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Resource planning

By Anonymous - Posted on 25 December 2011

Once the preliminary production plan is established, it must be compared to the existing resources of the company. This step is called resource requirements planning or resource planning. 2 questions must be answered:

- Are the resources available to meet the PP?
- If not, how will the difference be reconciled?

The resource requirement planning concepts entails a long range planning function intended to keep in balance the ability to meet demand and reasonably level load on the company’s resources. RRP over the long horizon provides data to test the validity of production plan & MPS.

A tool often used is the resource bill. This shows the quantity of critical resources needed to make one average unit of the product group. For instance, suppose the labor normally available in a period is 1600 hours. The priority plan requires 1735 hurs, a difference of 135 hours or about 8.4%. Extra capacity must be find or thepriority plan must be adjusted.

A bill of resources (BOR) describes a list of resources, such as labor, needed to complete a saleable product. It is used in capacity planning to prioritize and schedule work in manufacturing resource planning (MRP II) and enterprise resource planning (ERP) by highlighting critical resources. Critical resources are resources that are in short supply or that have long lead times.

The bill of resources complements the bill of materials (BOM), which lists physical sub-components of a product. Like a bill of materials, BORs are hierarchical with the top level representing the finished product or sub-assembly.

Steps in Resource Requirement Planning

Defining the resources to be considered is a management function. Resources range from engineering personal to cash to capital equipment and plant square footage. For RRP, productive capacity is divided into individual capacity resources or groups. For example, the entire machine shop may be defined as a resource, and the impact of a given MPS then is measured in terms of total load on the shop.

RRP is intended for relatively large grouping because its purpose is not to determine the exact load on an individual resource but rather to evaluate the overall impact of a given MPS. RRP is done in a macro level using rough approximation of load, and precise fit is not sought. The important thing is to be able to develop the alternative loads quickly so that several different MPSs may be tried out.

Computing load profiles for individual product is based on the simple proposition that each product in the MPS generates measurable load and the same procedures that are used to arrive at a machine load report can be used to compute a product load profile. A given load profile consists, for instance, of the standard hours of fabrication required, by period, to produce one unit of product measured against whatever fabrication resources is selected.



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