Section D Quiz
For lean manufacturers, for whom the precise timing of material flow is so important, the most likely time bucket duration will be: Weekly Monthly Daily Bi-weekly
Daily Many current systems use daily time buckets. This will be especially true for lean systems, since they focus on reducing lead times in part by more precisely timing the flow of materials. For more information, refer to Module 1, Section D, Topic 3
Net requirements are equal to: Gross requirements - available inventory Gross requirements + scheduled receipts - available inventory Gross requirements - scheduled receipts - available inventory Gross requirements + planned order releases - available inventory
Gross requirements - scheduled receipts - available inventory Net requirements = gross requirements - scheduled receipts - available inventory. For more information, refer to Module 1, Section D, Topic 3
Within a given period: Opening balance = 350 Gross requirements = 50 Scheduled receipts = 75 The gross requirements in the next period = 500 What quantity should the planned order release be in this period? 125 275 25 175
125 Net requirements = gross requirements - scheduled receipts - available inventory. For more information, refer to Module 1, Section D, Topic 3
A component has net requirements for 47 pieces for a future date. A cycle adjustment just reduced on hand inventory by 17 pieces. What will be the new net requirements when MRP replans? 60 30 64 44
64 17 additional pieces are needed as a result of on hand being overstated. 47 previously needed plus 17 additional pieces lost now totals 64 pieces required. For more information, refer to Module 1, Section D, Topic 3
In a lean environment, it is possible for two or more conventional bills of material to be combined, therefore reducing the number of overall bills needed. This will likely be because: A part was made as part of a simulation A part is used directly in the next process A part is now complete and can be put aside A part has defects
A part is used directly in the next process Lean may simplify and flatten bills of material. When a part is used directly in the next process rather than being entered into inventory, two or more conventional bills might be combined so there will be fewer bills in total, or some levels in bills of material may not be needed and the hierarchy can be flattened. For more information, refer to Module 1, Section D, Topic 3
A scheduled receipt in MRP is An open order that is planned to be received. A planned release for an order to arrive on an assigned due date. An open order that has an assigned due date. An order which was already received on a previous date.
An open order that has an assigned due date. A scheduled receipt is an open order that has an assigned due date. For more information, refer to Module 1, Section D, Topic 4
When a customer orders a laptop online, and selects from a variety of different options, such as RAM, hard disk space, color, etc., an order entry system will produce a modular: Bill of material Manufacturing calendar Inventory list Design template
Bill of material Customer service and service parts departments will use bills of material, for example, to ensure that the right replacement part is issued. For more information, refer to Module 1, Section D, Topic 2
Which of the following types of files is a key input to material requirements planning? Routing Supplier master Work center master Bill of material
Bill of material The bill of material (BOM) is 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. When the MRP BOM explosion occurs, the BOM enables the identification of all items and quantities that need to be replenished. The routing file includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. The supplier master file contains the detail on suppliers used by the company and is considered part of the MRP output for purchase replenishment. The work center file contains the detail on the productive resources that are available for MRP production order output. For more information, refer to Module 1, Section D, Topic 2
An MRP system that lists the actual date for actions/events, and omits periods of inactivity is called: Two-bin Bucketless Bucketed Perpetual flow
Bucketless Bucketless MRP systems are far more common than bucketed systems. Rather than showing buckets, these systems list the actual date for actions or other events and omit periods where there is no activity. For more information, refer to Module 1, Section D, Topic 3
Gross requirements differ from net requirements in that they Consider available inventory, but not scheduled receipts Are a direct feed from the master production schedule. Do not consider available inventory or scheduled receipts. Are frozen within the demand time fence. Are frozen within the demand time fence.
Do not consider available inventory or scheduled receipts. Gross requirements do not net available inventory receipts from the value. For more information, refer to Module 1, Section D, Topic 3
Multiplying the requirements for each material or component in a bill of material by its usage quantity, and recording the results in a product tree is known as: Production planning Exploding the bill-of-material Stock-taking Resource planning
Exploding the bill-of-material Exploding the bill of material is the process for determining and indicating the component identities, quantities needed, and other parent-child relationships in a bill of material. For more information, refer to Module 1, Section D, Topic 3
Because bills of materials (BOMs) identify the exact materials used in production, and can include component and subcomponent cost information, they are also useful for which other department(s)? Sales Finance Returns Marketing
Finance Bills of materials are useful for finance because they help determine the direct materials used in the product. BOMs can summarize cost information for all components and subcomponents. The bill may also be helpful in calculating direct labor and provide means of allocating overhead. For more information, refer to Module 1, Section D, Topic 2
A lead-time offset is a technique used in material requirements planning where a planned order receipt in one time period will require the release of that order: In an earlier time period based on the lead time for the item. In a later time period based on the lead time for the item. In a later time based on dynamic load on the shop floor. In an earlier time period based on the lead time for the finished product.
