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MATERIALS MGMT
MGMT 422 MIDTERM 1
| Question | Answer |
|---|---|
| ORDER QUALIFIERS (CH1) | CUSTOMER REQUIREMENTS BASED ON PRICE, QUALITY, DELIVERY, AND SO FORTH |
| ORDER WINNERS (CH1) | COMPETITIVE CHARACTERISTICS OR COMBINATION OF CHARACTERISTICS THAT PERSUADE A COMPANY CUSTOMER TO CHOOSE ITS PRODUCTS OR SERVICES |
| DELIVERY LEAD TIME (SUPPLIER'S PERSPECTIVE)(CH1) | TIME FROM RECEIPT OF AN ORDER TO THE DELIVERY OF THE PRODUCT |
| DELIVERY LEAD TIME (CUSTOMER'S PERSPECTIVE) (CH1) | IT ALSO INCLUDES TIME FOR ORDER PREPARATION & TRANSMITTAL. CUSTOMERS WANT IT AS SHORT AS POSSIBLE |
| ENGINEER-TO-ORDER (CH.1) | 1. SIGNIFICANT CUSTOMIZATION 2. CUSTOMER HIGHLY INVOLVED IN DESIGN 3. INVENTORY IS PURCHASE WHEN NEEDED 4. DLT IS LONG SO, LEAD TIME INVOLVES 5 STAGES: DESIGN, PURCHASE, MANUFACTURE, ASSEMBLY, SHIPPING |
| MAKE-TO-ORDER (CH.1) | 1. MANUFACTURER STARTS ORDER WHEN CUSTOMER'S ORDER IS RECEIVED. 2. FINAL PRODUCT MADE FROM STDRD ITEMS, BUT MAY INCLUDE CUSTOM, BUT MAY INCLUDE CUSTOM-DESIGNED COMPONENTS. 3. LEAD TIME IS REDUCED 4. INVENTORY IS HELD AS RAW MATERIAL DLT: MFT,ASS,SHI |
| ASSEMBLE-TO-ORDER (CH.1) | 1. PRODUCT MADE FROM STD COMPONENTS 2. LEADTIME REDUCED FURTHER 3. INVENTORY HELD FOR ASSEMBLY 4. CUSTOMER INVOLVEMENT IS LIMITED DLT STAGES:ASSEMBLY, SHIP |
| MAKE-TO-STOCK (CH.1) | 1. SUPPLIER MANUFACTURES THE GOODS 2. SELLS FROM A FINISHED GOODS INVENTORY 3. SHORTEST LEAD TIME 4. CUSTOMER HAS LITTLE INVOLVEMENT IN DESIGN DLT STAGE: SHIPPING |
| POSTPONEMENT (CH.1) | 1. APPLICATION OF ASSEMBLE-TO-ORDER 2. SHIFTS PRODUCT DIFFERENTIATION CLOSER TO THE CONSUMER BY POSTPONING CHANGE TO THE LAST POSSIBLE SUPPLY CHAIN LOCATION 3. REDUCES NUMBER OF DIFFERENT ITEMS IN SUPPLY CHAIN, LOWERING IN-PROCESS INV. EX COMPUT PRINTER |
| SUPPLY CHAIN FACTORS (CH.1) | 1. INCLUDES ALL ACTIVITIES & PROCESSES TO SUPPLY A PRODUCT OR SERVICE 2. PRODUCTS AND SERVICES FLOW FROM SUPPLIER TO CUSTOMER; DESIGN AND DEMAND INFORMATION FROM CUSTOMER TO SUPPLIER |
| PARTNERSHIP SUPPLIER CUSTOMER RELATIONSHIP CHANGES (CH.1) | 1. MUTUAL ANALYSIS FOR COST REDUCTION 2. MUTUAL PRODUCT DESIGN 3. ENHANCED INFORMATION FLOW |
| MUTUAL ANALYSIS FOR COST REDUCTION (CH.1) | BOTH PARTIES EXAMINED THE PROCESS USED TO TRANSMIT INFORMATION & DELIVER PARTS, WITH THE IDEA THAT COST REDUCTION WOULD BE SHARED BETWEEN THE TWO PARTIES |
| MUTUAL PRODUCT DESIGN (CH.1) | COMPANIES WORK TOGETHER SUPPLIER KNOWS HOW TO MAKE A SPECIFIC PRODUCT WHILE CUSTOMER KNOWS ABOUT THE APPLICATION FOR WHICH THE DESIGN WAS INTENDED TOGETHER THEY PRODUCE A SUPERIOR DESIGN |
| ENHANCED INFORMATION FLOW (CH.1) | JIT APPLICATION REDUCED INVENTORY IN THE PROCESS & NEED FOR RAPID DELIVERY SPEED FOR ACCURATE INFO IS CRITICAL ELECTRONIC DATA INTERCHANGE & INFORMAL COMM METHODS |
| METRIC (CH.1) | A VERIFIABLE MEASURE STATED IN EITHER QUANTITATIVE OR QUALITATIVE TERMS DEFINED WITH RESPECT TO A REFERENCE POINT |
| WHAT DO METRICS GIVE US (CH.1) | 1. CONTROL BY SUPERIORS 2. REPORTING OF DATA TO SUPERIORS & EXTERNAL GROUPS 3. COMMUNICATION 4. LEARNING 5. IMPROVEMENT |
| SIX MAJOR CHALLENGES IN PRODUCTION CONTROL (CH.1) | 1. CUSTOMERS THAT ARE NEVER SATISFIED 2. SUPPLY CHAIN THAT IS LARGE & IT MUST BE MANAGED 3. PRODUCT LIFE CYCLE GETTING SHORTER & SHORTER 4. A VAST AMOUNT OF DATA 5. AN EMPHASIS ON PROFIT MARGINS THAT ARE MORE SQUEEZED 6. AN INCREASING # OF ALTERNATIV |
