Environmental Issues/Inventory Management/Performance Monitoring Flashcards
What is the RCRA?
Resource Conservation and Recovery Act – US law governing the disposal of solid and hazardous waste
What are RCRA three programs?
Solid waste program – develops plans to manage non-hazardous industrial solid waste
Hazardous waste program – controlling hazardous waste from manufacturing to disposal
Underground storage tank program – regulates storage tanks containing hazardous substances and petroleum products
What is Hazardous waste?
A solid waste that has been listed in the RCRA regulations or has one of four hazardous characteristics: corrosivity, reactivity, ignitability, or toxicity
What are the Clean Water and Clean Air Act?
Clean Water Act: the basic structure for regulating discharges of pollutants into the waters of the US. Gives EPA authority to implement pollution control programs.
Clean Air Act: legislation to reduce smog and air pollution
Identify the advantages with just-in-time inventory.
- Intended to keep minimal inventory in stock allowing for smaller capital to be invested
- Savings from JIT are realized in carrying costs, ordering costs and other investment opportunities
- Material and parts arrive just as they’re needed
Define ABC classification.
Sorts items based on the anticipated use and dollar value
When is it appropriate to use the Economic Order Quantity Method?
Used to find a financial balance between the lowest ordering cost and the carrying cost.
Define carrying costs?
Includes items like:
- Personnel
- insurance on inventory held
- the cost of warehousing
- taxes
- interest on financed inventory
- utilities
Understand the differences with FIFO, LIFO and moving averages.
• Last In, First Out (LIFO) - the most recent price paid for this item would be the price charged against the work order.
• First In, First Out (FIFO) - the price of the oldest part in stock is the price charged against the work order.
• Moving Average – the average price of those items held as stock is charged
Determine how to benchmark inventory.
- Inventory turns (ratio of the value of stock items issued per year to the average value of parts carried in inventory)
- Parts ordered fill rates (% of requests filled immediately)
- Costs per vehicle equivalent unit
- Order fill times (average amount of time required to fill an order)
Understand the process of Benchmarking and why it is important.
Benchmarking is the process of comparing performance with other organizations and how to achieve that high level of performance
Benchmarking has the potential to create value by:
- Focusing on areas of performance within an organization which require improvement.
- Identifying ideas from other organizations which may assist in improving performance.
- Creating an agreed strategy on how to move an organization forward.
- Making more informed decisions based on improved knowledge of potential performance
What are the seven steps in the Benchmark Process?
- Define Objectives
- Define Performance Measures
- Collect Data and Measure performance
- Evaluate conditions and practices
- Survey Peers
- Compare Practices
- Engineer processes
What is the difference between Benchmarking and key performance indicators (KPI’s)?
KPIs are performance metrics. Quantitative and periodic assessment of a process that is to be measured.
Understand how to tailor KPI’s to your audience.
- Look at your maintenance operation and determine what areas need to be measured.
- Use your existing fleet data to define a baseline of fleet performance
- Define the data collection and reporting mechanisms necessary to fully implement an ongoing program of performance measurement
Understand how effectiveness is measured and ways to present the information.
Performance Monitoring system
What does an exception report do?
Using computing power to help with monitoring data accuracy and operational performance.
