Final Practice Guide

Question 1

Project

Answer 1

• A temporary endeavor undertaken to create a unique product, service, or result
• Have clear starting and end points where people and resources are reassigned
• Non-routine, can be large or small, and may be difficult to manage
• Typically require significant levels of cross-functional and organizational coordination

Question 2

Project Management

Answer 2

Application of knowledge, skills, tools and techniques to project activities to meet project requirements

Question 3

Day to Day Task

Answer 3

• Does not start and end, tasks will never go away

- Typically can work on it by yourself

Question 4

Project Management

Compared to Day Task

Answer 4

• Has a beginning and end
• Crosses over functional lines and needs collaboration across departments
• Collaborative across functions
• More difficult (complex) to manage

Question 5

The Project Phases

Answer 5

1. ) Concept phase
2. ) Project definition phase
3. ) Planning phase
4. ) Performance phase
5. ) Postcompletion phase

Question 6

Concept Phase

Answer 6

• Project planners develop a broad definition of what the project is and what its scope will be
• Is a high level plan of what you are targeting
• +/- 30% accuracy in budget
• Includes: scope, resources, budget, timing
• Outputs- initial budget estimates, estimates of personnel needs, and required completion dates
• Moves from “what” to “how”

Question 7

Project Definition Phase

Answer 7

• Project planners identify how to accomplish the work, how to organize for the project, the key personnel and resources required to support the project, tentative schedules, and tentative budget requirements
• More exact -/+ 5-10% accuracy in budget

Question 8

Planning Phase

Answer 8

Project planners prepare detailed plans that identify activities, time and budget targets (metrics), and the resources needed to complete each task, while also putting into place the organization that will carry out the project

Question 9

Performance Phase

Answer 9

• Organization actually starts to execute the plan

- Longest phase

Question 10

Postcompletion Phase

Answer 10

Project manager or team confirms the final outcome, conducts a post-implementation meeting to critique the project and personnel, and reassigns project personnel

Question 11

Gnatt Chart

Answer 11

Graphical tool used to show expected start and end time for a project activities and to track actual progress against these time targets

Question 12

Network Diagrams

Answer 12

Graphic tool that shows the logical linkages between activities in a project

Question 13

Milestone

Answer 13

A performance or time target for each major group of activities in a project

Question 14

Critical Path

Answer 14

A network path that has the longest, or is tied to the longest, liked sequence of activities

Question 15

Crashing a Project

Answer 15

Shorting the overall duration of a project by reducing the time it takes to preform certain activities

Question 16

Material Requirements Planning (MRP)

Answer 16

Translates the master schedule for final products into detailed material requirements

• Ex: 500 chairs are needed to be sold in 5 weeks- it determines how many seats, legs, backs and so on is needed to make or be purchased

Question 17

Master Scheduling

Answer 17

Detailed planning process that tracks production output and matches this output to actual customer orders

Question 18

What Does Master Scheduling Help With

Answer 18

• Makes specific the overall resource levels established by S&OP (sales and operations planning)
• States exactly when and in what quantities specific products will be made
• Links production with specific customer orders, allowing the firm to tell the customers exactly when an order will be filed
• Informs the operations manager what inventory or resources are still available to meet new demand

Question 19

Master Schedule Records Track

Answer 19

1. ) Forecast demand
2. ) Book orders
3. ) Projected ending inventory
4. ) Production quantities
5. ) Units still available to meet customer needs (available to promise)

Question 20

Forecasted demand

Answer 20

Company’s best estimate of the demand in any period

Question 21

Booked orders

Answer 21

• Confirmed demand for products
• Projected requirements- maximum (foretasted demand, booked orders)
• Generally company gets a downpayment

Question 22

Projected ending inventory

Answer 22

Field in the master schedule record that indicates estimated inventory levels at the end of each time period

Question 23

Units still available to meet customer needs (available to promise)

Answer 23

Field in master schedule that indicates the number of units that are available for sale each week, given those that have already been promised to customers

Question 24

Planning Horizon

Answer 24

Amount of time the master schedule record or MRP record extends into the future. In general, the longer the production and supplier lead times, the longer the planning horizon must be.

Question 25

Inventory

Answer 25

Those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies) and customer service (finished goods and spare parts)

Question 26

Inventory Types

Answer 26

1. ) Cycle stock
2. ) Safety stock
3. ) Transportation inventory

Question 27

Cycle Stock

Answer 27

• Stock you have ready to sell (either on the floor or in the back)
• Components or products that are received in bulk by a downstream partner, gradually used up, then replenished again in bulk by an upstream partner

Question 28

Safety Stock

Answer 28

• Extra inventory that a company holds to protect itself against uncertainties in either demand or replenishment time
• Stock that you have no intentions for using it, it is used for unanticipated demand

Question 29

Transportation Inventory

Answer 29

• What is on its way to you

- Inventory moving from one link in the supply chain to another

Question 30

Dependent Demand Inventory

Answer 30

• Inventory items whose demand levels are tied directly to a company’s planned production of another item
• Demand levels are known
• You have to stock because independent item has been ordered
  
  • Ex: Kitchen table, as soon as you have an order for a kitchen table you know you will need legs, tops, and screws

Question 31

Independent Demand Inventory

Answer 31

• Inventory items whose demand levels are beyond a company’s complete control
• Demand levels are unknown

Question 32

Periodic Review

Answer 32

• Inventory system that is used to manage independent demand inventory where the inventory level for an item is checked at regular intervals and restocked to some predetermined level
• What Eveline has which is not technology enabled, person looks at and counts the items and how much needs stacked

Question 33

Continuous Review

Answer 33

• Inventory system used to manage independent demand inventory where the inventory level for an item is constantly monitored and when the reorder point is reached, an order is released
• Walmart where it is never high or low, UPC counts and replaces

Question 34

Quantity Discounts

Answer 34

Price reductions for ordering larger quantities

Question 35

Target Service Level

Answer 35

Service level at which the expected costs of a shortage equals the expected cost of having excess units