What is Rough-Cut Capacity Planning (RCCP)?

Definition and Core Purpose

Rough-Cut Capacity Planning (RCCP) is a capacity planning technique used at the Master Scheduling level to test the feasibility of the proposed Master Production Schedule (MPS) against critical constraints.

Its primary purpose is to determine the capacity required to support the MPS and ensure the plan is realistic before proceeding to granular planning stages like Material Requirements Planning (MRP).

Unlike Capacity Requirements Planning (CRP), which focuses on every work center on the shop floor, RCCP concentrates exclusively on Key Resources (or Capacity-Constrained Resources/CCRs). These are resources that take long periods to acquire or adjust, such as skilled labor, heavy machinery, warehouse space, or supplier capabilities.

• Time Horizon: RCCP is typically performed over the medium term (aligning with the 24–36 month IBP horizon) but at an aggregated product family level.

• Output: The result is a Resource Profile (or Load Profile)—a time-phased display of the required capacity load placed on these critical resources.

Inputs and Methodology

RCCP sits as the crucial intermediate step between high-level business planning and detailed execution. Its primary inputs are the latest MPS and a Bill of Resources (which lists the capacity necessary to manufacture one unit of a product family).

There are three common techniques used to perform RCCP, varying in data complexity:

1. Capacity Planning Using Overall Factors (CPOF): The simplest method. It multiplies MPS quantities by the total standard time required to build each item, then factors this total by historical percentages to estimate hours per work center. It eliminates the need for detailed routings.

2. Resource Profile Approach: utilizes the Bill of Resources alongside lead time offset data. This predicts not just how much capacity is needed, but when the load will hit specific resources relative to the due date.

3. Bill of Capacity (Bill Procedure): The most complex method. It incorporates specific BOM and routing information to calculate approximate capacity needs, allowing for shifts in product mix.

Role in Integrated Planning

RCCP acts as the "feasibility gate" in the planning hierarchy. It ensures that the ambitious goals set in the strategic plan are translated into the physical capabilities of the supply chain.

• IBP Supply Review: The aggregate monthly RCCP is reviewed during the Supply Review to validate the medium-term plan.

• Integrated Tactical Planning (ITP): As the plan enters the shorter 13-week execution horizon, RCCP can be disaggregated (Type II RCCP) into weekly buckets to test the validity of the short-term schedule.

About SIMCEL

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