Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APICS CPIM PART 1 - 2020 (FVTC) > Section G: Material Requirements Planning > Flashcards

Section G: Material Requirements Planning Flashcards

1
Q

What is the key input to Material Requirements Planning?

A

The key input is the master production schedule, which provides due dates and quantities for end items.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Material Requirements Planning (MRP)

A

Material Requirements Planning (MRP)

A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials.

It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Time-phased MRP begins with the items listed on the MPS and determines what?

A

Time-phased MRP begins with the items listed on the MPS and determines

(1) the quantity of all components and materials required to fabricate those items and
(2) the date that the components and material are required.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What activities are done in MRP when analyzing the bill of material?

A

Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the net requirements by the appropriate lead times.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

MRP transforms independent demand into what?

A

The basic function of MRP is to transform independent demand (forecasted) into dependent demand (calculated).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Objectives of MRP

A
  1. MRP determines the specific quantities to pull from inventory versus what to order, when to order it, and when to schedule delivery.
  2. The MRP system must be able to update the myriad details related to the change in a reasonable amount of time.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

MRP Inputs

A

The three basic sources of information used as inputs to material requirements planning are:

  • the master production schedule
  • the bills of material
  • inventory records
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Input definition/sources

What are the 2 types of inventory records?

A

Master production schedule (MPS): End-item quantities and due dates in the form of planned and scheduled orders. Source is Master schedule.

Bills of material (BOMs): Specific quantity of each uniquely identified part required to make one item. Source is Product structure file

Planning factors:
 Static inventory data: 
 -Lot size
 - Lead time
 - Yield and scrap factors
 - Safety stock level
Source is Inventory records(item master file)

Inventory status
Dynamic inventory data for components and end items:
-On hand
-Allocated
-On order (and due date)
Source is Inventory records (inventory record file)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How are spare parts handled?

A

MRP systems may also accept independent demand orders for things such as spare parts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the MRP Output

A

MRP takes the end-item due dates and quantities from the master production schedule and the other inputs just discussed and creates a time-phased priority plan.

These outputs become inputs to purchasing and production activity control (PAC).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Bill of Material (BOM)

A

Bill of Material (BOM):

A listing of all the sub-assemblies, intermediates, parts, and raw materials that go into a parent assembly, showing the quantity of each required to make an assembly.

It is used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released.

A variety of display formats exists for bills of material, including the single-level bill of material, indented bill of material, [and] modular (planning) bill of material.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The Bill of Material lists the parts needed to make how many units?

A

Bills of material list all the parts needed to make exactly one unit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a unique identifier on the Bill of Material?

A

Unique identifier.

Each part gets a unique part number. If the same part number is on a different bill, it will be the same exact part. If a part’s form, fit, or function changes, it needs a new part number.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What quantity of parts are listed on the BOM?

What units are they displayed in?

A

BOMs list the quantity of each part used to make one unit, and the unit of measure is specified. The Dictionary defines unit of measure as “the unit in which the quantity of an item is managed (e.g., pounds, each, box of 12, package of 20, case of 144).”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How is scope shown on BOM?

A

Scope. BOMs clearly indicate what is and is not used in a unit. If a part isn’t listed on the BOM, it is not used in that unit. However, there may be exceptions for maintenance, repair, and operating (MRO) supplies such as glue.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

single-level bill of material BOM

A

single-level bill of material:

A display of components that are directly used in a parent item. It shows only the relationships one level down.

A single-level bill of material will contain only a parent and its immediate children or components. A series of single-level bills will need to be stored in the system to fully define a product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Multilevel bill of material:

A

Multilevel bill of material:

A display of all the components directly or indirectly used in a parent, together with the quantity required of each component.

If a component is a subassembly, blend, intermediate, etc., all its components and all their components also will be exhibited, down to purchased parts and raw materials.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Indented bill of material

A

Indented bill of material:

A form of multilevel bill of material. It exhibits the highest-level parents closest to the left margin, and all the components going into these parents are shown indented toward the right.

