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.
