improve efficiency and effectiveness of operations related to materials

Question 1

managing materials

Answer 1

about managing the way materials from suppliers are received and stored, and making sure the right amount and quality of inputs available in the operations system when required. manager is required to manage raw materials on site, time taken to order new supplies, the time to find right supplier, negotiation of contracts, delivery times

Question 2

materials

Answer 2

are raw materials/components that are needed in the production process and when stored and held in ‘stock’ in the business, can also be refered to as inventory

Question 3

importance of material management

Answer 3

order to much stock:
run out of storage
stock can pass its use by date
money is tied up in stock
order too little:
product line stops
customer order remain unfilled 
reputation collapses

Question 4

forecasting

Answer 4

involves predicting what materials will be required and in what quantities.
predict too low and you run out of product
too much stock goes out of date and takes up space.
need to consider suppliers delivery times
global exchange rates’
market conditions
special demand times, eg Christmas
advantages:
can anticipate seasonal change and adjust order to save costs and wastage
can help to prevent over ordering taking up storage space
disadvantages
judging future by looking at past means unexpected things might happen
the times taken to anticipate, track and analyse all potential impacts on supply chain.

Question 5

master production schedule

Answer 5

by breaking down the whole production process into stages and determining exactly what is required, what needs to be produced and by when, this document can determine the quantity demand of inputs over time, seen as the who, staff needed to work, what, goods to be produced, when, production is to take place where, where it is to take place, how, production methods which, materials.
advantages
helps determine very accurate ordering quantities and timing- avoid wastage, time and costs
very clear to staff of processes and sequence
good for standardised production
easy to learn routine ‘
reduce general waste
disadvantages
initial time and expenses to track, record and write up manual
hard to account for every situation
not very flexible

Question 6

materials requirement plan (MRP)

Answer 6

usually used in conjunction with the master production schedule to determine what needs to be ordered and when. aim to minimise storage costs, wastage and idle machines and order the materials with time to be delivered. managers can then consider the benefits of buying in bulk over storage costs, season variations, price variations ect.
mrp shows: the materials required for the quantity determined.
the stock or materials on hand
the materials to be ordered
advantages:
reduces waste and storage space and idle space
disadvantages:
initially expensive

Question 7

just in time

Answer 7

requires complex tracking of supplies so they are ordered just when they are needed to eliminate waste.
done by computer tracking
needs good company/supplier relationship
aims to synchronise ordering so automated computer alerts just when resources are running low to give sufficient time for delivery so the new resources arrive Just in time.
advantages
when working perfect should eliminate all waste
no raw material waste
no storage space required
no idle machines
disadvantages
hugely reliant on suppliers to deliver on time, all of the time, failure shuts down whole production line.