Interview Question and answers on MRP and Master Scheduling in Oracle EBS r12
Material Requirements Planning (MRP):
What is Material Requirements Planning (MRP) in Oracle EBS R12, and what is its primary purpose?
Answer: MRP in Oracle EBS R12 is a module that helps organizations plan and manage the procurement of materials needed for production. Its primary purpose is to ensure that materials are available when required to meet production and demand needs.
What are the key components of the MRP module in Oracle EBS R12?
Answer: The key components of the MRP module include Bills of Material (BOMs), Inventory, Work in Process (WIP), and Purchase Orders.
How does MRP determine the material requirements for production?
Answer: MRP determines material requirements by analyzing the Bill of Materials (BOM), current inventory levels, open work orders, and forecasted demand to calculate the quantity of materials needed.
What is the significance of Safety Stock in MRP, and how is it calculated?
Answer: Safety Stock in MRP is a buffer quantity of inventory kept on hand to account for variability in demand and lead times. It is calculated based on factors such as lead time variability and demand variability.
What are the different planning methods available in MRP, and when are they typically used?
Answer: MRP offers planning methods such as MRP, Master Scheduling/MRP, and Master Scheduling. MRP is used for component planning, Master Scheduling/MRP combines demand and supply planning, and Master Scheduling focuses on high-level production planning.
How does MRP handle the management of Material Lead Times, and why are they important in production planning?
Answer: MRP considers Material Lead Times when planning production. Material Lead Times represent the time required to procure or receive materials and are crucial for scheduling production to meet demand.
What is the role of Forecasting in MRP, and how does it assist in demand planning?
Answer: Forecasting in MRP involves using historical data and statistical methods to predict future demand. It assists in demand planning by providing insights into expected demand patterns.
What is the purpose of a Planning Time Fence in MRP, and how does it impact production scheduling?
Answer: A Planning Time Fence in MRP is a predefined time period during which changes to the production schedule are restricted. It helps stabilize production plans and ensures that short-term changes do not disrupt production.
What is Pegging in MRP, and how does it help in tracking the relationship between demand and supply?
Answer: Pegging in MRP is the process of linking demand (e.g., sales orders) to the corresponding supply (e.g., purchase orders or work orders). It helps in tracking the relationship between demand and supply and identifies the source of demand.
How does MRP handle the management of Order Policies, and what are common order policies used in manufacturing?
Answer: MRP allows organizations to define Order Policies that specify how orders should be generated based on demand and supply. Common order policies include Reorder Point, Min-Max, and Fixed Order Quantity.
What is the purpose of Demand Time Fences in MRP, and how do they impact order generation?
Answer: Demand Time Fences in MRP are predefined time periods during which specific order policies are applied. They impact order generation by determining when and how orders are created based on demand fluctuations.
What is the role of MPS/MRP Netting in MRP, and how does it calculate net requirements?
Answer: MPS/MRP Netting in MRP calculates net requirements by subtracting existing supplies (e.g., on-hand inventory and scheduled receipts) from gross requirements. It helps determine the actual need for materials.
How does MRP handle the management of Lot Sizing, and what are common lot-sizing methods?
Answer: MRP allows organizations to choose Lot Sizing methods to determine the order quantities for materials. Common lot-sizing methods include Economic Order Quantity (EOQ), Period Order Quantity, and Fixed Order Quantity.
What is the significance of Safety Lead Time in MRP, and how is it calculated?
Answer: Safety Lead Time in MRP accounts for variability in lead times and is added to the planned lead time to ensure materials are available when needed. It is calculated based on factors such as lead time variability.
How does MRP handle the management of Planning Time Fences, and what is their purpose in demand and supply planning?
Answer: Planning Time Fences in MRP are predefined time periods that control when changes to production schedules can be made. They help in demand and supply planning by providing stability and control over planning activities.
What is the purpose of Exception Messages in MRP, and how do they help in identifying planning issues?
Answer: Exception Messages in MRP highlight planning issues or exceptions that require attention. They help planners identify and address potential problems in the planning process.
What is the role of MRP Netting Inquiry in MRP, and how does it provide visibility into material requirements?
Answer: MRP Netting Inquiry in MRP provides visibility into material requirements by displaying the details of gross requirements, scheduled receipts, and net requirements for each material.
How does MRP handle the management of Planned Orders, and what information do they contain?
Answer: Planned Orders in MRP are generated to fulfill material requirements. They contain information such as order quantities, due dates, and the source of demand.
What is the significance of the MRP Planning Horizon, and how does it influence the planning process?
Answer: The MRP Planning Horizon defines the time period for which MRP plans materials. It influences the planning process by specifying the range of time to consider for material requirements.
What is the role of Safety Stock Planning in MRP, and when is it used?
Answer: Safety Stock Planning in MRP involves calculating safety stock quantities to account for demand and supply variability. It is used to ensure product availability and minimize stockouts.
Master Scheduling:
What is Master Scheduling in Oracle EBS R12, and how does it differ from Material Requirements Planning (MRP)?
