Final Study Flashcards by Eric Byram

What are the 6 functions of inventory?

1) To wait while in transit
2) Protect stockouts
3) Quantity discounts
4) Smooth production
5) Decouple operations
6) Hedge price increases

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What is the objective of Inventory control?

Good customer service with minimal inventory costs

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What is the ABC classification system and what is it for?

Allocating importance to certain inventory (A most important)

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What is EOQ?

Economic Order Quantity: order size that minimizes inventory cost

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What are the 7 assumptions of the EOQ model?

1) One product
2) Demand req. known
3) Even demand
4) Lead time constant
5) Each order in 1 delivery
6) No quantity discounts
7) Shortage not allowed

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What is sales and operations planning?

Integrating sales forecasts with operations plans

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What is master production scheduling?

Relating inputs with forecasted output

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What are the two factors to consider when choosing an aggregate strategy?

Company policy

Costs

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What are the 4 steps in the aggregate planning procedure?

1) Determine groups to be aggregated
2) Demand forecast
3) Labour feasibility
4) Find TC of plan

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What are the 3 parts of aggregate operations planning?

1) Employment
2) Output
3) Inventories

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What is the term length of aggregate operations planning?

Intermediate

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What is Material Requirements Planning (MRP)?

Determines plans for purchasing and production of dependent-demand components

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What are 3 MRP inputs?

1) Master Schedule
2) Bill of Materials
3) Inventory Records

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What is enterprise resource planning (ERP)?

Tech to integrate information sharing and keeping across an org.

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What is independent demand?

Finished goods, uncertain

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What is dependent demand?

Raw materials, parts, certain

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What are the 7 types of waste?

1) Inventory
2) Overproduction
3) Waiting time
4) Excess transportation
5) Processing waste
6) Inefficient work methods
7) Defects

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What does JIT and lean production mean?

JIT: goods arrive and services are performed just as they are needed

Lean production: “big JIT”, less waste

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What is the ultimate goal of JIT?

A balanced, smooth, rapid flow

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What are the 4 secondary goals of JIT?

1) Eliminate disruptions
2) Flexible system
3) Eliminate waste
4) Kaizen (continuous improvement)

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What are 3 benefits of small lot sizes and what is the ideal lot size?

1) Less WIP
2) Less rework and inspection
3) More flexibility

Ideal size: 1

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What is pokayoke?

A system that helps an equipment operator avoid mistakes

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What are the 5 needs for Supply chain management?

1) Increasing competition
2) Increasing outsourcing
3) Increasing globalization
4) Increasing e-commerce
5) Managing orders

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What is the bullwhip effect?

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Many parts to the supply chain with small variations in each causing large variations overall

What is cross-docking?

Avoiding warehouse storage and incoming supplies are loaded onto outbound trucks

What is CPFR in Supply chain mgmt?

Collaborative Planning, Forecasting, and Replenishment

What are 4 supply chain performance metrics?

1) Cost 2) Variety/flexibility 3) Delivery 4) Customer service

What is quality?

Consistently meet or exceed customer expectations

What are 7 dimensions of quality for a good?

1) Performance 2) Aesthetics 3) Special features 4) Conformance 5) Reliability 6) Durability 7) Serviceability

What is TQM?

Involves the whole organization in an effort to improve quality

What are 7 dimensions of quality for a service?

1) Tangibles 2) Convenience 3) Reliability/consistency 4) Responsiveness 5) Time 6) Assurance 7) Courtesy

Compare internal and external failure costs

Internal: defects fixed during production External: Defects fixed after delivery

What are the 5 steps in TQM?

1) Figure out the customer wants 2) Design product to fit that want 3) Design processes to facilitate 4) Monitor results 5) Extends concepts to suppliers

How many defects does six sigma allow and what does DCAIM stand for?

3.4 defects per million ``` D: Define C: Control A: Analyze I: Improve M: Measure ```

What are the 7 basic quality tools and their primary use (where applicable)?

Cause-and-effect: Flow-charts: Check sheets: Histograms: frequency distribution Pareto Charts: highest to lowest frequency (80/20) Scatter diagrams: degree and direction of relationship Control charts: upper and lower limit

What are the 7 basic quality tools and their primary use (where applicable)?

What is the purpose and elements of stat process control?

Find if the process is operating within acceptable limits and distinguish b/n assignable and random variation 1) Inspection before and after 2) Corrective action 3) Quality built into the process

What is the purpose of a control chart?

To monitor process output and find random or assignable variation (2 or 3 SDs)

What is a type 1 error?

Concluding that a process has changed when it has not

What is a type 2 error?

Concluding process is in control when it's not

What is acceptance sampling?

Accept or reject a product

What are the 5 steps in designing a control chart?

1) Pick sample size 2) Obtain samples 3) Establish and graph control limits 4) Plot on control chart 5) Find outliers

What are the 2 decisions inventory analysts make to optimize service and reduce cost?

Timing and size of orders

What is ATP inventory?

Available-to-promise, uncommitted planned inventory

What is yield management?

Allocating capacity based on capacity available

What are 3 ways to alter capacity?

1) Overtime 2) Layoffs 3) Inventories

What is MRP II?

An expanded MRP which is closed-loop and involves the whole production planning process

What is lumpy demand?

Demand for dependant items that are only demanded when parent item in being produced

What are the 3 objectives of concurrent engineering?

1) Increased communications among functions 2) Reducing need for changes 3) Speed up product design

What is the purpose of a quick response system?

Create JIT replenishment

What are appraisal costs?

Cost of inspectors, testing, test equipment, labs

What was Deming's focus?

Management's systems are responsible for poor quality not employees

What was Juran's focus?

Quality trilogy: planning, control, improvement

What was Crosby's focus?

Quality is free, any level of defects is too high

What is item fill rate?

Rate at which order is met Ex: 300 of 500 units have arrived = 0.6 item fill rate

What is supply chain visibility?

Members can connect to other parts of SC for data

What 3 zones are Master production schedules divided into?

Emergency, trading, planning

What is a kanban card used for?

Signalling that work is needed from a preceding station

Final Study Flashcards

(58 cards)