U3 AOS 2 CH3E Felix

Question 1

What does managing materials involve

Answer 1

-Managing materials=involves organising and monitoring the delivery, storage, and use of raw materials (one of our resources) required for production.

Question 2

-Forecasting(n.)=

Answer 2

-Forecasting(n.)=A [materials planning tool] that [predicts customer demand] for an [upcoming period] [using past data] and [market trends].

Question 3

Forecasting strengths

Answer 3

+Allows businesses to anticipate seasonal changes and adjust orders to save on costs and wastage, which benefits their environmental reputation
+It can help prevent over-ordering taking up valuable storage space.

Question 4

Forecasting limitations

Answer 4

-The ‘running backwards looking over your shoulder’ principle - unexpected events can still catch you out.(example covid=events may catch you out because you don’t know for sure what will happen in the future.)
-Requires a lot of time to track, anticipate, and analyse all potential impacts on supply chain.

Question 5

Master production schedule(n.)=

Answer 5

-Master production schedule(n.)=[A plan that outlines what a business intends to produce], [in specific quantities], [within a set period of time.]

Question 6

Master production schedule strengths

Answer 6

+Aids in determining very accurate ordering quantities and timings, which saves on time and costs.
+The production processes and its sequences are very clear for staff to understand.
+It works well for standardised production(e.g. Cars, chocolate)(if it is a standardised production, you literally have to follow the manual step by step, leading to high quality end result)
+It’s easier for new staff to learn production routines
+It reduces wastage of raw materials

Question 7

Master production schedule limitations

Answer 7

-Initially time consuming and expensive to track, record, and write up the ‘manual’.(it also must be renewed as the MPS may date over time)
-Difficult to account for ever situation.
-It’s not very flexible to changing conditions

Question 8

Materials requirement planning(n.)=

Answer 8

-Materials requirement planning(n.)=[A process that itemises] the [types and quantities of materials required] to [meet production targets] [set out in the master production schedule.]

Question 9

Materials requirement planning strengths

Answer 9

+It helps to reduce wastage and expenses.(you know how much stock you have in hand and how much you need)
+It reduces the amount of storage space needed
+it reduces the amount of machinery sitting idle
+It can improve a company’s environmental reputation(reduced waste)

Question 10

Material requirement planning weaknesses

Answer 10

Its initially expensive to set up a dedicated system that can track materials through the site.
-It can be time consuming to constantly measure the levels of raw materials/stock

Question 11

Just in time(n.)=

Answer 11

-Just in Time(n.)=[An inventory control approach] that delivers the [correct type and quantity of materials] [as soon as they are needed] for production.

Question 12

Just in time weaknesses

Answer 12

-Hugely reliant on suppliers to deliver on time, all of the time. If this fails, the entire production line is disrupted(or completely halted)
-Delivery costs may increase if more frequent deliveries are needed

Question 12

Just in time strengths

Answer 12

+When working perfectly, this should lead to elimination of all waste, including=
:No raw material wastage
:The bare minimum of cash ‘trapped’ in raw materials/assets(not much money invested sitting there and doing nothing when investing in materials)
:No storage space required
:No idle machines