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EXAM 3 Flashcards

1
Q

What is the primary purpose of Inventory

A

The primary purpose of inventory is to decouple supply and demand

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2
Q

What rule does inventory follow?

A

Inventory typically follows the 80-20 rule

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3
Q

Planning and control (4)

A
  • master scheduling
  • material requirements planning
  • production activity control
  • vendor order management
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4
Q

A Top-Down Model of Manufacturing Planning and Control Systems

A
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5
Q

Master Scheduling (2)

A
  • A detailed planning process that tracks production output
  • States exactly when and in what quantities specific products will be made.
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6
Q

The Master Schedule Record (5)

A

– Forecasted demand
– Booked orders
– Projected inventory levels
– Production quantities
– Units still available to meet customer needs (Available to Promise)

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7
Q

The MPS must be realistic in terms of what can be ______

A

Manufactured

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8
Q

What is Forecasted demand?

A

A company’s best estimate of the demand in any period.

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9
Q

What are Booked Orders?

A

Confirmed demand for products

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10
Q

What is the Master Production Schedule (MPS) (2)

A
  • The amount of product that will be finished and available for sale at the beginning of each week
    – The MPS must be realistic
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11
Q

What is Projected Ending Inventory

A

Estimate of what inventory levels will look like at the end of each WEEK

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12
Q

Available to Promise

A

Indicates the number of units that are available for sale each week, given those that have already been promised to customers.

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13
Q

What is Planning Horizon

A

The amount of time MRP record extends into the
future.

The longer the production and supplier lead times, the longer the planning horizon must be.

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14
Q

How long must Panning Horizons Be?

A

at LEAST as long as the longest LEAD time.

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15
Q

Material Requirements Planning (MRP)

A

translates the master production schedule into planned orders for the actual parts and components needed to produce the master schedule items.

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16
Q

What does MRP manage?

A

MRP manages dependent demand inventory

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17
Q

MRP is based on (4)

A

– The bill of material (BOM)
– Backward Scheduling
– Explosion of the bill of material
- Inventory Record File

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18
Q

How accurate must BOM and Inventory Record Be to be effective?

A

BOM and Inventory records need to be 99%+ accurate
for MRP to be effective

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19
Q

Bill of material (BOM)

A

A listing of all parts and raw materials that go into an assembly

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20
Q

Exploding the BOM

A

The process of working backward from the master production schedule for a level 0 item to determine the quantity and timing of orders for the various subassemblies and components.

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21
Q

The MRP Record (6)

A

– Gross Requirements
– Scheduled Receipts
– Planned Receipts
– Planned Orders
– Projected Ending Inventory
– Net Requirements

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22
Q

Material Requirements Planning (MRP) is a dependent demand system for ___________?

A

planning components below the product or end item level.

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23
Q

In MRP, the due date for a component will equal _________?

A

the start date of the parent item

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24
Q

A valid Master Production Schedule (MPS) needs to include ________ (3)

