SCMT 3201 Individual Assignment 1 - Vocabulary
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Course: SCMT 3201
Individual / Partners Assignment # 1
“English Vocabulary for SCM Planning and Scheduling”
Due Date: Monday, Nov. 27-30, 2023 (Week 12)
– 11:59 pm Delivery: Save this empty file into your own workspace (USB key, Hard Drive, etc.)
Before you username the document as follows: “
SCMT 3201 Vocabulary Assignment your name_last 4 digits of your student ID
” For example: SCMT 3201 Vocabulary Assignment Mahmood 1234
Upload your completed work to Assignment 1 Drop Box in DC Connect
Weighting: 15% of the final grade in this course.
Score = __________ / 215
General Description:
This assignment - conducted either individually or with one partner (student’s choice, 2 persons maximum) - will provide an opportunity for students to work with the vocabulary and learn various concepts. I recommend that students work in pairs and learn together. Students who choose to work with a partner should discuss the questions and issues together. Avoid splitting the assignment into two pieces, with one student doing one half and the other student completing the second half. Of course, both students will need to contribute equally, helping each other to practice the words and understand the concepts. Details:
If you want to work with a partner, please choose your partner and advise me (your instructor) the name of your partner prior to September 25-28, 2023
. If you choose to undertake the Assignment on your own, please tell me that as well. While it is possible to complete the entire assignment in a day or two, I do not recommend doing it that way. Parcel the work into manageable chunks, perhaps 1 hour per week. Of course, if you choose to complete it sooner, that is fine. Grades for this Assignment will not be released until after November 27-30, 2023. The assignment follows chapters of the textbook. You will be asked to:
Define some key terms or phrases. Definitions should be one or two short sentences or phrases,
25 words or less.
Define acronyms simply by entering the words that the acronym represents. For example, the “definition” for “GPS” would be “Global Positioning System.” Acronyms are marked with an asterisk *.
Fill in the blanks with some words that are used in the chapter in the textbook or in the lecture from that week.
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Answer some true / false or multiple-choice questions that reference the chapter or the lecture from that week. Each definition, fill-in-the-blank, or other question is worth 1 mark toward the overall total. Please do not alter this assignment worksheet. Please type your answers into the appropriate spaces. Save your file regularly. When you are done, check your work, put your name(s) ad student number at the top of this document, and upload this worksheet into the Assignment drop box. Many of the definitions will be found in the textbook, but perhaps not all. Use other tools that are at your disposal, such as Lectures, PPTs, the APICS Dictionary, and the Glossaries. Page 2
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Week 1, Chapter 1 – Manufacturing Planning and Control
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
1
MPC*
Manufacturing, Planning, Control
2
ERP*
Enterprise resource planning
3
Front End (of the MPC Framework)
The systems and processes that are used in defining overall direction include MPS, demand planning, and production planning constitute the front end. These are the systems and processes that form the front end for defining strategic overall direction.
4
Engine (of the MPC Framework)
Systems for thorough capacity and material planning.
5
Back End (of the MPC Framework)
Depicts the MPC execution system.
6
Demand Management
A technique for organizing and projecting product demand is demand management. Demand management fundamentally improves communication between your marketing and operations teams.
7
Sales and Operations Planning
Sales and operations planning (S&OP) is an integrated planning process that aligns demand, supply, and financial planning and is managed as part of a company's master planning.
8
Master Production Schedule
A manufacturer's master production schedule (MPS) outlines the items they will make, when they will make them, and how much of each. Sales demand and manufacturing capacity are linked by an MPS.
9
Resource Planning
A manufacturer's master production schedule (MPS) outlines the items they will make, when they will make them, and how much of each. Sales demand and manufacturing capacity are linked by an MPS. Developing a practical strategy that reduces overstock and maximizes on-time delivery is the goal of master production scheduling.
10
Material Requirements Planning
A system called material requirements planning (MRP) is used to determine the components and materials required to make a product. It consists of three main steps: inventorying the available materials and components, and arranging for their manufacture or Page 3
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acquisition.
11
Production cells
Production cells are a sort of manufacturing where various workspaces or machines are typically grouped together locally.
12
JIT*
Just in time
13
Purchasing systems
The entire purchasing process, from product receipt and payment to requisition, is covered by a purchasing system. By making sure that only necessary purchases are made and that they are done so at fair prices, purchasing systems preserve efficiency.
