Midterm

Question 1

Independent Demand

Answer 1

Demand that occurs outside of the system

Question 2

Dependent Demand

Answer 2

Demand for components that make up an independent product

Question 3

Push system

Answer 3

A system that computes schedules of what should be produced (inventory is pushed into productin)

Question 4

Pull system

Answer 4

A system where inventory is authorized into production

Question 5

Purchase order

Answer 5

Outside orders made to the company

Question 6

Jobs

Answer 6

inside orders made within the company

Question 7

Buckets

Answer 7

An interval that is used to break time and demand into discrete chunks, used in MRP

Question 8

End Items

Answer 8

The finished products in the MRP

Question 9

Lower level items

Answer 9

Components of the finished items

Question 10

Bill of Materials

Answer 10

A list of all the components that make a finished product

Question 11

Low level code

Answer 11

A code indicating the lowest level in a bill of materials that a particular part has used

Question 12

Gross Requirements

Answer 12

The total demand for a period of time

Question 13

Master production schedule

Answer 13

A table that contains all the information for that component, in terms of production schedule

Question 14

On Hand Inventory

Answer 14

The inventory that is on hand for that period of time

Question 15

Net Requirements

Answer 15

The net amount of items that is required for ordering for that point in time

Question 16

Steps in the MRP

Answer 16

1) Netting - determine net requirements
2) Lot Sizing - Divide the netted demand into appropriate lot sizes
3) Time phasing - Offset due dates
4) BOM Explosion - use start times, lot sizes, and the BOM to generate gross requirements for the lower level items
5) Iteration - repeat for lower level items

Question 17

Item Master File

Answer 17

Organized by part numbers. contains a description of the part, bill of materials, lot sizing information,and planning lead times

Question 18

Scheduled Receipts

Answer 18

a planned order release that actually has been released

Question 19

Work in process (WIP)

Answer 19

Jobs that have not yet arrived at an inventory location

Question 20

Coverage analysis

Answer 20

The process of determining how much demand is “covered” by current inventory

Question 21

Change notice

Answer 21

Adjustments to the schedule receipts

Question 22

Expedition

Answer 22

Moving a due date earlier in the planning horizon

Question 23

Defering

Answer 23

Moving a due date later in the planning horizon

Question 24

Exception reports

Answer 24

used to notify users that there are discrepancies between what is expected and what will transpire.

Question 25

Firm Planned Orders

Answer 25

planned order release that is held fixed; meaning it will be released regardless of changes

Question 26

Pegging

Answer 26

allows the planner to see the source of demand that results in a given planned order release.

Question 27

Bottom up replanning

Answer 27

Method used to see the affect of a change in a lower level part

Question 28

Lot for Lot

Answer 28

Order the minimum number of parts required

Question 29

Fixed Order Period

Answer 29

Order enough units to cover demand for P periods

Question 30

Fixed order quantity

Answer 30

Find EOQ ideal quantity and try to order as close to that as possible

Question 31

Part Period Balancing

Answer 31

Multiply the number of parts times the number of periods that the inventory will be held, choose the option that is closest to the set up cost

Question 32

Capacity requirements planning

Answer 32

planning based on capacity

Question 33

Long Range Planning

Answer 33

resource planning, aggregate planning, and forecasting

Question 34

Forecasting

Answer 34

predicting demand in the future

Question 35

resource planning

Answer 35

The process of determining capacity requirements over the long term

Question 36

Aggregate planning

Answer 36

determining the levels of production, staffing, inventory, overtime, and so on

Question 37

Intermediate planning

Answer 37

Demand management, rough-cut capacity planning, master production scheduling, material requirements planning, and capacity requirements planning.

Question 38

Demand management

Answer 38

the process of converting long-term aggregate forecast to a detailed forecast, while tracking individual customer orders

Question 39

available to promise (ATP)

Answer 39

this feature allows the planner to know which orders on the MPS are already committed

Question 40

job pool

Answer 40

a list of planned order releases

Question 41

Critical Ratio

Answer 41

Jobs are sorted according to the index computed by dividing the time remaining

Question 42

Goals of Just in Time

Answer 42

``` Zero Defects Zero Lot Size Zero Setups Zero Breakdowns Zero Handling Zero Lead Time Zero Surging ```

Question 43

Sources of Waste in Manufacturing

Answer 43

``` Overproduction Waiting Transportation Inappropriate Processing Unnecessary Inventory Unnecessary/Excess Motion Defects ```

Question 44

Internal Setup

Answer 44

Operations that take place when a machine has stopped

Question 45

External Setup

Answer 45

Operations that can take place while the machine is running

Question 46

Steps in Setup Reduction

Answer 46

1) Separate internal and external setup 2) Convert as much internal setup to external setup 3) Eliminate the adjustment process 4) Abolish the setup itself

Question 47

Quality Principles of JIT

Answer 47

1) Process Control 2) Easy to See Quality 3) Insistence on Compliance 4) Line Stop 5) Correccting one's own errors 6) The 100 percent check 7) Continual Improvement

Question 48

Goals of Six Sigma

Answer 48

increase profits by eliminating variability, defects, and waste

Question 49

Lessons of JIT/Lean

Answer 49

1) The production environment itself is a control 2) Operational details matter strategiically 3) Controlling WIP is important 4) Flexibility is an asset 5) Quality can come first 6) Continual improvement is a condition for survival

Question 50

Key insights

Answer 50

1) Quality and logistics must be improved together 2) If you don't have time to do it right, when will you find time to fix it 3) Variability must be identified and reduced

Question 51

kanban

Answer 51

a carrying device used to move inventory