Class 17 - dependent demand system to operate correctly þ...

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AGENDA HOMEWORK 6 HANDOUT QUIZ 6 ON THURSDAY BILL OF MATERIAL LOW LEVEL CODING MRP PLANNING
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Bills of Material þ List of components, ingredients, and materials needed to make product þ Provides product structure þ Items above given level are called parents þ Items below given level are called children
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BOM Example B(2) Std. 12” Speaker kit C(3) Std. 12” Speaker kit w/ amp-booster 1 E(2) E(2) F(2) Packing box and installation kit of wire, bolts, and screws Std. 12” Speaker booster assembly 2 D(2) 12” Speaker D(2) 12” Speaker G(1) Amp-booster 3 Product structure for “Awesome” (A) A Level 0
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Bills of Material þ Phantom Bills þ Describe subassemblies that exist only temporarily þ Are part of another assembly and never go into inventory þ Low-Level Coding þ Item is coded at the lowest level at which it occurs þ BOMs are processed one level at a time
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Accurate Records þ Accurate inventory records are absolutely required for MRP (or any
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Unformatted text preview: dependent demand system) to operate correctly þ Generally MRP systems require 99% accuracy þ Outstanding purchase orders must accurately reflect quantities and scheduled receipts Lead Times þ The time required to purchase, produce, or assemble an item þ For production – the sum of the order, wait, move, setup, store, and run times þ For purchased items – the time between the recognition of a need and the availability of the item for production MRP Structure Figure 14.5 Output Reports MRP by period report MRP by date report Planned order report Purchase advice Exception reports Order early or late or not needed Order quantity too small or too large Data Files Purchasing data BOM Lead times (Item master file) Inventory data Master production schedule Material requirement planning programs (computer and software) MRP Problems • Handouts...
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Class 17 - dependent demand system to operate correctly þ...

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