OPMT Chapt. 12

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  1. dependent demand
    demand for items that are subassemblies or component parts to be used in the production of finished goods; derived from plans to make certain products such as w/ raw materials & parts used in producing a finished product; tends to be sporadic or lumpy= large quantities are used at specific points in time with little or no usage at other times
  2. material requirements planning (MRP)
    a computer-based info. system that translates mater schedule requirements for end items in time-phased requirements for subassemblies, components, & raw materials, working backward from the due date using lead times & other info. to determine when & how much to order; used for batch production
  3. master schedule (or master production schedule)
    1 of the 3 primary inputs in MRP; states which end items are to be produced, when these are needed, & in what quantities; quantities come from customer orders & forecasts
  4. cumulative lead time (or stacked)
    the sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly; includes move & wait times in addition to setup and run times
  5. bill of materials (BOM)
    1 of the 3 primary inputs in MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product; each finished product has its own one of these
  6. product structure tree
    a visual depiction of the requirements in a bill of materials, where all components are listed by levels; hierarchical; shows the quantity of each item needed to complete one unit of its parent item
  7. low-level coding
    restructuring the bill of materials so that multiple occurences of a component all coincide with the lowest level at which the component occurs
  8. inventory records
    1 of the 3 primary inputs in MRP; includes info. on the status of each item by time periods, called time buckets; includes gross requirements, scheduled receipts, withdrawals, canceled orders, and expected amount on hand or on order
  9. gross requirements
    total expected demand for an item or raw material in a time period without regard to the amount on hand
  10. schedule receipts
    open orders scheduled to arrive from vendors or elsewhere in the pipeline; or works-in-progress
  11. projected on hand
    expected amount of inventory that will be on hand at the beginning of each time period; scheduled receipts + available inventory from last period
  12. net requirements
    the actual amount needed in each time period; the core of MRP processing; gross requirements - projected on hand inventory
  13. planned-order receipts
    quantity expected to be received by the beginning of the period in which it is shown
  14. planned-order releases
    planned amout to order in each time period; equals planned-order receipts offset by lead time; this amount generates gross requirements at the next level
  15. pegging
    the process of identifying the parent items that have generated a given set of material requirements for an item; working the process for MRP in reverse; enables managers to determine which products will be affected if orders are late due to late deliveries, quality problems, or other problesm
  16. planned orders
    schedule indicating the amount and timing of future orders
  17. order releases
    authorization for the execution of planned orders
  18. changes
    revisions of due dates or order quantities, or cancellations of orders to planned orders
  19. performance-control reports
    evaluation of system operation, including deviations from plans (missed deliveries and stockouts) and cost information
  20. planning reports
    data useful for assessing future material requirements; includes purchase commitments
  21. exception reports
    data on any major discrepancies encountered, such as late and overdue orders, excessive scrap rates, reporting errors, and requirements for nonexistent parts
  22. backflushing
    exploding an end items bill of materials (BOM) to determine the quantities of the components that were used to make the item; eliminates the need to collect detailed usage info. on the production floor
  23. manufacturing resources planning (MRP II)
    expanded approach to production resource planning, involving other areas of a firm (such as mktg & finance) in the planning process & enabling capacity requirements planning; have capability of performing simulation to answer a variety of "what if" questions so managers can gain a better appreciation of available options & their consequences
  24. Closed-Loop MRP
    when MRP II systems began to include feedback loops, they were referred to as this; evaluates a proposed material plan relative to available capacity; if proposed plan not feasible, it must be revised; evaluation referred to as capacity requirements planning
  25. capacity requirements planning
    the process of determining short-range capacity requirements; inputs= planned-order releases for the MRP, current shop loading, routing info., & job time; key outputs= load reports for each work center
  26. load reports
    department or work center reports that compare known & expected future capacity requirements with projected capacity availability; shows expected resources requirements for jobs currently being worked on, planned orders, and expected orders for the planning horizon
  27. enterprise resource planning (ERP)
    represents an expanded effort to integrate standardized record keeping that will permit info. sharing; financial, manufacturing, and human resources on a single computer system to manage it more effectively; composed of a collection of integrated modules= connects them
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OPMT Chapt. 12
OPMT Chapt. 12
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