Topic 12/13 - MRP, BoM and ERP, JIT, Lean production and Supply chain management Flashcards
MRP
Material Requirement Planning - the activity that determines the plan for purchasing and production of dependent demand component.
Just-In-Time (JIT)
Production system in which processing, and movement of parts/ modules/ work-in-process occur just as they are needed, usually in small batches.
Big JIT
Philosophy of waste reduction and continuous improvement
What are the goals of lean production?
A balanced system, smooth, rapid flow of materials through the system.
1) Eliminate disruptions
2) Make system flexible
3) eliminate waste
4) continuous improvement
Push system
Output is pushed to the next station as it is completed, based on an MRP Plan
Pull system
Workstation pulls output from preceding workstation as needed. Based on customer demand.
What are the 5 s of housekeeping/building blocks
Sort
Set in order
Shine
Standardize
Sustain
Bullwhip effect
the phenomenon in which the demand/order variability gets progressively larger the further up in the supply chain the company is
risk pooling
holding safety stocks in one central location rather than in multiple locations
Delayed differentiation
Production of standard components and products, and adding differentiating features later in the process
Quick response
Just in time, inventory replenishment, involves making sales information available to vendors to enable JIT. Automated replenishment linked to sales pattern. Continuous replenishment with small shipments.
Vendor managed inventory (VMI)
Vendor takes control of the inventory at customer locations
Cross-docking
unloading, sorting by destination, then loading into trucks hence avoiding storage in the warehouse
What are the series of steps in the purchasing cycle?
1) Identifying sources of supply
2) Negotiating contracts
3) Maintaining a database of suppliers
4) Establishing partnerships
5) Managing supplies
6) Obtaining Goods and services
Personnel and organization
Workers as assets
Leadership
Non-manufacturing support
Respect/involve/develop workers
lead with humility
solve problems in teams