14
Quality Assurance systems
The goal of quality assurance, a process management activity, is to make sure that as few defects as possible are produced during the product's creation processes. 15
Flow-oriented manufacturing proves
The constant 'flow' of products along an assembly line characterizes flow production as a manufacturing process. On the assembly line, the products go through several steps before being packaged and delivered to the final user.
16
Repetitive manufacturing
The factory process function that produces goods for quick production flow is called repetitive manufacturing.
17
Project manufacturing
The goal of Project Manufacturing is to create distinctive yet comparable goods. In addition to allowing for customization into "unique" combinations, it leverages shared manufacturing requirements and efficiencies. You can handle unique orders similarly to a project.
18
Time-based competition
Time-based competitions offer an example of the effectiveness of time management and how businesses can leverage it to their advantage.
19
Capacity
The ability of an entity to produce results within a given time frame.
20
4
th
Industrial Revolution
The Fourth Industrial Revolution refers to the contemporary and emerging landscape where disruptive technologies and trends, including robotics, virtual reality (VR), artificial intelligence (AI), and the Internet of Things (IoT), are transforming the way people live and work.
Highlight in yellow or circle the letter corresponding to the answer that fits best:
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1.
The MPC system is concerned with:
(a)
Operating warehouses and distribution centers.
(b)
Organizing outbound logistics and transportation.
(c)
Planning and controlling all aspects of manufacturing.
(d)
Cost-effective procurement of raw materials and components.
2.
Support activities of the MPC System are divided into 3 time-horizons: long term, medium term, and short term. Which of the following activities is a concern over the long term? (a)
Matching supply and demand in terms of product mix
(b)
Providing information to make decisions on the appropriate amount of resource capacity to meet market demands of the future (e.g., facility locations, machinery, supplier selection.)
(c)
Tracking the use of resources and execution results to report on material consumption, equipment utilization, completion of customer orders, etc. (d)
Scheduling of labor to meet production requirements. 3.
In 2015, Canadian artist Henry Ward was commissioned to paint a portrait of Queen Elizabeth of England. The painting began in the imperial rooms of Windsor Castle in England and continued to take shape in a secret studio in Burlington, Ontario. The 6-foot by 8-foot portrait was revealed to the public in October of 2016. Which of the following MPC classification schema would best apply to this situation?
(a) Flow
(b) JIT
(c)
Project
(d) MRP
(e) Repetitive
4.
Coca Cola’s bottling plant in Wakefield, UK, houses nine production lines, with the capacity to produce 4,000 330ml cans and 3,200 PET bottles per minute – ranging from 500ml to 3l – and is home to one of the fastest two-liter filling lines in the world. Which of the following MPC classification schema would best apply to this situation?
(a)
Flow
(b) JIT
(c) Project
(d) MRP
5.
MRP belongs in this part of the MPC System:
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(a)
Front End
(b)
Engine
(c)
Back End
(d)
Shop Floor Systems
(e)
Purchasing Systems Week 2, Chapter 2 – ERP
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
21
ERP*
Enterprise resource planning
22
Integration
The act of merging two or more components to create a
cohesive whole is fundamental to integration. This usually refers to technology, where it means combining various hardware or software components to improve performance and functionality and promote smooth communication between incongruous elements.
23
Multifunctional in scope
able to carry out multiple tasks.
24
Modular
A modular model carries out computations outside of the core statements and splits larger schedules into smaller ones. Additionally, calculations are divided into discrete modules for increased efficiency and clarity.
25
Transaction processing
The act of fulfilling a task and/or a user/program request in real time or at runtime is known as transaction processing.
26
Decision support
A computer program that offers a rational (often quantitative) analysis of the pertinent variables to help managers choose and assess their options.
27
Materials Management
The assembly of managerial tasks facilitating the full material flow cycle, ranging from the procurement and internal control of raw materials for production to the scheduling and supervision of work-in-progress and the storage, transportation, and distribution of the final good.
28
Plant Maintenance
Plant maintenance is the process of making sure the machinery and equipment are regularly inspected, Page 6
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checked, and serviced in order to keep the plant operating at peak efficiency and preventing breakdowns.
29
Production Planning and Control
Manufacturing strategy involves designing planning and
control systems considering market demands, process types, and organizational control levels. 30
Project Management
The application of knowledge and abilities to coordinate
the planning, organizing, directing, controlling, monitoring, and assessing of specified activities in order
to make sure that the goals of a project, produced good, or service are met.
