3.7 materials managment

Question 1

n

Define materials management

Answer 1

The strategy that managers use to plan, organize and control the use of storage and delivery of materials to ensure the right amount of inputs is available in the operations system.

Question 2

Define inventory

Answer 2

goods and materials held as stock by the business

Question 3

Define materials handling

Answer 3

the physical handling of goods in warehouses and at distribution points

n

Question 4

Define forecasting and list some strengths and limitations

Answer 4

forecasting is a materials planning tool that relies on data from the past and present and the analysis of trends to attempt to determine future events.

pros
-ensures a business does not overproduce
-ensures a business does not underproduce

cons
-Making use of historical data does not guarantee that past events will continue in the future. And it is always possible that unforeseen or unexpected events will occur.
-Forecasting to some degree will always be inaccurate, this strategy is a guestimate

Question 5

Production plan

Answer 5

production plan is an outline of the activities undertaken to combine resources (inputs) to create good and services (outputs)

Question 6

Define the master production schedule

Answer 6

MPS: is a plan or manual that describes what is to be produced, in what quantities, how and when.

Question 7

define materials requirement planning

Answer 7

involves developing an itemized list of all materials involved in production to meet specific orders

Question 8

list the strengths and weaknesses of MRP and MPS

Answer 8

pros
-Both strategies allow a business to avoid overproducing (which is likely to result in an excess inventory of finished products) or underproducing (which is likely to result in shortages) — too much inventory can represent a cost to a business, whereas not enough inventory can prevent a business from continuing production.
-By completing a master production schedule, an operations manager will be able to predict the future needs of the business and determine the materials required.
-Both MPS and MRP can be used by a business to make adjustments to production in response to fluctuations in demand.

Cons
Both strategies rely on accurate information — if incorrect information is used, it is likely that errors will occur in the materials planning process.

The cost of implementing both strategies can be inhibitive for many businesses — software and other resources may need to be purchased to facilitate each strategy, and training may also be required.

While MPS and MRP can both provide a business with flexibility, the use of each strategy may potentially have the opposite effect — using MPS and/or MRP may result in a business not being able to adapt quickly enough to any changes or problems because all materials needs are tied in to a production schedule.

Once materials are ordered and employees are scheduled to work, it can be difficult to interrupt the process and make changes.

Question 9

define inventory control

Answer 9

ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required

Question 10

define just in time