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Definition
| Is composed of a set of processes, methods, and techniques for effective planning and control of all resources needed to take, make ,ship and account for customer orders in a manufacturing, distribution, or service company. |
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| Is the probability that several different componenets will be available simultaneously on demand. |
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| Encompasses a set of processes, methods and techniques for effective planning of all resources of a manufacturing company. |
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| Three Level Planning Hierarchy |
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Definition
Long Term Planning:
Takes place several months to a year prior. The aim is to forecast the total demand for products and processes that will be placed on the enterprise or on the supply chain from the outside.
Medium Term:
Concerns the months or weeks to come. Its purpose is to forecast demand more precisely along the time axis. Further precision tuning of previous agreements.
Short Term Planning and Control
Concerns the actual servicing of orders. It represents the short-term temporal horizon – days or weeks during which the physical logistics take place. Control takes the form of coordination performed by all persons involved. |
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| Refers to rough-cut business objects |
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| Detailed Objects planning |
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| refers to detailed business objects. |
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| Ensures that the necessary data on all objects is available at all times in a detailed and up-to-date form. |
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| Handles a customer request for quotations and determined delivery. |
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| Determines the scope of delivery. It can then be describes by rough-cut business objects or through product families or rough-cut work centers. In that case, the order due date is defined only as a time period. |
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| Sales and Operations Planning: |
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Definition
| Brings together all the plans for the businsses in one integrated set of plans. Performed at least once per month. |
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Term
| Resource Requirements Planning RRP : |
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Definition
| Calculates the componenets requirements and the capacity requirements based on production plan and product structures. The output of the RRP included a procurement plan for componenets. |
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Definition
| Is establishing a plan to produce specific products or provide specific services within a specific time period. |
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Definition
| Calculates detailed material and componenets requirements and detailed capacity requirements, divided up along the time axis and works out order proposals for R&D, production and procurement for covering these requirmments. This is usually based on the master production schedule and through analytical explosion of detailed product structures |
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| Order Proposal or Planned Order |
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Definition
| Sets the goods to be produced or procured, the order quantity, the latest completion date and the earliest start date. |
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Definition
| Handles an order proposal from medium term planning or an order from an external or internal customer. It determines delivery. |
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Definition
a) for unplanned order, the detailed material and components requirements and the detailed capacity requirements, divided up along the time axis, required for the fulfillement of an unplanned order.
b) for a planned order, the availability of ressources, by double-checking that materials and componenets requirements and the requirements for internal or external capacities are covered. |
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Definition
| Is the decision to execute order proposals or orders originating from higher level logistics. It poduces all administrative documents required for the order confirmation, execution and communication with suppliers. |
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| Is a production or procurement order with ongoing production or procurement. |
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| Coordinates the order and all other connected orders in an integrated manner. |
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Definition
| Prgress checking monitors execution of all work according to plan in terms of quantity delivery and reliability. |
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| Means checking the quality of all incoming goods from production and procurement. Quality control has become an extensive process that is based upon specific quality control sheets. |
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Definition
1) Materials Management
2) Time management and scheduling
3) Capacity management |
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Definition
| Comprises the tasks involved in storing goods |
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Definition
| Is the branch of business management concerned with planning and controlling inventories |
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| Includes all activities and techniques of maintaining the desired levels of times |
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Definition
Is the function of recognizing all demands for goods and services to support the marketplace.
