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

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Material requirements planning (MRP) is a system that helps manufacturers plan and manage their production processes, materials, and inventory. One of the key steps in MRP is to perform rough-cut capacity planning (RCCP) and master production schedule (MPS) in a multi-level bill of materials (BOM). These tools or methods help to estimate the capacity and resources needed to produce the final products and the intermediate components. In this article, we will explore what are the best tools or methods for performing RCCP and MPS in a multi-level BOM.

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Gabriel José de Souza

Transforma??o em Suprimentos | Strategic Sourcing | Supply Chain | IA Aplicada em Suprimentos | Gest?o de Estoques
Mohamed Sadek, CPIM

Demand Planning Manager MENA @ adidas | CPIM

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.

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Gabriel José de Souza

Transforma??o em Suprimentos | Strategic Sourcing | Supply Chain | IA Aplicada em Suprimentos | Gest?o de Estoques
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Outro ponto importante é que o RCCP geralmente é feito em um nível mais agregado, considerando capacidades gerais de produ??o, enquanto o MPS é mais detalhado, especificando quantidades e tempos de produ??o para itens individuais. Isso permite uma coordena??o mais precisa das opera??es de produ??o e estoque, garantindo que a demanda seja atendida de forma eficiente e que os recursos sejam utilizados de maneira otimizada.

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Mohamed Sadek, CPIM

Demand Planning Manager MENA @ adidas | CPIM
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MPS (Master Production Schedule) is output of Master scheduling process and the Input to Master Scheduling is the production plan generated in S&OP. Production plan is don on family level and compinged by RP (Resources Planning) to check and validate available resources VS needed resources to achieve the production plan through bill of resources. MPS which called build schedule disaggregate the production plan into SKU level defined by dates and quantities. MPS could be done on finished good in MTS environment, assemblies in ATO or raw materials in MTO. RCCP (Rough Cut Capacity Planning) it's the process to convert MPS into needed capacity like machinery, Labor and warehouses. and it's compared to rated or demonstrated capacity.

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Helder Teixeira Ferreira

Gerente Comercial I Gerente de Logística I Yellow Belt Lean Six Sigma I Supervisor de Opera??es I Supervisor Comercial I Supervisor de Logística
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Para executar Reanima??o Cardiopulmonar (RCP) e Planejamento Mestre de Produ??o (MPS), algumas das melhores ferramentas incluem: 1.?Planejamento Mestre de Produ??o (MPS): - O MPS é uma etapa essencial no MRP (Material Requirements Planning). Ele ajuda a estimar a capacidade e os recursos necessários para produzir os produtos finais e componentes intermediários. Ferramentas como o planejamento de capacidade bruta (RCCP) s?o utilizadas é importante ressaltar que a execu??o correta desses procedimentos requer treinamento adequado e atualiza??o regular das técnicas. O uso de ferramentas adequadas e seguir os protocolos estabelecidos s?o essenciais para garantir a eficácia e seguran?a tanto na RCP quanto no MPS.

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2 Multi-level BOM

A multi-level BOM is a hierarchical structure that shows the relationship and dependency of the components that make up a product. It can have multiple levels of subassemblies, parts, and raw materials. For example, a bicycle can have a level 1 BOM that includes the frame, wheels, handlebars, and seat. Each of these components can have a level 2 BOM that includes the subcomponents, such as spokes, tires, brakes, and pedals. A multi-level BOM helps to trace the material requirements, costs, and lead times of each component and product.

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Ahmed Elsayed

Dynamic and results-driven Supply Chain and Sales Professional combined experience in inventory management, demand forecasting, procurement, sales operations, and customer care|
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(Bill of Materials) is a hierarchical breakdown of a product's components, showing their relationships and dependencies. It contains multiple levels of subassemblies, parts, and raw materials. For example, in a bicycle's BOM, level 1 may list components like the frame, wheels, and seat, while level 2 breaks down subcomponents like spokes, tires, and pedals. This structure allows for precise tracking of material requirements, costs, and lead times at each level, offering a clear view of how each part contributes to the final product. It’s crucial for efficient production and inventory management.

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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.

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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.

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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.

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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?

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Material Requirements Planning (MRP)

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

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1 RCCP vs MPS

2 Multi-level BOM

3 Tools or methods for RCCP

4 Tools or methods for MPS

5 Benefits and challenges

6 Here’s what else to consider

Material Requirements Planning (MRP)

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