Answer: Master Scheduling in Oracle EBS R12 is a module that focuses on high-level production planning and balancing supply and demand. It differs from MRP, which is more detailed and focuses on materials planning.
What are the primary objectives of Master Scheduling?
Answer: The primary objectives of Master Scheduling are to balance production capacity with demand, ensure on-time deliveries, and optimize the use of resources.
How does Master Scheduling handle the management of Demand Management, and what tools are available for demand forecasting?
Answer: Master Scheduling manages demand through tools such as forecasting models, historical demand analysis, and customer order information. Forecasting methods may include time series analysis and statistical forecasting.
What is the role of the Master Production Schedule (MPS) in Master Scheduling, and how is it generated?
Answer: The Master Production Schedule (MPS) is a key component of Master Scheduling. It represents the planned production quantities for finished products. The MPS is generated based on demand forecasts and production capacity constraints.
What is the significance of Time Fences in Master Scheduling, and how do they impact production planning?
Answer: Time Fences in Master Scheduling are predefined time periods that control changes to the production schedule. They provide stability to the plan by limiting adjustments within specific time intervals.
What is the purpose of the Available-to-Promise (ATP) calculation in Master Scheduling, and how does it assist in order commitment?
Answer: ATP calculation in Master Scheduling determines the quantity of a product that can be promised to customers based on available inventory and planned production. It helps in order commitment and promises delivery dates.
How does Master Scheduling handle the management of Rough-Cut Capacity Planning (RCCP), and what is its role in production planning?
Answer: Rough-Cut Capacity Planning (RCCP) in Master Scheduling assesses whether the production plan can be executed within available capacity constraints. It helps identify potential resource shortages or overloads.
What is the role of the Master Scheduler in Master Scheduling, and what responsibilities does this role entail?
Answer: The Master Scheduler is responsible for creating and maintaining the Master Production Schedule (MPS), balancing supply and demand, addressing capacity constraints, and ensuring on-time deliveries.
How does Master Scheduling handle the management of Distribution Resource Planning (DRP), and what is its purpose in supply chain planning?
Answer: Distribution Resource Planning (DRP) in Master Scheduling focuses on optimizing the distribution of finished products to meet customer demand. It ensures that products are available at the right locations and times.
What is the significance of the Available-to-Promise (ATP) Inquiry in Master Scheduling, and how does it provide visibility into product availability?
Answer: The ATP Inquiry in Master Scheduling provides visibility into product availability by showing the quantity of a product that can be promised to customers based on current inventory and planned production.
How does Master Scheduling handle the management of Resource Capacity Constraints, and what tools are available for capacity analysis?
Answer: Master Scheduling allows organizations to identify and address resource capacity constraints. Capacity analysis tools may include workload reports and capacity planning graphs.
What is the role of Master Production Scheduling (MPS) Items in Master Scheduling, and how are they related to demand and supply?
Answer: MPS Items in Master Scheduling represent finished products or product families. They are related to demand through customer orders and forecasts and are balanced with supply through production plans.
How does Master Scheduling handle the management of Demand Forecasting, and why is forecasting important in production planning?
Answer: Master Scheduling uses demand forecasting to predict future customer demand. Forecasting is important in production planning as it helps organizations align production with expected market demand.
What is the purpose of the Cumulative Lead Time in Master Scheduling, and how is it calculated?
Answer: The Cumulative Lead Time in Master Scheduling represents the total time required to produce a product, including all stages of production and procurement. It is calculated by summing lead times for each component.
How does Master Scheduling handle the management of Order Promising, and what factors influence order commitments?
Answer: Order Promising in Master Scheduling involves committing to customer orders based on product availability, lead times, and production capacity. Factors like inventory levels and production schedules influence order commitments.
What is the role of the Master Scheduling Time Fence, and how does it influence production planning?
Answer: The Master Scheduling Time Fence is a predefined time period during which changes to the production schedule are restricted. It provides stability to the production plan and ensures that short-term changes do not disrupt production.
What is Rough-Cut Capacity Planning (RCCP) in Master Scheduling, and why is it important for capacity analysis?
Answer: Rough-Cut Capacity Planning (RCCP) in Master Scheduling assesses whether the production plan can be executed within available capacity constraints. It is important for capacity analysis and resource allocation.
How does Master Scheduling handle the management of Supply Chain Collaboration, and what tools facilitate collaboration with suppliers and customers?
Answer: Master Scheduling may involve tools for supply chain collaboration, such as vendor portals and customer order tracking systems. These tools facilitate communication and collaboration with suppliers and customers.
What is the significance of the Master Production Schedule (MPS) Time Fence, and how does it impact production planning and scheduling?
Answer: The MPS Time Fence is a predefined time period during which changes to the Master Production Schedule (MPS) are restricted. It influences production planning by providing stability and control over schedule changes.
What is the purpose of Master Scheduling Workbench in Oracle EBS R12, and how does it assist in production planning activities?
Answer: Master Scheduling Workbench in Oracle EBS R12 is a tool that provides a centralized view of production plans, demand, and supply. It assists in production planning activities by offering visibility and control over the planning process.
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