What is Capacity Requirements Planning (CRP)?

Definition and Core Purpose

Capacity Requirements Planning (CRP) is a detailed function within Manufacturing Planning and Control (MPC) systems designed to ensure the feasibility of production and material plans. It operates by establishing, measuring, and adjusting limits of capacity at a granular level. CRP uses data from the Material Requirements Planning (MRP) system to calculate the total capacity required (load) on all work centers over a specific horizon and compares it against the available capacity. • Detailed Resource Planning: Unlike high-level planning, CRP determines the exact amount of labor and machine resources required to execute specific production tasks. • Feasibility Check: It acts as the final reality check for the Material Requirements Plan. Even if a high-level check like Rough-Cut Capacity Planning (RCCP) indicates sufficient capacity, CRP may reveal bottlenecks during specific weeks or days that would prevent execution.

The Mechanics: From Orders to Hours

CRP functions as a translation engine, converting planned orders into specific work hours. • Input Data: It consumes open shop orders (scheduled receipts) and planned orders generated by the MRP system. • Translation Process: Using item routings (sequences of operations) and time standards (setup and run times), it translates these orders into precise hours of work required at each specific work center. • Output: The primary output is a Load Profile—a time-phased display of future capacity requirements versus availability. This allows planners to identify and resolve overloads before they hit the shop floor.

CRP in the Planning Hierarchy

CRP operates at the execution level, bridging the gap between tactical planning and shop floor control. Its outputs specifically feed Input/Output Control (I/O Control), monitoring the actual flow of work against the plan. The table below illustrates how CRP differs from other planning concepts in terms of horizon and granularity:

About SIMCEL

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