CPIM $

Open order (released order)

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

Multilevel Bill of Materials

A display of all the components directly or indirectly used in a parent, together with the quantity required of each component (i.e., the planning factor). 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

Single-level BOM

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

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.

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.

Bill of Materials (BOM)

A listing of all of the assemblies, subassemblies, parts, and raw materials needed to produce one unit of a product

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. See: planning time fence.

Planning Bill of Material

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 and is used as the quantity per in the planning bill of material. Synonym: planning bill. See: hedge, option overplanning, production forecast, pseudo bill of material.

comprehensive MRP records

Every end item, component, and subcomponent need over the planning horizon will have its own MRP record

pegging

In MRP and MSP, 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.

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. Net requirements, lot-sized and offset for lead time, become planned orders.

parent item

Item produced from one or more components

Where-used list

Listing of every parent item that calls for a given component and the respective qty required from BOM file

Firm planned order (FPO)

Planned order that can be frozen in time and qty; computer isn't allowed to change it automatically, must be done by planner in charge of item; this technique can aid planners working with MRP systems to respond to material and capacity issues

requirements explosion

Process of calculating demand for components of a parent item by multiplying the parent item requirements by the component usage qty specified in the BOM

action bucket

The first period in an MRP record is always the current time period. It's called the action bucket, because this when planned order releases may (may not) actually be released.

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.

planned order receipts

The quantity planned to be received at a future date as a result of a planned order release.

gross requirements

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

explode

To perform a bill-of-material explosion.

scheduled receipts

an open order with an assigned due date

Lead Time Offset

Technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on lead time for item

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.

planned order release

Row on MRP table that is derived from planned order receipts by taking planned receipt qty and offsetting to the left by appropriate lead time