Term
| Best description of AGGREGATE PLANNING? |
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Definition
| Intermediate-range capacity training that typically comers a time horizon of 2 to 12 months |
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Term
| Accommodating peak demands is a goal of aggregate planners (when?) |
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Definition
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Term
| Aggregate planning (capacity planning for what?) |
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Definition
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Term
| Aggregate planning decisions (relate to what?) |
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Definition
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Term
| Inputs to aggregate planning? |
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Definition
| Beginning inventory, forecasts for each period of schedule, customer orders |
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Term
| Outputs of aggregate planning? |
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Definition
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Term
| Uncommitted inventory (known as?) |
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Definition
| available to promise inventory |
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Term
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Definition
| Computer Aided Manufacturing |
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Term
| Computer Aided Manufacturing (CAM) |
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Definition
| process control
CAM automates process control. |
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Term
| Economic Order Quantity (EOQ) |
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Definition
• Can lead to minimum costs if usage of item is fairly uniform
• This may be the case for some lower-level items that are common to different ‘parents’
• Less appropriate for ‘lumpy demand’ items because inventory remnants often result |
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Term
| Enterprise Resource Planning (ERP) |
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Definition
| integration of financial, manufacturing, and human resources in a single database |
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Term
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Definition
| Particular quantity of production that will minimize the total annual cost of setting up and carrying inventory, if produced in one production run |
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Term
| Material Requirements Planning (MRP) |
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Definition
| • A computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. (P 510) |
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Term
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Definition
• Primary – Planned Orders schedule, Order releases and changes
• Secondary – Performance-Control reports, Planning reports, and Exception reports
•
• Master Schedule - Cumulative Lead Time (Orders and Forecast)
• Bill of Materials (BOM)– Low Level recording (design changes) Product structure tree
• Inventory Records - Includes information on the status of each item by time period, called time buckets (receipts and withdrawals) |
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Term
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Definition
| shows the material order points needed to meet scheduled availability of the end item |
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Term
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Definition
| Low Level recording (design changes) Product structure tree |
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Term
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Definition
| Includes information on the status of each item by time period, called time buckets (receipts and withdrawals) |
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Term
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Definition
• One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities.
• Managers like to plan far enough into the future so they have
reasonable estimates of upcoming demands
• The master schedule should cover a period that is at least equivalent to the cumulative lead time
• Cumulative lead time
• The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of the final assembly. |
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Term
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Definition
| actual amount of item needed in each time period |
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Term
| Within MRP master schedule, planning horizon time periods (called what?) |
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Definition
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Term
| MRP input (contains parts/materials needed to produce one unit – called what?) |
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Definition
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Term
| Visual depiction (of parts/materials to produce one unit - called what?) |
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Definition
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Term
| MRP input storing information on the status of each item by time period (called what?) |
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Definition
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Term
| MRP II systems with feedback (called what?) |
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Definition
When MRP II systems began to include feedback loops, they were referred to as closed loop MRP
• Closed Loop MRP
• Systems evaluate a proposed material plan relative to available capacity
• If a proposed plan is not feasible, it must be revised
• This evaluation is referred to as capacity requirements planning |
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Term
| Multiplication process in MRP to determine lower level requirements (called what?) |
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Definition
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Term
| ERP (aspects that make it valuable?) |
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Definition
Integration of financial, manufacturing, and human resources on a single computer system.
ERP was the next step in an evolution that began with MRP and evolved into MRPII
• ERP, like MRP II, typically has an MRP core
• ERP provides a system to capture and make data available in real time to decision makers and other users throughout an organization.
• ERP systems are composed of a collection of integrated modules |
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Term
| Capacity Requirements Planning |
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Definition
The process of determining short-range capacity requirements.
• Inputs to capacity requirement planning
• Planned-order releases for the MRP
• Current shop loading
• Routing information
• Job time
• Key outputs
• Load reports for each work center |
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Term
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Definition
• Expanded approach to production resource planning, involving other areas of the firm in the planning process and enabling capacity requirements planning
• Most MRP II systems have the capability of performing simulation to Answer a variety of “what if” questions so they can gain a better appreciation of available options and their consequences |
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Term
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Definition
• A stock or store of goods
• Inventories are a vital part of business: (1) necessary for operations and (2) contribute to customer satisfaction |
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Term
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Definition
• Raw materials and purchased parts
• Work-in-process (WIP)
• Finished goods inventories or merchandise
• Tools and supplies
• Maintenance and repairs (MRO) inventory
• Goods-in-transit to warehouses or customers (pipeline inventory) |
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Term
| Assumptions of the basic EOQ model are? |
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Definition
. Only one product is involved.
