Chapter 4 - Manufacturing planning and control performance Flashcards
Delivery reliability
A delivery service measure meaning the extent to which the right products are delivered in the right quantities
Delivery lead time
The time from receipt of a customer order to the delivery of the product
Flexibility
(1) the ability of the manufacturing system to respond quickly, in terms of range and time, to external or internal changes. (2) The ability of a supply chain to mitigate, or neutralise, the risks of demand forecast variability, supply continuity variability, cycle time plus lead-time uncertainty, and transit time plus customs-clearance time uncertainty during periods of increasing or diminishing volume.
Tied-up capital
The capital tied-up in the flow of materials, i.e. materials that are held in raw material and component stocks, in production, in finished stocks or distribution stocks and in transport.
Order line
Each unique item on an order represents an order line
Inventory carrying costs
The costs for keeping goods in stock. It is made up of a financial fraction, a physical fraction and an uncertainty fraction.
Stock service level
Stock service level is a part of the overall customer service and means the extent o which products can be delivered to the customer directly from stock. It may refer to either an individual product, a product group or the overall performance level for the entire product range in stock.
Set-up costs
Cost such as scrap costs, calibration costs, downtime costs and lost sales associated with preparing the resource for the next product.
Shortage costs
The marginal profit that is lost when a customer orders an item that is not immediately available in stock.
Run-out time
Run-out time refers to the time that available stock on hand is expected to last. It is calculated by dividing stock on hand pluss planned deliveries by expected demand per time unit.
Product mix flexibility
The ability within the existing capacity to rapidly adapt production and material supplies to shifts in demand between existing products and product variants.
Inventory turnover rate
The number of times that an inventory cycles, or “turns over”, during the year. A frequently used method to compute inventory turnover is to divide the average inventory level into the annual cost of sales.
Delivery flexibility
Delivery flexibility refers to the ability to quickly and efficiently react to changing conditions concerning changing open orders, quantity wise as well as time wise.
Capacity utilisation
The extent to which the available capacity is used.
Cover time
Same as run-out time
