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Production planning and control activities are generally the ultimate goal of a company is to gain profit, sustainability, and business development. On the other hand, there are consumer demands that must be met by companies. Consumer demands generally include good quality, low prices, volume and timely delivery, flexible and varied products. In order for the goals of both parties (producers and consumers) to be fulfilled, the company must be able to plan and control production by taking into account all these objectives. Capacity Requirements Planning determines the capacity needed to create a material requirements plan. Specifically, the planning horizon is years, the time span is weeks, and revisions are made weekly or monthly. Projected capacity between workers and/or machine hours and work centers. From the results of the planning report on the capacity requirements planning for Kiki Mie's UMKM, it turns out that there is a lot of lack of time capacity in meeting actual demand when suggestions for improvements are made. So in this plan the author provides a revision of the CRP report planning, it can be seen that with the chosen forecasting method there is a total shortage of time capacity of -416 hours/year, while using the Capacity Requirement Planning (CRP) method with the results obtained in the proposed improvements experiencing excess capacity to 1209 hours/year, so that the Capacity Requirement Planning CRP) method is better, due to the lack of time capacity resulting from the chosen forecasting method becoming excessive and can be optimized to increase high production demands and reach the maximum limit of time and available production capacity. In optimizing existing production time and capacity by using working hours of 5 hours/day with 1 work shift by adjusting existing work centers.
Keywords: Production Capacity Planning, CRP
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