A
  • A part Number
  • Quantity
  • Date
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25
What is an MRP Explosion referred to as?
The level by level netting of requirements
26
When configured properly, MRP allows organizations to increase customer service levels while also decreasing inventory levels by time phasing requirements.
TRUE
27
What is the feature in MRP that allows a Planner to trace the requirement for a component item up to the end item product it is needed for.
Pegging
28
Prerequisites for a successful MRP system include (4)
- Bill of Material file - Inventory Record file - Master Production Schedule - a computer to manipulate data.
29
Review CLOSED LOOP CHART
30
What type of system is MRP
exception-based system
31
What are the Pegging Requirements?
trace every order for lower-level items through all the levels of the BOM, up to the Master Production Schedule
32
What type of chart does the Shop Floor Control Look like?
Funnel Chart
33
Major Functions of Shop Floor Control (6)
1) Assigning priority to shop order 2) Maintaining Work-In-Process (WIP) 3) shop order status information 4) output data for capacity control purposes 5) Providing quantity for WIP Inventory 6) Providing measures of efficiency/production
34
Shop Floor Control is concerned with _________
executing the Master Production Schedule on the factory floor, using Input/Output Control
35
Loading meaning
assigning tasks to a particular work center to be performed during a schedule period
36
Dispatching meaning
sequencing tasks within a work center
37
Expediting Meaning
giving extra attention to improve the progress of particular orders. Instructor Observation: Manufacturing organizations that excel at Expediting are typically poor at Planning.
38
Job sequencing rules (3)
– First come, first served (FCFS) – Earliest due date (EDD) – Critical ratio (CR)
39
Critical ratio Calculation
40
What does the Critical Ratio Total mean
▪ Critical Ratio = 1 indicates that the amount of task time equals the amount of time left, hence any time spent waiting will make the job late. ▪ Critical Ratio < 1 indicates that the job is going to be late unless something changes. ▪ Jobs with the lowest Critical Ratio are scheduled to go first.
41
Dispatching Techniques (8)
- Earliest Due Date - Shortest Processing Time - Longest Processing Time - Slack per Remaining Operation - First Come, First Serve - Critical Ratio - Available Capacity at next Operation - Random
42
Shop Floor Control executes the Master Production Schedule on the factory floor.
TRUE
43
The Routings file shows the steps of how a product is built and is akin to a roadmap for manufactured items.
TRUE
44
The basic law of Input / Output control states that Inputs must be less than or equal to outputs, or backlogs will increase.
TRUE
45
Key work order metrics include (3)
- schedule adherence - work order aging - closed work orders with open requirements.
46
Just-in-time
A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity
47
Lean
A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of an enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers
48
What is Waste
Any activity that does not add value to the good or service in the eyes of the consumer.
49
Eight commonly recognized sources of waste
– Overproduction – Waiting – Unnecessary transportation – Inappropriate process – Unnecessary inventory – Unnecessary/excess motion – Defects – Underutilization of employees
50
The Lean Perspective on Inventory
The buildup of inventory hides the problems/disruptions that may occur but at a cost.
51
What does inventory do to problems?
It hides them
52
In Lean operations, waste is identified as...
anything that "consumes resources but does not add value"
53
Lean Six Sigma
combines the organizational elements and tools of Six Sigma with Lean’s focus on waste reduction
54
Lean Supply Chain Management
minimize the level of resources required to carry out all supply chain activities
55
Kanban system
A production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain
56
Key Characteristics of a Kanban System
– Uses simple signaling mechanisms to indicate when specific items should be produced or moved. – Can be used to synchronize activities either within a plant or between different supply chain partners. – Are not considered planning tools, but rather control mechanisms that are designed to pull parts or goods through the supply chain based on downstream demand.
57
Two-card kanban system
A special form of the Kanban system that uses one card to control production and another card to control movement of materials. – Move card – A kanban card that is used to indicate when a container of parts should be moved to the next process step. – Production card – A kanban card that is used to indicate when another container of parts should be produced
58
What is a pull system
– downstream demand sets off a chain of events that pulls material through the various process steps. – A kanban system is also called a pull system.
59
The Toyota Production System (TPS) pioneered lean thinking and may be the most copied and imitated business process in history.
TRUE
60
Logistics is only 8% of GDP in the USA, but without it the other 92% can’t happen
TRUE
61
Logistics Management Activities (6)
– Transportation – Warehousing – Material handling – Packaging – Inventory management – Logistics information systems
62
Five Transportation Modes
- Water - Air - Highway - Pipeline - Rail
63
What is the largest transportation method
Trucking accounts for the largest percent of freight movement in the USA, and Less Than Truckload (LTL) shipments are most commonly used.
64
Hub and Spoke System
A form of warehousing in which strategically placed hubs are used as sorting or transfer facilities
65
What is Warehousing and what does it do? (4)
– Lower inventory-related costs – Reduce transportation costs – Improve operational flexibility – Shorten lead times
66
Different Types of Warehousing (4)
- Spot Stock - Cross Docking - Assortment - Reverse Logistics
67
Consolidation Warehousing
68
Cross Docking
69
Third-party logistics providers are ________
(3PL) are widely used due to the specialized nature and high capital costs associated with Logistics.
70
Perfect Order Equation
71
Reverse logistics system
A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling
72
Software as a Service (SaaS) and Cloud have enabled smaller companies to access improved tool sets.
TRue

SCM 301 (5 decks)

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