31
Real time
the process of synchronizing data processing with relevant external physical events in real time, allowing for timely reporting of conditions.
32
Data warehouse
A data repository with specific preparations made to aid
in applications involving decision-making.
33
Functional Silos
In a company, functional silos are groups of workers based on their functions who don't communicate with one another or work together.
34
Cash to Cash Cycle Time
The days that pass between buying supplies and getting paid for the finished good are measured by the cash-to-
cash cycle time, also known as the cash-conversion cycle, which evaluates the effectiveness of the working capital cycle.
35
Inventory Days of Supply
Inventory days of supply are an efficiency ratio that indicates how long an organization or warehouse typically keeps inventory before shipping or selling it.
36
Order Fulfilment Lead Time
It is the duration of any process from its beginning to its
end. The lead time for businesses is the duration of time
that passes between a customer placing an order and the delivery of goods or services to them.
37
Delivery Performance
In supply chain management, delivery performance (DP) is a widely used standard KPI measurement that assesses how well a customer's demand is fulfilled by the desired date.
38
Fill Rate by Line Item
The percentage of order lines that are fully filled out of all the order lines is known as the line fill rate.
39
Perfect Order Fulfillment An indicator of an organization's proficiency in fulfilling orders exactly.
40
Asset Turns
The asset turnover ratio assesses how well a business Page 7
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makes use of its assets to produce income or sales.
Highlight in yellow or circle the letter corresponding to the answer that fits best:
1.
One of the attractive features of ERP systems is:
(a)
It can be implemented successfully, even if pre-existing business processes are disorganized.
(b)
It allows for the integration of planning activities across many functional areas of the firm.
(c)
It is easy to install into a business and can be done very quickly.
(d)
It is very inexpensive to install and maintain.
2.
Fill in the blank: ERP software needs to be __________ in structure, so that it can be combined
into a single expansive system, narrowly focused on a single function, or connected with software from another source / application:
(a)
Strategic
(b)
Modular.
(c)
Multifunctional. (d)
Integrated. 3.
The Supply Chain Council (APICS) has developed a set of Supply Chain Metrics that are “integrated” with the finance function. An example of such a metric is:
(a)
Gross Profit Percent
(b)
Cash-to-cash cycle time
(c)
Low-cost production
(d)
Low-cost transportation
4.
Compute the cash-to-cash cycle time using the following data:
Sales over the past 30 days = $ 1,200,000
A/R at the end of the month = $ 200,000
Inventory value at the end of the month = $ 400,000
Cost of Sales = 70% of total sales
A/P at the end of the month = $ 160,000
(a)
13.6
(b)
17.6
(c)
25
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(d)
14.3
5.
The “functional silo” problem refers to:
(a)
the tendency for products to be grouped together according to process
(b)
the practice of storing products according to usage
(c)
assigning employees to work in specific functional areas
(d)
the tendency for decisions to be made without considering the impact upon other functional areas. Week 3, Chapter 3 – Demand Management
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
41
SOP (or S&OP)*
Sales and operations planning
42
MPS*
Master production schedule
43
Planning (part of MPC)
Planning is the procedure for establishing objectives for the organization, meeting forecasts and selecting different approaches to use its resources to meet those objectives.
44
Control (function of MPC)
Control sets the process for turning capacity into products.
45
Forecast (in demand management)
Forecasts are projections of potential future market events relating to demand.
46
The manufacturing plan (as opposed to the forecast)
The weekly or daily production and machine schedules across several plants or lines to fulfill orders and project
demand are referred to as manufacturing planning.
47
Independent demands
The demand for a product independent of the demand for other products. Examples of independent demand include the need for service parts, parts needed for destructive testing, and finished goods.
48
Dependent demand
Demand that originates from or is directly tied to the bill-of-materials for other products or finished goods. As
a result, these requests are computed and do not require nor ought to be predicted. There may be independent and dependent demand for a certain Page 9
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inventory item at any given time.
49
Customer order decoupling point
It is the point when demand shifts from being independent to being dependent
50
Make-to-stock firms
Keeping completed goods inventories up to date is a primary goal of demand management.
51
Assemble-to-order firms
A variety of standard options are used to satisfy customer requirements (personal computers, fast food). Determining the customer's order in terms of options and components is the main responsibility of demand management (configuration management).
52
Make-to-order firms
Products manufactured according to customer requirements, beginning with aircraft as raw materials. The main responsibility of demand management is to coordinate with manufacturing and obtain information about customer needs.
