Material Requirements Planning Flashcards

0
Q

MRP has 2 major functions:

A

1-Based on the MPS quantities and due dates for end items, create a time phased plan that determines what components are needed to make a product and when. This is called a priority plan.

2-Maintain and adjust the priority plan to account for changes in customer orders,forecasts,material shortages and production problems.

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1
Q

MRP is the bridge between …

A

Master planning and production in the factory.

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2
Q

MRP is the last of…

A

the priority planning levels.

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3
Q

MRP is directly linked to 3 other MPC functions:

A

1-Master scheduling

2-CRP

3-PAC

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4
Q

MRP calculates a time-phased priority plan which consists of:

A

1-Order release and receipt dates for the purchase and manufacture of components.

2- The final assembly operation

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5
Q

MRP has 2 major objectives:

A

1-Determine requirements

2-Keep priorities

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6
Q

MRP determines requirements by addressing the following questions:

A

1-What components are required.

2-What quantity of each component will be required.

3-When will orders be released and received.

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7
Q

Material planners keep the priority plan current in the face of changing customer sales orders and due dates by actions that include:

A

1-Expediting or de-expediting work orders(e.g. shop orders or manufacturing orders)

2-Changing work orders or purchase orders such as quantites and due dates

3-Adding or canceling work orders or purchase orders

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8
Q

The inputs to MRP are:

A

1- MPS

2-BOM

3-Ineventory record file

4-Item master file(planning factors like: lot size,lead time,yield and scrap factors, safety stock)

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9
Q

Planners, with the support of MRP software, release planned orders that authorize the following:

A

1-the release of purchase orders to suppliers

2-the release of manufacturing orders to factory

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10
Q

Example of MRP calculations are:

A

1-Exploding BOMs for determining an end item´s component quantities, down to the component and raw material level

2-Checking inventory records for quantities on hand, on order or allocated

3- Offsetting order release and receipt dates for net component and raw material requirements from the end item due date

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11
Q

MRP software keeps track of due dates in the priority plan and the status of materials and production. It also…

A

1-advises planners on when to release planned orders

2-advises when to expedite or take other actions to maintain the due dates in the priority plan

3-replans MRP on a periodic basis to update material requirements,due dates,and inventory status

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12
Q

Which is one of the most important documents in a manufacturing company, the major block of MRP?

A

BOM

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13
Q

A summarized BOM is a …

A

List of all the components in an assembly. For each component, a bill shows a unique part number, a description,the quantity needed in the assembly of its parents, and the unit of measure.

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14
Q

The indented bill is more commonly used and gives an indication…

A

Of an assembly or end-item product structure.

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15
Q

In the bill, the purchased components’…

A

Components are not shown.

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16
Q

In practice, glue might often be purchased as an operating supply item and not be included in the BOM. Tracking the specific amount of glue acrually used could be impractical. This practice enables the costs to be included as part of the …

A

Overhead.

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17
Q

BOM is a …

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.

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18
Q

Single-level BOM is a …

A

product tree format to facilitate learning and understanding.

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19
Q

BOM applications software stores information for each assembly and subassembly as a …

A

Separate and unique single-level bill.

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20
Q

When BOM data for end-item are needed for MRP purposes, the BOM application will…

A

Assemble the single level bills for all of the assemblies into a multilevel bill for the end item. The subassembly single-level bills can be used for any end item that requires them.

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21
Q

A multi-level BOM is a…

A

Collection of single-level bills.

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22
Q

A subassembly parent can also be a …

A

Component of an assembly or subassembly.

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23
Q

If a component has no other components going into it, it cannot be a …

A

Subassembly and it’s an item purchased from a supplier.

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24
Q

All single level bills consist of a …

A

Parent and components below it.

25
Q

For each subassembly made by the manufacturer and not purchased from a supplier there also will be a …

A

Single level bill.

26
Q

A plannig bill plans materials requirements for a family of end products for which there are several …

A

Variations based on options for one or more components.

27
Q

The planning bill simplifies the BOMs by …

A

showing on one bill the percentage split for each of the components based on a forecast or historical usage data.

28
Q

A where-used report is …

A

an inversion of a BOM information.

29
Q

A where-used report lists …

A

all of the items, or parents, in which a component is used whether or not there is a demand for the parent.

