What are the best tools or methods for performing RCCP and MPS in a multi-level BOM?

1 RCCP vs MPS

RCCP and MPS are two different but related concepts in MRP. RCCP is a high-level analysis that compares the aggregate demand and the available capacity of the production facilities, such as machines, labor, and space. It helps to identify potential bottlenecks, capacity gaps, and feasibility issues in the long-term planning horizon. MPS is a detailed plan that specifies the quantity and timing of each product or end item to be produced in the short-term planning horizon. It helps to coordinate the production activities, materials procurement, and inventory management.

3 Tools or methods for RCCP

There are several tools or methods that can be used to perform RCCP in a multi-level BOM. One of the most common ones is the resource profile, which is a graphical representation of the demand and capacity of each resource over time. It can show the available hours, the required hours, and the surplus or deficit of each resource. Another tool or method is the resource bill, which is a table that shows the amount of each resource needed to produce one unit of each product or component. It can be used to calculate the total resource requirements for the aggregate demand.

4 Tools or methods for MPS

There are also several tools or methods that can be used to perform MPS in a multi-level BOM. One of the most common ones is the time-phased product structure, which is a table that shows the quantity and timing of each product or component to be produced or procured in each period. It can be used to generate the net requirements, planned order releases, and planned order receipts for each item. Another tool or method is the lot-sizing technique, which is a rule or formula that determines the optimal batch size for each item. It can be used to balance the trade-off between setup costs and holding costs.

5 Benefits and challenges

Performing RCCP and MPS in a multi-level BOM can bring many benefits and challenges for manufacturers. Some of the benefits are: better alignment of demand and capacity, improved customer service and satisfaction, reduced inventory and waste, and increased efficiency and productivity. Some of the challenges are: complex and dynamic data, multiple constraints and uncertainties, trade-offs and conflicts, and coordination and communication.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?