Page 325 - Orlicky's Material Requirements Planning

304 PART 3 Managing with the MRP System

TERMS RELATED TO THE
REMANUFACTURING INDUSTRY 1

carcass: A nonserviceable item obtained from a customer that is intended for use in
remanufacturing.
disassembly or teardown bill of material: The bill of material (BOM) used as a guide
for the inspector/evaluator in the teardown and evaluation process of an item intend-
ed for remanufacturing. This bill is subsequently modified after evaluation to create a
bill of repair that represents the required scope of work.
MRO: Maintenance, repair, and overhaul (an alternative definition for this acronym used
in the remanufacturing industry).
occurrence factor: Within the repair/remanufacturing environment, some repair oper-
ations do not occur 100 percent of the time. The occurrence factor is associated with
how often a repair is required to bring the average part to a serviceable condition and
is expressed at the operation level in the router.
remanufactured parts: Components or assemblies that are refurbished or rebuilt to
perform the original function. Syn: refurbished goods, refurbished parts.
remanufacturing: An industrial process in which worn-out products are restored to like-
new condition. In contrast, a repaired product normally retains its identity, and only those
parts that have failed or are badly worn are replaced or serviced. In general, the reman-
ufacturing environment is where worn-out products are restored to like-new condition.
remanufacturing resource planning (RMRP): A manufacturing resource planning
(MRP II) application in the remanufacturing sector.
repair bill of material: A BOM that has been created to define the actual scope of
work required to return an item to serviceable condition. This bill results from the actu-
al examination and evaluation of an item intended for repair and is used for master
scheduling and MRP explosion purposes.
repair factor: The repair factor, sometimes referred to as the frequency of repair,
defines the percentage of time an average item must be repaired for return to a ser-
viceable condition. This factor is also expressed as a percentage applied to the quan-
tity per assembly on the bill of material assembly/component relationship. It is used for
forecasting material and required capacity in advance of carcass receipt.
replacement factor: The replacement factor defines the percentage of time an aver-
age item will require replacement. This factor is expressed as a percentage applied to
the quantity per assembly on the bill of material assembly/component relationship. It is
used for forecasting material and required capacity in advance of carcass receipt.
unplanned repair: Repair and replacement data that are unknown until remanufactur-
ing teardown and inspection.

1 APICS Dictionary, 12th ed. (New York: Blackstone, 2008).