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MRP glossary TOP > F > Failure Rate

Failure Rate

Failure Rate

It refers to the failure percentage of parts or materials when producing the upper-level item. The failure rate is determined not by the type of parts or materials but by the relationship between the upper-level item. In this meaning, the failure rate is often set in the product structure (P/S). The failure rate-considered requirements of the lower-level item in the requirements explosion can be obtained by the following formula:

Requirements of the lower-level item = requirements of the upper-level item x physical unit x 1 / 1 - failure rate


Related term: Calculating Requirements

Reference:JIT Business Research Mr. Hirano Hiroyuki

Failure | F | FIFO