| PERFORMANCE MEASURE (CH.1) | MUST BE BOTH QUANTIFIED & OBJECTIVE AND CONTAIN AT LEAST 2 PARAMETERS |
| PERFORMANCE STANDARDS (CH.1) | TRANSFORMING COMPANIES POLICIES INTO OBJECTIVES & SPECIFIC GOALS EACH GOAL SHOULD HAVE TARGET VALUES |
| STEPS IN IMPLEMENTING (CH.1) | 1. ESTABLISH COMPANY'S GOALS & OBJECTIVES 2. DEFINE PERFORMANCE 3. STATE MEASUREMENT TO BE USED 4. SET PERFORMANCE STANDARDS 5. EDUCATE THE USER 6. MAKE SURE PROGRAM IS CONSISTENTLY APPLIED |
| FOUR MAIN OBJECTIVES TO GET THE MOST PROFIT (CH.1) | 1. PROVIDE BEST CUSTOMER SERVICE 2. PROVIDE LOWEST PRODUCTION COSTS PROVIDE LOWEST INVENTORY INVESTMENT PROVIDE LOWEST DISTRIBUTION COSTS |
| MATERIALS MANAGEMENT (CH.1) | A COORDINATING FUNCTION RESPONSIBLE FOR PLANNING & CONTROLLING MATERIALS FLOW |
| OBJECTIVES OF MATERIAL MGMT (CH.1) | 1. MAXIMIZE THE USE OF FIRMS' RESOURCES 2. PROVIDE REQUIRED LEVEL OF CUSTOMER SERVICE |
| WORK-IN-PROCESS (CH.1) | PURCHASED INVENTORY AT BEGINNING OF PRODUCTION TO BE PROCESSED INTO FINISHED GOODS |
| PRODUCTION PLANNING (CH.1) | ESTABLISHES CORRECT PRIORITIES (WHAT IS NEEDED AND WHEN) AND MAKE CERTAIN THAT CAPACITY IS AVAILABLE TO MEET THOSE PRIORITIES |
| WHAT DOES PRODUCTION PLANNING INVOLVE? (CH.1) | 1. FORECASTING 2. MASTER PLANNING 3. MATERIAL REQUIREMENTS PLANNING 4. CAPACITY PLANNING |
| INVENTORY MANAGEMENT (CH.1) | 1. MATERIALS AND SUPPLY CARRIED ON HAND EITHER FOR SALE OR TO PROVIDE MATERIAL OR SUPPLIES TO THE PRODUCTION PROCESS 2. PROVIDE A BUFFER AGAINST THE DIFFERENCES IN DEMAND RATES AND PRODUCTION RATES |
| WHAT ARE THE INPUTS TO THE MANUFACTURING PLANNING AND CONTROL SYSTEM? (CH.1) | 1. PRODUCT DESCRIPTION 2. PROCESS SPECIFICATIONS 3. TIME 4. AVAILABLE FACILITIES 5. QUANTITIES REQUIRED |
| PRODUCT DESCRIPTION (CH.1) | SHOWS HOW THE PRODUCT WILL APPEAR AT SOME STAGE OF PRODUCTION EXAMPLE BILL OF MATERIALS |
| BILL OF MATERIALS (BOM)(CH.1) | A METHOD OF DESCRIBING THE PRODUCT 1. DESCRIBES THE COMPONENTS USED TO MAKE THE PRODUCT 2. DESCRIBES THE SUB-ASSEMBLIES AT VARIOUS STAGES OF MANUFACTURE |
| PROCESS SPECIFICATIONS (CH.1) | 1.DESCRIBE STEPS NECESSARY TO MAKE END PRODUCTS 2. STEP BY STEP INSTRUCTIONS DESCRIBING HOW THE PRODUCT IS MADE 3. RECORDED ON A ROUTE SHEET OR ROUTING FILE |
| WHAT TYPE OF INFORMATION DOES THE PROCESS SPECIFICATION GIVE US? (CH.1) | 1. OPERATIONS NEEDED TO MAKE THE PRODUCT 2. SEQUENCE OF OPERATIONS 3. EQUIPMENT AND ACCESSORIES REQUIRED 4. STANDARD TIME NEEDED TO PERFORM EACH OPERATION |
| TIME (CH.1) | 1. NEEDED TIME TO PERFORM OPERATIONS 2. EXPRESSED IN STANDARD TIME 3. NEEDED TO SCHEDULE WORK, LOAD, DELIVERY AND COST 4. OBTAINED FROM ROUTING FILE |
| AVAILABLE FACILITIES (CH.1) | MANUFACTURING PLANNING AND CONTROL MUST KNOW WHAT PLANT, EQUIPMENT, AND LABOR WILL BE AVAILABLE TO PROCESS WORK INFORMATION USUALLY IN WORK CENTER FILE |
| QUANTITIES REQUIRED (CH.1) | INFORMATION COMES FROM FORECASTS, CUSTOMER ORDERS, ORDERS TO REPLACE FINISHED-GOODS INVENTORY AND THE MATERIAL REQUIREMENTS PLAN |
| PHYSICAL SUPPLY/DISTRIBUTION ACTIVITIES (CH.1) | ALL ACTIVITIES INVOLVED IN MOVING GOODS FROM SUPPLIER TO THE CONSUMER INVOLVES: TRANSPORTATION, DISTRIBUTION INVENTORY, WAREHOUSING, PACKAGING, MATERIALS HANDLING, ORDER ENTRY |
| PRIORITY (CH.2) | RELATES TO WHAT PRODUCTS ARE NEEDED, HOW MANY ARE NEEDED AND WHEN THEY ARE NEEDED MARKETPLACE ESTABLISHES THE PRIORITIES |
