Chapter 21 part 1

limited

All production systems have ___________ capacity and resources

minimized

Another benefit in using modular bills is that if the same item is used in a number of products, then the total inventory investment can be __________________

Product structure file- Product tree

Bill of Materials is often called

spares, service, repair

Customers also order specific parts and components either as _____________ or for __________ and ___________

lowered

Example Low Level Coding: Item N occurs both as an input to L and M, item N need to be _____________ to level 2 to bring all N's to the same level

inefficient

From a computer standpoint, storing items in indented parts lists is very ___________

subassemblies, components

If the end item is quite large or quite expensive, the master schedule may schedule major __________________ or _____________ instead

lengthy

Inventory records file can be quite __________

stock receipts, disbursements, scrap losses, wrong parts, canceled orders

Inventory status file changes occur because of __________ _____________and ___________, ___________ ________, _______ _______, __________ ________

promised delivery dates

Known customers who have placed specific orders carry ___________ _______ __________

no forecasting, add

Known customers who have placed specific orders involve __________ __________, simply _______ them up

ordered, produced

MRP also provides the schedule specifying when each of the items should be __________ or ___________

raw material, parts and supplies

MRP calculates and schedules all ________ _______, __________ and ________ needed to make the mattress specified by the MPS

parts, components and materials

MRP determines the number of _______,_________ and _________needed to produce each end item

low

MRP does not work well with companies that produce a _________ number of units annually

dependent

MRP is based on __________ demand

fabrication

MRP is least valuable to those in _____________

assembly

MRP is most valuable in ___________ operations

Assemble to stock, Assemble to order and engineer to order

MRP is most valuable with three types of industries:

modules

Many end items that are large and expensive are better scheduled and controlled as ___________

aggregate

Master Production Scheduling is an ___________ plan

Planning Bill of Materials

Modular and super bill of materials are often referred to as

known customers who have placed specific orders, aggregate production plan

Product demand for end items comes primarily from two main sources

duplication

Single Level units avoid

exact

The aggregate operations plan does not specify _______ items

demand

The aggregate production plan reflects the firm's strategy for meeting ___________ in the future

Master production schedule, bill of materials, inventory records file

Three sources that become the data sources for the material requirements program

program run

Time buckets are accessed as needed during the __________ _________

exploded, summed

To compute the amount of each item needed at the lower levels, each item would need to be ______________ and __________

not

When customers order specific parts and components either as spares or for service and repair, these demands are ___________ usually part of the master production schedule

Material Requirements Planning program, gross requirement

When customers order specific parts and components either as spares or for service and repair, they are fed directly into the ___________ __________ _____________ _________, added in as a __________ ______

Low Level Coding

if all identical parts occur at the same level for each end product, the total number of parts and materials needed for a product can be computed easily

Super bill of materials

items with fractional options

Time Fences

periods of time having some specified level of opportunity for the customer to make changes

Product tree

shows how a product is put together

Bill of Materials

specific materials used to make each item and the correct quantities of each

batches, same

MRP is most valuable in industries where a number of products are made in ____________ using the _________ productive equipment

no options

Modular bill of materials is a standard item with ______ __________ within the module

1. The requirements for level 0 items, end items, are retrieved from the master schedule. Gross requirements are from the MRP program, scheduled in weekly time buckets 2. The program uses the current - on hand balance together with the schedule of orders that will be retrieved in the future to calculate the net requirements(amounts needed week by week in the future over and above what is currently on hand or committed to through an order already released and schedule) 3. Using net requirements, the program calculates when orders should be received to meet these requirements. This can be a simple process of just scheduling orders to arrive according to the exact net requirements or a more complicated process where requirements are combined for multiple periods. This schedule of when orders should arrive is referred to as planned order receipts 4. Since there is typically a lead time associated with each order, the next step is to find a schedule for when orders are actually released. Offsetting the planned- order receipts by the required lead times does this. This schedule is referred to as the Planned- order release 5. After these four steps have been completed for all the level zero items, the program moves to level 1 items 6. Gross requirements for each level 1 item are calculated from the planned-order release schedule for the parents of each level 1 item. any additional independent demand also needs to be included in the gross requirements 7. After the gross requirements have been determined, net requirements, planned- order receipts and planned- order releases are calculated as described in steps 2-4 above. 8. This process is then repeated for each level in the bill of materials

The MRP explosion process

time buckets

The MRP program accesses the status segment of the record according to specific time periods called

produced

The Master Scheduler must specify exactly what is to be ____________

product groups

The aggregate operations plan specifies _________ __________

uncertain

The basic difference in independent demand and dependent demand: if Part A is sold outside the firm, the amount of part A that we sell is _________

Available to promise

The difference between the number of units currently included in the master schedule and firm customer orders

Master production schedule

The firm's strategy is implemented through the detailed _________ ____________ ________

as they occur

The inventory status file is kept up to date by posting inventory transactions ______ ________ _______

explosion

The process of calculating the exact requirements for each item managed by the system is often referred to as the ___________ process

production lead time, commitment of parts and components to a specific end item, relationship between the customer and vendor, amount of excess capacity and the reluctance or willingness of management to make changes.

The question of flexibility within a master production schedule depends on several factors:

trial

To determine an acceptable, feasible schedule to be released to the shop, ________ master production schedules are run through the MRP program

include all demands from product sales, warehouse replenishment, spares and interplan requirements, Never lose sight of the aggregate plan, be involved with customer order promising, be visible to all levels of management, objectively trade off manufacturing, marketing and engineering conflicts, identify and communicate all problems

To ensure good master scheduling, the master scheduler must

quantities

When manufacturing occurs in lots (or batches), items needed to produce the lot are withdrawn from inventory in ____________(Perhaps all at once) rather than one at a time

modular bill of materials

a buildable item that can be produced and stocked as a subassembly

single- level

a more efficient procedure to compute the amount of each item, store parts data in simple ________ ________ units

Frozen

absolutely no changes in one company to only the most minor of changes in another

Liquid

allow almost any variation in products, with the provisions that capacity remains about the same and that there are no long lead time items involved.

Slushy

allow changes in specific products within a product group so long as parts are available

Pegging requirements

allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand

Inventory record files

contains data such as the number of units on hand and on order

Bill of Materials

contains the complete product description, listing the materials, parts and components; the quantity of each item; the sequence in which the product is created

Master Production Schedule

deals with end items and is a major input to the MRP process

Single Level Units

each item and component is listed showing only its parent and the number of units needed per unit of its parent

Material Requirements Planning

the key piece of logic that ties the production functions together from a material planning and control view.

Master production schedule

the number of items to be produced during specific time periods

controlled

the purpose of time fences is to maintain a reasonably ________________ flow through the production system

Lumpiness

the requirements tend to bunch or lump rather than having an even dispersal

Master Production Schedule

time-phased plan specifying how many and when the firm plans to build each end item.