53
Engineer-to-order firms
The company collaborates with the client to design the product, which is then manufactured, beginning with raw materials (ships, bridges). The main responsibility of demand management is to coordinate with engineering and manufacturing and obtain information about customer needs.
54
Configuration management
The capacity to maintain a high degree of data integrity throughout the life cycle of a product or service in order
to guarantee both efficient operations and product quality and compliance. This kind of management makes it easier to manage changes and notify stakeholders effectively. It also gives people who require product data unrestricted access.
55
CRM*
Customer relationship management
56
Physical Distribution
The transportation of completed goods from a business's fulfillment and distribution network to the final customer is referred to as physical distribution.
57
CPFR*
Collaborative Planning, Forecasting, and Replenishment
58
MTS*
Make to stock
59
MTO*
Make to order
60
ATO*
Assembly to order
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Fill in the blanks:
1.
The Demand Management (DM) process determines how a firm integrates information from customer
(both internal and external) into the MPC system. 2.
In an Assemble-to-Order environment, the most likely point where customer order decoupling would take place is: work in progress
(3 words).
3.
The main goal of a Collaborative Planning, Forecasting, and Replenishment (CPFR) process is to reduce the variance
between supply and demand for individual products.
4.
With respect to the differences between “forecasts” and “plans,” forecasts are estimates of what might occur in the marketplace, whereas plans specify how the firm will respond
to these forecasts.
5.
The key focus of demand management in a make-to-stock environment is the maintenance of finished goods
inventories (2 words). Week 4, Chapter 4 – Forecasting
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
61
Regression
Regression is a statistical technique that can be used to evaluate correlations and make predictions based on these relationships by determining and measuring the relationship between a dependent variable and one or more independent variables.
62
Trend
In a dataset, a trend typically denotes the long-term movement or tendency and shows whether values are generally rising, falling, or staying mostly constant over time.
63
Time series
A collection of data points or observations gathered or documented at consecutive points in time is called a time series. 64
Decomposition of a time series
Decomposition is a statistical task that involves breaking
down Time Series data into multiple components or identifying trends and seasonality within a series of data.
65
Seasonal When something in a time series data set repeats over predetermined intervals, it is said to be seasonal
. These
intervals typically correspond to regular calendar Page 11
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periods, such as days, weeks, months, or seasons. 66
Seasonal Factor
The amount of time series correction required to account for the season.
67
Moving Average Forecasting
a method of forecasting that projects future values of a weighted moving average or a simple moving average
68
Exponential Smoothing
A kind of weighted moving average forecasting method where historical data is geometrically discounted based on age. The latest information is given the highest weight. 69
Exponential smoothing constant
The weighting factor used in exponential smoothing which is dependent on the most recent observation, demand, or error is called Exponential smoothing constant. 70
“Mean” (in forecast evaluation
or statistics)
As a measure of central tendency, the arithmetic mean is commonly referred to as the "mean". It is calculated by dividing a sum of all observations with the number of
obesrvations in the data set.
71
Bias (in forecast evaluation)
When actual sales consistently deviate from the forecast—either by over- or under-forecasting, its called
a Bias.
72
Forecast error
The discrepancy between the predicted and actual demand is known as the forecast error. Although there are many factors that go into forecast error, a distributor's profitability will be more negatively impacted the more the gap exists between actual and forecast demand.
73
MAD*
Mean absolute deviation
74
Average Percent Error
The average amount of error generated by a model, or the average deviation from predictions, is measured by mean absolute percentage error.
75
Standard Deviation
The standard deviation (abbreviated as σ) quantifies the
degree of dispersion of the data with respect to the mean. Data with a low standard deviation, or small standard deviation, are closely clustered around the mean, whereas data with a large standard deviation, or large standard deviation, are more dispersed.
76
Pyramid Forecasting
Supply chain planners can begin with a forecast at the top of a product hierarchy and break it down into lower levels by using the Pyramid Forecasting concept.
77
Roll up (in pyramid The "roll-up" method in pyramid forecasting entails. Page 12
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forecasting)
The aggregate forecast is calculated by summing the family forecasts.
78
Force down (in pyramid forecasting)
Pyramid forecasting uses a "force-down" method.assigning product families to the overall forecast changes.
79
Aggregating
To combine multiple units into one is to aggregate.
80
Reconciling
A procedure whereby separately produced forecasts of a group of time series that are linearly connected are balanced by adding accounting aggregations that make sense for the data.
