Lecture 2 Flashcards
What are the activities of planning and control (4)
- Scheduling
- Loading
- Sequencing
- Monitoring and control
What is scheduling about
When to do things
What is loading about
How much to do
What is sequencing about
In what order to do things
What is monitoring and control about
Are activities going to plan
What does Sales and Operations Planning (S&OP) mean
= a multidiscipline process where all critical functions will agree on an action plan to fulfill the strategic goal(s) of the company
Which functions fall under S&OP (7)
- Sales & marketing
- Production or operations
- Supply chain management
- Planning
- Finance
- Human Resource
- Top Management
Lead Time (definition)
A span of time required to perform a process
Cummulative Lead Time (definition)
Longest planned length of time to accomplish the activity in question
Delivery Lead Time (definition)
The time from the receipt of a customer order to the delivery of the product (service)
What do you plan? (2)
Material (Inventory/stock) and Capacity (the means of production)
Who makes the sales forecast?
Account Managers
Who makes the order forecast?
Operations Manager`
What does the Master Schedule exist out of
Supply Schedule and Order Schedule
Who makes the investment & hiring decisions?
Upper Management
What do you plan on annual basis?
Strategic Business plan
What do you plan on quarterly/monthly basis?
Marketing plan, production plan
What do you plan on weekly basis?
Detailed sales plan, master production schedule
What does S&OP mean?
Sales and Operations Planning
What does S&OP include
- establishes overall production, workforce and inventory levels (tactical capacity planning)
What is does MRP mean?
Material Requirements Planning
What does MRP include
calculates the timing and quantities of material orders needed to support the master schedule
What does PAC mean?
Production Activity Control
What does PAC include
Ensures that in-house manufacturing takes place according to plan; also helps manufacturing managers identify potential problems and take correlative actions.
What does Vendor order management include
Ensures that materials orderded from supply chain partners are received when needed; also helps purchasing managers identify potential problems and take correlative actions.
What does the master schedule include (4)
- makes specific overall resource levels established by S&OP
- states exactly when and in what quantities specific products will be made
- Links production with specific customer orders, allowed the firm to tell the customer exactly when an order will be filled
- Informs the operations manager what inventory or resources are still available to meet new demand
What are the major supply chain drivers (5)
- production
- inventory
- location
- transportation
- information
What does the supply chain driver production include?
What, how and when to produce
What does the supply chain driver inventory include?
How much to make and how much to store
What does the supply chain driver location include
where best to do what activity
What does the supply chain driver transportation include
how and when to move product
What does the supply chain driver information include
the basis for making the decisions within the supply chain
What does disturbance within a supply chain mean
the interruption of a settled and peaceful condition
What does the Master Schedule Record include? (5)
- forecasted demand
- booked orders
- projected inventory levels
- production quantities
- units still available to meet customer needs
What is the Forecasted Demand?
A company’s estimate of the demand any period
What are booked orders?
confirmed demand for products
What does MPS mean?
Master Production Schedule
What is the MPS
= the amount of product that will be finished and available for sale at the beginning of each week
( the MPS drives more detailed planning activities like the MRP )
What does Planning Horizon mean?
= the amount of time the master schedule record or MRP record extends into the future
(the longer the production and supplier lead times, the longer the planning horizon must be)
What is the Bill of Materials?
= a centralized source of information used to manufacture a product, it is a list of all items needed to create a product
What is the Inventory Storage Structure
= a plan of where everything is placed within the warehouse
TRUE or FALSE
when demand uncertainty is high the risks to the service level of under-provision of capacity is low
FALSE
What is the push system?
= the material is moved onto the next stage of the production process as soons as it has been processed
What is the pull system?
= the material is moved to the next stage of the production process when the next stage wants it
What is the bullwhip effect?
a phenomenon where demand changes at the end of a supply chain which leads to the entire supply chain fluctuating. With an extreme change in demand all of a sudden the entire supply chain is distorted, the supply chain often will think of this as the new demand but will often end up with a large amount of deadstock.
