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SCM 301 > EXAM 3 > Flashcards

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
Q

What is an MRP Explosion referred to as?

A

The level by level netting of requirements

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26
Q

When configured properly, MRP allows organizations to increase customer service levels while also decreasing inventory levels by time phasing requirements.

A

TRUE

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27
Q

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.

A

Pegging

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28
Q

Prerequisites for a successful MRP system include (4)

A
  • Bill of Material file
  • Inventory Record file
  • Master Production Schedule
  • a computer to manipulate data.
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29
Q

Review CLOSED LOOP CHART

A
30
Q

What type of system is MRP

A

exception-based system

31
Q

What are the Pegging Requirements?

A

trace every order for lower-level items through all the levels of the BOM, up to the Master Production Schedule

32
Q

What type of chart does the Shop Floor Control Look like?

A

Funnel Chart

33
Q

Major Functions of Shop Floor Control (6)

A

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
Q

Shop Floor Control is concerned with _________

A

executing the Master Production Schedule on the factory floor, using Input/Output Control

35
Q

Loading meaning

A

assigning tasks to a particular work center to be performed
during a schedule period

36
Q

Dispatching meaning

A

sequencing tasks within a work center

37
Q

Expediting Meaning

A

giving extra attention to improve the progress of particular
orders.
Instructor Observation: Manufacturing organizations that excel at Expediting are typically poor at Planning.

38
Q

Job sequencing rules (3)

A

– First come, first served (FCFS)
– Earliest due date (EDD)
– Critical ratio (CR)

39
Q

Critical ratio Calculation

A
40
Q

What does the Critical Ratio Total mean

A

▪ 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
Q

Dispatching Techniques (8)

A
  • 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
Q

Shop Floor Control executes the Master Production Schedule on the factory floor.

A

TRUE

43
Q

The Routings file shows the steps of how a product is built and is akin to a roadmap for manufactured items.

A

TRUE

44
Q

The basic law of Input / Output control states that Inputs must be less than or equal to outputs, or backlogs will increase.

A

TRUE

45
Q

Key work order metrics include (3)

A
  • schedule adherence
  • work order aging
  • closed work orders with open requirements.
46
Q

Just-in-time

A

A philosophy of manufacturing based on
planned elimination of all waste and on continuous
improvement of productivity

47
Q

Lean

A

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
Q

What is Waste

A

Any activity that does not add value to the good
or service in the eyes of the consumer.

49
Q

Eight commonly recognized sources of waste

A

– Overproduction
– Waiting
– Unnecessary transportation
– Inappropriate process
– Unnecessary inventory
– Unnecessary/excess motion
– Defects
– Underutilization of employees

50
Q

The Lean Perspective on Inventory

A

The buildup of inventory hides the problems/disruptions that may occur but at a cost.

51
Q

What does inventory do to problems?

A

It hides them

52
Q

In Lean operations, waste is identified as…

A

anything that “consumes resources but does not add value”

53
Q

Lean Six Sigma

A

combines the organizational elements and tools of Six Sigma with Lean’s focus on waste reduction

54
Q

Lean Supply Chain Management

A

minimize the level of resources required to carry out all supply chain activities

55
Q

Kanban system

A

A production control approach that uses
containers, cards, or visual cues to control the production and
movement of goods through the supply chain

56
Q

Key Characteristics of a Kanban System

A

– 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
Q

Two-card kanban system

A

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
Q

What is a pull system

A

– 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
Q

The Toyota Production System (TPS) pioneered lean thinking and may be the most copied and imitated business process in history.

A

TRUE

60
Q

Logistics is only 8% of GDP in the USA, but
without it the other 92% can’t happen

A

TRUE

61
Q

Logistics Management Activities (6)

A

– Transportation
– Warehousing
– Material handling
– Packaging
– Inventory management
– Logistics information systems

62
Q

Five Transportation Modes

A
  • Water
  • Air
  • Highway
  • Pipeline
  • Rail
63
Q

What is the largest transportation method

A

Trucking accounts for the largest percent of freight movement in the USA, and Less Than Truckload (LTL) shipments are most commonly used.

64
Q

Hub and Spoke System

A

A form of warehousing in which strategically placed hubs are used as sorting or transfer facilities

65
Q

What is Warehousing and what does it do? (4)

A

– Lower inventory-related costs
– Reduce transportation costs
– Improve operational flexibility
– Shorten lead times

66
Q

Different Types of Warehousing (4)

A
  • Spot Stock
  • Cross Docking
  • Assortment
  • Reverse Logistics
67
Q

Consolidation Warehousing

A
68
Q

Cross Docking

A
69
Q

Third-party logistics providers are ________

A

(3PL) are widely used due to the specialized nature and high capital costs associated with Logistics.

70
Q

Perfect Order Equation

A
71
Q

Reverse logistics system

A

A complete supply chain
dedicated to the reverse flow of products and materials
for the purpose of returns, repair, remanufacture, and/or
recycling

72
Q

Software as a Service (SaaS) and Cloud have enabled smaller companies to access improved tool sets.

A

TRue

SCM 301 (5 decks)

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