Chapter 5 (Production Planning and control) Flashcards
What is Production Planning and Control (PPC)?
The process of planning, scheduling, and managing production to ensure products are made on time, efficiently, and at the lowest cost.
What are the advantages of Enterprise Resource Planning (ERP)?
- Combines business processes.
- Ensures accurate data.
- Provides real-time insights.
- Automates tasks for efficiency.
- Grows with the business.
What are the disadvantages of Enterprise Resource Planning (ERP)?
- High setup costs.
- Difficult to manage.
- Customization is costly.
- High maintenance costs.
- Security risks.
What is a key function of ERP?
- Integration
- Automation
- Data Analysis
- Customer Relationship Management
- Supply Chain Management
- Financial Management
What does MRP-I stand for?
Material Requirements Planning I
What are the characteristics of MRP-I?
- Ensures materials are available on time.
- Manages inventory and ordering.
- Uses data from product plans to know what’s needed.
- Improves production by organizing material needs.
What are the advantages of MRP-I?
- Improved inventory management.
- Increased efficiency.
- Better resource allocation.
- Enhanced visibility.
- Improved quality.
- Increased customer satisfaction.
List the functions of MRP-I.
- Predicting and confirming orders.
- Calculating material quantities needed.
- Timing material requirements.
- Creating purchase orders based on stock.
- Automatically placing orders.
- Scheduling materials for production.
What is Manufacturing Resource Planning (MRP II)?
A system that helps plan materials, production, and resources for better manufacturing efficiency.
What are the characteristics of MRP-II?
- Manages inventory based on production needs.
- Creates production schedules matching demand.
- Balances production capacity with demand.
- Lists components needed for manufacturing.
- Defines operations and allocates resources.
What are the advantages of MRP-II?
- Optimizes labor, machinery, and resource planning.
- Coordinates all manufacturing resources efficiently.
- Aligns production schedules and inventory with goals.
- Improved quality.
- Improves customer satisfaction with timely deliveries.
What are the functions of MRP II?
- Manages materials and production schedules.
- Ensures capacity for machines and labor.
- Tracks quality and defects.
- Manages production costs.
- Handles employee data and training.
- Manages suppliers.
What are the three key levels of inventory control?
- Reorder level: Triggers a new order before stock runs out.
- Minimum level: Ensures a safety stock for unexpected demand.
- Maximum level: Prevents overstocking to reduce storage costs.
How does an inventory manager assist in planning and controlling?
- Analyzes data to forecast demand.
- Optimizes stock levels and avoids overstocking.
- Monitors turnover and conducts audits.
- Identifies inefficiencies to reduce costs.
Define capacity planning in the service sector.
Ensures enough resources are available to meet demand, involving forecasting, managing resources, and preventing overloads.
How do non-profit organization managers control marketing activities?
- Set clear goals.
- Create targeted campaigns.
- Use performance metrics.
- Manage budgets.
- Ensure ethical standards.
- Engage donors with transparent communication.
What is the focus of capacity planning in service organizations?
Staffing, service delivery, and customer wait times to meet demand and ensure quality.
What is the focus of capacity planning in manufacturing organizations?
Managing production capacity, equipment, inventory, and raw materials to meet demand and prevent production delays.
What tactics can be used for adjusting capacity to demands?
- Overtime: Extend hours for more work.
- Undertime: Reduce hours when less work.
- Hiring: Add staff for more demand.
- Layoffs: Reduce staff when demand drops.
- Shift adjustments: Change schedules for better use.
- Cross-training: Teach staff multiple skills.
- Automation: Use tech to improve efficiency.
- Buffering: Keep extra capacity for unexpected changes.
What factors should a manager consider for the location of production?
- Raw materials: Near sources to save on transport.
- Labor: Skilled workers at good prices.
- Transport: Easy access to highways, ports, etc.
- Market: Close to customers for fast delivery.
- Infrastructure: Reliable power, internet, and waste disposal.
- Government: Friendly policies like tax breaks.
- Costs: Affordable land and building costs.
- Stability: Safe and stable economy and politics.
- Environment: Suitable climate and environmental rules.
Define the concept of the Transformational process model.
How a company turns raw materials, labor, and ideas into products or services for customers.
What is the key idea behind the Transformational process?
Adding value by changing resources into something more useful.
Why does the Transformational process matter?
It’s how companies create value, compete, and grow.