In an earlier time period based on the lead time for the item. A lead-time offset is a 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 the lead time for the item. For more information, refer to Module 1, Section D, Topic 3
A required input of the material requirements plan is Backlog Inventory data Capacity constraints Delivery orders
Inventory data Inventory data is an input to the MRP netting logic, the other responses are not used by MRP. For more information, refer to Module 1, Section D, Topic 1
In a single-level Bill of Materials, a component amount has been left blank. What does this indicate? It is not used in this process It is not possible to measure X in standard quantities accurately The amount used is not important to the overall costing of production The component has not been selected yet
It is not possible to measure X in standard quantities accurately When the amount of a component used or needed cannot be measured accurately using standard measurements, the quantity is left blank on the bill of material. The cost of the part or component would have to be included in overhead. For more information, refer to Module 1, Section D, Topic 2
A lean manufacturer operates a pull system. However, they may produce items that require certain push components. This will occur for items with: Shorter lead times than customer lead times allow Short customer lead times Longer lead times than customer lead times allow Long customer lead times
Longer lead times than customer lead times allow MRP is inherently a push system while lean is a pull system, so lean does not use MRP for its pull components. However, lean systems may still have some push components for items with longer lead times than customer lead times allow, and MRP could be used to plan these items with long lead times. Lean may also use MRP to plan for proper levels of capacity. For more information, refer to Module 1, Section D, Topic 3
Component availability information is provided by Capacity requirements planning Distribution requirements planning Master production scheduling Material requirements planning
Master production scheduling MRP logic provides the information on components needed, available quantities and required dates. For more information, refer to Module 1, Section D, Topic 1
A product is made from two widgets, but the bill of material only shows one. Which of the following results can be expected? Material requirements will be understated in MRP. The error is insignificant and can be covered by safety stock. Production will not be impacted. Material requirements will be overstated in MPS.
Material requirements will be understated in MRP. Bills of material must reflect exactly what will take place in manufacturing. Any error will lead to errors in planning material supply and result in excess inventory or shortages as in this example. For more information, refer to Module 1, Section D, Topic 2
A tool used to find the customer affected by a delayed purchased component would be Pegging Open order report MRP explosion Where-used
Pegging Pegging is the process of identifying the source of an item's gross requirements and/or allocations. For more information, refer to Module 1, Section D, Topic 2
Which of the following terms applies to a suggested order quantity, release date, and due date created by the planning system's logic when it encounters net requirements in processing MRP? Planned order receipt Planned order release Planned order Reschedule recommendation
Planned order A planned order includes a suggested order quantity, release date, and due date created by the planning system's logic when it encounters net requirements in processing MRP. For more information, refer to Module 1, Section D, Topic 4
A row on an MRP grid that is derived by taking the planned receipt quantity and offsetting to the left by the appropriate lead time is known as Scheduled receipts Planned order receipt Planned order release Net requirements
Planned order release Planned order release is 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. For more information, refer to Module 1, Section D, Topic 3
A manufacturer of laptops knows roughly which components will be included in each laptop configuration that they offer. To facilitate master scheduling and material planning, the necessary components and subassemblies can be grouped together in a particular type of document, even though specifics of an order have not yet been received. What is this called? Business proposal Forecast Planning bill of material Planning schedule
Planning bill of material A planning bill of material is intended to simplify planning. It is an artificial grouping of items and components used to plan lead times for products that will need to be assembled- or made-to-order, the specifics of which will not be known until an order is received. For more information, refer to Module 1, Section D, Topic 2
A planned order has been released earlier than expected. Materials have arrived at a workstation a week before they were expected, and are taking up space on the factory floor. What impact will this have on the manufacturing system? Better products Greater efficiency Reduced system efficiency Higher turnover
Reduced system efficiency Planned orders should not be released early unless necessary. Releasing orders early will reduce system efficiency, because materials will arrive early, have higher inventory holding costs, and may get in the way of operations. In addition, material requirements sometimes change daily, and order that are released before necessary are commitments to buy something that may no longer be needed. For more information, refer to Module 1, Section D, Topic 4
