Final Study Flashcards
What are the 6 functions of inventory?
1) To wait while in transit
2) Protect stockouts
3) Quantity discounts
4) Smooth production
5) Decouple operations
6) Hedge price increases
What is the objective of Inventory control?
Good customer service with minimal inventory costs
What is the ABC classification system and what is it for?
Allocating importance to certain inventory (A most important)
What is EOQ?
Economic Order Quantity: order size that minimizes inventory cost
What are the 7 assumptions of the EOQ model?
1) One product
2) Demand req. known
3) Even demand
4) Lead time constant
5) Each order in 1 delivery
6) No quantity discounts
7) Shortage not allowed
What is sales and operations planning?
Integrating sales forecasts with operations plans
What is master production scheduling?
Relating inputs with forecasted output
What are the two factors to consider when choosing an aggregate strategy?
Company policy
Costs
What are the 4 steps in the aggregate planning procedure?
1) Determine groups to be aggregated
2) Demand forecast
3) Labour feasibility
4) Find TC of plan
What are the 3 parts of aggregate operations planning?
1) Employment
2) Output
3) Inventories
What is the term length of aggregate operations planning?
Intermediate
What is Material Requirements Planning (MRP)?
Determines plans for purchasing and production of dependent-demand components
What are 3 MRP inputs?
1) Master Schedule
2) Bill of Materials
3) Inventory Records
What is enterprise resource planning (ERP)?
Tech to integrate information sharing and keeping across an org.
What is independent demand?
Finished goods, uncertain
What is dependent demand?
Raw materials, parts, certain
What are the 7 types of waste?
1) Inventory
2) Overproduction
3) Waiting time
4) Excess transportation
5) Processing waste
6) Inefficient work methods
7) Defects
What does JIT and lean production mean?
JIT: goods arrive and services are performed just as they are needed
Lean production: “big JIT”, less waste
What is the ultimate goal of JIT?
A balanced, smooth, rapid flow
What are the 4 secondary goals of JIT?
1) Eliminate disruptions
2) Flexible system
3) Eliminate waste
4) Kaizen (continuous improvement)
What are 3 benefits of small lot sizes and what is the ideal lot size?
1) Less WIP
2) Less rework and inspection
3) More flexibility
Ideal size: 1
What is pokayoke?
A system that helps an equipment operator avoid mistakes
What are the 5 needs for Supply chain management?
1) Increasing competition
2) Increasing outsourcing
3) Increasing globalization
4) Increasing e-commerce
5) Managing orders
What is the bullwhip effect?
Many parts to the supply chain with small variations in each causing large variations overall
What is cross-docking?
Avoiding warehouse storage and incoming supplies are loaded onto outbound trucks
What is CPFR in Supply chain mgmt?
Collaborative Planning, Forecasting, and Replenishment
What are 4 supply chain performance metrics?
1) Cost
2) Variety/flexibility
3) Delivery
4) Customer service
What is quality?
Consistently meet or exceed customer expectations
What are 7 dimensions of quality for a good?
1) Performance
2) Aesthetics
3) Special features
4) Conformance
5) Reliability
6) Durability
7) Serviceability
What is TQM?
Involves the whole organization in an effort to improve quality
What are 7 dimensions of quality for a service?
1) Tangibles
2) Convenience
3) Reliability/consistency
4) Responsiveness
5) Time
6) Assurance
7) Courtesy
Compare internal and external failure costs
Internal: defects fixed during production
External: Defects fixed after delivery
What are the 5 steps in TQM?
1) Figure out the customer wants
2) Design product to fit that want
3) Design processes to facilitate
4) Monitor results
5) Extends concepts to suppliers
How many defects does six sigma allow and what does DCAIM stand for?
3.4 defects per million
D: Define C: Control A: Analyze I: Improve M: Measure
What are the 7 basic quality tools and their primary use (where applicable)?
Cause-and-effect:
Flow-charts:
Check sheets:
Histograms: frequency distribution
Pareto Charts: highest to lowest frequency (80/20)
Scatter diagrams: degree and direction of relationship
Control charts: upper and lower limit
What are the 7 basic quality tools and their primary use (where applicable)?
Cause-and-effect:
Flow-charts:
Check sheets:
Histograms: frequency distribution
Pareto Charts: highest to lowest frequency (80/20)
Scatter diagrams: degree and direction of relationship
Control charts: upper and lower limit
What is the purpose and elements of stat process control?
Find if the process is operating within acceptable limits and distinguish b/n assignable and random variation
1) Inspection before and after
2) Corrective action
3) Quality built into the process
What is the purpose of a control chart?
To monitor process output and find random or assignable variation (2 or 3 SDs)
What is a type 1 error?
Concluding that a process has changed when it has not
What is a type 2 error?
Concluding process is in control when it’s not
What is acceptance sampling?
Accept or reject a product
What are the 5 steps in designing a control chart?
1) Pick sample size
2) Obtain samples
3) Establish and graph control limits
4) Plot on control chart
5) Find outliers
What are the 2 decisions inventory analysts make to optimize service and reduce cost?
Timing and size of orders
What is ATP inventory?
Available-to-promise, uncommitted planned inventory
What is yield management?
Allocating capacity based on capacity available
What are 3 ways to alter capacity?
1) Overtime
2) Layoffs
3) Inventories
What is MRP II?
An expanded MRP which is closed-loop and involves the whole production planning process
What is lumpy demand?
Demand for dependant items that are only demanded when parent item in being produced
What are the 3 objectives of concurrent engineering?
1) Increased communications among functions
2) Reducing need for changes
3) Speed up product design
What is the purpose of a quick response system?
Create JIT replenishment
What are appraisal costs?
Cost of inspectors, testing, test equipment, labs
What was Deming’s focus?
Management’s systems are responsible for poor quality not employees
What was Juran’s focus?
Quality trilogy: planning, control, improvement
What was Crosby’s focus?
Quality is free, any level of defects is too high
What is item fill rate?
Rate at which order is met Ex: 300 of 500 units have arrived = 0.6 item fill rate
What is supply chain visibility?
Members can connect to other parts of SC for data
What 3 zones are Master production schedules divided into?
Emergency, trading, planning
What is a kanban card used for?
Signalling that work is needed from a preceding station
