3.5 - materials management

Question 1

what are the four activities in material management

Answer 1

forecasting, master production schedule, materials requirement planning and just in time.

Question 2

what is forecasting

Answer 2

is where the operations manager uses past data to determine future production levels and must organise for materials to be available for production based on predictions about market needs or consumer behaviour.

Question 3

what is master production schedule

Answer 3

A computer software program that details what is to be produced and when. It is usually developed to provide information on production targets that can be broken down to weekly, monthly, 6monthly and 12 months. It includes a list of specific products and quantities to be produced, materials required (using MRP), staffing and sub-contractor requirements.

Question 4

what is materials requirement planning

Answer 4

developing an itemised list of all materials
involved in production to meet the specified orders. It involves a computer
program calculating the exact materials and components needed for a batch
of production to occur and can send orders directly to suppliers.

Question 5

what is just in time

Answer 5

minimising storage of raw materials and double handling and reducing the chance of obsolescence by making the inputs available at correct time and correct quantity for production to occur.

Question 6

advantages and disadvantages of forecasting

Answer 6

One advantage is improves the ability of the operations manager to order the correct quantity of raw materials using data or predictions. Another advantage is that it reduces the need for storage of raw materials if predictions are accurate therefore reducing costs, as correct materials requirements are effectively communicated to suppliers.

One disadvantage is if the production plans or orders are not accurate or change, raw-materials may not be available when needed for production resulting in lower productivity. Another disadvantage is that if the supplier increases their prices, it can be difficult for the business to easily source a replacement supplier

Question 7

advantages and disadvantages of master production schedule

Answer 7

One advantage is improves the ability of the operations manager to order the exact correct quantity of raw materials using computer software for production to occur. Another advantage is that it reduces the need for storage of raw materials as exact materials requirements are effectively communicated to suppliers using computer software.

One disadvantage is if the production plans are not accurate, raw-materials may not be available when needed for production resulting in lower productivity. Another disadvantage is that if the supplier increases their prices, it can be difficult for the business to easily source a replacement supplier

Question 8

advantages and disadvantages of materials requirement planning

Answer 8

One advantage is improves the ability of the operations manager to order the correct quantity of raw materials using computer software for production to occur. Another advantage is that it reduces the need for storage of raw materials therefore reducing costs, as exact materials requirements are effectively communicated to suppliers using computer software.

One disadvantage is if the production plans are not accurate, raw-materials may not be available when needed for production resulting in lower productivity. Another disadvantage is that if the supplier increases their prices, it can be difficult for the business to easily source a replacement supplier

Question 9

advantages and disadvantages of just in time

Answer 9

One advantage is improves the ability of the operations manager to order the correct quantity of raw materials in smaller batches to eliminate the need of storage. Another advantage is that it reduces the chance of damage to inventory or obsolescence of raw materials, due to the accuracy of orders that are used in production therefore reducing disposal costs.

One disadvantage is if the production plans are not accurate, raw-materials may not be available when needed for production resulting in lower productivity. Another disadvantage is that if the supplier increases their prices, it can be difficult for the business to easily source a replacement supplier