True / False Questions (circle or highlight in yellow the appropriate letter)
#
Statement
True
False
1
In regression analysis, the dependent variable could be time.
T
F
2
To make an exponential smoothing forecast more reactive to trends, a lower value of “alpha” should be used. T
F
3
The mean error of a forecast provides information concerning a forecasts
bias. T
F
4
A moving average forecast can be superior to a simple average forecast because the moving average places more emphasis on recent data. T
F
5
In pyramid forecasting, the “roll-up” process involves adding together forecasts of product families or categories to determine an aggregate forecast. T
F
Weeks 5 and 6, Chapter 5 – Sales and Operations Planning Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
81
Volume Volume is related to overall decisions about production rates and how much to make for product families.
82
Mix
Mix focuses on the specific choices of which products to
produce in what order, for which customers, and in what order.
83
Operations Plan
An operation plan is a very detailed document that outlines exactly how a department or team contributes Page 13
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to the achievement of company objectives. It lists the everyday chores necessary to operate a business.
84
Step 1 (in the SOP Process)
Run sales forecast reports
85
Step 2 (in the SOP Process)
Demand planning phase
86
Step 3 (in the SOP Process)
Supply planning phase
87
Step 4 (in the SOP Process)
Pre SOP meeting
88
Step 5 (in the SOP Process)
Executive SOP meeting
89
Chase Strategy
An operational management technique known as the "Chase Strategy" modifies production in response to variations in demand. 90
Level Strategy
A "level strategy" is a production planning and inventory management approach in which an organization, independent of demand fluctuations, sustains a steady and constant production rate over an extended period of time. 91
Mixed Strategy
A combination approach is used to modify production levels in response to shifting demands. Since the optimal production level depends on the level of demand, a mixed approach involves adjusting output levels to satisfy demands.
92
Executive Champion / Sponsor
A senior executive within the company is required to fill
this position. This individual should be able to clear major roadblocks, obtain the required resources, and maintain top management focus on the process.
93
SOP Process Owner
This person must be able to oversee the implementation process and lead the sales and operations planning process, usually in addition to other duties.
94
Pre-SOP Team
Pre-S&OP is a set of meetings with different levels of leadership aimed at demonstrating how plans related to
supply, demand, product, and finance are interconnected. 95
Product Family
Product Families are collections of products with comparable designs, production methods, or materials so that they can be planned collectively. It's critical to remember that S&OP is a planning procedure rather than a scheduling procedure. It is concentrated at the product family level rather than the SKU level.
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True / False Questions (circle or highlight in yellow the appropriate letter)
#
Statement
True
False
1
The Master Production schedule disaggregates the operations plan. T
F
2
The operations plan is a form of demand forecast.
T
F
3
A strategy that maintains a consistent monthly output is called a “chase” strategy.
T
F
4
In a firm that uses a level production strategy even as their sales fluctuate
seasonally, one would expect to see finished goods inventory levels to fluctuate from month to month. T
F
5
If a firm finds that the cost of a chase production strategy is unaffordable,
the only alternative is to pursue a level production strategy. T
F
Weeks 5 and 6, Chapter 5 – S&OP (Part 2 of 2)
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
96
Priority
Relates to the products' required use—what, how much, and when.
97
Rough Cut Capacity Planning
One method for long-term capacity planning is rough-
cut capacity planning (RCCP). The master production schedule (MPS) is validated by RCCP. Making sure businesses don't buy or release too much material is the aim.
98
Question 1 of the Four Basic Planning Questions (hint: see Lecture 8)
What are we going to make?
99
Question 2 of the Four Basic Planning Questions
What does it take to make it?
100
Question 3 of the Four Basic Planning Questions
What do we already have?
101
Question 4 of the Four Basic What do we need to get?
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Planning Questions
102
Question 1 of the three questions we ask when prioritizing demand (hint: see Lecture 8)
What products are needed?
103
Question 2 of the three questions we ask when prioritizing demand
How many are needed?
104
Question 3 of the three questions we ask when prioritizing demand
When these products are needed
105
Production Plan
The result of the production planning process is a production plan, which is a document that outlines how
production processes will be carried out. It details the equipment, raw materials, and labour resources that will be required as well as the production schedule that will be adhered to.
