Resource Planning Flashcards
S&OP’s
Sales and Operations Planning
Business management process in which a team focuses on achieving alignment and synchronization across all departments
Resource Planning
combines S&OPs and information to determine input requirements for a given period
Enterprise Resource Planning System
Large, organization-wide integrated system supporting enterprise processes and data storage needs
ERP Systems are designed around a
single shared database used by entire organization
ERP system is beneficial to departments as it has
different modules with different functions
ERP allows access to
range of real time data
ERP System encompasses (6)
and generates
Manufacturing, Marketing, HR, Accounting, SCM, Data Analysis
generates reports, logs, orders
Information Systems and what they provide?
collection of components that work together to provide desired information in the proper format at an appropriate time.
Informations Systems Process diagram
People input data to Software -> used by other as information for procedures
ERP can spit out information but needs to be
interpreted correctly by a manager or individual
Material Requirements Planning
- Manage what?
- Schedule what?
computerized information system developed to help manage dependent demand inventory and schedule replenishment orders
dependent demand (2)
quantity required is functional for other items produced or held in inventory, demand for component of finished good
dependent demand is based on (2)
parents and components
components are made of
other subcomponents
Bicycle example: what is parent, component, subcomponent
parent is bike
component is wheel
subcomponent of wheel is spoke and rubber
independent demand
demand for finished good etc car
MRP calculates… and provides
dependent demand of components from the production schedules of parents, provides forecast
MRP system translates….(2)
production schedules and material purchases into capacity requirements and dollar amounts projected in the future
MRP systems automatically maintain alignment
alignment between demand and inventory for components and production schedules for parents.
Material Requirements Planning Diagram
Master Production Schedule, Inventory Records, Bill of Materials -> planned order releases (to supplier upstream in organization) -> work orders (internal), purchase orders (external), Action Notices.
Bill of Materials
A record of all the parent-component relationships for an item
Components
items that make up the parents
parents
have at least one component
Bill of materials specifies usage quantity which is
of units of each component required
End Item
final product sold to customer
Intermediate Item
item with at least one parent and least one component
Subassemblies
intermediate item assembled from more than one component
purchased item
item with one or more parents, no components because it comes from supplier
Part commonality and it increases volume
component has more than one parent, and increases volumes of particular components
Master Production Schedule
states the requirements for individual and end items by date and quantity
Inventory/Ordering Record
information about lot-size policies, lead time, different elements of time-phased data.
Scheduled receipts
orders placed but not received
Project on Hand Inventory
estimate of inventory available each week after gross requirements satisfied
Planned Receipts
orders not yet released to supplier
Lot sizing rules determine (2) and need to be selected for
timing and quantity of orders
selected for each individual component
Lot Sizing Possibilities (3)
Fixed Order Quantity (FOQ)
Periodic Order Quantity (POQ)
Lot for Lot (L4L)
Fixed order quantity (FOQ)
same order quantity placed each time order is issued
periodic order quantity (POQ)
order sizes differ, generally issued at pre-determined intervals
Lot for Lot (L4L)
lot sized ordered covers gross requirements for a single week
FOQ creates higher average inventory because
remnants but creates a buffer
POQ & L4L have lower inventory costs but
leave you vulnerable to last minute changes in demand
MRP explodes all information from MPS, inventory and BOM to calculate
requirements for all subassemblies, components and materials
