...decisions) * organization of production has been determined Production system * collection of material, labour, capital, and knowledge that goes into manufacture of a product * how the collection of components is put together in a specific situation defines a particular system Taxonomy of Production Systems * by different criteria and meaningful analysis applied * by production flow characteristics Production processes can be either continuous or discrete (or one at a time fashion). Three Major Building Blocks in a Production System 1. Machine Technology Base (or the Tools for Production) * Sets boundaries on the processes that can be employed in converting inputs to finished products * Long term planning decisions * Major component of productivity improvement 2. Organization * Product layout * Organizes people and machines that is satisfactory for the production of a single product * Sequential operations * Flow line organization of a production * Process layout * According to the manufacturing process involved in the production of products * Machinery is grouped based on common purposes * When there are a large number of different products using the same machinery but not necessarily in the same order * Job shop * A plant manufacturing a variety of items with different machinery requirements and routings using a process layout ...
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...Chapter 13 Aggregate Planning True / False Questions 1. Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months. FALSE Difficulty: Medium TLO: 1 Taxonomy: Knowledge 2. The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand. TRUE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 3. Aggregate planners are concerned with the quality and quantity of expected demand. FALSE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 4. Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time. TRUE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 5. The assignment of work to specific machines and people are examples of aggregate planning. FALSE Difficulty: Medium TLO: 1 Taxonomy: Knowledge 6. The output from aggregate planning is a detailed business plan covering the next 2 to 12 months. FALSE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 7. Demand can be altered in aggregate planning by promotion and producing additional product using overtime. FALSE Difficulty: Hard TLO: 2 Taxonomy: Knowledge 8. Capacity can be modified in aggregate planning by promotion and producing additional product using overtime. FALSE Difficulty: Hard TLO: 2 Taxonomy: Knowledge 9. Organizations...
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...create and save a new product specification, the computer automatically generates and sends a message to the product planning clerk to advise them of the new product. The product planning clerk inputs the new product number into the computer and requests the computer to print a copy of the relevant product specification. After the product planning clerk collects the copy of the product specification they read it carefully to ensure they understand the nature and details of the new product. If any part of the product specification is unclear they liaise with the product designers to ensure that they understand the specification before continuing with the product planning. The product planning clerk keys in a request for details of current stocks of raw material inventory items. The computer extracts and displays a list of the items, including the inventory item’s number, a description of the material, and the amount of material currently in stock. The product planning clerk compares the list of materials inventory with the details of the raw materials required for the product in the product specifications. If a raw material is required that is not currently held in inventory the product planning clerk sends a copy of the product specification to the inventory management department along with a request for them to investigate supply of the material. The product planning clerk cannot create a bill of materials until all required raw materials...
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...Business Inventory Control Meghan Farrar, Amanda May, Nancy Dinges, Scott Moore and Bianca Holmes American Public University Introduction “Inventory is one of the most expensive and important assets to many companies, representing as much as 50% of total invested capital. Managers have long recognized that good inventory control is crucial” (Render et al, 2011). Therefore, it is really no surprise that companies place such a high importance on inventory control. An analysis of the planning and forecasting process, as well as the uses of inventory control will certainly verify the significance of inventory control in the business environment. In addition, by utilizing several inventory methods: economic order quantity, production run and quantity discount models, in hypothetical inventory scenarios for McDonald’s, there will be sufficient evidence to support the accuracy and importance of inventory control. Inventory Control: Planning & Forecasting The importance of inventory control and planning cannot be overstated no matter what the size of the business. Inventory control is a process managers must master in order to most effectively and efficiently deliver their company’s products or services to the customer (Render et al, 2011). The two most essential steps in effectively managing inventory are planning and forecasting. Inventory planning encompasses the “what” in terms of specific inventory stock requirements and addresses how the inventory will be...
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...DeVry GSCM 530 All Quizzes - Latest IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://www.hwspeed.com/DeVry-GSCM-530-All-Quizzes-Latest-545409504.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JOHNMATE1122@Gmail.Com Question 1.1.(TCO 1) Different levels of planning in supply chain operations management include(Points : 5) general and detailed planning. strategic, tactical, and operational planning. long-term and short-term planning. logistical, operational, and procurement planning. Question 2.2.(TCO’s 1) Which of the following is a measure common to both the strategic profit model and the SCOR model?(Points : 5) Responsiveness Return on assets Delivery performance Lead time Question 3.3.(TCO 1) The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a 3- to 5-year period. This is an example of which type of demand pattern?(Points : 5) Autocorrelation Seasonality and cycles Step change Trend Question 4.4.(TCO 1) For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past 4 weeks was as follows. Week $ Take (1) $250,000 (2) $190,000 (3) $300,000 (4) $280,000 Using a moving average withn= 3 terms, what would be the forecast for Week 5.(Points...
