chapter 3 - Bmgt 25 (Terms) Flashcards
- is the scientific way of determining the requirements that goes into meeting production needs within the economic investment policies.
- is a scientific technique which is concerned with the planning, organizing and controlling the flow of materials from their initial purchase through internal operation to the distribution to the service points
Material Management
- to gain economy in purchasing
- to satisfy the demand during period of replenishment
- to carry reserve stock to avoid stock out
- to stabilize fluctuations in consumption
- to provide reasonable level of client services
- to have materials in hand when needed
- to pay lowest possible price, consistent with quality and value requirement
- to minimize inventory investment
- to operate efficiently
AIM OF MM (_________________)
Material Management
- Right Quality.
- Right Quantity.
- Right Price.
- Right Source and at the.
- Right Time & Place
Is the basic __________ of mm is to get the materials?
principle
- High inventory turnover
- Low procurement and storage cost
- Continuity of supply
- Consistency in quality
- Cordial relationship with supplier
- Development of vendors
- Good information system
- Low storage cost
- Good records
In Objectives of Material Management are example of _________
Primary
- Economic forecasting
- Inter-department harmony
- Product improvement
- Standardization
- Make or buy decision
- New materials & products
favorable reciprocal relationships
In Objectives of Material Management are example of ___________
secondary
- Selection of items to be purchased need some basal document
- Identify the needed items
- Calculate from the trends in consumption pattern during the last 2-3 years
- Demand Estimation
In Demand Estimation
* Selection of items to be purchased need some basal document
* Identify the needed items
* Calculate from the trends in consumption pattern during the last_____ years
2-3
_____________ – is the method of estimating demand based on time series analysis of past while anticipating the future
Forecasting
_______________ - Process of acquiring supplies
Procurement
- Three sources:
o Purchase
o Donations
o Manufacturing
Are the Three sources of what ______________?
- Procurement
o Acquire needed supplies as inexpensive as possible
o Obtain supplies of high quality
o Assure prompt, dependable delivery
o Distribute the procurement workload to avoid period of idleness and overwork
o Optimize inventory management and the procurement procedures
Are objective of well _________________________
procurement system
Public bidding, resulting in low prices.
Open Tender
o from limited suppliers (about10)
o Lead-time is reduced
o better quality
Restricted or Limited Tender:
o Buyer approaches selected potential suppliers and bargain directly
o Used in long time supply contracts
Negotiated Procurement
o Purchased from single supplier, at his quoted price
o Price may be high
o Reserved for propriety materials, or low priced, small quantity and emergency purchases
Direct Procurement
*_________ must be of adequate space
*__________ must be stored in an appropriate place in a correct way
* Group-wise and alphabetical arrangement helps in ___________ and ____________
* First-in, First-out principle to be followed
* Monitor expiry date
* Combustible and non-combustible materials should be kept separate
* Rodent free
Storage
Materials
identification and retrieval
- __________________ – stock of each item is physically separated into two bins (working bin and reserve bin)
o When working bin is empty, the storekeeper changes to the second bin and is alerted that new supplies are needed
Two-Bin System
______________ is the analysis of the store items cost criteria
ABC analysis
- It divides inventory into 3 categories, A, B & C based on their annual consumption
- _____________ has universal application for fields requiring selective control
- It helps number of items, it rationalizes the number of orders, number of items & reduce the inventory
ABC Analysis
_____________ Must have:
* Tight control
* Rigid estimate of requirements
* Strict & closer watch
* Low safety stocks
* Managed by top management
“A” items
_________ represent the high-cost center
- Small in number, but consume large amount of resource
- About 10% of items consume 70% of resources
A items
- __________’ represent the immediate cost center
- About 20% of items consume 20% of resources
“B” items
_____________ Must have:
* Moderate control
* Purchase based on rigid requirements
* Reasonably strict watch & control
* Moderate safety stocks
* Managed by middle level management
“B” items
___________
* Items represent the low-cost
center
- Larger in number but consume
lesser amount of resources - About 70% of items consume
10% of resources
“C” items
__________ Must have:
* Ordinary control measures
* Purchase based on usage estimates
* High safety stocks
* ABC analysis does not stress on items that those are less costly but may be vital
“C” items
__________________
* Issue should be made after receiving written indents
Issue and Use
- _____________________
o To provide maximum supply service, consistent with maximum efficiency and optimum investment
Inventory Control
To provide cushion between forecasted and actual demand for a material
Inventory Control
Is a scientific system which indicates as to what to order, when to order, and how much to order and how much to stock, so that purchasing costs and story costs are kept as low as possible
Inventory Control
- Points to be noted before purchase of an equipment:
o Latest technology
o Availability of maintenance and
repair facility with minimum
downtime
o Post warranty repair at
reasonable cost
o Upgradeability
o Reputed manufacturer
o Availability of consumables
o Low operating costs
- Purchase with warranty
- All equipment must be
operated as per instructions
with trained staff
Equipment Management
- the action or process of throwing away or getting rid of something.