| CAPACITY (CH.2) | 1. CAPABILITY OF MANUFACTURING TO PRODUCE GOODS AND SERVICES 2. DEPENDS IN THE FIRMS' RESOURCES AND AVAILABILITY OF MATERIAL FROM SUPPLIERS QUANTITY OF WORK THAT LABOR AND EQUIPMENT CAN PERFORM IN A GIVEN PERIOD |
| WHAT FACTORS AFFECT OPERATING ENVIRONMENT? (CH.1) | 1. THE GOVERNMENT REGULATIONS 2. THE ECONOMY 3. COMPETITION 4. CUSTOMER EXPECTATIONS 5. QUALITY |
| WHAT TYPE OF CHARACTERISTICS DO CUSTOMERS EXPECT WHEN BUYING PRODUCTS AND SERVICES? (CH.1) | 1. A FAIR PRICE 2. HIGHER (RIGHT) QUALITY FOR PRODUCTS AND SERVICES 3. DELIVERY LEAD TIME 4. BETTER PRE-SALE AND AFTER-SALE SERVICES 5. PRODUCT AND VOLUME FLEXIBILITY |
| WHAT ARE THE FOUR BASIC STRATEGIES TO ACHIEVE FAST DELIVERY LEAD TIME? (CH1) | 1. ENGINEER-TO-ORDER 2. MAKE-TO-ORDER 3. ASSEMBLE-TO-ORDER 4. MAKE-TO-STOCK |
| WHAT ARE THE ACTIVITIES OF MANUFACTURING PLANNING? (CH.1) | 1. PRODUCTION PLANNING 2. IMPLEMENTATION AND CONTROL 3. INVENTORY MANAGEMENT |
| IMPLEMENTATION AND CONTROL (CH.1) | 1. RESPONSIBLE FOR PUTTING INTO ACTION AND ACHIEVING PLANS 2. ACTIVITIES ACCOMPLISHED THROUGH PRODUCTION ACTIVITY CONTROL "SHOP FLOOR CONTROL" AND PURCHASING |
| WHAT ARE THE 5 LEVELS IN MANUFACTURING PLANNING & CONTROL? (CH.2) | 1. STRATEGIC BUSINESS PLAN 2. PRODUCTION PLAN (SOP) 3. MASTER PRODUCTION SCHEDULE (MPS) 4. MATERIAL REQUIREMENTS PLAN (MRP) 5. PURCHASING AND PRODUCTION ACTIVITY CONTROL |
| PLANNING HORIZON (CH.2) | TIME SPAN FROM NOW TO SOME TIME IN THE FUTURE FOR WHICH THE PLAN IS CREATED |
| STRATEGIC BUSINESS PLAN (CH.2) | 1. STATEMENT OF MAJOR GOALS & OBJECTIVES FIRM EXPECTS TO ACHIEVE OVER A PERIOD OF TIME 2. SHOWS WHAT KIND OF BUSINESS THE FIRM WANTS TO DO IN THE FUTURE 3. BASED ON FORECASTS 4. INCLUDES PARTICIPATION FROM ALL DEPARTMENTS 5. DIRECTION TO ACHIEVE GOALS |
| PRODUCTION PLAN (CH.2) | 1. A PLAN THAT SATISFIES MARKET DEMAND WITHIN THE RESOURCES AVAILABLE TO THE COMPANY 2. CONCERNED WITH IMPLEMENTING THE STRATEGIC BUSINESS PLAN 3. PLANNING HORIZON IS 6 TO 18 MONTHS 4. REVIEW EACH MONTH OR QUARTER |
| THE MASTER PRODUCTION SCHEDULE - MPS(CH.2) | 1. A PLAN FOR THE PRODUCTION OF INDIVIDUAL END ITEMS 2. BREAKS DOWN PP TO SHOW FOR EACH PERIOD 3. LEVEL OF DETAILED IS HIGHER THAN PP 4. PLANNING HORIZON IS 3 TO 18 MONTHS 5. DEPENDS ON PURCH & MFGT LEAD TIME 6. WEEKLY OR MONTHLY REVIEWED |
| MATERIAL REQUIREMENTS PLAN - MRP (CH.2) | 1. A PLAN FOR THE PRODUCTION AND PURCHASE OF COMPONENTS USED IN MAKING THE ITEMS IN MPS 2. SHOWS QUANTITY NEEDED AND WHEN MFTG INTENDS TO MAKE OR USE THEM 3. DETAIL LEVEL IS HIGH 4. PLANNING HORIZON IS AS LONG AS PURCH & MFTG LEAD TIMES 5. 3 TO 18 MON |
| PURCHASING AND PRODUCTION ACTIVITY CONTROL - PPAC (CH.2) | 1. REPRESENT IMPLEMENTATION AND CONTROL PHASE OF PP AND CONTROL SYSTEM 2. PURCHASING RESPONSIBLE FOR FLOW OF MATERIALS 3. DETAIL LEVEL IS HIGH 4. PLANNING HORIZON 1 DAY TO 1 MONTH 3. PAC RESPONSIBLE OF THE FLOW OF WORK THROUGH THE FACTORY |
| SALES AND OPERATIONS PLANNING - SOP(CH.2) | 1. A PROCESS FOR CONTINUALLY REVISING THE STRATEGIC BUSINESS PLAN AND COORDINATING PLANS OF THE VARIOUS DEPARTMENTS 2. CROSS FUNCTIONAL BUSINESS PLAN THAT INVOLVES SALES AND MKTG, PRODUCT DEVELOPMENT, OPERATIONS AND SENIOR MGMT 3. FORUM |
| GREEN PRODUCTION (CH.2) | FOCUS ON ISSUES SUCH AS 1. ENVIRONMENTAL IMPACTS 2. ENERGY CONSERVATION 3. MATERIAL USAGE: WASTE REDUCTION, REUSE AND RECYCLING 4. SCARCITY OF VARIOUS RESOURCES |
