chapter 14 Flashcards

1
Q

whats an Independant Demand?

A

a finished good

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2
Q

what are Dependant Demands?

A

raw materials, component parts, sub-assemblies

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3
Q

what is the definition of BOM?

A

a listing of all the assemblies, sub assemblies, intermediates, parts and raw materials that go into a parent assembly, showing the quantites and relationships required to make the assembly

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4
Q

what is the use of Bill of Materials in SAP?

A
  • calculate order quantities (purchase orders, production orders), for all the components and sub assemblies of the BOM
  • calculate scheduling of orders of components and sub assemblies
  • product costing
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5
Q

what does a Work Centre consist of?

A

machine or machine groups, production line, assembly line, employee or group of employees

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6
Q

what is the Work Center used for?

A
  • capacity available : number of shifts, hours/day
  • scheduling of jobs/tasks
  • costing of jobs/tasks
    • each machine has a diff rate/hour
    • each work centre is assigned to a cost centre
  • maintaence planning
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7
Q

what can MRP is Services be used for?

A

can be used when demand for service or service items is directly related to or derived from demand for other services

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8
Q

what are some examples of MRP in Services?

A
  • airlines (flight Toronto to Tokyo-b breakfast, dinner, gas, drinks, pilots, flight attendance, other)
  • restaurant - food items required for each meal
  • hospitals- implement for surgery
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9
Q

what are thr two main principles of Enterprise Resource Planning?

A
  1. manages COMPANY WIDE business operations in a highly INTEGRATED fashion
  2. uses a COMMON DATA-BASE and shared managment reporting tools
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10
Q

what are the three Manufacturing Roots of ERP?

A
  1. Materials Requirements (only material) Planning - MRP 1
  2. Manufacturing Resource (only manufacturing - material, labour, machines) Planning - MRP 2
  3. Enterprise (manufacturing, finance, marketing, HR) Resource Planning - ERP
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11
Q

what is a well known ERP software called?

A

its called SAP

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12
Q

what is SAP?

A

it is a standard software, which could age changed (configured), to some extent, to fit different companies in different industries in different countries (languages, currencies)

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13
Q

what happens when SAP is implemented in a company?

A

it replaces most of the many existing software packages. but sometimes, 1-2 very unique software packages should be linked to SAP

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14
Q

what industries is SAP used in?

A

engineering, electronics, food, pharmaceuticals, furniture, chemical, retail, schools and universities, hospitals

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15
Q

what are the Advantages to ERP systems?

A
  • replacing many isolated and different types of software
  • integration of all business departments and immediate update of information
  • one entry of data and data accuracy
  • save time
  • save money
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16
Q

what are the Disadvantages of ERP?

A
  • expensive and complex
  • take long time to implement
  • resistance by employees
  • high risk of implementation failure