A customer has doubled their order for ski-boots, which means the manufacturer will not be able to meet their tight deadline. In addition, some of the pre-made clasps have been rejected after suffering transit damage, which means expediting the ski-boot order is not an option. What action remains to the planner to address these issues? Maintaining priorities Product redesign Cancelling the order Replanning
Replanning 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). Maintaining priorities is not possible at this time; a product redesign is an extreme and unworkable solution; and cancelling the order would result in waste. For more information, refer to Module 1, Section D, Topic 4
The components for a product have been identified. The demand for each component must then be calculated before the MRP record can be completed. This is known as: Availability Net requirements Bill-of-material explosion Requirements explosion
Requirements explosion Requirements explosion is 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. For more information, refer to Module 1, Section D, Topic 3
In a planning bill for an updated configuration of a cellphone, the total percentages for the amounts required for the three possible memory chips used equals 115%. What does this indicate? The manufacturer is making a hedge against higher demand The manufacturer has received more orders for blue than other colors There has been an error in the calculations The manufacturer is making up for missed orders
The manufacturer is making a hedge against higher demand When a planning bill's percentage is higher than 100%, it is a form of hedge against volatility in demand. It serves roughly the same purpose as safety stock. Because this is a planning bill, no orders have yet been received, and therefore does not refer to received orders. For more information, refer to Module 1, Section D, Topic 2
An assembly is manufactured in a single work center without any intermediate steps or processes. The bill of material for the assembly has multiple levels. What, if any action should be taken? MRP can handle the material explosion and there are no other adverse effects. The bills of material should be changed to a single bill of material, but no changes to any routings are required. The multiple bill of material levels should be consolidated into a single level bill of material. It is not necessary to reflect how products are actually made. No changes are required.
The multiple bill of material levels should be consolidated into a single level bill of material. The multiple bill of material levels serve no purpose as there are no intermediate steps or processes. Converting to a single level bill of material will reflect how the product is actually produced, eliminate unnecessary receipts and issues, depict how the product is actually produced in the single work center. For more information, refer to Module 1, Section D, Topic 2
A cellphone manufacturer uses the same speaker module on every phone model it produces. The manufacturer keeps a report of every model for which it is used, and in what quantity. This report is called: Where-used list Bill of material Pegging Inventory list
Where-used list A where-used list includes every parent item that calls for a given component, and the respective quantity required, from a bill-of-material file. It can assist in costing products or determining the impact of an engineering change for a component. For more information, refer to Module 1, Section D, Topic 2
A buyer needs to make a component change to every parent item that currently is made with it. In order to prepare the engineering change request, which of the following reports will provide the identify of the parent items? Where-used list Routing list Material requirements planning exception report Engineering change report
Where-used list A where-used list is a listing of every parent item that calls for a given component, and the respective quantity required, from a bill-of-material file. For more information, refer to Module 1, Section D, Topic 2
When a material requirements planning planned order is released, it means that work has begun on the item referenced. the item on the order has been completed and placed in stock. authorization has been given to manufacture or purchase the item. the item on the order must be scheduled.
authorization has been given to manufacture or purchase the item. When the manufacturing or purchasing planner has been authorized by the MRP output, the planner can release planned purchasing and manufacturing orders. For more information, refer to Module 1, Section D, Topic 4
A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials is known as: material requirements planning kanban theory of constraints pull system
material requirements planning The key input to Material Requirements Planning (MRP) is the Master Production Schedule (MPS) which provides due dates and quantities for end items. MRP systems combine bills of material (lists of the components and subcomponents used in one unit) with planning data on lead times to determine when to make or buy components. For more information, refer to Module 1, Section D, Topic 2
An artificial grouping of items or events in bill-of-material format used to facilitate production planning is known as a: pick list planning bill of material item master routing
planning bill of material Routing describes the method for manufacturing an item. Item master refers to the database repository where information about an item is kept. A pick list references finished goods, materials, and components to be withdrawn from stock for shipment or production purposes. For more information, refer to Module 1, Section D, Topic 2