Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

14.4 Rough-Cut Capacity Planning

Intended learning outcomes: Describe rough-cut network plans and load profiles. Explain rough-cut infinite loading and rough-cut finite loading.


Rough-cut planning allows quick establishment of feasible variations of the master plan for many orders in long-term planning and quick determination of delivery dates for customer orders in short-term planning.

Efficient scheduling in the short term requires long-term overall coordination of load and capacity. If all the rough-cut structures are correct and sufficiently detailed and include all the goods to be procured through blanket contracts, then rough-cut planning of resources is entirely sufficient for long-term planning. At times it can even make shorter-term planning unnecessary or more straightforward.

Very simple rough-cut planning is possible wherever the total load for an order is sufficient for rough-cut planning.

With capacity planning using overall factors (CPOF), the quantities of master schedule items are multiplied by the total load required by each item. This yields the total load of the master schedule. Historical percentages for each work center then provide an estimate of the required capacity of each work center to support the master schedule.

Figure 14.4.0.1 shows the (average) load of the master schedule with three items, I1, I2, and I3. Suppose that two work centers WC-1 and WC-2 are involved. Historical percentages allow quick assignment of the total load to the two work centers.

Fig. 14.4.0.1       Rough-cut capacity planning using overall factors: total load and estimation of the required capacity on work centers WC-1 and WC-2.

However, if knowledge of the load on each individual work center is necessary, rough-cut capacity planning gets more complicated. We look at this case in the following section.


Course section 14.4: Subsections and their intended learning outcomes

  • 14.4 Rough-Cut Capacity Planning

    Intended learning outcomes: Describe rough-cut network plans and load profiles. Explain rough-cut infinite loading and rough-cut finite loading.

  • 14.4.1 Rough-Cut Network Plans and Load Profiles

    Intended learning outcomes: Present an example of a rough-cut network plan with two rough-cut work centers. Explain the resource profile of both rough-cut work centers as well as the resource profile for the combination of the two rough-cut work centers.

  • 14.4.2 Rough-Cut Infinite Loading

    Intended learning outcomes: Present an example of a resource profile for one rough-cut work center. Describe the result of rough-cut capacity planning with deferred completion date. Explain rough-cut capacity planning with two rough-cut work centers and the result after moving the completion date of one operation.

  • 14.4.3 Rough-Cut Finite Loading

    Intended learning outcomes: Present the cumulative resource profile of an order as well as cumulative load and capacity before loading the order. Explain rough-cut planning of the cumulative load and capacity after loading the order.



Course 14: Sections and their intended learning outcomes

  • Course 14 – Capacity Management

    Intended learning outcomes: Present fundamentals of capacity management. Explain in detail load profile calculation and infinite loading. Disclose finite loading. Describe rough-cut capacity planning.

  • 14.1 Fundamentals of Capacity Management

    Intended learning outcomes: Produce an overview on capacity, work centers, capacity determination, and capacity management techniques.

  • 14.2 Infinite Loading

    Intended learning outcomes: Present load profile calculation and problems associated with algorithms for load profile calculation. Explain methods of balancing capacity and load. Describe order-wise infinite loading.

  • 14.3 Finite Loading

    Intended learning outcomes: Explain operations-oriented, order-oriented, and constraint-oriented finite loading.

  • 14.4 Rough-Cut Capacity Planning

    Intended learning outcomes: Describe rough-cut network plans and load profiles. Explain rough-cut infinite loading and rough-cut finite loading.

  • 14.5 Summary

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