Chapter 1 - Introduction and Background Flashcards
Enterprise resource planning (ERP)
Framework for organising, defining and standardising the business processes necessary to efficiently plan and control an organisation so the organisation can use its internal knowledge to seek external advantage.
Advanced planning and scheduling (APS) system
Techniques that deal with analysis and planning of logistics and manufacturing over the short-, intermediate- and long-term time periods. APS describes any computer program that uses advanced mathematical algorithms or logic to perform optimisation or simulation on finite capacity scheduling, sourcing capital planning, resource planning, forecasting, demand management or others. The five main concepts of APS systems are demand planning, production planning, production scheduling, distribution planning and transportation planning.
Harris Formula
Same as economic order quantitiy. A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. The intent is to minimise the combined costs of acquiring an carrying inventory.
Just-in-time
Any unique manufactured or purchased part, material, intermediate, sub-assemly or product.
Lean production
A philosophy of production that emphasises the minimisation of the amunt of all the resources used in the various activities of the enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers. Lean productin employs temas of multiskilled workers at all levels of the organisation and uses highly flexible, increasingly automateed machines to produce volumes of prducts in potentially enormous variety. It contains a set of principles and practices to reduce cost through the relentless removal of waste and through the simplification of all manufacturing and support processes.
Manufacturing resource planning (MRP II)
A method for the effective planning of all resources of a manufaturing company. Ideally, it addresses operational planning units, financial planning in euros, and has a simulation capabiliy to answer what-if questions. It is made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), master production scheduling, material requirements planning, capacity requirements planning, and the execution support system for capacity and material. Output form these system is integrated with financial reports such as business plan, purchase commitment report, shipping budget, and inventory projections in euros. Manufacturing resource planning is a direct outgrowth and extention of closed-loop MRP.
Material requirements planning (MPR)
A set of techniques that uses bill of material data, inventory data and the master production schedule to calculate requirements for material. It makes recommendations to release replenishment orders for material. Further, because it is time phased, it makes recommendations to reschedule open orders when due dates an need dates are not in phase. Time-phased MRP begins with the items listed on the MPS and determines (1) the quantity of all components and materials required to make those items and (2) the date that the components and material are required. Time-phased MRP is accomplished by expoding the bill of material, agjusting for inventory quanities on hand and offsetting the net requirements by the appropiate lead times.
Supply chain planning (SCP)
The determination of a set of policies and procedures that govern the operation of supply chain. Planning includes the determination of marketing channels, promotions, respective quantities and timing, inventory and replenishment policies and production policies. Planning establishes the parameters within which supply chain will operate.
Wilson’s formula
Same as Economic order quantity. A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. The intent is to minimise the combined cots of acquiring and carrying inventory.
