Chapter 5 (Production Planning and control)

Question 1

What is Production Planning and Control (PPC)?

Answer 1

The process of planning, scheduling, and managing production to ensure products are made on time, efficiently, and at the lowest cost.

Question 2

What are the advantages of Enterprise Resource Planning (ERP)?

Answer 2

• Combines business processes.
• Ensures accurate data.
• Provides real-time insights.
• Automates tasks for efficiency.
• Grows with the business.

Question 3

What are the disadvantages of Enterprise Resource Planning (ERP)?

Answer 3

• High setup costs.
• Difficult to manage.
• Customization is costly.
• High maintenance costs.
• Security risks.

Question 4

What is a key function of ERP?

Answer 4

• Integration
• Automation
• Data Analysis
• Customer Relationship Management
• Supply Chain Management
• Financial Management

Question 5

What does MRP-I stand for?

Answer 5

Material Requirements Planning I

Question 6

What are the characteristics of MRP-I?

Answer 6

• 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.

Question 7

What are the advantages of MRP-I?

Answer 7

• Improved inventory management.
• Increased efficiency.
• Better resource allocation.
• Enhanced visibility.
• Improved quality.
• Increased customer satisfaction.

Question 8

List the functions of MRP-I.

Answer 8

• Predicting and confirming orders.
• Calculating material quantities needed.
• Timing material requirements.
• Creating purchase orders based on stock.
• Automatically placing orders.
• Scheduling materials for production.

Question 9

What is Manufacturing Resource Planning (MRP II)?

Answer 9

A system that helps plan materials, production, and resources for better manufacturing efficiency.

Question 10

What are the characteristics of MRP-II?

Answer 10

• 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.

Question 11

What are the advantages of MRP-II?

Answer 11

• 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.

Question 12

What are the functions of MRP II?

Answer 12

• 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.

Question 13

What are the three key levels of inventory control?

Answer 13

• 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.

Question 14

How does an inventory manager assist in planning and controlling?

Answer 14

• Analyzes data to forecast demand.
• Optimizes stock levels and avoids overstocking.
• Monitors turnover and conducts audits.
• Identifies inefficiencies to reduce costs.

Question 15

Define capacity planning in the service sector.

Answer 15

Ensures enough resources are available to meet demand, involving forecasting, managing resources, and preventing overloads.

Question 16

How do non-profit organization managers control marketing activities?

Answer 16

• Set clear goals.
• Create targeted campaigns.
• Use performance metrics.
• Manage budgets.
• Ensure ethical standards.
• Engage donors with transparent communication.

Question 17

What is the focus of capacity planning in service organizations?

Answer 17

Staffing, service delivery, and customer wait times to meet demand and ensure quality.

Question 18

What is the focus of capacity planning in manufacturing organizations?

Answer 18

Managing production capacity, equipment, inventory, and raw materials to meet demand and prevent production delays.

Question 19

What tactics can be used for adjusting capacity to demands?

Answer 19

• 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.

Question 20

What factors should a manager consider for the location of production?

Answer 20

• 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.

Question 21

Define the concept of the Transformational process model.

Answer 21

How a company turns raw materials, labor, and ideas into products or services for customers.

Question 22

What is the key idea behind the Transformational process?

Answer 22

Adding value by changing resources into something more useful.

Question 23

Why does the Transformational process matter?

Answer 23

It’s how companies create value, compete, and grow.