Material Requirement Planning (MRP)

Material Requirement Planning has become a way of life in production and inventory management.

This planning approach is still the standard across the globe for determining what to buy an make, how much to buy and make, and when to buy and make it.

Material planning in MRP is coordinated centrally. The starting point is the demand for end product. The Master Production Scheduled (MPS) contains information about what quantities of each end product will be produce at what time within the planning horizon.

The time basis is discrete and conventionally a one well period or time bucket is used. The other type of input in MRP system, such as Bill of Materials BOM, production and procurement lead times, or the current inventory status also important for material planning.

The MPS is exploded to downstream items through the product structures BOM. It will generates replenishment orders for uncritical components and parts in a multistage production environment.
Material Requirement Planning (MRP)

Rough cut capacity planning (RCCP)

Rough cut capacity planning (RCCP) aims at evaluating a tentative MPS with respect to available productive capacity.

It used to test the feasibility of the MPS from the perspective of capacity requirements prior to committing to the changes and running MRP and CRP.

The role of rough cut capacity planning is to be able to compare different tentative master production schedules, before running MRP. One of the major benefits of rough cut capacity planning is that master schedulers do not need a detail routing for every item in the plan. This is what makes rough cut capacity planning a simple and quick tool to use.

In contrast, detail capacity requirements planning (CRP) requires master scheduling, material requirements planning, inventory control, bills-of-material, detail routings and shop floor control.

On the average rough cut capacity planning can be productively used in as few as 30 to 90 days after implementing a rough cut capacity system.

Rough cut capacity planning starts with the overall strategic plan and overlaps with the 12-month rolling demand plan. The strategic element of rough cut capacity planning is simply the assurance that the business is set with plants and equipment for the three to five year plan.
Rough cut capacity planning (RCCP)