MRP has several activities to carry out once the MPS requirements are refreshed. The first activity is to pick up requirements from the BOM record for each requirement. The BOM record holds several pieces of important information, including:
Top-level part number (parent-level number)
Component part numbers called out in the upper level
Usage per component in the upper level assembly
Unit of measure for each component
Lead time and lead time offsets for each component
When the BOM information has been accessed, the next information the MRP engine requires to complete its job is the inventory record. There are two types of inventory records for this discussion: on-hand inventory and on-order inventory. The names are descriptive enough, but for clarity there is an important Class A ERP influence in this space. Data accuracy becomes very important as realization of data dependency is underlined. For this planning engine to do its job effectively, the BOM records must be impeccable and inventory records must be pristine. Class A ERP, or high-performance criteria in general, requires BOM accuracy to be at a 98% minimum and 99+% to be considered good. Inventory record accuracy (accuracy of piece-part balance by location) needs to be 95% to meet a threshold of acceptability and 98% to be considered robust. These are important requirements to keep process variation and associated costs to a minimum whether you are looking to become Class A ERP certified or are just interested in high-performance ERP.
If the master schedule is...