- Bid and blanket order processing
- Demand forecasting
- Order entry and other configuration |
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Definition
| Is a deterministic independent demand.all factors are known. |
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Definition
| Is a quotation, a statement of price, terms of sale and description of goods and services given to customer in response to a customer request for quottions. |
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Definition
| Result of a cutomer bid. Here, the delivery quantity is often set by a long term minimum and maximum blanket order quantity for a particular period of time. |
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| Is the process that estimates future demand. |
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| Encompasses order receiving, entry, configuration and confirmation of orders from customers, distributions centers and interplant operations. |
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| Is a time phased statement of expected customer orders anticipated to be received for each major product family or item. |
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Definition
| Is the agreed-upon plan that comes from the overall level of manufacturing output planned to be produced. |
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| Similar to production plan but for the procurement of necessary products to be sold directly. |
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Definition
| The corresponding planning process at the level of the individual product |
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| Master Production Schedule (MPS): |
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Definition
| Is ther disaggregated version of a production plan, expressed in the specific products, configurations, quantities and dates. |
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| Rough Cut Capacity Planning : |
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Definition
| Is the process of converting the master production schedule into required capacity, that is, capacity of key ressources to produce the desired output in the particular periods. |
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Definition
| Is all the customer orders received but not yet shipped. Sometimes refered to as open customer orders. |
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| ATP – Available to promis |
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Definition
| Is the uncommitted.. that s not yet assigned to an open customer order.. portion of a company’s inventory and planned production. |
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| Short range blanket order |
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Definition
| is only for a set quantity. A company gradually sets due dates for parts of the order by means of an appropriate technique of execution and control of operations |
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Term
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Definition
| Is the required or agreed time or rate of actual delivery of goods. A systems supplier, for example may be requested by the company to deliver to the assembly line of an automobile manufacturer or machine builder in synchrony with production. |
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Term
| Classification of demand according to accuracy is defined as follows: |
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Definition
- Deterministic demand ( downstream from OPP )
- Stochastic Demand (upstream from OPP ) |
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| Classification of demand according to its relationship with other demand: |
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Definition
- Independent demand ( unrelated to other items )
- Dependant demand ( directly related to other items ) |
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Definition
| Percentage of demand that can be satisfied through available inventory or by the current production schedule. |
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Definition
| Percentage of demand that can be satisfied through available inventory or by the current production schedule. |
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| Is a lack of materials, componenets or finished goods needed. |
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Definition
| Is the probability that several different componenets will be available simultaneously on demand. |
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Definition
| When blanket order quantity is defined by a maximum value and a minimum value of 0 |
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| characteristic funnel effect |
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Definition
| when the blanket order releases become more precise as we move along the time axis |
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| integrated resource management |
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Definition
Iterative master planning of resources:
1) Sales Plan --> 2) Inventory plan / production plan --> 3) resource requirements planning --> 4) comparison and iteration |
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Definition
| determines desired levels of stored end products |
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Definition
| plan for products to be bought for production |
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| infinite loading techniques |
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Definition
| Used when capacity requirements can be adjusted to adapt to customer demand schedules. Useful if meeting demand is more important than achieving a certain level of capacity utilization |
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| finite loading techniques |
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Definition
| when you do not permit overloads. Focus is on changing start and finish dates to orient production in order to use existing capacity as efficiently as possible. This is useful in short-term planning situations for planning and control |
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| materials management concepts |
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Definition
| Avoidance of disruptions in delivery or production because of shortages / cost reduction of procurement / reduction of carrying cost |
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| unfilled customer order because inventory cannot satisfy demand |
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Definition
| What would the cumulative fill rate be for 10 items each with a 95% fill rate |
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| No.. 78% cumulative fill rate |
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Definition
| Would a 95% fill rate for each screw be good for an expensive assembly requiring 5 screws? What would the cumulative fill rate be? |
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Term
| Stochastically... because it requires forecasts, and for that you need to use probabilities |
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Definition
| Demand upstream from the OPP is determined how? Why? |
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| Deterministically, because you have an exact reference for what demand is. |
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Definition
| Demand downstream from the OPP is determined how? WHy? |
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| independent demand (a final product) |
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Definition
| when the demand for the item is unrelated to the demand for other items. |
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| dependent demand (a component of a final product) |
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Definition
| when the demand is dependent on another item |
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| Material Requirement Planning (MRP) |
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Definition
| used for materials management when there is deterministic demand for a product, but that product is composed of components with dependent demand |
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| Balancing load with capacity available |
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Definition
| Objective of Capacity Management |
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Term
| Quantitatively flexible capacity and flexibility of the order due date |
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Definition
| When determining the proper technique for capacity management, what two features should I look at? |
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| Flexible capacity and not flexible order due date |
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Definition
| For what level of flexibility of capacity and flexibility of order due date is kanban best suited? |
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