| MANUFACTURING RESOURCE PLANNING - MRP II (CH.2) | 1. COMPUTER BASED 2. INTEGRATES THE PLANS AND ACTIVITIES OF MKTG, FINANCE AND PRODUCTION TO CREATE PLANS INTENDED TO ACHIEVE THE OVERALL GOALS OF THE COMPANY 3. PROVIDES COORDINATION BETWEEN MKTG AND PRODUCTION |
| ENTERPRISE RESOURCE PLANNING - ERP (CH.2) | 1. A FRAMEWORK FOR ORGANIZING, DEFINING, AND STANDARDIZING THE BUSINESS PROCESSES NECESSARY TO EFFECTIVELY PLAN AND CONTROL AN ORGANIZATION, SO THE ORGANIZATION CAN USE ITS INTERNAL KNOWLEDGE TO SEEK EXTERNAL ADVANTAGE |
| PRODUCTION PLANNING CHARACTERISTICS (CH.2) | 1. TIME HORIZON OF 12 MONTHS W/PERIODIC UPDATES 2. PRODUCTION DEMAND CONSISTS OF ONE/A FEW PRODUCT FAMILIES OR COMMON UNITS 3. DEMAND IS FLUCTUATING OR SEASONAL 4. PLANT & EQUIP ARE FIXED WITHIN TIME HORIZON 5. VARIETY OF MGMT OBJECTIVES ARE SET |
| 4 BASIC STRATEGIES THAT CAN BE USED IN DEVELOPING A PRODUCTION PLAN (CH.2) | 1. CHASE STRATEGY 2. PRODUCTION LEVELING 3. SUBCONTRACTING 4. HYBRID |
| CHASE OR DEMAND MATCHING STRATEGY (CH.2) | 1. PRODUCING THE AMOUNTS DEMANDED AT ANY GIVEN TIME 2. INVENTORY LEVELS ARE STABLE, PRODUCTION VARIES TO MEET DEMAND 3. COMPANY MUST HAVE ENOUGH CAPACITY TO MEET PEAK DEMAND 4. INVENTORIES CAN BE KEPT AT MINIMUM. |
| PRODUCTION LEVELING (CH.2) | 1. CONTINUALLY PRODUCING AN AMOUNT EQUAL TO THE AVG DEMAND 2. INVENTORY IS BUILT UP OR USED UP 3. RESULTS IN A SMOOTH LEVEL OF OPERATIONS 4. COMPANY WILL USE ITS RESOURCES AT A UNIFORM RATE PRODUCE THE SAME AMOUNT EACH DAY IT IS OPERATING |
| SUBCONTRACTING (CH.2) | 1. ALWAYS PRODUCING AT THE LEVEL OF MINIMUM DEMAND AND MEETING ANY ADDITIONAL DEMAND THROUGH SUBCONTRACTING 2. CAN ALSO MEAN BUYING THE EXTRA AMOUNTS DEMANDED OR TURNING AWAY DEMAND 3. ADVANTAGE: PRODUCTION COST, DISADVANTAGE: COST COULD BE HIGHER |
| HYBRID (CH.2) | 1. COMBINED STRATEGIES A COMPANY MAY USE 2. PRODUCTION MGMT RESPONSIBLE FOR FINDING THE COMBINATION OF STRATEGIES THAT MINIMIZES THE SUM OF ALL COSTS INVOLVED, PROVIDING THE LEVEL OF SERVICE REQUIRED AND MEETING THE OBJECTIVES OF FINANCIAL AND MKTG PLANS |
| WHEN DO FIRMS MAKE-TO-STOCK? (CH.2) | 1. DEMAND IS FAIRLY CONSTANT AND PREDICTABLE 2. FEW PRODUCT OPTIONS 3. DELIVERY TIMES DEMANDED BY MARKETPLACE ARE SHORTER THAN TIME NEEDED TO MAKE PRODUCT 4. PRODUCT HAS A LONG SHELF LIFE |
| WHAT KIND OF INFORMATION IS NEEDED TO MAKE A PRODUCTION PLAN? (CH.2) | 1. FORECAST BY PERIOD FOR THE PLANNING HORIZON 2. OPENING INVENTORY 3. DESIRED ENDING INVENTORY 4. ANY PAST-DUE CUSTOMER ORDERS - BACK ORDERS |
| WHAT ARE BACK ORDERS? (CH.2) | 1. ORDERS LATE FOR DELIVERY 2. PAST-DUE CUSTOMER ORDERS |
| OBJECTIVE IN DEVELOPING A PRODUCTION PLAN (CH.2) | TO MINIMIZE COSTS OF CARRYING INVENTORY, CHANGING PRODUCTION LEVELS, AND STOCKING OUT |
| LEVEL PRODUCTION PLAN (CH.2) | 1. TOTAL FORECAST DEMAND FOR PLANNING HORIZON 2. DETERMINE THE OPENING INV AND ENDING INV 3. CALCULATE TOTAL PRODUCTION REQUIRED 4. CALCULATE THE PRODUCTION REQUIRED EACH PERIOD 5. CALCULATE ENDING INV. FOR EACH PERIOD FOLLOWING IS THE GENERAL PROCED |
| BACKLOG (CH.2) | 1. IN MAKE-TO-ORDER ENVIRONMENT 2. UNFILLED CUSTOMER ORDERS FOR DELIVERY IN THE FUTURE 3. DOES NOT REPRESENT LATE OR PAST DUE ORDERS |
| RESOURCE BILL (CH.2) | A TOOL THAT SHOWS THE QUANTITY OF CRITICAL RESOURCES (MATERIALS, LABOR, AND "BOTTLENECK" OPERATIONS) NEEDED TO MAKE ONE AVERAGE UNIT OF THE PRODUCT GROUP |
| WHEN DO FIRMS MAKE-TO-ORDER? (CH.2) | 1. GOODS ARE PRODUCED TO CUSTOMER SPECIFICATION 2. CUSTOMER IS WILLING TO WAIT WHILE ORDER IS BEING MADE 3. PRODUCT IS EXPENSIVE TO MAKE AND TO STORE 4. SEVERAL PRODUCT OPTIONS ARE OFFERED |
| WHAT INFORMATION DO YOU NEED TO MAKE A PP FOR MAKE-TO-ORDER PRODUCTS? (CH.2) | 1. FORECAST BY PERIOD 2. OPENING BACKLOG OF CUSTOMER ORDERS 3. DESIRED ENDING BACKLOG |
| WHAT QUESTIONS SHOULD BE ANSWERED IN THE RESOURCE REQUIREMENTS PLANNING? (CH.2) | 1. ARE THE RESOURCES AVAILABLE TO MEET THE PP? 2. IF NOT, HOW WILL THE DIFFERENCE BE RECONCILED? |
| WHAT WILL BE THE RESULTS IF MASTER PRODUCTION SCHEDULE IS NOT REALISTIC OR BASED ON WHAT PRODUCTION CAN AND WILL DO? (CH.2) | 1. OVER/UNDER LOAD OF PLANT RESOURCES 2. UNRELIABLE SCHEDULES RESULTING IN POOR DELIVERY PERFORMANCE 3. HIGH LEVELS OF WIP INVENTORY 4. POOR CUSTOMER SERVICE 5. LOSS OF CREDIBILITY IN THE PLANNING SYSTEM |
| MASTER PRODUCTION SCHEDULE (MPS) (CH.3) | 1. IMPORTANT TOOL 2. FORMS THE BASIS FOR COMMUNICATION BETWEEN SALES AND MANUFACTURING 3. WORKS WITH END ITEMS |
| WHY IS MPS VITAL IN THE PP? (CH.3) | 1. LINKS PP & WHAT MFTG WILL ACTUALLY BUILD 2. CALCULATES CAPACITY & RESOURCES NEEDED 3. DRIVES MRP. DETERMINES WHAT COMPONENTS ARE NEEDED FROM MFTG & PURCHASING 4. KEEPS PRIORITIES VALID |
| WHY DOES MPS FORM A VITAL LINK BETWEEN SALES & PRODUCTION? (CH.3) | 1. MAKES POSSIBLE VALID ORDER PROMISES. TELLS SALES & MFTG WHEN GOODS WILL BE AVAILABLE FOR DELIVERY 2. IT IS A CONTRACT BETWEEN MKTG AND MFTG 3. AGREED-UPON PLAN |
| WHO PROVIDES INFORMATION NEEDED TO PROVIDE MPS? (CH.3) | 1. THE PRODUCTION PLAN 2. FORECASTS FOR INDIVIDUAL END ITEMS 3. ACTUAL ORDERS RECEIVED FROM CUSTOMERS AND FOR STOCK REPLENISHMENT 4. INVENTORY LEVELS FOR INDIVIDUAL END ITEMS 5. CAPACITY RESTRAINTS |
| WHAT ARE THE OBJECTIVES OF MPS? (CH.3) | 1. TO MAINTAIN DESIRED LEVEL OF CUSTOMER SERVICE BY MAINTAINING FINISHED GOODS INVENTORY LEVELS OR BY SCHEDULING TO MEET CUSTOMER DELIVERY REQUIREMENTS 2. TO MAKE THE BEST USE OF MATERIAL, LABOR & EQUIPMENT 3. TO MAINTAIN INVENTORY INVESTMENT |
| WHAT ARE THE THREE STEPS IN PREPARING MPS? (CH.3) | 1. DEVELOP PRELIMINARY MPS 2. CHECK PRELIMINARY MPS AGAINST AVAILABLE CAPACITY 3. RESOLVE DIFFERENCES BETWEEN PRELIMINARY MPS & CAPACITY AVAILABILITY |
| ROUGH-CUT CAPACITY PLANNING (CH.3) | 1. CHECKS WHETHER CRITICAL RESOURCES ARE AVAILABLE TO SUPPORT THE PRELIMINARY MPS 2. SIMILAR TO RESOURCE REQUIREMENTS PLANNING BUT FOR A SINGLE PRODUCT 3. FOCUSES ON CRITICAL RESOURCES, BUT ALSO OTHER VARIABLES THAT CAN AFFECT CAPACITY USAGE |
| RESOLUTION OF DIFFERENCES (CH.3) | 1. IF AVAILABLE CAPACITY IS GREATER THAN REQUIRED CAPACITY THEN MPS IS WORKABLE 2. IF NOT METHODS NEED TO BE INVESTIGATED 3. REVISE MPS |
| MPS CRITERIAS (CH.3) | 1. RESOURCE USE WITHIN CAPACITY RESTRAINTS IN EACH PERIOD OF THE PLAN? BEST USE OF RESOURCES? 2. CUSTOMER SERVICE: DUE DATES MET? DELIVERY PERFORMANCE ACCEPTABLE? 3. COST: ECONOMICAL PLAN? |
| AVAILABLE-TO-PROMISE (CH.3) | 1. THE PORTION OF A FIRM'S INVENTORY AND PLANNED PRODUCTION THAT IS NOT ALREADY COMMITTED AND IS AVAILABLE TO THE CUSTOMER 2. ALLOWS DELIVERY PROMISES TO BE MADE AND CUSTOMER ORDERS AND DELIVERIES TO BE SCHEDULED ACCURATELY |
| SCHEDULED RECEIPT (CH.3) | AN ORDER THAT HAS BEEN ISSUED EITHER TO MANUFACTURING OR TO A SUPPLIER |
| PROJECTED AVAILABLE BALANCE (PAB) (CH.3) | 1. PRIOR PERIOD OR ON-HAND BALANCE + MPS - CUSTOMER ORDERS 2. IGNORES FORECAST AND ASSUMES EFFECTS WILL BE FROM CUSTOMER ORDERS |
| DEMAND TIME FENCE (CH.3) | 1. THE NUMBER OF PERIODS, BEGINNING WITH PERIOD 1, IN WHICH CHANGES ARE NOT ACCEPTED DUE TO EXCESSIVE COST CALL LED BY SCHEDULE DISRUPTION 2. EXTENT OF THE FROZEN ZONE |
| FROZEN ZONE (CH.3) | 1. CAPACITY AND MATERIALS COMMITTED TO SPECIFIC ORDERS 2. DEMAND BASED ON CUSTOMER ORDERS NOT FORECAST |
| SLUSHY ZONE (CH.3) | 1. CAPACITY AND MATERIAL COMMITTED TO A LESS EXTENT 2. AREA FOR TRADE-OFF THAT MUST BE NEGOTIATED BETWEEN MARKETING AND MANUFACTURING 3. DIFFICULT TO CHANGE |
| LIQUID ZONE (CH.3) | 1. ANY CHANGE CAN BE MADE TO THE MPS WITHIN THE LIMITS SET BY PP 2. CHANGES ARE ROUTINE AND MADE BY COMPUTER PROGRAM WITHOUT NEED FOR INPUT FROM PLANNER |
| PLANNING TIME FENCE (CH.3) | 1. EXTENT OF THE SLUSHY ZONE 2. DETERMINED BY THE CUMULATIVE LEAD TIME OF PRODUCT |
| TYPES OF ERROR MANAGEMENT (CH.3) | 1. WRONG PRODUCT OR SPECIFICATION 2. WRONG AMOUNT (TOO LITTLE/TOO MUCH) 3. WRONG SHIPPING DATE (TOO EARLY/TOO LATE) |
| BILL OF MATERIAL PROCESSOR (CH.4) | COMPUTER SOFTWARE PROGRAM THAT ORGANIZES AND MAINTAINS THE BILLS OF MATERIAL STRUCTURES AND THEIR LINKAGES |
| MASTER PRODUCTION SCHEDULE (MPS) (CH.4) | 1. A STATEMENT OF WHICH END ITEMS ARE TO BE PRODUCED, THE QUANTITY OF EACH, AND THE DATES THEY ARE TO BE COMPLETED 2. DRIVES THE MRP SYSTEM BY PROVIDING THE INITIAL INPUT FOR THE ITEMS NEEDED |
| INVENTORY RECORDS (CH.4) | 1. MAJOR INPUT TO THE MRP 2. WHEN CALCULATION IS MADE TO FIND OUT HOW MANY ARE NEEDED, QUANTITIES AVAILABLE MUST BE CONSIDERED |
| PLANNING FACTORS (CH.4) | 1. INCLUDES INFORMATION SUCH AS ORDER QUANTITIES, LEAD TIMES, SAFETY STOCK, AND SCRAP 2. INFORMATION DOES NOT CHANGE OFTEN, BUT NEEDED TO PLAN WHAT QUANTITIES TO ORDER AND WHEN TO ORDER FOR TIMELY DELIVERIES |
| STATUS INFORMATION (CH.4) | 1. INFORMATION ON EACH ITEM 2. DYNAMIC AND CHANGES WITH EVERY TRANSACTION THAT TAKES PLACE |
| INVENTORY RECORD FILE (CH.4) | 1. A PART MASTER FILE OR ITEM MASTER FILE 2. DATA |
| BILLS OF MATERIAL - BOM(CH.4) | MOST IMPORTANT DOCUMENTS IN A MANUFACTURING COMPANY |
| FORMATS OF BOM (CH.4) | 1. PRODUCT TREE 2. PARENT-COMPONENT RELATIONSHIP 3. MULTILEVEL BILL 4. MULTIPLE BILL 5. SINGLE-LEVEL BILL 6. INDENTED BILL 7. SUMMARIZED PARTS LIST 8. PLANNING BILL |
| PRODUCT TREE (CH.4) | 1. CONVENIENT WAY TO THINK ABOUT BOM 2. SELDOM USE EXCEPT FOR TEACHING AND TESTING |
| PARENT-COMPONENT RELATIONSHIP (CH.4) | 1. ASSEMBLY = PARENT, ITEMS THAT COMPRISE IT = COMPONENT ITEMS 2. MAKES IDENTIFICATION OF THE PART ABSOLUTE |
| MULTILEVEL BILL (CH.4) | 1. FORMED AS LOGICAL GROUPINGS OF PARTS INTO SUBASSEMBLIES BASED ON THE WAY THE PRODUCT IS ASSEMBLED 2. LAST ITEMS ON THE TREE ARE ALL PURCHASED ITEMS 3. EACH LEVEL IS ASSIGNED A NUMBER STARTING FROM THE TOP AND WORKING DOWN |
| MULTIPLE BILL (CH.4) | USED WHEN COMPANIES USUALLY MAKE MORE THAN ONE PRODUCT, AND THE SAME COMPONENTS ARE USED IN SEVERAL PRODUCTS |
| SINGLE-LEVEL BILL (CH.4) | CONTAINS ONLY THE PARENT AND ITS IMMEDIATE COMPONENTS |
| ADVANTAGES OF USING SINGLE LEVEL BILLS (CH.4) | 1. DUPLICATION OF RECORDS IS AVOIDED 2. NUMBER OF RECORDS AND THE FILE SIZE ARE REDUCED BY AVOIDING DUPLICATION OF RECORDS 3. MAINTAINING BOMS IS SIMPLIFIED |
| INDENTED BILL (CH.4) | USES INDENTATIONS AS A WAY OF IDENTIFYING PARENTS FROM COMPONENTS |
| SUMMARIZED PARTS LIST (CH.4) | 1. LISTS ALL PARTS NEEDED TO MAKE ONE COMPLETE ASSEMBLY 2. PRODUCE BY THE PRODUCT DESIGN ENGINEER AND DOES NOT CONTAIN ANY INFORMATION ABOUT THE WAY THE PRODUCT IS MADE OR ASSEMBLED |
| PLANNING BILL (CH.4) | 1. AN ARTIFICIAL GROUPING OF COMPONENTS FOR PLANNING PURPOSES 2. USE TO SIMPLIFY FORECASTING, MASTER PRODUCTION SCHEDULING, AND MATERIAL REQUIREMENTS PLANNING 3. REPRESENT AN AVERAGE PRODUCT |
| WHERE-USED REPORT (CH.4) | 1. GIVES SAME INFORMATION AS BOM 2. BUT GIVES THE PARENTS FOR A COMPONENT WHEREAS THE BILL GIVES THE COMPONENTS FOR A PARENT 3. A LISTING OF ALL PARENTS IN WHICH A COMPONENT IS USED |
| PEGGING REPORT (CH.4) | 1. SIMILAR TO WHERE-USED REPORT 2. SHOWS THE PARENTS CREATING THE DEMAND FOR THE COMPONENTS, THE QUANTITIES NEEDED, AND WHEN THEY ARE NEEDED |
| WHAT ARE BOMS USE FOR? (CH.4) | 1. PRODUCT DEFINITION 2. ENGINEERING CHANGE CONTROL 3. SERVICE PARTS 4. PLANNING 5. ORDER ENTRY 6. MANUFACTURING 7. COSTING |
| PRODUCT DEFINITION (CH.4) | SPECIFIES THE COMPONENTS NEEDED TO MAKE THE PRODUCT |
| ENGINEERING CHANGE CONTROL (CH.4) | 1. TO RECORD AND CONTROL THE CHANGES WHEN CHANGING THE DESIGN OF A PRODUCT |
| SERVICE PARTS (CH.4) | REPLACEMENT PARTS NEEDED TO REPAIR A BROKEN COMPONENT ARE DETERMINED FROM THE BOM |
| PLANNING (CH.4) | 1. BOM DETERMINES WHAT MATERIALS HAVE TO BE SCHEDULED TO MAKE THE END PRODUCT 2. DEFINE WHAT COMPONENTS HAVE TO BE PURCHASED OR MADE TO SATISFY THE MPS |
| ORDER ENTRY (CH.4) | 1. BILL CAN BE USED TO CONFIGURE THE END PRODUCT 2. AND TO PRICE THE PRODUCT |
| MANUFACTURING (CH.4) | LIST PROVIDING THE PARTS NEEDED TO MAKE OR ASSEMBLE THE PRODUCT |
| COSTING (CH.4) | 1. PRODUCT COST BROKEN DOWN INTO DM, DL, OH 2. PROVIDES STRUCTURE FOR RECORDING DL AND DISTRIBUTING OH |
| MRP (CH.4) | 1. SYSTEM USED TO AVOID MISSING PARTS 2. ESTABLISHES A SCHEDULE SHOWING COMPONENTS REQUIRED AT EACH LEVEL OF THE ASSEMBLY, AND BASED ON LEAD TIMES, CALCULATES THE TIME WHEN THESE COMPONENTS WILL BE NEEDED |
| MRP'S OBJECTIVES (CH.4) | 1. DETERMINE REQUIREMENTS: WHAT TO ORDER, HOW MUCH TO ORDER, WHEN TO ORDER, AND WHEN TO SCHEDULE DELIVERY 2. KEEP PRIORITIES CURRENT |
| MRP PURPOSE (CH.4) | TO DETERMINE THE COMPONENTS NEEDED, QUANTITIES, AND DUE DATES SO ITEMS IN MPS ARE SCHEDULE ON TIME |
| MRP TECHNIQUES (CH.4) | 1. EXPLODING AND OFFSETTING 2. GROSS AND NET REQUIREMENTS 3. RELEASING ORDERS 4. CAPACITY REQUIREMENTS PLANNING 5. LOW-LEVEL CODING AND NETTING 6. MULTIPLE BOM |
| EXPLODING AND OFFSETTING (CH.4) | A. LEAD TIME B. EXPLODING C. OFFSETTING D. PLANNED ORDERS |
| LEAD TIME (CH.4) | 1. SPAN OF TIME NEEDED TO PERFORM A PROCESS 2. INCLUDES: TIME FOR ORDER PREPARATION, QUEUING, PROCESSING, MOVING, RECEIVING, AND INSPECTING, AND ANY EXPECTED DELAYS |
| EXPLODING THE REQUIREMENTS (CH.4) | EXPLODING IS THE PROCESS OF MULTIPLYING THE REQUIREMENTS BY THE USAGE QUANTITY AND RECORDING THE APPROPRIATE REQUIREMENTS THROUGHOUT THE PRODUCT TREE |
| OFFSETTING (CH.4) | PROCESS OF PLACING THE EXPLODED REQUIREMENTS IN THEIR PROPER PERIODS BASED ON LEAD TIME |
| PLANNED ORDERS (CH.4) | 1. PLANNED ORDER RECEIPT 2. PLANNED ORDER RELEASE |
| GROSS AND NET REQUIREMENTS (CH.4) | THE PLANNED ORDER RELEASE OF THE PARENT BECOMES THE GROSS REQUIREMENT OF THE COMPONENT |