106
Production Activity Control
The material requirements plan and the master production schedule are carried out by production activity control (PAC). 107
Capacity Management
the process of setting, gauging, tracking, and modifying capacity thresholds or levels so as to carry out all manufacturing schedules (such as the master production schedule, production plan, material requirements plan, and dispatch list). 108
Idle Time
The period of time that operators or resources (such as machines) are not producing goods due to the need for setup or maintenance, a shortage of supplies or tools, or a scheduling conflict
109
Planning horizon
The duration of a plan's future implementation. A master schedule is typically designed to account for at least the total lead time as well as time for low-level component lot sizing and capacity changes at primary work centres or important suppliers. 110
Subcontracting
Transferring manufacturing tasks to an external supplier.
111
Medium Range (planning horizon)
Planning for a future that is halfway between short- and
long-term goals, specifically spanning a period of 10 to 25 years. Also referred to as mid-term or middle-term planning.
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112
Buffer
The purpose of buffer is to make sure that, even in the event of unexpected events, your production line stays operational. Maintaining an adequate supply of materials on hand to ensure smooth operations is one instance of a buffer in the manufacturing industry.
113
RCCP*
Rough cut capacity plan
114
Level Production Rate (equation)
Production Rate = (Sales - Open Inventory + End Inventory)/(number of Production Periods)
115
Monthly Projected Ending Inventory (equation)
Inventory
t
= Inventory
t-1 + Planned production
t
– Forecast demand
t
Match the task or activity with the appropriate phase of the SOP Process by placing the task number beside the Process Step. Tasks
SOP Phase
1
The purpose of this meeting involving representatives from the various business
functions is to (a) make decisions regarding the balance of demand and supply, (b) resolve problems where differences in recommendations exist, (c) identify areas that cannot be resolved, (d)
develop alternative courses of action. Run the Sales Forecast Reports
2
This step occurs shortly after the month-
end and involves updating the files with data from the month just ended – actual sales, production, inventories, and so on. This information is disseminated to the appropriate people and forms the basis for sales and marketing people to use in developing sales analysis reports, and changes to sales forecasts. Demand Planning Phase
3
The culminating meeting each month … its purpose is to (a) make decisions on the
sales and operations plan for each product family, (b) authorize spending for
changes in production/procurement rate Supply Planning Phase
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changes, (c) relate the collective impact of the dollarized version of the product grouping sales and operations plans to the overall business plan, (d) break ties in areas where others were unable to reach consensus, and (e) to review customer service and business performance.
4
Information received for new and existing
products is reviewed by sales and marketing and discussed with the view of generating a new management forecast covering the next 12 or more months. Pre-SOP Meeting
5
Here is where the capacity planning activity (resource planning) takes place. The new operations plan for each product
family grouping is compared with any changes made in the sales plan or changes that have occurred in inventory or customer order backlog levels. Executive SOP Meeting
Weeks 7, 8, 9 – Chapter 7 - Master Production Scheduling
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
116
BOM*
Bill of materials
117
Disaggregation
In manufacturing planning and control (MPC), a disaggregation process breaks down a higher-level plan into more specific, lower-level plans and schedules.
118
Planning bill of materials
By classifying product features or options, a planning bill of material helps with material planning and master scheduling. Super bill of material is another name for the planning bill of materials.
119
FAS*
Final assembly schedule
120
Projected Available Balance (equation)
When forecast is not considered
PAB = Previous period PAB + MPS – customer order
When forecast is considered
PAB = Prior period PAB + MPS – greater of customer order or forecast
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121
Time-Phased Record
It is a way to compile and present essential scheduling data, such as the production schedule, available stock, and forecast.
122
Lot size
The quantity of an item ordered for delivery on a particular date or produced in a single production run is
referred to as the lot size. Stated differently, lot size is essentially the total amount of a product that is ordered
for production.
123
Safety stock
An extra quantity of an item kept in inventory to lessen the possibility of a stockout is known as safety stock.
124
Cycle stock
The amount of inventory needed to meet average demand is referred to as cycle stock, also known as working inventory. You must count every item you have
on hand because cycle stock is made up of supplies you use to fill regular sales orders.
125
Rolling schedule
A rolling schedule is a schedule that lists the events, activities, and working hours that are scheduled for a specific time frame. It describes how much time allotted
to designated workers to complete scheduled tasks is available. 126
Feasibility
It is a condition or extent of being completed quickly or easily.
127
Order promising
The delivery date is negotiated when a customer orders
a product but does not anticipate receiving it right away. Usually, the client asks for delivery at a later time,
and the business determines if it can guarantee delivery
by that date.
