CPIM Part 1, Module 3 - Plan Supply Flashcards
What are the five things that master scheduling has to accomplish?
- Produce what is agreed upon by sales and production
- Maintain customer service at targeted level
- Make most efficient use of resources
- Keep inventories / backlogs at desired level
- Enable valid order promises
How does the master schedule transform a general plan into a priority plan?
By assigning due dates and specific quantities of end items to be manufactured
What are the four steps of producing a master schedule?
- Disaggregate the production plan into preliminary master schedule end items
- Aggregate master schedules for all related end items
- Perform rough-cut-capacity planning
- Resolve the differences and publish the master production schedule
A workable preliminary master schedule satisfies five conditions, which are these?
- Valid schedule
- Valid capacity
- Valid inventory or backlog
- Valid changeovers
- Valid batches and lots
What are the three ways of performing rough-cut-capacity planning?
- Bill of labor
- Capacity planning using overall factors
- Resource profile approach
What is order entry?
The process of accepting and translating what a customer wants into terms used by the manufacturer or distributor
What is capable-to-promise?
The process of committing orders against available capacity as well as inventory
What are the two objectives of MRP?
- MRP systems need to determine material requirements precisely in terms of what, how much and when
- MRP systems are dynamic rather than static, have to adapt to changing priorities
What are the four inputs to MRP?
- Master production schedule
- Bills of materials
- Inventory records
- (Planning factors)
What is the outcome of MRP?
A time-phased priority plan. The plan proposes order release dates and corresponding order receipt dates for purchasing and production.
In what four departments / ways are BOMs used?
- Engineering: To create or modify boms
- Customer service and service department: To ensure right part is sent
- Finance: helps determine product usage
- MPC: uses BOMs to determine what to order or make
What is a planning bill of materials?
An artificial grouping of items or events in bill-of-material format used to facilitate master scheduling and material planning
What is capacity management?
The function of establishing, measuring and adjusted limits or levels of capacity in order to execute all manufacturing schedules
What is capacity planning?
The process of determining the amount of capacity required to produce in the future
What are the three steps of iterative capacity planning?
- Calculate capacity available
- Calculate the load per time bucket and determine differences between available and needed capacity
- Resolve differences
What are the five inputs to capacity requirements planning (CRP)?
- Planned order releases
- Open orders
- Routings
- Shop calendar
- Work center files (info on capacity and lead time)
What is the difference between internal and external setup time?
Internal setup time is done while the process or machine is NOT running
What is productivity?
An overall measure of the ability to produce a good or service. It is the actual output of production compared to actual input of resources
What are the three steps of calculating load?
- Calculate the operation time per work order
- Simulate order scheduling to determine the start and finish dates for each operation on each work center
- Establish load profiles
What are the four inputs to back scheduling?
- Quantity, due date, operation time per work order
- Operations sequence from routing
- Queue, wait and move times from work center file
- Work center rated or demonstrated capacity from work center file
What is a load profile?
A display of future capacity requirements based on released and/or planned orders over a given span of time
What is the final assembly schedule?
A schedule of end items to finish the product for a specific customer’s order in a make-to-order or assemble-to-order environment.
A shop order packet includes the shop order (manufacturing order). What is a manufacturing order?
A document, group of documents or schedule conveying authority for the manufacture of specified parts or products in specific quantities
What four things does a shop packet include?
- Manufacturing order
- Bill of material
- Routings
- Engineering drawings / formulas
What is a work order?
An order to the machine shop for tool maintenance or equipment maintenance
What are the three iterations of MRP?
- the first one was open-loop
- the second one was closed-loop
- the third one is MRP-II. This one further integrated production, finance and marketing
What are the three conventional procurement objectives?
- Purchase the correct goods and services in the specified quantity
- Purchase at lowest total cost to organization
- Minimize delivery lead times and optimize other aspects of CS
What is total cost of ownership in supply chain management?
The sum of all costs associated with every activity of the supply stream
What is supplier relationship management (SRM)?
A comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services the enterprise uses. Goal is to streamline and make more effective processes
What are the five steps of the purchasing process?
Planning:
1. Establish specifications
- Select suppliers
- Negotiate contracts
Execution :
4. Manage purchasing cycle / manage contract buying
Monitoring and controlling:
5. Monitor supplier performance
Customer requirements will be translated in three different types. Which three?
- Functional
- Quantity
- Price
How is quality defined by customer?
As fitness for use
How is quality define by manufacturing?
Conformance to requirements
How is quality called when it is a combined of good price and good quality?
Value-based
What four categories are part of a contract negotiation?
- Price
- Terms and conditions
- Delivery (responsibility) and quantity
- Quality
What is supplier scheduling?
This is when MRP data on required due dates are directly used in the supplier’s master scheduling process
What is the purchasing cycle and what are its five steps?
It is a purchasing method used for low-volume or one-time purchasing.
- Generate requisition
- Issue purchase order
- Follow-up
- Receive goods
- Approve payment
What is a purchase requisition?
An authorization to the purchasing department to purchase specified materials in specified quantities within a specified time
What is purchase order?
The purchasers authorization used to formalize a purchase transaction with a supplier
What is contract buying? And for what item is it used?
Contract buying is the authorization of material releases against a long-term contract. It is used for high-volume / or high-frequency purchases as for MRP.
What are the steps organizations have to cycle through with regards to responding to disruptions
- Mobilizing: Enacting initial response plan and establish rules for how to respond
- Sensing: Reprioritization of risks and responses depending on newly arising challenges
- Analyzing: Walking through what-if scenarios and protocols
- Configuration: set-up existing supply chain network according to protocols developed in previous step
- Operation: executing plans and protocols and track results
What is production activity control?
The function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control
What are the five objectives of PAC?
- Execute the orders authorization from the MPS and MRP
- Optimize the use of resources
- Provide availability information
- Provide information on work-in-process inventories
- Maintain customer service at targeted level
What are the six inputs to PAC?
- Material requirements plan
- Item master files
- Bills of material
- Routing files
- Work center files
- Shop order files
What is flow rate?
The inverse of cycle time
What is a production schedule?
A plan that authorizes the factory to manufacture a certain quantity of a specific item
What is priority control?
The process of communicating start and completion dates to manufacturing departments in order to execute a plan
What is operations scheduling?
A technique for short-term planning of actual jobs to be run in each work center based upon capacity and priorities
What is dispatching?
The selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers. Basically controlling the priority of orders
What is critical ratio (CR)?
It is a dispatch rule where actual processing time is divided by lead time remaining. This results in a ratio that shows the relative priority of the order compared to other orders.
What is capacity cushion?
Extra capacity that is added to a system after capacity for expected demand is calculated
What is exception management?
The practice of only responding to issues or events that fall outside a predetermined threshold
What is input/output control? And what is the goal?
A technique for capacity control where planned and actual inputs and planned and actual outputs are monitored. Goal is to keep work in process and queue times under control
What is a VATI analysis?
In the theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished products
What is the theory of constraints?
A holistic management philosophy based on the principle that complex systems exhibit inherent simplicity
What is throughput?
The rate at which a system generates “Goal units”
What drum-buffer-rope?
The theory of constraints method for scheduling and managing operations that have an integral constraint or capacity-constrain resource
What is the drum?
It is the master production schedule in a drum-buffer-rope scheduling system. It determines the rate of production.
When the market is the constraint in a theory of constraints environment there are certain things that differ from instances of internal constrains. What three are these?
- The drum is at shipping and is based on market needs
- The rope connects the drum to the material release point
- The time buffer is only at shipping
