Flashcards in BSCM - 4 - Materials Requirements Planning (MRP) Deck (23):
The process of multiplying a parent item's need for components based on the BOM.
Gross Requirements - Available Inventory
Gross Requirements - Scheduled Receipts - Project Available
The time it takes to make a subassembly or component or receive delivery of a purchased component.
Manufacturing ____________ data are found in the item master record.
The process of determining when a planned order release is needed in advance of the planned order receipt date of the item.
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.
BOM (BILL OF MATERIAL)
-All manufactured end items have a BOM.
-An end-item usually has a multilevel bill consisting of two or more single-level bills.
-All single-level bills consist of a parent and components below it.
-For each subassembly made by the manufacturer (not purchased), there will also be a single-level bill.
-The parent in a subassembly single-level is also a component of a final assembly or subassembly.
-If a part has no other parts going into it on the BOM, it is assumed to be a purchased part.
BOM- KEY POINTS
-A multilevel BOM is a collection of single-level bills.
-A subassembly parent also can be a component of an assembly or another subassembly.
-If a component has no other components going into it, it cannot be a subassembly and therefore is an item purchased from a supplier.
-Similar to a where-used report EXCEPT it shows only those parents for which there is an existing requirement. These parents are currently in the priority plan and might be affected by a delay in the delivery of a component. Shows the following:
-The parents creating demand for components
-The quantities required.
-When those quantities are required.
-Where-used logic to identify current source of demand.
-May be single-level or multilevel
-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.
-Replan the due date if an event does not enable maintaining the due date.
SETS OF ACTIONS AVAILABLE TO THE PLANNER
-Releasing planned orders.
-General responsibility of managing the current priority plan (planned orders, open orders, end-item due dates.)
-Deals with numerous events that might affect priorities.
RESPONSIBILITIES OF THE PLANNER
-Focus is on the component.
-Lists the parents in which a component is used whether or not there is current demand.
-Identifying parents affected by an engineering change.
-Assess aggregate impact of costing change.
-Assess the impact of component scarcity and setting the allocation priorities.
-Assessing the benefits & costs of standardizing similar components.
-Exploding and offsetting requirements
-Calculating gross and net requirements
-Using and managing the priority plan
-Reliance on MRP applications software
-Control of planned and released orders
MRP LOGIC APPROACH
-Develops the priority plan for the release and receipt of planned orders.
-Advises planners of the need for actions to maintain the priority plan.
-releases planned orders
-takes action to maintain due dates affected by material shortages, delayed production, and other events.
-Updates or replans the priority plan to keep material requirements, due dates, or inventory status current.
Name seven uses of the BOM.
-Engineering Change Control
-Service & Repair
-Company-wide access to a single database that serves a multitude of functions.
-Integration of MPC functions with the requirements and activities of upstream suppliers and downstream customers and distributors.
ERP - ENTERPRISE RESOURCE PLANNING
Integrates business processes and software applications and heightens the involvement of key functions such as production, marketing, and finance in the MPC process.
MANUFACTURING RESOURCE PLANNING
Adds the following functionality:
-Coordination of production, finance, and marketing functions in developing sales and production plans during a sales and operations planning process.
-Collaboration between marketing and production on a weekly/daily basis to deal with the impact of changes in demand on the MPS including due dates and order quantities.
-Adjustments to the priority plan at the MPS and MRP levels based on capacity shortages.
-Fuller integration of operational reporting applications with the needs of finance and accounting.
-Supports the closed-loop, which provides structured and timely feedback on the status of work orders already released (including start dates, due dates, and quantities) to enable changes and adjustments to priority plans and production schedules by MRP and production activity control.
-Usually supported by function-specific software applications with their own databases and a low-to-moderate level of integration.
-Links the production plan to the more detailed MPS in the early stages of the MPC process.
-Links the production planning, master scheduling, and MRP to capacity planning and management to ensure that production resources can accommodate capacity requirements.
-Assists with reporting of cost data for cost and financial accounting purposes.
-One of the most important business processes in MPC.
-Establishes the PRIORITY PLAN for the due dates and order quantities for the components of end items.
-->BASED ON THE DUE DATES FOR END ITEMS IN THE MASTER SCHEDULE
MRP - MATERIAL REQUIREMENTS PLANNING
Planners, with the support of MRP software, release planned orders that authorize the following:
- the release of purchase orders to suppliers.
- the release of manufacturing orders, or shop orders, to the factory