128
ATP*
Available to promise
129
Discrete ATP logic
The value of ATP in the main schedule serves as the basis for the ATP calculation in this method. For instance, the starting inventory and MPS quantity, less the backlog for all periods until the unit is scheduled again, make up the first period of ATP.
130
Consuming the forecast
Forecast consumption makes the assumption that the predicted quantities will be consumed or reduced by actual sales orders, guaranteeing that sales orders won't be added to the forecast during the planning stage.
131
Time fence (or time fencing)
Time fences are boundaries on a planning horizon that let manufacturers keep MPS items in areas subject to Page 19
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various regulations.
132
Demand fence
The current date and a date within which forecast demand is not taken into account when calculating actual demand are the boundaries of the demand time fence.
133
Planning fence
It designates a time frame during which the MRP run will not automatically modify the plan.
134
Frozen Zone
The time frame known as the "frozen zone" is when changes to the master production schedule are not permitted.
135
Liquid Zone
As long as the MPS remains within the parameters established by the production plan, any modifications may be made.
Fill in the Blanks: 1.
The MPS is a translation of the sales and operations plan into plan for producing specific products with their quantities and timing determined. 2.
Over time, as products are completed and products are used to meet customer requirements, the MPS record must be kept up to date. Doing this means implementing a periodic review and update cycle called “
Plan do check act.” (3 words)
3.
Production Planning deals with families of products, while Master production schedule deals with individual end items. (3 words)
4.
Three main objectives that a planner must keep in mind when developing a Master Production Schedule are: (a) maintain good customer service, (b) make effective use of resources, and (c) Develop effective and efficient system. (5 words). 5.
The Available to Promise feature of MPS is a planning tool that provides visibility to customer service representatives as to what capacity is available to fulfill new customer orders. It reflects the firm’s Planned production and inventory that is not yet committed and is available to meet demand. Weeks 10, 11 – Chapter 8 – Material Requirements Planning (Part 1 of 2)
Definition
Term
Definition (25 words or less). Acronyms are marked with
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Number
an asterisk (*) and only require the words that correspond with the letters.
136
Gross requirements
The total anticipated usage for the part is represented by the gross requirements.
137
Scheduled receipts
Customer orders or open orders with scheduled deliveries at a later time are known as scheduled receipts. With the planned-order receipts (MPS) included in the MRP data, the scheduled receipts assist in determining the orders' net requirement and prevent
negative order supply.
138
Planned order releases
The procedure wherein the order is only scheduled and not delivered is known as planned order release. It is constantly changing to meet demand. It is referred to as
a projected future receipt based on a scheduled order.
139
Time bucket
The time bucket in a time series is the interval of time between consecutive demand values; it can be hourly, daily, weekly, monthly, quarterly, or annually.
140
Net requirement
It is determined by calculating the MRP's Calculating Net Requirements and refers to the quantity that needs
actual logistics after allocating the necessary quantity of
item to inventory and released orders.
141
Action bucket
Current period often called action bucket – action should be taken to avoid a future problems
142
Explosion
The procedure for converting product specifications into requirements for component parts
143
Product structure diagram
The product structure is a hierarchical diagram that displays the material, subassemblies, component parts, and other items. 144
Indented bill of materials
A multi-level bill of materials, also called an indented bill of materials, is a bill of materials that lists the components of the product along with their respective subassemblies. Producers who also assemble the subassemblies into their products use indented BOMs.
145
Precedent Relationships
the sequence that components need to be put together
146
Front schedule logic
Plan ahead and assign a time slot to each task as soon as feasible.
147
Back schedule logic
Plan every step for the latest possible time.
148
Lot-for-Lot
A technique known as "lot for lot MRP" orders or produces precisely how much of each item is required Page 21
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to meet demand for each period. This indicates that the
inventory level is reduced and there is neither an excess
of inventory nor a shortage of materials.
149
Regeneration
Regeneration is the process of processing frequency and recalculating all records and requirements; because
it requires a lot of computing power, it is frequently carried out in the background and during times when system demand is low.
150
Safety Lead Time
To allow for error, the safety lead time modifies the release and due dates of purchase orders and/or shop orders. Fill in the Blanks (MRP): 1.
Three major inputs to the Material Requirements Plan include: quantities and timing to produce end items from the Master Production Schedule (3 words), inventory records for all items to be planned, and Bills of Material for MPS items. 2.