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...ventory planning Chapter 12: Inventory planning and... Study guide | This chapter is relatively unusual in so much as it takes more of a quantitative approach to its topic. While not avoiding quantitative models where they are appropriate, the general approach of this book is to deal with operations management from a ‘general management’ point of view. Here we include some quantitative models of how inventory is managed mainly to demonstrate that some parts of the inventory decision can be quantified. In practice, most of these decision models will be embedded within an operation’s routine stock control computer system. However, whilst working through them remember that it is the underlying principles behind the models which are more important than the mathematics on which the models are based.Your learning objectivesThis is what you should be able to do after reading Chapter 12 and working through this study guide. * Understand what is meant by an inventory and why they exist. * Identify some of the advantages and disadvantages of keeping inventory in an operation. * Understand the basic principles behind the quantitative approaches to deciding how much inventory to keep. * Be able to describe the limitations of traditional quantitative models of inventory decision making. * Identify the two main approaches to managing inventory on an on-going basis.What do we mean by inventory?The chapter discusses inventory (we use the word interchangeably with the word ‘stock’)...
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...accommodate for this within our supply chain. In order to assist and help deal with these fluctuations I recommend that we implement Just in Time Distribution (JITD) which will assist in lowering our overall inventory levels within the chain and assist us in managing demand, and improve overall company profitability. In order to implement JITD, we require management support in order for this to be successful. Issue Identification Barilla is currently being faced with a decision on where they need to go in respects with just-in-time-distribution (JITD). They need to look at whether this type of program is feasible in their environment and if it makes sense to continue with a JITD system. In order to look at these decisions we need to review some of the issues that JITD system was intended to overcome. Some of the issues that JITD was introduced to overcome are: 1. Demand Fluctuations – There is a high standard deviation of demand on the Barilla Dry products from week to week. (Exhibit 1) 2. Managing the Distribution System – The distribution system along the Barilla supply chain is fully autonomous, the distribution centers order based on their own agendas and pull inventory creating huge demands at times creating a bull whip effect which ultimately increases inventory throughout the supply chain. 3. Operational Inefficiencies – Although the supply chain would ultimately hold approximately 2 months of product Barilla was dealing with stock outs and changing...
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...Profit Planning (Budgeting) Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. 9. understand the budgeting process prepare a sales budget and a schedule of expected cash receipts prepare a production budget prepare a direct materials budget, including a schedule of expected cash disbursements for purchases prepare a direct labor budget prepare a manufacturing overhead budget prepare a selling and administrative expense budget prepare a cash budget prepare a budgeted income statement 10. prepare a budgeted balance sheet Planning and Control Planning -- involves developing objectives and preparing various budgets to achieve these objectives. Control – involves the steps taken by management that attempt to ensure the objectives are attained. ACCT5243 Profit Planning (Budgeting) Slide 2 1 Advantages of Budgeting Define goal and objectives Communicating plans Think about and plan for the future Advantages Coordinate activities Uncover potential bottlenecks Means of allocating resources ACCT5243 Profit Planning (Budgeting) Slide 3 Responsibility Accounting; Choosing the Budget Period • Responsibility accounting: Managers should be held responsible for those items — and only those items — that the manager can actually control to a significant extent. Operating Budget 2012 2013 2014 2015 The annual operating budget may be divided into quarterly or monthly budgets. ACCT5243 Profit Planning (Budgeting) Slide 4 2 Participative...
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...Forecasting Forecasting is one of the most important business functions because all other business decisions are based on a forecast of the future. Poor forecasting results in incorrect business decisions and leaves the company unprepared to meet future demands. The consequences can be very costly in terms of lost sales and can even force a company out of business. Forecasts are so important that companies are investing billions of dollars in technologies that can help them better plan for the future. For example, the ice-cream giant Ben & Jerry’s have invested in business intelligence software that tracks the life of each pint of ice cream, from ingredients to sale. Each pint is stamped with a tracking number that is stored in an Oracle database. Then the company uses the information to track trends, problems, and new business opportunities. They can track such things as seeing if the ice-cream flavor Chocolate Chip Cookie Dough is gaining on Cherry Garcia for the top sales spot, product sales by location, and rates of change. This information is then used to more accurately forecast product sales. Numerous other companies, such as Procter & Gamble, General Electric, Lands’ End, Sears, and Red Robin Gourmet Burgers, are investing in the same type of software in order to improve forecast accuracy. (R. Dan Reid & Nada R. Sanders, 2009) It is not possible to accurately forecast the future. Because of the qualitative nature of forecasting, a business can come up with different...
