas Connects with supply-chain and customer management applications Connects with supply-chain and customer management applications

4. ERP’s Central Database Finance & Accounting Sales & Marketing Human Resources Production & Materials Management ERP Data Repository

5. ERP and MRP MRP (material requirements planning) was the precursor to ERP MRP (material requirements planning) was the precursor to ERP Primarily a production planning and control system Primarily a production planning and control system MRP evolved to MRP II (manufacturing resource planning) MRP evolved to MRP II (manufacturing resource planning) ERP and ERP II continue to extend the links through all business processes ERP and ERP II continue to extend the links through all business processes

6. Bills of materials Engineering and process designs Material Requirements Plan Output Inventory transactions Inventory records Other sources of demand Authorized master production schedule Material requirements plan MRPexplosion

7. Bill of Materials Figure 16.3 Seat cushion Seat-frame boards Front legs A Ladder-back chair Back legs Leg supports Back slats

8. Bill of Materials J (4) Seat-frame boards I (1) Seat cushion H (1) Seat frame G (4) Back slats F (2) Back legs C (1) Seat subassembly D (2) Front legs B (1) Ladder-back subassembly E (4) Leg supports ALadder-backchair Figure 16.3

9. Material Requirements Planning Computerized inventory control & production planning system Computerized inventory control & production planning system Schedules component items when they are needed - no earlier and no later Schedules component items when they are needed - no earlier and no later

10. When to Use MRP Dependent and discrete items Dependent and discrete items Complex products Complex products Job shop production Job shop production Assemble-to-order environments Assemble-to-order environments

11. Demand Characteristics 12345 Week 400 400 – 300 300 – 200 200 – 100 100 – No. of tables Continuous demand M T W Th F M T W Th F 400 400 – 300 300 – 200 200 – 100 100 – No. of tables Discrete demand Independent demand 100 tables Dependent demand 100 x 1 = 100 tabletops 100 x 4 = 400 table legs

12. MRP Outputs Planned orders Planned orders Work orders Work orders Purchase orders Purchase orders Changes to previous plans or existing schedules Changes to previous plans or existing schedules Action notices Action notices Rescheduling notices Rescheduling notices

13. Master Production Schedule Ladder-back chair Kitchen chair Desk chair 12 AprilMay 345678 Aggregate production plan for chair family 200 670 150 120 200 150 200 120 670

14. Master Production Schedule Drives MRP process with a schedule of finished products Drives MRP process with a schedule of finished products Quantities represent production not demand Quantities represent production not demand Quantities may consist of a combination of customer orders & demand forecasts Quantities may consist of a combination of customer orders & demand forecasts Quantities represent what needs to be produced, not what can be produced Quantities represent what needs to be produced, not what can be produced

15. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 12345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases Week 150230000012000150012000 3700

16. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150

17. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150 = 117 units.

18. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00

19. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t Scheduled or planned receipts in week t =+–

20. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 – 3 –153–273–273 Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t Scheduled or planned receipts in week t =+–

21. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117–3 – 3 –153 – 273 Planned Orders Explanation: Without a new order in week 4, there will be a shortage of three units: 117 + 0 + 0 – 120 = – 3 units.

22. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 Planned Orders

23. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 Planned Orders Explanation: Adding the planned receipt brings the balance to 230 117 + 0 + 230 – 120 = 227 units.

24. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 Planned Orders Explanation: Adding the planned receipt brings the balance to 230 117 + 0 + 230 – 120 = 227 units.

25. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 Planned Orders Explanation: Offsetting for a two-week lead time puts the corresponding planned order release back to week 2.

26. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 Planned Orders Explanation: Offsetting for a two-week lead time puts the corresponding planned order release back to week 2.

27. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 –43 Planned Orders Explanation: The first planned order lasts until week 7, when projected inventory would drop to – 43.

28. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 Planned Orders Explanation: 230 Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187.

29. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 Planned Orders Explanation: 230 Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187. 187

30. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 187 230 Planned Orders Explanation: The corresponding planned order release is for week 5.

31. Planned Orders Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 187 230 187

32. Lot-Sizing Rules Fixed order Quantity (FOQ)- A rule that maintains the same order quantity each time an order is issued.Fixed order Quantity (FOQ)- A rule that maintains the same order quantity each time an order is issued. Periodic Order Quantity (POQ)- A rule that allows a different order quantity for each order issued but tends to issue the order at predetermined time intervals.Periodic Order Quantity (POQ)- A rule that allows a different order quantity for each order issued but tends to issue the order at predetermined time intervals. Lot For Lot (L4L)- A rule under which the lot size ordered covers the gross requirements of a single weekLot For Lot (L4L)- A rule under which the lot size ordered covers the gross requirements of a single week

33. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 12345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases Week 150230 117120150120 37 117 117

34. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 POQ lot size Gross requirements for weeks 4, 5, and 6 Inventory at end of week 3 = –

35. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117

36. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0 + 150)

37. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0 + 150) – 117

38. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0 + 150) – 117 = 153 units 153

39. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0 + 150) – 117 = 153 units 153

40. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0 + 150) – 117 = 153 units 153 150

41. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0 + 150) – 117 = 153 units 153 150 153

42. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 (120 + 0) – 0 = 120 units 153 150 153 150000 120 120

43. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 153 150 153 150000 120 120

44. Lot-Sizing Rules – POQ

45. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 12345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases Week 150230 117120150120 37 117 117

46. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 L4L lot size Gross requirements in week 4 Inventory balance at end of week 3 = –

47. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 = 120 – 117 = 3 L4L lot size

48. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 3 = 120 – 117 = 3 L4L lot size

49. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 3 3 0 = 120 – 117 = 3 L4L lot size

50. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 3 3 0 00

51. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 3 3 0 150 00

52. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 3 3 0 150 00 0 120

53. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 3 3 0 150 00 0 120 0

54. Lot-Sizing Rules – L4L

55. Lot-Sizing Rule Comparison  The FOQ rule generates high average inventory because it creates remnants.  The POQ rule reduces average on-hand inventory because it does a better job of matching order quantity to requirements.  The L4L rule minimizes inventory investment but maximizes the number of orders placed.

56. Safety Stock

57. MRP Outputs Material requirements plan Action notices   Releasing new orders   Adjusting due dates Priority reports   Dispatch lists   Supplier schedules Capacity reports   Capacity requirements planning   Finite capacity scheduling   Input-output control Manufacturing resources plan Performance reports Cost and price data Routings and time standards MRP explosion

58. Bill of Materials J (4) Seat-frame boards H (1) Seat frame I (1) Seat cushion C (1) Seat subassembly

59. MRP Explosion Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 0000 000 0000 227 77187 230

60. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 MRP Explosion

61. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 MRP Explosion Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 000 300000 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 000 0000

62. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 230 000 300000 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 230 000 0000 Usage quantity: 1 MRP Explosion

63. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 23 0 45678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 230 0 000 300000 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 23 0 45678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 230 0 000 0000 Usage quantity: 1 MRP Explosion

64. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 40 23 0 45 0 6 0 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 110110 230 00 000 300000 110180 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 0 23 0 45 0 6 0 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 00 230 00 000 0000 00000 MRP Explosion

65. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 MRP Explosion

66. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 Gross requirements 1 0 2345678 Scheduled receipts Planned receipts Planned order releases 200 Week 000 0000 Projected on-hand inventory Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week MRP Explosion

67. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 Gross requirements 0 1 0 23 1200 45 0 6 0 78 Scheduled receipts Planned receipts Planned order releases 200 Week 0000 000 0000 Projected on-hand inventory Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week Usage quantity: 4 MRP Explosion

68. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 Gross requirements 0 1 0 200 23 1200 45 0 6 0 78 Scheduled receipts Planned receipts Planned order releases 200 Week 200200 0000 000 0000 500 1500 Projected on-hand inventory Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week Figure 16.12 MRP Explosion

69. Capacity Requirements Planning (CRP) Computerized system that projects load from material plan Computerized system that projects load from material plan Creates load profile Creates load profile Identifies underloads and overloads Identifies underloads and overloads

70. Capacity Usually expressed as standard machine hours or labor hours Capacity= (no. machines or workers) x (no. shifts) x (utilization) x (efficiency)

71. Capacity Terms Load profile Load profile Compares released and planned orders with work center capacity Compares released and planned orders with work center capacity Capacity Capacity Productive capability; includes utilization and efficiency Productive capability; includes utilization and efficiency Utilization Utilization % of available working time spent working % of available working time spent working

72. More Capacity Terms Efficiency Efficiency Load Load The standard hours of work assigned to a facility The standard hours of work assigned to a facility Load percent Load percent The ratio of load to capacity Load % = (load/capacity)x100% The ratio of load to capacity Load % = (load/capacity)x100%

73. Capacity Requirements Planning MRP planned order releases Routing file Capacity requirements planning Open orders file Load profile for each machine center

74. Initial Load Profile Figure 12.9 Hours of capacity 123456123456123456123456 Time (weeks) Normalcapacity 120 120 – 110 110 – 100 100 – 90 90 – 80 80 – 70 70 – 60 60 – 50 50 – 40 40 – 30 30 – 20 20 – 10 10 – 0 0 –

75. Remedies for Underloads 1.Acquire more work 2.Pull work ahead that is scheduled for later time periods 3.Reduce normal capacity

76. Remedies for Overloads 1.Eliminate unnecessary requirements 2.Reroute jobs to alternative machines or work centers 3.Split lots between two or more machines 4.Increase normal capacity 5.Subcontract 6.Increase the efficiency of the operation 7.Push work back to later time periods 8.Revise master schedule

77. Adjusted Load Profile Hours of capacity 123456123456123456123456 Time (weeks) Normalcapacity 120 120 – 110 110 – 100 100 – 90 90 – 80 80 – 70 70 – 60 60 – 50 50 – 40 40 – 30 30 – 20 20 – 10 10 – 0 0 – Pull ahead Push back Overtime Work an extra shift