2. Annual demand requirements are known.
3. Demand is spread evenly throughout the year so that the demand rate is reasonably constant.
4. Lead time is known and constant.
5. Each order is received in a single delivery.
6. There are no quantity discounts. |
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Term
| A-B-C classification system (be familiar with requirements) |
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Definition
• Classifying inventory according to some measure of importance, and allocating control efforts accordingly
• A items (very important)
- 10 to 20 percent of the number of items in inventory and about 60 to 70 percent of the annual dollar value
• B items (moderately important)
• C items (least important)
- 50 to 60 percent of the number of items in inventory but only about 10 to 15 percent of the annual dollar value |
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Term
| Assumptions in the EPQ model? |
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Definition
1. Only one product is involved
2. Annual demand requirements are known
3. Demand is even throughout the year
4. Lead time does not vary
5. Each order is received in a single delivery
6. There are no quantity discounts |
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Term
| Safety stock (when necessary?) |
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Definition
Store of goods above what are required to have. A bit extra as a contingency plan
As the amount of safety stock carried increases, the risk of stockout decreases.
• This improves customer service level
• Service level
• The probability that demand will not exceed supply during lead time
• Service level = 100% - Stockout risk |
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Term
| Just-In-Time planning (JIT) |
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Definition
A highly coordinated processing system in which goods move through the system, and services are performed,
just as they are needed |
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Term
| Manufacturing Resources Planning |
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Definition
| A method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning, and has a simulation capability to answer "what-if" questions and extension of closed-loop MRP. |
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Term
| Material Requirements Planning |
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Definition
| Production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well. |
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Term
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Definition
- Identify customers values
- Focus on processes that create value
- Eliminate waste to create "flow"
- Produce only according to customer demand
- Strive for perfection |
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Term
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Definition
• A flexible system of operation that uses considerably less resources than a traditional system
• Tend to achieve
• Greater productivity
• Lower costs
• Shorter cycle times
• Higher quality |
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Term
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Definition
• Five principles embody the way lean systems function:
1. Identify customer values
2. Focus on processes that create value
3. Eliminate waste to create “flow”
4. Produce only according to customer demand
5. Strive for perfection |
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Term
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Definition
• The ultimate goal:
- Achieve a balanced system
o One that achieves a smooth, rapid flow of materials and/or work through the system
• The degree to which lean’s ultimate goal is achieved depends upon how well its supporting goals are achieved:
1. Eliminate disruptions
2. Make the system flexible
3. Eliminate waste, especially excess inventor |
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Term
| Building blocks of lean philosophy? |
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Definition
• Product design
• Process design
• Personnel/organizational elements
• Manufacturing planning and control |
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Term
| Lean environment (comprises what?) |
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Definition
• Key Benefits
- Reduced waste
- Lower costs
- Increased quality
- Reduced cycle time
- Increased flexibility
- Increased productivity
• Critical Risks
- Increased stress on workers
- Fewer resources available if problems occur
- Supply chain disruptions can halt operations |
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Term
Advantages/disadvantages of small lot sizes?
Advantages: |
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Definition
• Reduced inventory, lower carrying costs
• Less space required to store inventory
• Less rework if defects occur
• Less inventory to “work off” before implementing product improvements
• Increased visibility of problems
• Increased production flexibility
• Increased ease of balancing operations |
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Term
| Advantages/disadvantages of small lot sizes? Disadvantages: |
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Definition
• Require frequent set-ups
• Set-ups times can be expensive because they hold up other activities
• Set-ups are time consuming
• Reduces average inventory |
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Term
| Reduced setup time and cost (what contributes to?) |
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Definition
| Single-minute exchange of die (SMED) A system for reducing changeover time. |
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Term
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Definition
| Automatic detection of defects during production. |
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Term
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Definition
A Japanese technique for attacking waste based upon these ideas:
1. Waste is the enemy, and to eliminate waste it is necessary to get the hands dirty
2. Improvement should be done gradually and continuously; the goal is not big improvements done intermittently
3. Everyone should be involved
4. Kaizen is built on a cheap strategy, and it does not require spending great sums on technology or consultants
5. It can be applied everywhere
6. It is supported by a visual system
7. It focuses attention where value is created
8. It is process oriented
9. It stresses that the main effort for improvement should come from new thinking and a new work style
10. The essence of organizational learning is to learn while doing |
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Term
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Definition
| Card or other device that communicates demand for work or materials from the preceding station |
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Term
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Definition
| • The sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service |
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Term
| Goals of supply chain management (SCM)? |
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Definition
| • The strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management |
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Term
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Definition
- People at various levels of the organization who are responsible for managing supply and demand both within and across business organizations.