- Minimum criteria to be followed for condemnation:
o non-functional and beyond economical repair
o non-functional and obsolete
o functional but obsolete
o functional but hazardous
o functional but no longer required
- Condemnation and Disposal
A _______________________ should be constituted for assessing whether or not an equipment should be condemned and disposed of based on the history sheet & recommendations of the user department
condemnation committee
what is the meaning of (MRP)
Material Planning Requirement
- It is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.
- Is a computer-based inventory management system designed to improve productivity for businesses. Companies use MRP systems to estimate quantities of raw materials and schedule their deliveries
- ______ is designed to answer three questions: What is needed? When is needed? How much is needed
Material Planning Requirement (MRP)
– the primary objective of MRP is to make sure that materials and components are available when needed in the production process and that manufacturing takes place on schedule. Additional benefits are:
* Reduced customer lead time to improve satisfaction
* Reduced inventory costs
* Effective inventory management and optimization by acquiring or manufacturing the optimal amount and type of inventory, companies can minimize the risk of stock-outs, and their negative impact on customer satisfaction, sales and revenue, without spending more than necessary on inventory; and
* improved manufacturing efficiency by using accurate production planning and scheduling to optimize the use of labor and equipment
benefits of MRP
- Increased inventory costs: While MRP is designed to ensure adequate inventory at the required times, companies can be tempted to hold more inventory than is necessary, thereby driving up inventory costs. An MRP system anticipates shortages sooner, which can lead to overestimating inventory lot sizes and lead times, especially in the early days of deployment before users gain the experience to know the actual amounts needed.
- Lack of flexibility: MRP is also somewhat rigid and simplistic in how it accounts for lead times or details that affect the master production schedule, such as the efficiency of factory workers or issues that can delay delivery of materials.
- Data integrity requirements: MRP is highly dependent on having accurate information about key inputs, especially demand, inventory and production. If one or two inputs are inaccurate, errors can be magnified at later stages. Data integrity and data management are thus essential to effective use of MRP systems.
ADVANTAGE OR DISADVANTAGES OF MRP?
Disadvantages of MRP
_______information, new ideas, expertise and customer feedback
feedback
_______ materials, components, labour, research and development.
input
___________ production lines, assembly lines, management and skills.
processing
__________ end product, customer satisfaction, and employee satisfaction.
output
- MRP works __________ from a production plan for ________________, which is converted into a list of requirements for the subassemblies, component parts, and raw materials that are needed to produce the final product within the established schedule.
backward
finished goods.
changes
order release
planned order schedules.
are examples of ____________
primary reports
- primary reports exception report
- planning reports
- performance control report
are examples of ___________
secondary reports
what is the meaning of (BOM)
Bill of Materials
- A _______________C(BOM) is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each, needed to manufacture a product.
bill of materials
- It is the complete list of all the items that are required to build a product. A BOM is sometimes also referred to as a product structure, assembly component list or production recipe (in process manufacturing industries).
Bill of Materials (BOM)
- Take, for example, a bicycle manufacturer that wants to build 1,000 bicycles. A bill of materials for a bicycle will include all the parts that make up the bicycle such as seats, frames, brakes, handlebars, wheels, tires, chains, pedals and cranksets, including the quantities required of each component and their cost.
Bill of Materials (BOM)
A well-defined _____ helps companies:
* Plan purchases of raw materials
* Estimate material costs
* Gain inventory control
* Track and plan material requirements
* Maintain accurate records
* Ensure supply robustness and reduce waste
BOM
Typically, a BOM is hierarchical in nature, with the finished product at the top. It includes product codes, part descriptions, quantities, costs and additional specifications.
BOM Structure
- _______________________ - which is a relatively simple list for a product. In this type, each assembly or subassembly is shown only once, with the corresponding quantity required of each to make the product. Though easy to develop, this type of BOM is unsuitable for complex products because it does not specify the relationship between parent and child parts or between assemblies and subassemblies. If the product fails, a single-level BOM makes it difficult to determine which part needs to be replaced or repaired.
