Chapter 1 Key Terms Flashcards
the product is made from standard components or options that the manufacturer can inventory and assemble according to a customer order
assemble to order
Manufacturing planning and control must know what plant, equipment, and labor will be available to process work. This info is usally found in the work center info
Available facilities
A document that describes the components used to make the product, and describes the subassemblies at various stages of manufacture
bill of materials
the individual or company that takes the initiative to integrate both the upstream and downstream supply chain, getting members to work cooperatively to lower total costs and achieve greater efficiency
channel master
the customer can configure a product based on various features and options. Each customer and order may be entirely unique configuration that has never been done before, and the configuration often occurs at the beginning of the process. Delivery lead time is reduced because there is no design time required and the different features and options may already be available. Customer involvement includes selecting the features and options desired
Configure-to-order
the customer’s specifications require unique engineering design or significant customization. usually the customer is highly involvedd in the product design
engineer to order
highly effective and integrated systems that allow companies to link electronically and have allowed them to share large amounts of info quick and easy
Enterprise Resource Planning (ERP)
these functions are responsible for putting into action and executing the plans made by production planning. These responsibilities are accomplished through production activity control and purchasing
Implementation and control
Inventories are materials and suppliers carried on hand either for sale or to provide material or supplies to the production process. They are part of the planning process and provide a buffer against the differences in demand rates and production rates
Inventory management
the manufacturer does not start to make the product until the customer’s order is received. The final product is usually made from standard items but may include custom designed components as well. Delivery lead time is reduced because there is little design time required and inventory is held as raw material
Make-to-order
the supplier manufactures the goods and sells from a finished goods inventory. Delivery lead time is shortest as manufacturing and assembly have already been completed. The customer has little direct involvement in the design
Make-to-stock
the concept of having one department responsible for the flow of materials from supplier through production to consumer, thereby minimizing total costs and providing better level of customer service
Materials Management
a verifiable measure state in either quantitative or qualitative terms defined with respect to a reference point. They give us: control by superiors, reporting of data to superiors and external groups, communication, learning, and improvement.
metric
customer requirements may be based on price, quality, delivery, and so forth
order qualifiers
those competitive characteristics, or combination of characteristics, that persuade a company’s customers to choose its product or services
order winners
must be both quantified and objective and contain at least 2 parameters.
Performance measure
set the goal while measures reveal how close the goal the organization reached
Performance standards
- another application of assemble-to-order but defined by APICS as, “a product design strategy that shifts product differentiation closer to the consumer by postponing identity change to the last possible supply chain.” This reduces the number of different items in the supply chain, lowering the amount of in-process inventory
Postponement
describes the steps necessary to make the product. they are step-by-step instructions
Process specifications
shows how the product will appear at some stage of production
product description
this info will come from forecasts, customer orders, orders to replace, finished goods inventory, and the material requirements plan
quantities required
production must be able to meet the demand. it involves: forecasting, master planning, material requirements planning, and capacity planning
production planning
a new trend emerging to manage the recovery, recycling, and reuse of material
Reverse logistics
a document which contains: operations required to make the product, sequence of operations, equipment and accessories required, and standard time required to perform each operation
Routing
the time taken by an average operator, working at a normal pace, to perform a task. usually obtained from routing info
Standard time
the flow of materials, information, and funds to yield optimal performances for the customer service and cost
Supply Chain Management
inventory not only accounts for the raw materials and purchased components but is also made up of the product as it is processed into finished goods
Work-in-Progress (WIP)
what are the 6 major challenges of Production Control?
- Customers are rarely satisfied
- A supply chain that is large and must be managed
- A product lifecycle that is getting shorter and shorter
- A vast amount of data
- An emphasis on profit margins that are more squeezed
- An increasing number of alternatives
To maximize profit a company must have at least 4 main objectives
- Provide best customer service
- Provide lowest production costs
- Provide lowest inventory investment
- Provide lowest distribution costs