- Involved with planning and coordinating activities
Sourcing and procurement of materials and services
Transformation activities
Logistics |
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Term
| Logistics (characteristics?) |
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Definition
| • The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information. |
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Term
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Definition
| Process of bringing jobs previously outsourced back under the control of the company to be performed internally |
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Term
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Definition
| Highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed |
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Term
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Definition
| Time interval between ordering and receiving the order (Impacts stock in inventory) |
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Term
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Definition
| systematic method for eliminating waste or "Muda" within a manufacturing process |
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Term
Flow Management:
Three types of flow management |
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Definition
Product and service flow
Involves movement of goods and services from suppliers to customers as well as handling customer service needs and product returns
Information flow
Involves sharing forecasts and sales data, transmitting orders, tracking shipments, and updating order status
Financial flow
involves credit terms, payments, and consignment and title ownership arrangements |
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Term
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Definition
Lower prices may result from lower labor costs
The ability of the organization to focus on its core strengths
Permits the conversion of some fixed costs to variable costs
It can free up capital to address other needs
Some risks can be shifted to the supplier
The ability to take advantage of a supplier’s expertise
Makes it easier to expand outside of the home country |
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Term
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Definition
Inflexibility due to longer lead times
Increased transportation costs
Language and cultural differences
Loss of jobs
Loss of control
Lower productivity
Loss of business knowledge
Knowledge transfer and intellectual property concerns
Increased effort required to manage the supply chain |
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Term
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Definition
| The purchasing department is responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service. |
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Term
| The goal of procurement |
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Definition
| Develop and implement purchasing plans for products and services that support operations strategies |
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Term
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Definition
Identifying sources of supply
Negotiating contracts
Maintaining a database of suppliers
Obtaining goods and services
Managing suppliers |
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Term
| Purchasing Cycle (begins with?) |
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Definition
1. Purchasing receives the requisition
2. Purchasing selects a supplier
3. Purchasing places the order with a vendor
4. Monitoring orders
5. Receiving orders |
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Term
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Definition
| dismantling and inspecting a competitor's product to discover product improvements |
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Term
| Safety stock (requirements) |
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Definition
| Stock that is held in excess of expected demand due to variable demand and/or lead time |
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Term
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Definition
| Establishing the timing of the use of equipment facilities and human activities in an organization |
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Term
Supply Chains (or SCM)
Supply Chain Risks |
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Definition
Supply chain disruption
Natural disasters
Supplier problems
Quality Issues
Another form of disruption that may disrupt supplies and lead to product recalls, liability claims, and negative publicity
Loss of control of sensitive information
If suppliers divulge sensitive information to competitors, it can weaken a firm’s competitive position |
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Term
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Definition
Product design often uses inputs from around the world
Some manufacturing and service activities are outsourced to countries where labor and/or materials costs are lower
Products are sold globally |
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Term
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Definition
| The process of organizing employees of a company into a labor union which will act as an intermediary between the employees and company management |
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Term
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Definition
| Evaluating the sources of supply in terms of price, quality, reputation, and service |
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Term
| Effective supply chain management (characteristics?) |
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Definition
The goal of SCM is to match supply to demand as effectively and efficiently as possible
Key issues:
1. Determining appropriate levels of outsourcing
2. Managing procurement
3. Managing suppliers
4. Managing customer relationships
5. Being able to quickly identify problems and respond to them |
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Term
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Definition
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Term
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Definition
Establishing the timing of the use of equipment, facilities, and human activities in an organization.
Scheduling:
Establishing the timing of the use of equipment, facilities and human activities in an organization
Effective scheduling can yield
Cost savings
Increases in productivity
Other benefits |
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Term
| Scheduling (characteristics, pertains to?) |
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Definition
Scheduling is constrained by multiple system design and operations decisions
System capacity
Product and/or service design
Equipment selection
Worker selection and training
Aggregate planning and master scheduling |
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Term
| Example of high-volume systems? |
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Definition
| Computer and auto manufacturing |
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Term
| Characteristic of successful high-volume systems? |
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Definition
| Preventative maintenance, rapid repair, minimization of quality problems |
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Term
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Definition
| High-volume system in which all jobs follow the same sequence |
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Term
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Definition
Scheduling for flow systems
The goal is to achieve a smooth rate of flow of goods or customers through the system in order to get high utilization of labor and equipment |
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Term
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Definition
Few flow systems are entirely dedicated to a single product or service
Each product change requires
Slightly different inputs of parts
Slightly different materials
Slightly different processing requirements that must be scheduled into the line
Need to avoid excessive inventory buildup
Disruptions may result in less-than-desired output |
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Term
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Definition
| The result of different departments each attempting to reach a solution that is optimum for that department |
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Term
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Definition
| The application of pricing strategies to allocate capacity among various categories of demand. |
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Term
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Definition
| An area where one or a few workers and/or machines perform similar work |
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Term
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Definition
| A team-based approach for managing projects. |
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Term
| Project Manager (responsible for managing?) |
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Definition
He or she must be capable of working through others to accomplish the objectives of the project.