30
Q

In a where-used report the data may be …

A

Single level or full level.

31
Q

Where-used informatio has the following uses:

A

1-identifying the parent items affected by an engineering change and assessing the impact of the change

2-assessing the aggregate impact of costing changes for a component

3-assessing the effects of component scarcity

4-assessing the benefits and costs of standardizing similar components, preventing stockkeeping unit proliferation

32
Q

A pegging report is …

A

similar to a where-used report except that it shows only those parents for which there is an existing requirement.

33
Q

The pegging report shows the following:

A

1-the parents creating demand for components

2-the quantities required

3-when those quantities are required

4-where-used logic to identify current sources of demand

5-may be single-level or multi-level

34
Q

The uses of BOM are :

A
1-Product definition
2-Engineering change control
3-Planning
4-Customer service
5-Manufacturing
6-Service and repair
7-Costing
35
Q

Customer service uses BOMs when …

A

configuring make to order products during order entry.

36
Q

Cost accounting uses the BOM to determine the …

A

quantity of direct materials consumed in making specific products.

37
Q

MRP creates the priority plan through:

A

1-Exploding and offsetting requirements

2-Calculating gross and net requirements

38
Q

Exploding and offsetting requirements and calculating gross and net requirements will bring us to the point in the planning process where a developed priority shows …

A

the time-phased dates and quantities for planned order releases and receipts for both purchased components and manufactured components.

39
Q

The MRP process uses key inputs to determine …

A

an end item’s required components(what), the quantities of those components(how much) and a time-phased plan(when) for the operations that will convert the end item into a finished product.

40
Q

The time-phased plan or priority plan expresses the necessary actions in the form of …

A

planned order releases and receipts.

41
Q

To create a priority plan MRP uses a process called …

A

lead-time offsetting and exploding.

42
Q

Manufacturing lead-time data are found in the …

A

item master record.

43
Q

Offsetting is the processof determining …

A

when a planned order release is needed in advance of the planned order receipt date of the item.

44
Q

Exploding is the process of …

A

determining the total of each component needed for a parent based on the BOM.

45
Q

Net requirements =

A

Gross requirements-scheduled receipts-projected available.

46
Q

The planning horizon should be as long as the …

A

cumulative lead-time.

47
Q

The quantity shown in the projected available row is the projected available balance at the …

A

end of the period, all other quantities are for the beginning of the period.

48
Q

MRP softwares perform,two major functions :

A

1-Perform gross to net, lead-time offset, and explosion calculations.

2-Create action and exceptions messages.

49
Q

On the basis of action and exception messages, the planner will …

A

release planned orders, expedite or de-expedite component schedules, or change order quantities.

50
Q

In managing the priority plan, the material planner works with three main types of orders:

A

1-planned orders

2-firm planned orders

3-released orders

51
Q

Planned orders are …

A

created by planning software when it encounters net requirements. The net requirement generates planned order receipts in the system.

52
Q

A firm planned order is …

A

a tool that enables the planner to overridenthe MRP logic.

53
Q

Planners are responsible for releasing planned orders, aided by action messages from the MRP system. Once released, a planned order becomes …

A

an open order to the factory or to the supplier. It appears as a scheduled receipt.

54
Q

A released order is under the control of the planner and is subject to …

A

expediting, de-expediting,change order quantities and even cancellation.

55
Q

The release of the order involves :

A

1-Releasing a planned order

2-Scheduling a receipt

3-Creating an open order

4-Allocating components to the order

56
Q

An open order is …

A

an authorization to purchasing to buy the necessary materials or to manufacturing to make the components.

57
Q

The planner has the general responsability of managing the current priority plan such as …

A

planned orders,open orders,and end-item due dates.

58
Q

External events that might affect order priorities are:

A

1-Changes to customer orders
2-Supplier shortages
3-Late deliveries and lower than required quantities from suppliers

59
Q

Internal events that might affect order priorities are:

A

1-Lower yields or higher scrap factors than planned

2-Late or early open order completions

3-Capacity or resource constraints

4-Material shortages caused by inventory record inaccuracies that hide shortages or surpluses of components or end items and lead to the need to expedite or de-expedite.

60
Q

There basically are two sets of actions available to the planner:

A

1-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

2-Replan the due date if an event does not enable the maintaining of a due date.