Class 5 Flashcards
What are Functional Area Information Systems?
Systems designed to support specific business functions such as accounting, finance, human resources, marketing, and operations.
These systems help organizations manage, control, and audit various resources effectively.
What is a Master Production Schedule (MPS)?
The overall plan to assess the production of finished goods, detailing what, how much, and when to produce.
It considers accepted sales orders, sales forecasts, and current inventory.
What does MRP stand for?
Material Requirements Planning.
It is a system used to effectively plan the use of a manufacturer’s resources.
What is the main objective of MRP?
To convert the Master Production Schedule (MPS) into detailed raw material components.
It ensures that materials are available for production and products are available for delivery.
What does Bill of Materials (BoM) detail?
A detailed list of raw materials, components, and assemblies required to construct a product.
It specifies the quantity of each material needed for production.
What is the purpose of Capacity Requirements Planning (CRP)?
To determine if a company’s available production capacity can meet its production goals.
This involves evaluating machine time and worker time requirements.
What is Vendor Managed Inventory?
A system where suppliers manage the inventory levels for retailers.
Suppliers gain access to production planning schedules to fulfill orders effectively.
What does ERP stand for?
Enterprise Resource Planning.
It integrates information flow across all departments within a company.
What is the evolution from MRP to ERP?
MRP focuses on material purchases, MRP II adds in-plant scheduling, and ERP integrates information across departments.
ERP systems improve performance of internal business processes.
What is the significance of Shop Floor Control?
It involves monitoring production processes and ensuring quality control.
This is critical for maintaining efficiency and product standards.
