Term
| Material Requirement Planning has 2 major business functions: |
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Definition
1.Based on Master production schedule (MPS) quantities and due dates for end items, create a time-phased plan what components are needed to make a product and when. This is called a priority plan for order releases and receipt fo materials purchased from suppliers and manufacturers of components, os subassemblies, and end items by the factory.
2.Maintain and adjust priority plan to account for changes in customer orders and forecasts, material shortages, and production problems. |
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Term
| from MPC (Master Planning and Control) there 2 types of demand: |
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Definition
1.Independand - where demand for the item is independent of any other demand.
2.Dependand demand items |
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Term
| 2 Major objectives for MRP are: |
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Definition
1.Determine requirements
2.Keep priority |
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Term
| 4 major imputs to the MRP are: |
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Definition
1.MPS - Planned and scheduled orders for end items (qty and due dates)
2.BOMs - Product structure file
3.Inventory status - Inventory record file (component and end items qty on hand/allocated/on order)
4.Planning data - item master file (lot size, lead time, scrap factor, safety stock) |
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Term
| MRP creates priority plan which is consistent of: |
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Definition
| Planned order receipts and releases |
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Term
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Definition
| listing of all components that go into making assembly. |
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Term
| Multilevel BOM is a collection of: |
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Definition
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Term
| A subassembly parent also can be: |
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Definition
| a component of an assembly or another subassembly. |
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Term
| Planning bill plans material requirement for: |
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Definition
| family of end products for which there several variations basedon options for one or more components. |
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Term
| Planning bill does not represent a: |
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Definition
| buildable product but is used to simplify forecasting. |
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Term
| Where-Used report has following uses: |
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Definition
1.Identify the parent items affected by an engineering change and assessing the impact of the change
2.Assesing the aggregate impact of costing changes for a component
3.assessing the affects of component scarcity and setting allocation priorities
4.assessing the benefits and costs of standardizing similar components, preventing stockkeeping unti proliferation |
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Term
| Pegging report shows the following: |
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Definition
1.The parent creating demand for components
2.The qty required
3.When these quantities are required
4.may be single level or multilevel
5.identity current sources of demand |
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Term
| 3 important components for MRP to create a priority plan are: |
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Definition
1.Lead time - time it takes to make a subassembly or component or receive delivery of a purchases component.
2.Offsetting - process of determining when a planned order release is needed in advance of the planned order receipt date of the item.
3.Exploding - process of determining the totl of each component needed for a parent |
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Term
| Netting of requirement is: |
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Definition
| when items are available in the inventory must be taken in account and substracted from gross requirement to determin a net requirement. |
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Term
| Capacity check done at MRP is: |
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Definition
| called Capacity Requirement planning (CRP). It focus on resources available to meet due dates in the priority plant at the component level. |
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Term
| In Master scheduling capacity check is done: |
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Definition
| for resourses avaialable at end-item level (RCCP). It checks MPS against available capacity. |
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Term
| MRP software is not normally programmed to: |
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Definition
| release planned order. This is the role of the planner. |
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Term
| For managing the priority plan, the material planner works wit 3 main types of orders: |
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Definition
1.Planned orders
2.Firm planned orders
3.Released orders (one released planned order become open order to the factory or supplier) |
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Term
| External events that affects order priorities are: |
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Definition
1.Change of customer orders
2.Supplier shortages
3.Late deliveries and lower than required qty from suppliers |
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Term
| Internal events that affect order priorities are: |
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Definition
1.Lower yields or higher scrap factors than planned
2.late or early open order completions
3.capacity or resource constrains
4.material shortages caused by inventory record inaccuracy |
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Term
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Definition
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Term
| To release an order from planner, it requires: |
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Definition
1.Releasing a planned order
2.Scheduling a receipt
3.Creating an open order (this is authorisation to purchasing to buy the material or to manufacturing to make the component)
4.Allocating component to an order |
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Term
| Material planners keep the priority plan current by actions that include following: |
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Definition
1.Expedite or de-expedite work orders. Also called shop orders or manufacturing orders/or purchase orders.
2.Changing work orders (qty or due dates)
3.Adding or cancelling work orders or purchase orders |
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Term
| For each subassembly made by the manufacturer and purchases from a supplier: |
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Definition
| there will be also a single level bill. |
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