As a general rule, demand for finished goods or end items may be classified as independent and
is frequently forecasted. Demand for components, raw materials and subassemblies needed to manufacture or assemble finished goods is considered to be Dependent demand and this type of demand should be calculated rather than forecasted. 3.
APICS / ASCM defines the Bill of Materials (BOM) (3 words) as “a listing of all the subassemblies, intermediates, parts, and raw materials that go into making the parent assembly showing the quantities of each required to make an assembly.” 4.
Gross to net explosion shows how much of each part is required, but not when. Timing requires consideration of two factors: lead times (how long does it take to obtain the component or sub-
assembly) and precedent relationship (the order in which parts must be assembled.). (2 words)
5.
Effective use of an MRP system allows development of a forward-looking approach to managing material requirements (2 words). True / False Questions – MRP - (circle or highlight in yellow the appropriate letter)
#
Statement
True
False
1
The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.
T
F
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2
By convention, the top level in a product structure is designated level 1.
T
F
3
Front scheduling logic starts each step of the process as late as possible. T
F
4
A lot-for-lot order policy generates orders for fixed quantities, perhaps in multiples of dozens or hundreds, meaning that the actual calculated requirements may be rounded up or down to the fixed quantity.
T
F
5
Using safety lead times in MRP involves inflating the lead times to ensure stock availability.
T
F
Weeks 10, 11 – Chapter 8 – Material Requirements Planning (Part 2 of 2)
Definition
Number
Term
Definition (25 words or less). Acronyms are marked with
an asterisk (*) and only require the words that correspond with the letters.
151
Low-level coding
lowest level on which a part resides on the Bill of Materials
152
Pegging
Pegging establishes a connection between the gross requirements for parts and demand (order releases, customer orders, etc.).
A gross requirement's specific part numbers are included in rigging records.
153
Where-used data
A pegging report is the same as a where-used report.Whereas a pegging report lists all the parents for
a component, a where-used report lists every component that is assembled. Only parents for whom there is a current requirement are displayed in a where-
used report.
154
FPO*
firm planned order
155
MRP Planners
Planning for Material Requirements, or MRP Planners are essential to the efficient operation of an organization's MRP system. 156
Order launching
It is the phrase that describes the purchasing or production processes.
157
Allocation
the grouping of materials or item counts that are allocated to particular orders but have not yet been released from the stockroom for manufacturing. This stockroom request is "uncashed."
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158
Routing (or “routing file”) (hint: see APICS dictionary)
Routing is a product of manufacturing documentation. It enumerates the steps of the production process in the order that the product is manufactured. The main objective of routing is to give schedulers a basis for allocating production resources' capacity, such as machines (workstations).
159
Exception codes
signals produced by the computer signalling planner that require action.
160
Bottom-up Replanning
Solving material shortages by using pegging data as a guide by tying data to orders, the planner can take action only when real customer orders are at risk.
161
End item (hint: see APICS dictionary)
The term "end item" refers to the finished, assembled product that is prepared for distribution, delivery, or deployment.
162
Component (hint: see APICS dictionary)
163
Engineering change (hint: see APICS dictionary)
164
Lead time
Lead times: the amount of time it takes to receive an assembly or component.
165
Lead time offsetting
Enterprise Planning determines the date on which a planned order must be released based on the lead-time components that make up the total lead time of the order and which differ based on the type of order source (production, distribution, or purchase). We refer to this procedure as lead-time offsetting.
Multiple Choice Questions – MRP – Circle or highlight the letter corresponding to the best answer.
1.
According to the textbook, MRP belongs in this phase of the MPC System: a)
The engine
b)
The front end
c)
The back end
d)
Production Activity Control
e)
The pointy end
2.
Effective use of MRP and other dependent demand models does not
require which of the
following?
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a)
master production schedule
b)
bill of materials
c)
inventory availability
d)
cost of individual components
e)
MRP does not require any
of the above. 3.
What is one of the tools that is particularly useful in reducing system nervousness in an MRP
system?
a)
Modular bills
b)
Time phasing c)
Time fences
d)
Lot Sizing
e)
Cannabis
4.
The process of translating product requirements into component requirements, taking existing inventories and scheduled receipts into account, is called:
a)
Pegging
b)
Master Scheduling
c)
Explosion
d)
Regeneration
e)
Implosion
5.
The process including precedence relationships and manufacturing / procurement lead times
into the MRP logic is called:
a)
Netting
b)
Lead time offsetting
c)
Explosion
d)
Extrusion
e)
Sub-assembling
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