Sec 4: Material Requirements Planning Flashcards
Define Material Requirements Planning
A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. Will make suggestions on when to replenish and when/if to adjust current replenishment plan
Define Capacity Requirements Planning (CRP)
The process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production.
Define Production Activity Control (PAC)
The function of routing and dispatching the work to be accomplished through the production facility and performing supplier control.
Define Planning Bill
Plans material requirements for a family of end products for which there are several variations based on options for one or more components. I.E. a bicycle would have multiple paint color options, wheel sizes, etc. Would show how much blue, red, green paint to order based on forecast total for bikes and historical order percentages for each color.
Define Pegging Report
Similar to a where-used report but shows only those parent items for which there is an existing requirement
Define Lead-time Offset
a technique used in MRP where a planned order receipt in one time period requires the release of that order in an earlier time period
Define MRP Planned Orders
Created by the computer, exists only within the computer, and may be changed or deleted by the computer during subsequent processing if conditions change
Define MRP Firm Planned Order (FPO)
A planned order that has been frozen in quantity and time. Computer is not allowed to change it automatically. Computer requests change via exception messages and then planner must decide whether to change the order or not.
Define MRP Released Orders
Once released a planned order becomes an open order to the factory floor or supplier. Authorizes purchasing to buy materials and manufacturing to make the component