All subsequent levels of components are indented farther to the right. If a component is used in more than one parent within a given product structure, it will appear more than once, under every subassembly in which it is used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Summarized bill of material

A

Summarized bill of material:

A form of multilevel bill of material that lists all the parts and their quantities required in a given product structure.

Unlike the indented bill of material, it does not list the levels of manufacture and lists a component only once for the total quantity used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Planning BOM

A

Planning BOM:

An artificial grouping of items or events in bill-of-material format used to facilitate master scheduling and material planning.

It may include the historical average of demand expressed as a percentage of total demand for all options within a feature or for a specific end item within a product family.

Used as the quantity per in the planning bill of material.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are:
Where-used reports?
Pegging reports?

A

Two useful and related reports that can be generated using BOM data include where-used reports and pegging reports.

Where-used list: A listing of every parent item that calls for a given component, and the respective quantity required, from a bill-of-material file.

Pegging: In MRP and MPS, the ability to identify for a given item the sources of its gross requirements and/or allocations. Pegging can be thought of as active where-used information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

How are Where-used reports useful

A

Where-used reports might assist in costing products or determining the impact of an engineering change for a component.

23
Q

How are Pegging reports useful

A

A pegging report would be useful, for example, if a material will arrive late, there are supply chain interruptions, or the material has increased in price significantly.

24
Q

MRP facts:

Describe comprehensive MRP records.

A

Comprehensive MRP records. Every end item, component, and subcomponent needed over the planning horizon will have its own MRP record.

25
Q

MRP facts:

Describe the planning horizon.

A

Planning horizon. The number of periods is at least as long as the cumulative product lead time. This allows orders to be released to be ready for the next process and to get the end units done on time.

26
Q

MRP facts:

Describe time buckets.

A

Time buckets. Here weeks are shown, but many MRP systems now plan using daily buckets. A bucketless system might also be used, which is one that lists only specific dates that have some MRP activity to plan. An example is shown later.

27
Q

MRP facts:

When are scheduled receipts available?

A

Availability. Scheduled receipts are available at the beginning of the time period in which they are shown, and due dates for receiving or releasing planned orders are at the beginning of the period shown.

The lead time for a component assumes that all subcomponents are available at the start of the period, so the lead time is just the processing or assembly time.

28
Q

MRP facts:

What is projected available?

A

Projected available. The projected available shows the balance at the end of that period (not the beginning), after all deductions have been made. Thus it is the balance available for the following period.

29
Q

Are Lead times, lot sizes, and opening inventory inputs to MRP?

A

Other inputs. Lead times, lot sizes, and opening inventory will be inputs to MRP rather than part of the MRP record itself. (They are shown in the exhibits for ease of understanding only.)

30
Q

What’s the first step in determining the gross requirements for the top of the MRP record?

A

Exploding and Offsetting

Determining the gross requirements for the top of our MRP record starts with processes called exploding (also called a bill-of-material explosion) and offsetting (also called a lead-time offset).

31
Q

Bill-of-material explosion

A

Bill-of-material explosion

The process of determining component identities, quantities per assembly, and other parent-component relationship data for a parent item.

Explosion may be single level, indented, or summarized.

32
Q

Requirements explosion

A

Requirements explosion

The process of calculating the demand for the components of a parent item by multiplying the parent item requirements by the component usage quantity specified in the bill of material.

33
Q

lead-time offset

A

lead-time offset

Where a planned order receipt in one time period requires the release of that order in an earlier time period based on the lead time for the item.

34
Q

Planned order receipt

A

Planned order receipt : The quantity planned to be received at a future date as a result of a planned order release. Planned order receipts differ from scheduled receipts in that they have not been released.

35
Q

Planned order release

A

Planned order release : A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time.

36
Q

Gross requirement

A

Gross requirement : The total of independent and dependent demand for a component before the netting of on-hand inventory and scheduled receipts.

37
Q

Net requirements :

A

Net requirements : In MRP, the net requirements for a part or an assembly are derived as a result of applying gross requirements and allocations against inventory on hand, scheduled receipts, and safety stock. After being lot-sized and offset for lead time, net requirements become planned orders.

