Materials Requirement Planning (MRP) Flashcards
What is the Master Production Schedule (MPS)
An overall build plan at the end item level that stats what items are to be made, how many and when
What is a chase demand production plan
Uses all the on-hand inventory and then orders enough to just meet the demand
What is a level demand production plan
Finds total demand and orders a constant amount each week, taking into account the initial on-hand inventory
What is the Bill-Of-Materials (BOM)
Explosion of requirements for each component and raw material item
What are the components of an MRP record
Future demand, scheduled receipts, projected available balance and planned order release
What is future demand in an MRP record
Total independent and dependent demand
What are scheduled receipts on an MRP record
Production and purchase orders that have been released
What is the projected available balance on an MRP record
On-hand inventory, projected into the future after all the orders
What is the planned order release on an MRP record
A suggested order quantity, release date and due date
What is Manufacturing Resource Planning (MRP II)
A method for effective planning of all resources of a manufacturing company
What are the distinctions between MRP and MRP II
Integrated closed loop system, efficient data management
What is Enterprise Resource Planning (ERP)
Takes a whole-enterprise view, aimed at complete integration of enterprise-level information
What is Just-in-Time (JIT) Scheduling
Production orders are based on replenishment, based on “pull” scheduling, system is tightly controlled and fragile, batch sizes are small as possible, relies on use of physical inventory control cues
Describe a push-pull system
Parts inventory replenished on forecasts, but products are made on demand
What is Optimised Production Technology (OPT)
Focusses on bottlenecks, in order to improve bottlenecks as they help to control the activity of the system
