MRP glossary TOP > Material Planning > 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:
Related term: Calculating Requirements
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