Chapter 2

Question 1

the approach has often included suppliers and customers in the planning, thereby attempting to optimize the performance of the entire supply chain. Extracting information from the entire supply chain, the system attempt to create a rapid and feasible schedule for satisfying customer demand. It includes mathematical optimization and analytic tools and the principle of finite scheduling. These same concepts can also be used internally in an operation of single company to try to optimize or create a more feasible solution for the customers of that operation

Answer 1

Advanced Planning and Scheduling Systems

Question 2

when the production plan tends to combine product groups or product families rather than individual products, it is referred to as

Answer 2

Aggregate Production Plan

Question 3

unfulfilled customer orders

Answer 3

backlog

Question 4

the set of KPIs that are balanced are often referred to as a ________and detailed approaches have been developed to both establish and manage ________. The ______tends to balance measures dealing with business processes, financial measures, customer-focused measures, and learning and growth

Answer 4

Balanced scorecard

Question 5

once the _______ has been established, the plan is often restated in financial terms, including projected revenues, a projected balance sheet, and a projected income statement. Each department produces its own plans to achieve the objectives set by the

Answer 5

Business plan or strategic business plan

Question 6

the capability of manufacturing to produce goods and services. Eventually it depends on the resources of the company – the machinery, labor, and financial resources, and the availability of material from suppliers.

Answer 6

Capacity

Question 7

means producing the amounts demanded at any given time. Inventory levels remain stable which production varies to meet demand

Answer 7

chase strategy

Question 8

a framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage. To fully operate, there must be applications for planning, scheduling, costing, and so forth, for all layers in an organization, work centers, sites, divisions, and corporate.

Answer 8

Enterprise Resource Planning (ERP)

Question 9

discussions that focus on issues such as environmental impacts, energy conservation, material usages (such as waste reduction, reuse, and recyclability), and scarcity of various resources

Answer 9

Green Production

Question 10

a tactical work plan established for the company vision to allow all parts of the organization to move systematically toward the overall goal

Answer 10

Hoshin Planning

Question 11

What are the basic steps of the Hoshin Plan?

Answer 11

1. Making the plan for what you wish to improve or accomplish
2. Establishing subgoals
3. Communicating the plan in the organization
4. Measuring your results
5. Analyzing data from the measures and taking corrective action as needed
6. Repeating as necessary

Question 12

a way to measure (both financial and nonfinancial) an overall balance in indicating the progress of the company toward the overall strategic plan and sustainability efforts including financial, societal, and environmental goals

Answer 12

Key Performance Indicators (KPI)

Question 13

provides coordination between marketing and production. Market, finance, and production agree on a total workable plan expressed in the production plan. Marketing and production must work together on a weekly and daily basis to adjust the plan as changes occur

Answer 13

Manufacturing Resource Plan (MRP II)

Question 14

– a plan to produce individual end items. It breaks down the production plan to show, for each period, the quantity of each end item to be made. The level of detail is greater than the production plan. It MPS is developed for individual end items and usually extends from 3 to 18 months but primarily depends on the purchasing and manufacturing lead times

Answer 14

Master Production Schedule (MPS)

Question 15

a plan for the production and purchase of the components used in making the items in the master production schedule. It shows the quantities needed and when manufacturing intends to make or use them.
High level of detail. The planning horizon is at least if the combined purchase and manufacturing lead times. Usually takes 3 to 18 months

Answer 15

Material Requirements Plan (MRP)

Question 16

relates to what products are needed, how many are needed, and when they are needed. The marketplace establishes the priorities. Manufacturing is responsible for devising plans to satisfy the market demand if possible

Answer 16

Priority

Question 17

represents the implementation and control phase of the production planning and control system. Purchasing is responsible for establishing and controlling the flow of raw materials into the factory.
It is responsible for planning and controlling the flow of work through the factory. The planning horizon is very short, perhaps day to month. The level of detail is high since it is concerned with individual components, workstations, and orders. Plans are reviewed and revised daily

Answer 17

Production activity control (PAC)

Question 18

continually producing an amount equal to the average demand

Answer 18

production leveling

Question 19

what are the objectives of a production plan?

Answer 19

the quantities of each product group that must be produced in each period
the desired inventory levels
the resources of equipment, labor, and material needed in each period
the availability of the resources needed

Question 20

this shows the quanitty of critical resources (materials, labor, bottleneck operations) needed to make one average unit of the product group

Answer 20

resource bill

Question 21

What are the 2 questions to ask when comparing exisiting resources of the company?

Answer 21

1. Are the resources available to meet the production plan?

2. If not, how will the difference be reconciled?

Question 22

– recycling and reusing material. Using less packaging and using resources to produce reusable outputs

Answer 22

Remanufacturing/Reverse logistics

Question 23

companies will establish a formal supply chain used to retrieve a used product to dispose of it, reclaim materials from it, or reuse it in some fashion

Answer 23

Reverse Supply Chain

Question 24

focused on establishing systems and measurements to try to quickly recognize risks and establish strategic mechanism to minimize impacts from negative risks and take advantage of positive risks (opportunities)

Answer 24

Risk Management

Question 25

– a process for continually revising the strategic business plan and coordinating plans of various departments

Answer 25

Sales and Operations planning (SOP)

Question 26

what are the benefits of SOP?

Answer 26

• It provides a means of updating the strategic plan and the strategic business plan as conditions change
• It provides a means of managing change. Rather than reacting to changes in market conditions or the economy after they happen, the SOP forces management to look as the economy at least monthly and places it in a better position to plan changes.
• It ensures that the various department plans are realistic and coordinated and support the business plan
• It provides a realistic plan that can achieve the company objectives
• It permits better management of production, inventory, and backlog

Question 27

establishing company policies that establish a positive relationship with society and strike some balance between the economy and the environment

Answer 27

social responsibility

Question 28

a statement of the major goals and objectives the company expects to achieve over the next 2 to 10 years or more. It is a statement of the broad direction of the firm and shows the kind of business – product lines, markets, etc. – the firm wants to do in the future

Answer 28

Strategic Plan

Question 29

buying the extra amounts demanded from external resources

Answer 29

Subcontractin

Question 30

the ability to continue operations into the long term. Also based on the concepts of reduction of waste and inefficiency in production, leading not only to using fewer resources and producing lass waste, but also less costs

Answer 30

Sustainability

Question 31

this compact recognizes that business is a primary source of globalization and the compact lays out ten principles for business strategy and operations to maintain appropriate human rights, treatment of labor, environmental issues, and anticorruption principles.

Answer 31

United Nations Global Compact

Question 32

There are five major levels in the manufacturing planning and control system

Answer 32

• Strategic business plan (a business plan based on the strategy)
• Production plan (sales and operations plan)
• Master production schedule
• Material requirements plan
• Purchasing and production activity control

Question 33

Each level in the manufacturing planning and controlling system has different time spans and different purposes for the following:

Answer 33

• Purpose of the plan
• Planning horizon – time span from now until sometime in the future for which the plan is created
• Level of detail – the detail about products required for the plan
• Planning cycle – the frequency with which the plan is reviewed

Question 34

At each level, 3 questions must be answered

Answer 34

• What are the priorities – how much of what is to be produced and when?
• What is the available capacity – what resources do we have?
• How can differences between priorities and capacity be resolved?

Question 35

There are 4 basic strategies that can be used in developing a production plan

Answer 35

• Chase strategy
• Production leveling
• Subcontracting
• Hybrid strategy

Question 36

The basics 5 step process in developing the S&OP

Answer 36

1. Data gathering
2. Demand planning
3. Supply Planning
4. A pre-S&OP meeting
5. The executive meeting