UNIT 3 - AOS 3B Flashcards
Define Materials Management
Materials management is the use and delivery of materials to ensure that there is the right amount of inputs available. Materials managements role is to ensure that the right materials arrive on time, in the right quantity and at a high quality.
Define Forecasting
Looking at past date to predict future demand. This is done automatically to identify trends and future demand so that the right amount of stock is ordered. Qualitative; market research.
Quantitative; data.
Advantages and Disadvantages of Forecasting
ADV: Avoids over/under production Forecast costs Reduce uncertainty therefore match supply and demand DIS: Can be inaccurate Unexpected events may occur Past events may not reoccur
Example of Forecasting
Sofitel Hotel can use data to identify peak times and therefore the amount of supplies/staff that will be needed.
Define Master Production Schedule
Documents showing what the business is producing, how and in what time period. This includes the quantity and type of each product, labour requirements as well as how and where it will take place.
This therefore allows a business to plan its inputs.
Advantages and Disadvantages of Master Production Schedule
ADV:
Clear direction given to staff about what to do and clear objectives stated.
Can be changed to tailor changing customer relations ie: seasons
Easy for staff to ‘pick up’
DIS:
Time consuming and expensive to track everything
Hard to account for every situation as this schedule isn’t flexible.
Example of Master Production Schedule
Sofitel hotel can look at events come up in a period of time can make a MPS from this.
Define Materials Requirement Plan
Looks at the MPS and determines the exact materials needed. This document outlines all the materials that will be required to complete the production targets that have been set out by the MPS. This allows correct quantities to be created in a desired amount of time.
Advantages and Disadvantages of Materials Requirement Plan
ADV: Minimises inventory costs Reduction in wastage Reduction storage space taken up Reduction in idle machines DIS: Time consuming Expensive to set up a dedicated system to accurately track materials.
Example Materials Requirement Plan
Sofitel can look at the MPS and can be used to estimate food and materials that will be needed in a period of time.
Define Just in Time
Requires the operations manager to keep just enough materials on hand to get the workplace through the next production period. This avoids idle stock stock and reduces costs, but relies heavily on a strong supplier relationship.
Advantages and Disadvantages of Just in Time
ADV: When working perfectly this should lead to: no raw material wastage bare minimum of cash trapped in raw materials no idle machines DIS: Reliant on suppliers Can be easily affected
Aspects of Just in Time
Aims to reduce costs through minimisation of inventory
Frequent deliveries of immediate requirements
Inventory replaced as used
Employee participation required to identify wasteful work practises and eliminate this.
Example of Just in Time
Sofitel hotel ensure perishable items don’t perish, Just in Time
Define automated production
When equipment and machines are controlled by a computer system to automatically create a product. This allows costly human effort to be replaced with machines and equipment, workers will maintain and monitor.
Advantages and Disadvantages of automated production
ADV: Improves accuracy therefore reducing wastage Improves productivity, saving money Safer DIS: Initially expensive to set up Can halt whole production line May require large scale redundancy