38
Q

Scheduled receipt

A

Scheduled receipt : An open order that has an assigned due date.

39
Q

Calculate net requirements

A

Net Requirements = Gross requirement - Scheduled receipts- Prior Projected Available

40
Q

Calculate Projected Available

A

Projected Available = Prior period Projected Available + Scheduled Receipts + Planned order receipts - Gross requirements

41
Q

MRP planning software logic is primarily automated, including:

A

Exploding, offsetting, and gross to net. These are calculated and recalculated in high volumes quickly and accurately.

Checking current inventory. The current level on hand, on order, or allocated to orders or safety stocks is automatically kept up to date.

Generating scheduled receipts and allocating components. When planners release planned orders manually, the system creates a scheduled receipt, cancels the corresponding planned order receipt, allocates materials to the order, and forwards the open order to purchasing or production activity control. This is addressed more later.

Replanning. The system updates MRP material requirements, due dates, quantities, and inventory status periodically.

42
Q

MRP planning software will not do everything automatically.

Planners use the following tools:

A

Action messages. When planned order releases roll into the action bucket (the current period), the system will provide an action message indicating that the planned order is due for release.

Exception messages. The system will issue exception messages when the quantity or receipt date of materials will be insufficient to meet the plan and a quantity change or expediting is needed to receive the material faster than the standard lead time.

43
Q

Planned order

A

Planned order : A suggested order quantity, release date, and due date created by the planning system’s logic when it encounters net requirements in processing MRP.

In some cases, it can also be created by a master scheduling module. Planned orders are created by the computer, exist only within the computer, and may be changed or deleted by the computer during subsequent processing if conditions change.

Planned orders at one level will be exploded into gross requirements for components at the next level.

Planned orders, along with released orders, serve as input to capacity requirements planning to show the total capacity requirements by work center in future time periods.

44
Q

Firm planned order (FPO)

A

Firm planned order (FPO) :

A planned order that can be frozen in quantity and time. The computer is not allowed to change it automatically; this is the responsibility of the planner in charge of the item that is being planned.

This technique can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders. In addition, firm planned orders are the normal method of stating the master production schedule.

45
Q

Open order (released order)

A

Open order (released order)

1) A released manufacturing order or purchase order.
2) An unfilled customer order.

46
Q

In MRP, the quantity of an open order is

A

The quantity of an open order is recorded in the MRP record as a scheduled receipt in the time period it should be available.

47
Q

Releasing planned orders is made when

A

Releasing planned orders is made when the planned order enters the action bucket neither early nor late.

48
Q

Where does MRP planning fit in within Priority Planning?

A

Priority Planning:

  • S&OP
  • Master Scheduling
  • MRP Planning
49
Q

What two tools do Planners have at their disposal?

A

Planners have two tools at their disposal: maintaining priorities and replanning.

50
Q

What activities does Maintaing Priorities include:

A

Maintaining priorities refers to any action that does not affect the due date for the end item, which includes expediting or de-expediting items with some flexibility in their standard lead times or changing order quantities.

51
Q

What does Replanning include:

A

Replanning becomes necessary when expediting is not possible for one or more materials due to shortages.

Replanning involves calculating a new net requirement and planned order release and receipt date. This may or may not result in a new due date for the end unit(s).

The ideal is that organizations will work to reduce the need for replanning, but it is often necessary done on a fairly regular basis at many organizations, such as weekly. Expediting should always be the first option considered.

52
Q

To make adjustments, Planners need to consider these external events:

A
  • Changes to customer orders
  • Supplier shortages or backorders
  • Receiving department logs of incorrect quantities or rejects due to damaged parts
  • Supplier or carrier delays resulting in late deliveries.
53
Q

To make adjustments, Planners need to consider these internal events, communciated by shopfloor:

A
  • Lower production yields or higher scrap factors than the standard amount
  • Open orders completed early or late
  • Unforeseen capacity or resource constraints
  • Errors in inventory records that result in shortages or surpluses of work-in-process inventories.

APICS CPIM PART 1 - 2020 (FVTC) (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions