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54 Cards in this Set
- Front
- Back
Priority
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What is needed, how many and when; Capacity is the capability to produce goods and services. In the long run, they must be in balance
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Material Requirements Plan (MRP)
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A plan for production and purchase of items in the master production schedule. Purchase and Production Activity control use the MRP for controlling raw materials.
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Production Activity Control and Purchasing
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represent the implementation of the plan. Purchasing obtains material per the MRP and production carries out the tasks in the MRP
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Sales and Operations Planning
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is derived from the Strategic Business Plan and is made up of a Marketing Plan that links to the Production Planand a Detailed Sales Plan that links to the master Production Schedule.
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Strategic Business Plan
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1) marketing determines product & pricing 2) Finance finds funds 3) Production meets needs through machinery & labor 4) Engineering is responsible for design. Reviewed every 6 months to a year
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Master Production Schedule (MPS)
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for production of individual items. The planning horizon is 3-18 months out. Master scheduling is the process of making an MPS. The plans are changed weekly or monthly
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Manufacturing Resource Planning (MRP II)
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is the fully integrated planning and control system. It coordinates between marketing and production. It includes the sales and operations plan, the sales plan, master schedule, material requirements plan, purchasing, production activity control and performance measures
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Level production
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(total forecast + back orders + ending inventory – opening inventory) / # of periods
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Resource bill
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shows the critical resources needed to make one average unit in the product group. This is used for resource planning. You need to determine the materials (# of units * # of material required) and labor (# of units * # of hours) needed to make the plan in standard hours
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Master production schedule (MPS)
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1) links production planning to what will be built 2) calculates capacity and resources needed 3) drives the materials requirements plan 4) drives priorities for manufacturing
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To build the master production schedule (MPS) you need the following information
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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 constraints |
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Objectives of MPS
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1) maintain finished good inventory levels 2) make the best use of labor, materials & equipment 3) maintain inventory investment (WIP) at the required levels
• Develop a preliminary MPS, check MPS against capacity, resolve differences (this is called rough cut capacity planning) |
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Rough cut capacity planning
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checks whether resources are available to support the preliminary master production schedule. Plan on a single product, not a group, and use the resource bill
• For make to stock, the MPS is a schedule of finished goods items, for make to order the MPS is a schedule of actual customer orders, for assemble to order, go to the base order |
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Final Assembly Schedule (FAS)
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schedule of what will be produced
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Available to Promise (ATP)
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ATP = scheduled receipts + beginning inventory = actual orders scheduled
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Frozen Zone
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capacity and materials are committed to specific orders, senior mgmt approval required for changes
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Slushy Zone
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capacity and material are committed to less extent. Tradeoffs must be met between marketing and manufacturing
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Liquid Zone
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any changes can be made to the MPS
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Objectives of Materials Requirements Planning
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1) determine requirements 2) keep priorities current
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What does Material Requirements Planning (MRP) do?
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drives Production Activity Control (PAC) and purchasing. MRP plans the release and receipt dates for orders. PAC and purchasing must plan and control the performance of orders to meet the due dates
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Inputs to Material Requirements Planning System
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1) master production schedule 2) inventory records 3) bills of materials
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Bill of Material (BOM)
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“a listing of all the subassemblies, intermediaries, parts and raw materials that go into making the parent assembly showing the quantities of each required to make an assembly”
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Multilevel bills
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formed as logical groupings of parts into subassemblies, based on the way the product is assembled (i.e. an auto has a frame, chassis, doors, windows and engine as subassemblies)
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Where-used reports
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Where-used reports give the same information as a bill of material, but gives the parents for a component. Wheels might be used on several models of cars
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Pegging report
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like a where used report but only shows parents for which there is an existing requirement (rather than all parents, even those with no current production)
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Lead time
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the amount of time needed to perform an operation – it includes order preparation, queuing, processing, moving receiving and inspecting
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Exploding
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the process of multiplying the requirements by the usage quantity and recording the appropriate requirements throughout the product tree
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Offsetting
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the process of placing the exploded requirements in their proper periods based on lead time
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Releasing an order
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authorization is given to purchasing to buy the necessary material or to manufacturing to make the component (check component availability first)
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Low level code
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the lowest level on which a part resides in all bills of material. Determined by starting at the lowest level of a bill of material and working up to the par
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Capacity
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The amount of work that can be done in a specific time span.
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Capacity required
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the capacity of a system or resource needed to produce a desired output in a given time period
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Load
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the amount of released and planned work assigned to a facility for a particular time period
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Capacity management
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responsible for determining the capacity needed to achieve the priority plans. “The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules
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Capacity control
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the process of monitoring production output, comparing it with capacity plans, and taking corrective actions when needed
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Resource Planning
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involves long-range capacity resource requirements and is directly linked to production planning. If the resource plan cannot be devised to meet the production plan, then the production plan has to be changed
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Open order file
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a record of all the active shop orders
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Planned order releases
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determined by the computer’s MRP logic based upon the gross requirements for a particular part
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Routing
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the path that work follows from work center to work center as it is completed
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work center
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composed of a number of machines or workers capable of doing the same work
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work center file
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contains information on the capacity and move, wait and queue ties associated with the center
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move time
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the time taken to move material from one workstation to another
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wait time
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the time a job is at a work center after completion and before being moved
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queue time
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the time a job waits at a work center before being handled
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Lead time
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the sum of queue, setup, run, wait and move times.
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Demonstrated capacity
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figured from historical data (and is the average, not maximum output)
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Calculated or rated capacity
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based on available time, utilization, and efficiency
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Utilization
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hours actually worked / available hours * 100%
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Efficiency
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actual rate of production / standard rate of production * 100%
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Rated capacity
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available time * utilization * efficiency
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Load
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the sum of the required times for all the planned and actual orders to be run on the work center in a specified period.
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Calculation of load
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1) determine standard hours of operation time for each planned and released order for each work center by time period 2) add all the standard hours together
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Work center load report
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shows 1) over capacity 2) under capacity work centers
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Scheduling
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“timetable for planned occurrences”
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