Chapters 9-11 Flashcards
Enterprise Resource Planning
computer system that integrates application programs in accounting, sales, manufacturing, and the other functions in a firm
Master production schedule (MPS)
deals with (end items finished) (good items sold to customers) – major input to the MRP process.
The aggregate plan provides the general range of operation, the master scheduler must specify exactly what is to be produced
To determine an acceptable feasible schedule to be released to the shop, trial master production schedules are tested using the MRP program.
Master Production Scheduler
The human being, also known as a planner, MRP controller, etc.
Must maintain the master schedule.
Master Production Scheduler Duties:
-Include all demands from product sales, warehouse replenishment, spares, and interplant requirements.
-Never lose sight of the aggregate plan.
-Involved w customer order promising.
-Visible to all layers of management.
-Objectively manage conflicts between manufacturing, marketing and engineering.
-Identify and communicate all problems.
Enterprise Resource Planning ERP supply chain functions:
Sales and distribution(SD), Production planning(PP), Quality management (QM), Material management (MM), and Plant maintenance (PM)
Production planning (PP)
supports both discrete and process manufacturing processes and includes the material requirements planning (MRP) applications.
MRP - Material Requirements Planning
The logic that ties production functions together from a material planning and control view.
How much of each part to obtain?
When to order or produce the parts?
Available to Promise
-Find differences between the # of units currently included in master schedule + the actual customer orders.
-Stock currently held in inventory may be allocated to a customer order or available for future customer orders (available to promise).
-Communicating current available to promise quantities can be a powerful tool for coordinating the activities of sales and production.
Total quality management
managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
Two fundamental operational goals
-Careful design of the product/ service
-Assurance that the organization’s systems can consistently produce the design
Quality Gurus Comparison: Crosby
Conformance to requirements, prevention not inspection
Quality Gurus Comparison: Juran
fitness for customer use
Quality Gurus Comparison: Deming
predictable degree of uniformity and dependability at low cost suited to the market
Conformance quality
degree to which the product or service design specifications are met
Quality at the source
making the person who does the work responsible for ensuring that specifications are met.
Perceived Quality
Past performance and reputation.
Serviceability
Ease of repair.
Appraisal costs
Costs of the inspection, testing, and other tasks to ensure that the product or process is acceptable.
Internal failure costs
Costs for defects incurred within the system: scrap, rework, repair.
External failure costs
Costs for defects that pass through the system.
International Organization for Standardization (I S O)
Series of standards agreed upon by the International Organization for Standardization (ISO). adopted in 1987.
ISO 9000, ISO 14000, and ISO 26000
9000 directs you to “document what you do and then do as you documented, 14000 is a family of standards on environmental management. 26000 encourages organizations to discuss social responsibility issues and possible actions with relevant stakeholders
Forms of certification
ISO
First party: A firm audits itself against ISO 9000 standards.
Second party: A customer audits its supplier.
Third party: A “qualified” national or international standards or certifying agency serves as an auditor
External Benchmarking
Looking outside the company to examine what excellent performers inside and outside the company’s industry are doing in the way of quality.
Six Sigma Quality
a statistical term to describe the quality goal of no more than 3.4 defects out of every million units.
