Demand at the Point of Use

Demand for the part at the point of use (linefeed or work center) can be equal to plant demand if the part is used at only one linefeed or work center location within the plant.

However, if the PFEP document is describing a part being used at multiple locations within a MRP area, the point of use section will identify where the part will be consumed (which linefeed or work station) and the demand for that part at the point of use.

Derived from the Master Schedule
Demand in daily buckets
Sequenced per the Master Schedule
Max Model Usage Per Hour (MMU)

(Max Part Qty Per POU & Model) X (Line Rate)

Average Daily Usage:

Calculated over a system parameter controllable planning horizon using the master production schedule (MPS) data.
System default planning horizon equals 12 weeks or 84 days.
Mean for demand in daily buckets

Peak Daily Usage:

Calculated over a system parameter controllable planning horizon using the master production schedule (MPS) data.
System default planning horizon equals 12 weeks or 84 days.
Highest demand value for one day in the review period for a specific part

Standard Deviation:

Calculated over a system parameter controllable planning horizon using the MPS data.
System default planning horizon equals 12 weeks or 84 days.
Standard deviation of demand shows how much variation or dispersion from the average exists.

Frequency Factor (Number of Applicable Units / Week):

Calculated over a the entire Master Production Schedule planning horizon using MPS data.
System default planning horizon equals 12 weeks or 84 days.
The calculation is: [ # of Days with Demand for the Part] / [Production Days in Review Period].
A value less than 0.5 indicates low frequency of usage and candidate for MRP replenishment.
A value greater than 0.5 may indicate a part candidate for Kanban replenishment method.

Coefficient of Variation (Standard Deviation / Average Daily Usage):

Calculated over the entire Master Production Schedule planning horizon using MPS data.
System default planning horizon equals 12 weeks or 84 days.
The calculation is: [ Standard Deviation] / [Average Daily Usage].
A value greater than 1 indicates excessive fluctuation in demand pattern and a MRP replenishment method candidate.
A value less than 1 indicates a stable demand pattern and a potential Kanban replenishment method candidate.