Single-level bill of material
____________________________
this BOM represents a single level of materials used for building a product.
finished product.
-wheelbarrow
subassemblies
-wheel
-legs
-handles
-bucket/tray
single-level bill of materials
- ____________________ - which takes more work to create but offers greater details and specificity on the parent and child parts in the product. In a multilevel BOM, the total material required is shown. Additionally, the product structure is indented to show the relationship between the parent and child product, as well as assemblies and subassemblies.
Multilevel bill of materials
_____________________________________this BOM represents the multiple components used in building a product.
finished product:
-wheelbarrow
subassemblies:
-wheel
-legs
-handles
-bucket/tray
components:
-axle
-spacer
-axle brackets
-leg brace
-2-inch bots
-wheel guard
-spacers
-3-inch bolts
-5-inch bolts
Multilevel bill of materials
- __________________________. A manufacturing BOM (MBOM) includes a structured list of all the items or subassemblies required to make a manufactured, shippable finished product. An MBOM, in addition to the information on individual parts, also includes information on the parts that require processing prior to assembly and explains how various components relate to one another in a product. The information in the MBOM is then shared with all the integrated business systems involved in ordering and building the product, including enterprise resource planning (ERP), material requirements planning (MRP) and, in some cases, a manufacturing execution system (MES).
Manufacturing bill of materials
2._________________________. An engineering BOM (EBOM) defines assemblies or parts as designed by the engineering department. Showing the component structure from a functional perspective, an EBOM, for example, will consist of a mechanical or technical drawing of a product. An EBOM is typically developed by engineers using computer-aided design (CAD) or electronic design automation (EDA) tools, and it is common to have more than one EBOM for a product as the design undergoes a series of revisions.
Engineering bill of materials
3___________________________. A sales BOM (SBOM) defines a product in the sales stage, meaning details of the product prior to assembly. In an SBOM, the list of finished products and the components required to develop it appear separately in the sales order document. Here, the finished product is managed as a sales item instead of an inventory item.
Sales bill of materials
- A _____ serves as the foundation of production planning systems, and the information in it provides the basic data for other business processes, such as manufacturing resource planning, product costing, material provision for production and plant maintenance.
- Since the_____ combines all possible information that goes into building a final product, it finds wide use in departments beyond manufacturing, such as engineering, design, sales, material management and plant management.
BOM
Ergonomics
* Derived from Greek words ________ meaning ‘work’ and ‘nomos’ meaning ‘laws’ – “laws of work”
‘ergo’
________________
* Derived from Greek words ‘ergo’ meaning ‘work’ and ‘nomos’ meaning ‘laws’ –“laws of work”
* Scientific study of human work
* “Designing the job to fit worker, not forcing the worker to fit the job”
* Science that deals with designing and arranging things so that people can use them easily and safely
Ergonomics
- ______________ is the scientific discipline concerned with the understanding of interactions among humans and other elements of a system, and the profession that applies theory, principles, data and methods to design in order to optimize human well-being and overall system performance.
Ergonomics
____________________– is the human body’s responses to physical and physiological workloads. Repetitive strain injuries from repetition, vibration, force, and posture fall into this category.
Physical ergonomic
___________________– deals with the mental processes and capacities of humans when at work. Metal strain from workload, decision making, human error, and training fall into this category
Cognitive ergonomics
______________________ – deals with the organizational structures, policies and processes in the work environment, such as shift work, scheduling, job satisfaction, motivation supervision, teamwork, telecommuting, and ethics.
Organizational ergonomics
____________________________________________ Cumulative Trauma Disorders (CTD’s) – exposure driven
* injury to soft tissue caused by prolonged exposure to multiple ergonomic risk factors
* typically develop in small body segments. (ex. Finger, wrist, elbows etc.)
Cumulative Trauma Disorders (CTD’s
what is the meaning of (CTD’s)
Cumulative Trauma Disorders
- inflammation of tendon or tendon sheathing caused by repeated rubbing against ligaments, bone, etc.
- lateral epicondylitis (tennis elbow)
Tendon disorders:
- compression of nerves from repeated or sustained exposure to sharp edges, bones, ligaments and or tendons
- carpal tunnel syndrome
nerve disorders
- compression of blood vessels or nerves from repeated exposure to vibration or cold temperatures
- Raynaud’s phenomenon (white finger syndrome)
Neurovascular disorders
- Injury to connective tissue caused by single forceful event: lifting heavy objects in awkward position
- Common to large body segments
- Risk of injury increases with the presence of multiple risk factors
Strains & Sprains
