OPMT Chapt. 12

demand for items that are subassemblies or component parts to be used in the production of finished goods; derived from plans to make certain products such as w/ raw materials & parts used in producing a finished product; tends to be sporadic or lumpy= large quantities are used at specific points in time with little or no usage at other times

a computer-based info. system that translates mater schedule requirements for end items in time-phased requirements for subassemblies, components, & raw materials, working backward from the due date using lead times & other info. to determine when & how much to order; used for batch production

1 of the 3 primary inputs in MRP; states which end items are to be produced, when these are needed, & in what quantities; quantities come from customer orders & forecasts

the sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly; includes move & wait times in addition to setup and run times

1 of the 3 primary inputs in MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product; each finished product has its own one of these

a visual depiction of the requirements in a bill of materials, where all components are listed by levels; hierarchical; shows the quantity of each item needed to complete one unit of its parent item

restructuring the bill of materials so that multiple occurences of a component all coincide with the lowest level at which the component occurs

1 of the 3 primary inputs in MRP; includes info. on the status of each item by time periods, called time buckets; includes gross requirements, scheduled receipts, withdrawals, canceled orders, and expected amount on hand or on order

total expected demand for an item or raw material in a time period without regard to the amount on hand

open orders scheduled to arrive from vendors or elsewhere in the pipeline; or works-in-progress

expected amount of inventory that will be on hand at the beginning of each time period; scheduled receipts + available inventory from last period

the actual amount needed in each time period; the core of MRP processing; gross requirements - projected on hand inventory

quantity expected to be received by the beginning of the period in which it is shown

planned amout to order in each time period; equals planned-order receipts offset by lead time; this amount generates gross requirements at the next level

the process of identifying the parent items that have generated a given set of material requirements for an item; working the process for MRP in reverse; enables managers to determine which products will be affected if orders are late due to late deliveries, quality problems, or other problesm

schedule indicating the amount and timing of future orders

authorization for the execution of planned orders

revisions of due dates or order quantities, or cancellations of orders to planned orders

evaluation of system operation, including deviations from plans (missed deliveries and stockouts) and cost information

data useful for assessing future material requirements; includes purchase commitments

data on any major discrepancies encountered, such as late and overdue orders, excessive scrap rates, reporting errors, and requirements for nonexistent parts

exploding an end items bill of materials (BOM) to determine the quantities of the components that were used to make the item; eliminates the need to collect detailed usage info. on the production floor

expanded approach to production resource planning, involving other areas of a firm (such as mktg & finance) in the planning process & enabling capacity requirements planning; have capability of performing simulation to answer a variety of "what if" questions so managers can gain a better appreciation of available options & their consequences

when MRP II systems began to include feedback loops, they were referred to as this; evaluates a proposed material plan relative to available capacity; if proposed plan not feasible, it must be revised; evaluation referred to as capacity requirements planning

the process of determining short-range capacity requirements; inputs= planned-order releases for the MRP, current shop loading, routing info., & job time; key outputs= load reports for each work center

department or work center reports that compare known & expected future capacity requirements with projected capacity availability; shows expected resources requirements for jobs currently being worked on, planned orders, and expected orders for the planning horizon

represents an expanded effort to integrate standardized record keeping that will permit info. sharing; financial, manufacturing, and human resources on a single computer system to manage it more effectively; composed of a collection of integrated modules= connects them