What is a major limitation of Rough-Cut Capacity Planning (RCCP)?

A major limitation of Rough-Cut Capacity Planning (RCCP) is that it neglects work-in-process (WIP) and job sequence effects. RCCP is designed to provide a high-level assessment of capacity requirements against available capacity but does not take into account the complexities introduced by WIP materials and the order in which jobs are scheduled.

This oversight can lead to inaccuracies in capacity planning because it fails to consider how the presence of WIP can affect production rates and lead times. Furthermore, job sequence effects may influence efficiency; for example, jobs might require different setups which, if not considered, could result in longer lead times or miscalculations of available capacity.

By not accounting for these factors, RCCP may portray a more optimistic view of a production environment than is practical, making it a less effective tool for accurate capacity planning when WIP and job sequencing play critical roles in production efficiency.