The project manager is ultimately responsible for the success or failure of the project
The project manager must effectively manage:
The work
The human resources
Communications
Quality
Time
Costs |
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Term
| The project manager is responsible for effectively managing each of the following: |
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Definition
1. The work, so that all of the necessary activities are accomplished in the desired sequence, and performance goals are met.
2. The human resources, so that those working on the project have direction and motivation. The U2 360 Tour is named after the 360-degree staging and audience configuration it uses for shows. To accommodate this, the stage set makes use of a massive four-legged supporting rig that has been nicknamed “The Claw.” The tour crew consists of 137 touring crews supplemented by over 120 hired locally. Moving the massive set from venues takes as long as 3½ days. First, sound and light equipment is packed into the fleet of trucks during the four hours following the concert; the remainder of the time is spent deconstructing the steel structures.
3. Communications, so that everybody has the information needed to do the work.
4. Quality, so that performance objectives are realized.
5. Time, so that the project is completed on schedule.
6. Costs, so that the project is completed within budget. |
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Term
| Sequence of activities from starting node to the finishing node (called what?) |
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Definition
|
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Term
| activity-on-arrows network |
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Definition
| Network diagram convention in which arrows designate activities. |
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Term
| activity-on-nodes network |
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Definition
| Network diagram convention in which nodes designate activities. |
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Term
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Definition
Shortening activity durations
Typically, involves the use of additional funds to support additional personnel or more efficient equipment, and the relaxing of some work specifications
The project duration may be shortened by increasing direct expenses, thereby realizing savings in indirect project costs |
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Term
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Definition
| The longest path; determines expected project duration. |
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Term
| Critical Path Method (CPM) |
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Definition
| A technique used to determine the duration of a project by looking at the sequence of activities and their flexibility in scheduling. |
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Term
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Definition
• Used as a visual aid for loading and scheduling purposes
• Purpose of the Gantt chart is to organize and visually display the actual or intended use of resources in a time framework
• Managers may use the charts for trial-and-error schedule development to get an idea of what different arrangements would involve
• A Gantt chart that shows the loading and idle times for a group of machines or list of departments |
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Term
| PERT (program evaluation and review technique) |
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Definition
Program evaluation and review technique, for planning and coordinating large projects.
Among the most useful features of PERT:
1. It forces the manager to organize and quantify available information and to identify where additional information is needed
2. It provides the a graphic display of the project and its major activities
3. It identifies
a. Activities that should be closely watched
b. Activities that have slack time |
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Term
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Definition
| A diagram that shows tasks needed to complete and activity, the people or groups responsible for completing the tasks, and an activity schedule with deadlines for task completion |
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Term
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Definition
| Allowable slippage for a path; the difference between the length of a path and the length of the critical path. |
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Term
| Work Breakdown Structure (WBS) |
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Definition
• A hierarchical listing of what must be done during a project
o Establishes a logical framework for identifying the required activities for the project
1. Identify the major elements of the project
2. Identify the major supporting activities for each of the major elements
3. Break down each major supporting activity into a list of the activities that will be
4. needed to accomplish it |
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Term
| Advantage(s) of precedence diagram? |
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Definition
| Portrays the tasks that are to be performed along with the sequential requirements |
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Term
| Gantt charts (associated with?) |
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Definition
| Planning and scheduling for simple projects |
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Term
| Stage of project when to assess costs, benefits, and risks? |
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Definition
|
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Term
| Execution phase (implements decisions from what phase?) |
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Definition
|
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Term
|
Definition
| • For a stable system the average number of customers in line or in the system is equal to the average customer arrival rate multiplied by the average time in the line or system |
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Term
| Single phase queuing system (characteristics?) |
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Definition
| Queue; first come first served, arrival rate = Poisson distribution and service time by a negative exponential distribution. No limit to queue length |
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Term
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Definition
| A powerful quantitative tool used by operations and other managers to obtain optimal solutions to problems that involve restrictions or limitations |
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Term
| Linear programming model (begins with?) |
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Definition
| First identifying the decision variables which typically represent quantities |
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Term
| Graphical linear programming |
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Definition
| Method for finding optimal solutions to two-variable problems |
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Term
| How to reduce inventory with vendors? |
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Definition
| Reduce order costs, thus reducing EO |
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