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...Class 08 – Planning & Control BUFW M570-01W: Operations and Supply Chain Management Planning & Control: Chapter 19 – Sales & Operations Planning Chapter 20 – Inventory M anagement Learning Objectives Understand what sales and operations planning is and how it coordinates manufacturing, logistics, service, and marketing plans. Construct and evaluate aggregate plans that employ different strategies for meeting demand. Explain yield management and why it is an important strategy. Joseph Khamalah, Ph.D. 2 What Is Sales and Operations Planning? Sales and operations planning is a process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business. The process consists of a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made. This must occur at an aggregate level and also at the detailed individual product level. – Major Sales & Operations Planning Activities Aggregate means at the level of major groups of products. 3 4 Sales & Operations Planning Activities – Overview Sales and operations planning was coined by companies to refer to aggregate planning. Types of Planning Long-range planning • Planning focusing on a horizon greater than 1 year, usually performed annually Intermediate-range planning • Planning focusing on a period from 3 to 18 months, time increments are weekly, monthly,...
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...Logistics Management “Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements” Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost. Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive. VARIOUS DEFINITIONS OF LOGISTICS MANAGEMENT Logistic management encompasses all materials flows management, from the inflow of purchased materials into works (i.e. materials planning of raw materials components and other products, transport of materials from suppliers to works, receiving and inspection and storage of materials) materials flow through manufacturing processes (i.e. materials issues and materials handling) and material (flow to customers (physical distribution (Refer fig.1 for these relationships) Materials Logistics physical distribution Management Management Fig.1 (Relationship between logistics and other)...
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...aggregated. 3. Managerial accounting applies to all forms of business organizations. 4. Determining the unit cost of manufacturing a product is an output of financial accounting. 5. Managerial accounting internal reports are prepared more frequently than are classified financial statements. 6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity. 7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company. 8. Controlling is the process of determining whether planned goals are being met. 9. Decision-making is an integral part of the planning, directing, and controlling functions. 10. Direct materials costs and indirect materials costs are manufacturing overhead. 11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead. 12. Raw materials are equal to direct materials minus indirect materials. 13. Raw materials that can be conveniently and directly associated with a finished product are called materials overhead. 14. The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs....
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...Materials Management / 1 CHAPTER I Materials Management Introduction Materials Management is simply the process by which an organization is supplied with the goods and services that it needs to achieve its objectives of buying, storage and movement of materials. Materials Management is related to planning, procuring, storing and providing the appropriate material of right quality, right quantity at right place in right time so as to co-ordinate and schedule the production activity in an integrative way for an industrial undertaking. Most industries buy materials, transport them in to the plant, change the materials in to parts, assemble parts in to finished products, sell and transport the product to the customer. All these activities of purchase of materials, flow of materials, manufacture them in to the product, supply and sell the product at the market requires various types of materials to manage and control their storage, flow and supply at various places. It is only possible by efficient materials management. The materials requirements planning, purchasing, inventory planning, storage, inventory control, materials supply, transportation and materials handling are the activities of materials management. They will be discussed in details in various chapters to follow. About 20-25 years ago, there was no cut-throat competition in the market to sell the various consumer items manufactured by different industrial undertakings and the availability of materials to manufacture...
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...need of timely and shared information among departments, plants, and customers. Riordan Manufacturing has plans to achieve higher capacity ratio, cost-effective transportation, reduced levels of inventory, decreased wastage, and the implementation of an Enterprise Resource Planning. In this study, there will be a review of Riordan Manufacturing’s operational strategy and an addition of the topic of process design to it. “The process design includes the selection of appropriate technology, sizing the process over time, the role of inventory in the process, and locating the process” with quality management as its main focus (Chase, Jacobs, & Aquilano 2006, p. 24). A proposal for a Process Design for Riordan Manufacturing in regard to the electric fans system will be given. It will include Material Requirements Planning for the manufacturing of the electric fans, process design for production, and new supply chain taking advantage of global opportunities available. The study will cover the production forecast for the electric fans, the implementation plan as well as a Gantt chart of the design process, and a cover letter, which details how the company will coordinate aggregate operations planning and Total Quality Management for Riordan electric fans. Material Requirements Planning (MRP) Chase, Jacobs, &...
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...question. 1) Which of the following would NOT generally be a motive for a firm to hold inventories? 1) _____ A) to minimize holding costs B) to take advantage of quantity discounts C) to decouple various parts of the production process D) to hedge against inflation E) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand 2) Which of the following is NOT one of the four main types of inventory? A) work-in-process inventory B) finished-goods inventory C) raw material inventory D) safety stock inventory E) maintenance/repair/operating supply inventory 3) Which of the following is a function of inventory? A) to take advantage of quantity discounts B) to hedge against inflation C) to decouple various parts of the production process D) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand E) All of the above are functions of inventory. 4) Which of the following statements about ABC analysis is FALSE? A) In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. B) Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis. C) ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. D) ABC analysis is based on the presumption that all items must be tightly controlled...
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