Final Exam - Chapter 13 Flashcards
Materials requirement planning is used to compute the required _______ ______
component parts
Bullwhip effect
a missed due date or stock-out may cascade downstream, magnifying the bullwhip effect
Consumers - > Retailers - > wholesalers -> final product manufactures -> component manufactures
small variation (consumers) -> more variation in the demand (manufactures)
What increases up the supply chain?
Variation of stocks/orders
What magnify the bullwhip effect
long lead times and large order sizes
What causes the bullwhip effect?
- long deliver time - large order quantity
How to reduce the bullwhip effect
- short delivery time - Shorter order size- Sharing information with supply chain members
[important] What does resources include?
Resources include materials, equipment, facilities, information, technical knowledge and skills, and people
When you talk about resoruces it can talk about a _____ ____ of stuff
long range
Computer based “push” resource planning systems(what’s 5 of them)
- Material requirements planning2. Closed-loop MRP3. Manufacturing resource planning (MRP-II)4. Enterprise requirements planning (ERP)5. Distribution requirement planning (DRP)
Material Requirements Planning[test question]
What are the 3 things it uses?
- Material Production Plan
- Bill of Material
- Inventory Status
Closed-loop MRP[test question]
incorporates the APP, MPS, MRP, & capacity requirements plan
Manufacturing resource planning (MRP-II)[test question]
incorporates the business plan, sales plan, closed-loop MRP, & simulation capabilities to answer “what-if” analysis
Enterprise requirements planning (ERP)[test question]
is an extension of MRP-II
Distribution requirement planning (DRP)[test question]
describes the time-phased net requirements from warehouses & distribution centers customer demand minus any on hand in-transit inventories
What are the inputs of Material Requirements planning
You need to get information from:1. MPS2. Bill of Material.3. Inventory Status
Manufacturing resource planning is apart of ____ ____ ____
closed loop MRP
Manufacturing resource planningIs it apart of the short or big picture?
big picture
What’s another name for Enterprise requirements planning?
Enterprise resource planning
Enterprise requirements planningExample
MyUnlv
Manufacturing resource planning is the ____ version of ERP
older
ERP is more _____ than manufacturing resource planning
efficient
Distrubtion requirement planning (DRP) - definition?- What does it work with?
How to stock up your regional warehouse - it works in reverse of material requirements planning
Operations planning is usually _____
hierarchical
Long range (Time)
more than 1 year
Intermediate (time)
6 to 18 months
Short range (time)
days/weeks
Long-range[test]
Aggregate Production Plan (APP) involves the construction of facilities & major equipment purchase
Intermediate [test]
Master production schedule (MPS) shows the quantity & timing of end items
Short-range (days/weeks)[test]
Materials requirement planning (MRP) shows detailed planning process for components & parts to support the MPS
Aggregate Production Plan (APP)(long range)
- you do not know what product you want to produce - you know everything in aggregate labor, material, and machine time- no detail information
Master production schedule (intermediate)
Shows the:1. Quantity2. Timing of end items (finished goods)
Is Master production schedule (intermediate) Independent or Dependent
Independent
Material Requirement Planning
Materials requirement planning (MRP) shows detailed planning process for components & parts to support the MPS- What component parts you need to build your end item (master production schedule)
Is Materials Requirement planning Independent? Dependent?
Dependent on Master production schedule
Most service firms do not require as many levels of ________ as goods-producing firms.
intermediate planning (Level 2)
What levels are often combined in the service firms ?
Levels 1 and 2 planning are often combined.
What’s mainly dealt with in the service industry?
Master production schedule/plan
Materials Plan
- Aggregate Production Plan2. Master production Scheduling 3. Material requirements planning
What’s the major problem in materials plan
They do their production plan without looking at the CAPACITY
Capacity requirements planning (CRP) (he said he might ask a question on this) (He said it’s in the book)
(guugle) Capacity requirements planning is the process by which a company figures out how much it needs to produce, and determines if it is capable of meeting those production goals. Small businesses must conduct capacity requirements planning regularly to keep up with changes in supply and demand.
Bill of material
it will tell you what component part that goes into the finish good
What do you need for the Material Requirements Planning (3)
- Master production scheduling2. Bill of material3. Inventory Status
Purchase planning and control define and example
when they buy their supply from the suppliers - ex ford buying tires
Production activity control
they build their own shit - car companies building their own engine
At aggregate prodcution planning You do not know the ____ demand
exact
Master production schedule Do you know the end item?
Yes
Resource requirement planning Time
Long range
Rough cut capacity planning Time
Medium range
Capacity requirements planning Time
Short range
Three Basic APP Strategies
- Chase Strategy
- Level Strategy
- Mixed Production Strategy
Chase Strategy
Adjusts capacity to match demand. Firm hires & lays off workers to match demand. Finished goods inventory remains constant. Works well for make-to-order firms
Level Strategy
Relies on a constant output rate while varying inventory & backlog according to fluctuating demand. Firm relies on fluctuating finished goods & backlogs to meet demand. Works well for make-to-stock firms.
Mixed Production Strategy
Maintains stable core workforce while using other short-term means, such as overtime, subcontracting & part time helpers to manage short-term fluctuation in demand pattern.
Chase production
- Exact quantity to chase sales- increase or decrease production level varies depending on the sales volume - your inventory is stable at the end
Chase strategy
Demand patterns and the production level they are exactly the same
Level production
level production is stable
detailed disaggregation of the APP
listing the exact end items to be produced by a specific period.
