What is Rough Cut Capacity Planning (RCCP) – Capacity Planning

Rough Cut Capacity Planning (RCCP):
Rough cut capacity planning (RCCP) involves planning capacities at key / bottleneck work centers and broadly balancing workloads. It thus validates the MPS. Material requirements planning (MRP) uses a master production schedule (MPS) of end items to determine the quantity and timing of component part production. MRP is capacity insensitive; it implicitly assumes that sufficient capacity is available to produce components at the time they’re needed.
A problem commonly encountered in operating MRP systems is the existence of an overstated MPS. An overstated master production schedule is one that orders more production to be released than production can complete. An overstated MPS causes raw materials and WIP inventories to increase because more materials are purchased and released to the shop than are completed and shipped. It also causes a buildup of queues on the shop floor. Since jobs have to wait to be processed, actual lead times increase, causing ship dates to be missed. As lead times increase, forecast accuracy over the lead-time gets affected because forecasts are more accurate for shorter periods than for longer ones. Thus, overstated master production schedules lead to missed due dates and other problems. Validating the MPS with respect to capacity is an extremely important step in MRP. This validation exercise has been termed rough cut capacity planning (RCCP).

RCCP is a gross capacity planning technique that does not consider scheduled receipts or on-hand inventory quantities when calculating capacity requirements. Your rough cut capacity plans are therefore a statement of the capacity required to meet your gross production requirements.

Use RCCP to validate your master schedules against key and critical resources before you use the planning process to generate detailed MRP plans. This ensures that you use a realistic, achievable master schedule to drive the planning process.

You can perform rough cut capacity planning at two levels:

- Use routing-based RCCP if you want to plan rough cut capacity by resource. Required and available capacity are stated in hours per week per resource.

- Use rate-based RCCP if you want to plan your rough cut capacity by production line. Required and available capacity are stated by production rate per week per line.

If you want to use RCCP, but would like to restrict the process to key or critical resources, you can define groups of selected resources and review RCCP plans for specific resource groups only. You can define resource groups in Oracle Capacity and Oracle Bills of Material. You assign resources to resource groups in Oracle Bills of Material.