| RELEASING ORDERS (CH.4) | 1. AUTHORIZATION IS GIVEN TO PURCHASING TO BUY THE NECESSARY MATERIAL OR TO MANUFACTURING TO MAKE THE COMPONENT 2. REQUIREMENTS CHANGE DAILY OFTEN A. SCHEDULE RECEIPTS B. OPEN ORDERS C. NET REQUIREMENTS D. BASIC MRP RECORD |
| SCHEDULE RECEIPTS (CH.4) | 1. ORDERS PLACED ON MANUFACTURING OR ON VENDOR AND REPRESENT COMMITMENT TO MAKE OR BUY 2. SHOWS QUANTITIES ORDERED AND WHEN THEY ARE EXPECTED TO BE COMPLETED AND AVAILABLE |
| OPEN ORDERS (CH.4) | 1. SCHEDULED RECEIPTS ON MRP RECORD ARE OPEN ORDERS ON THE FACTORY OR VENDOR 2. RESPONSIBILITY OF PURCHASING AND OF PRODUCTION ACTIVITY CONTROL 3. DISSAPEARS WHEN GOODS ARE RECEIVED INTO INVENTORY AND AVAILABLE FOR USE |
| NET REQUIREMENTS (CH.4) | GROSS REQUIREMENTS - SCHEDULED RECEIPTS - AVAILABLE INVENTORY |
| BASIC MRP RECORD (CH.4) | 1. CURRENT TIME AT 1ST PERIOD 2. TIME BUCKETS = PERIODS 3. PLANNING HORIZON = NUMBER OF PERIODS 4. AVAILABLE ITEM AT BEGINNING BUCKET 5. QUANTITY ON PA IS ON HAND BALANCE AT END OF PERIOD 6. ACTION BUCKET = MOST CURRENT PERIOD 7. BUCKET-LESS SYSTEM |
| CAPACITY REQUIREMENTS PLANNING (CRP) (CH.4) | 1. MRP PRIORITY PLAN MUST BE CHECKED AGAINST AVAILABLE CAPACITY 2. PROCESS IS CALLED CRP 3. IF CAPACITY IS AVAILABLE, THE PLAN CAN PROCEED |
| LOW-LEVEL CODING AND NETTING (CH.4) | 1. PROCESS OF COLLECTING THE GROSS REQUIREMENTS AND NETTING BY USING LOW-LEVEL CODES 2. LOWEST LEVEL ON WHICH A PART RESIDES IN ALL BOM 3. EVERY PART HAS ONLY ONE LOW-LEVEL CODE |
| MULTIPLE BOM (CH.4) | 1. MOST COS. MAKE MORE THAN ONE PRODUCT AND OFTEN USE THE SAME COMPONENTS IN MANY OF THEIR PRODUCTS 2. MRP SYSTEM GATHERS THE PLANNED ORDER RELEASES FROM ALL THE PARENTS AND CREATES A SCHEDULE OF GROSS REQUIREMENTS FOR THE COMPONENTS |
| PLANNERS' RESPONSIBILITES (CH.4) | 1. LAUNCH ORDERS 2. RESCHEDULE DUE DATES 3. RECONCILE ERRORS AND FIND CAUSE 4. SOLVE MATERIAL SHORTAGES 5. COORDINATE WITH OTHER PLANNERS |
| 3 TYPES OF ORDERS FOR MATERIAL PLANNERS (CH.4) | 1. PLANNED ORDERS 2. RELEASED ORDERS 3. FIRM PLANNED ORDERS |
| PLANNED ORDERS (CH.4) | 1. SCHEDULED AND CONTROLLED BY COMPUTER 2. MRP RECOMMENDS RELEASE OF AN ORDER WHEN ORDER ENTERS ACTION BUCKET |
| RELEASED ORDERS (CH.4) | 1. RESPONSIBILITY OF PLANNER 2. BECOMES AN OPEN ORDER TO PURCHASING AND APPEARS ON MRP RECORD AS A SCHEDULED RECEIPT |
| FIRM PLANNED ORDERS (CH.4) | 1. FIRMED OR FROZEN AGAINST THE LOGIC OF THE COMPUTER 2. HOLD ORDER AGAINST CHANGES IN QUANTITY AND TIME |
| EXCEPTION MESSAGES (CH.4) | ADVISE THE PLANNER WHEN SOME EVENT NEEDS ATTENTION |
| TRANSACTION MESSAGES (CH.4) | 1. PLANNER SHOULD TELL SOFTWARE OF ALL ACTIONS TAKEN THAT WILL INFLUENCE MRP RECORDS 2. EXAMPLE: RELEASE OF AN ORDER, SCHEDULE RECEIPT RECEIVED, OR ANY CHANGES TO THE DATA |
| PLANNER'S FEEDBACK (CH.4) | 1. SUPPLIERS ACTIONS 2. CHANGES TO OPEN ORDERS 3. MANAGEMENT ACTION THROUGH MPS |
| 3 FACTORS IN MANAGING MRP (CH.4) | 1. PRIORITY 2. BOTTOM-UP RE-PLANNING 3. REDUCING SYSTEM NERVOUSNESS |
| PRIORITY (CH.4) | MAINTAINING CORRECT DUE DATES BY EVALUATING THE TRUE DU DATE NEED FOR RELEASED ORDERS, AND IF NECESSARY, EXPEDITING OR DE-EXPEDITING |
| BOTTOM-UP REPLANNING (CH.4) | ACTION TO CORRECT FOR CHANGED CONDITIONS SHOULD OCCUR AS LOW IN THE PRODUCT STRUCTURE AS POSSIBLE |
| REDUCING SYSTEM NERVOUSNESS (CH.4) | PLANNER MUST JUDGE WHETHER CHANGES ARE IMPORTANT ENOUGH TO REACT TO AND WHETHER AN ORDER SHOULD BE RELEASED **FIRM PLANNED ORDERS** |
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