For the ____ ____, the MPS may just be the _______ _____ or _____ , which ensures that capacity (e.g., skilled labor or professional service) is balance with demand.
service industryappointment log or book
Master production scheduel is easier for what type of industry
service industry
What type of industry is the master production schedule more complicated for?
Manufacture industry
System Nervousness [2]
•Frequent changes to the MPS may create system nervousness•Situation where a small change in the quantities required, causes a major change in the lower-level components requiredAdditional notes- time is too short to react to it - not going to work without enough time to react to the change
Time Fence Systemx
•Using a time fence to separates the planning horizon into two segments is an effective way to deal with system nervousness
Firm Segment
(AKA as a demand time fence), from current period to several weeks into future. Quantities can only be altered by senior management.Additional notes- you cant change production from present to 2 weeks - can be changed if you have more time though
Tentative Segment
(AKA planning time fence), from end of the firmed segment to several weeks farther into the future; changes allowed during this time.additional notes - it can be changed
Available-to-Promise (ATP) Quantities
•Uses to decides whether additional orders can be accepted, based on the difference between confirmed customer orders & the quantity the firm planned to produce (i.e., the MPS)
Dependent Demand
Dependent Demand•Describes the internal demand for parts based on the demand of the final product in which the parts are used. Subassemblies, components, & raw materials are examples of dependent demand items.
Independent Demand
The demand for final products & service parts. It has a demand pattern affected by trends, seasonal patterns, & general market conditions.
•Dependent demand is usually ______.
calculated
Independent demand is usually _______.
forecasted
Engineering document
An engineering document that shows an inclusive listing of all component parts & assemblies making up the final product.
Planning factor.
Shows the parent-component relationships & the specific units of components known as the planning factor.additional notes - how many units goes into one unit
(planned order releases)
Enables the firm to compute (not forecast) the time-phased, net requirements of the components (planned order releases)
Bill of material (BOM)
A bill of materials (also known as a BOM or bill of material) is a comprehensive list of parts, items, assemblies and other materials required to create a product, as well as instructions required for gathering and using the required materials.
What is Level 0 in BOM
- Finish good - independent demand - mps
Can a level 0 be a component?
No
Make sure you know how to calculate the component part in bom slide - slide 23
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Material Requirements Planning requires:
•The demand information of the end item (MPS).•Parent-component relationships from the bill of materials.•Inventory status of the final product & all of the components. •Lead times for all purchased and manufactured component/parts
Material Requirements Planning Advantage
provides planning information & visibility
Material Requirements Planning Disadvantage
•loss of visibility, especially acute for products with a deep BOM•ignores capacity & shop floor conditions
Parent:
Parent: item generating the demand for the lower-level components
Components:
Components: parts demanded by a parent in the BOM
Gross requirement:
Gross requirement: a time-phased requirement prior to netting out on-hand inventory & the lead-time consideration
Net requirement:
Net requirement: the unsatisfied item requirement for a specific time period
Scheduled receipt:
Scheduled receipt: a committed order awaiting delivery at a specific time
Projected on-hand inventory:
Projected on-hand inventory: projected closing inventory at the end of the period
Planned order release:
Planned order release: specific order to be released to the shop or to the supplier
Time bucket:
Time bucket: time period used on the MRP, usually in days or weeks
Explosion:
Explosion: the process of converting a parent item’s planned order releases into component gross requirements
Planning factor:
Planning factor: # of components needed to produce a unit of the parent item
Firmed planned order:
Firmed planned order: Planned order that the MRP computer logic system does not automatically change when conditions change to prevent system nervousness
Pegging:
Pegging: relates gross requirements for a part to the planned order releases
Low-level coding:
Low-level coding: assigns the lowest level on the BOM to all common components to avoid duplicate MRP computations
Lot size:
Lot size: the order size for MRP logic
Safety Stock:
Safety Stock: protects against uncertainties in demand supply, quality, & lead time
Which one is easier to switch scheduled receipt or planned order release
planned order release as its not a committed order
[test question] where do you get the gross requirement on level 0 requirement
master production schedule
[test question] schedule receipts
you order this before its delivered
Where does the gross requirement come from [test question]?
plan order release comes from the parent
System nervoursenss
- need to order before hand - cant order the materials when they need the requirement - pay attention to the lead time
Capacity Requirement Planning (CRP)
Capacity Requirement Planning (CRP)•a short-range capacity planning technique that is used to check the feasibility of the material requirements plan
Capacity Strategies
Capacity Strategies•Lead capacity strategy (proactive approach)•Lag capacity strategy (reactive approach)•Match or tracking capacity strategy (moderate approach)
Capacity Requirements Planning (CRP)
Capacity Requirements Planning (CRP) is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all components and end items in the materials plan.
Capacity planning information is provided in a ____ ___ ___ ___
work center load report.`
learn chart slide 31
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The legacy mrp system is a
old system
Enterprise resource planning
new system
Best-of-Breed Solution[test question]
Best-of-Breed Solution[test question]pick the best application for each individual functionpros & cons?
Single Integrator Solution[test question]
Single Integrator Solution[test question]pick all the desired applications from a single vendorpros & cons?
Major ERP providers
SAP, Oracle (PeopleSoft acquired JD Edward in 2003, Oracle acquired PeopleSoft in 2005), and Microsoft
