Detailed Scheduling and Planning (MRP & Capacity) Flashcards

The 'cumulative lead time' in MRP is defined as:

Answer: The total lead time from ordering the first raw material to delivering the finished product

Cumulative lead time is the longest path through the BOM from raw material procurement to finished goods, determining how far into the future the MPS must be planned.

What does 'utilization' measure in capacity management?

Answer: The percentage of scheduled time that a work center is actually working

Utilization is the ratio of actual hours worked to available hours, indicating how much of a resource's available time is being used productively.

What is 'efficiency' in the context of work center capacity?

Answer: Standard hours produced divided by actual hours worked

Efficiency compares actual output (in standard hours) to the hours actually consumed, measuring how well a work center performs against established time standards.

In MRP, 'explosion' refers to:

Answer: Calculating component requirements by multiplying parent requirements through all BOM levels

BOM explosion is the process of multiplying the parent item's gross requirement by component usage quantities at each BOM level to determine lower-level material needs.

Which MRP processing method only recalculates items affected by changes since the last run?

Answer: Net-change MRP

Net-change MRP selectively recalculates only those items whose data has changed, making it faster and suitable for more frequent runs than a full regenerative MRP.

What is the 'available capacity' of a work center?

Answer: Rated capacity adjusted for historical efficiency and utilization

Available (or demonstrated) capacity is the productive output a work center can realistically achieve, calculated as rated capacity multiplied by utilization and efficiency factors.