BSCM - 4 - Materials Requirements Planning (MRP) Flashcards
The process of multiplying a parent item’s need for components based on the BOM.
EXPLODING
Gross Requirements - Available Inventory
OR
Gross Requirements - Scheduled Receipts - Project Available
NET REQUIREMENTS
The time it takes to make a subassembly or component or receive delivery of a purchased component.
Manufacturing ____________ data are found in the item master record.
LEAD TIME
The process of determining when a planned order release is needed in advance of the planned order receipt date of the item.
OFFSETTING
A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly.
BOM (BILL OF MATERIAL)
- All manufactured end items have a BOM.
- An end-item usually has a multilevel bill consisting of two or more single-level bills.
- All single-level bills consist of a parent and components below it.
- For each subassembly made by the manufacturer (not purchased), there will also be a single-level bill.
- The parent in a subassembly single-level is also a component of a final assembly or subassembly.
- If a part has no other parts going into it on the BOM, it is assumed to be a purchased part.
BOM- KEY POINTS
- A multilevel BOM is a collection of single-level bills.
- A subassembly parent also can be a component of an assembly or another subassembly.
- If a component has no other components going into it, it cannot be a subassembly and therefore is an item purchased from a supplier.
BOM SUMMARY
- Similar to a where-used report EXCEPT it shows only those parents for which there is an existing requirement. These parents are currently in the priority plan and might be affected by a delay in the delivery of a component. Shows the following:
- The parents creating demand for components
- The quantities required.
- When those quantities are required.
- Where-used logic to identify current source of demand.
- May be single-level or multilevel
PEGGING REPORT
- Maintain the priority plan by taking actions to maintain the scheduled due dates for the production of components or the end-item. These would include expediting or de-expediting.
- Replan the due date if an event does not enable maintaining the due date.
SETS OF ACTIONS AVAILABLE TO THE PLANNER
- Releasing planned orders.
- General responsibility of managing the current priority plan (planned orders, open orders, end-item due dates.)
- Deals with numerous events that might affect priorities.
RESPONSIBILITIES OF THE PLANNER
- Focus is on the component.
- Lists the parents in which a component is used whether or not there is current demand.
USES:
- Identifying parents affected by an engineering change.
- Assess aggregate impact of costing change.
- Assess the impact of component scarcity and setting the allocation priorities.
- Assessing the benefits & costs of standardizing similar components.
WHERE-USED REPORT
- MRP Logic
- Exploding and offsetting requirements
- Calculating gross and net requirements
- Using and managing the priority plan
- Reliance on MRP applications software
- Control of planned and released orders
- Replanning
MRP LOGIC APPROACH
- Develops the priority plan for the release and receipt of planned orders.
- Advises planners of the need for actions to maintain the priority plan.
- releases planned orders
- takes action to maintain due dates affected by material shortages, delayed production, and other events.
- Updates or replans the priority plan to keep material requirements, due dates, or inventory status current.
PLANNING SOFTWARE
Name seven uses of the BOM.
- Product Definition
- Engineering Change Control
- Planning
- Customer Service
- Manufacturing
- Service & Repair
- Costing
- Company-wide access to a single database that serves a multitude of functions.
- Integration of MPC functions with the requirements and activities of upstream suppliers and downstream customers and distributors.
ERP - ENTERPRISE RESOURCE PLANNING
