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Flashcards in materials management Deck (11)
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1

definition

the planning, organising and controlling of a businesses supplies. aim is to ensure the business has the right type of materials in the right quantities at the right time to help the operations run smoothly, efficiently and effectively = improved business competitiveness

2

forecasting definition

uses factors such as historical data and seasonal fluctuations to try and predict demand for businesses products or service. forecasting allows a business to prepare to meet demand. can be done by looking at past trends, business info eg marketing and market trends

3

forecasting positives and negatives

- avoids underproduction and business can order supplies ahead of time
- doesnt have to wait for orders before producing to meet demand
- failure to use can lead to customer dissatisfaction and loss of competitive advantage = proactive rather than reactive
negatives:
- not always accurate eg overstocked and waste or understocked and under pressure

4

master production schedule definition

an mps is a detailed outline of what is to be produced in what time and when it is going to be produced. it breaks the production plan into:
-quanity and type of each product or service
- how where and when it is going to be produced
- labour requirements

5

MPS positives and negatives

positives:
- allows business to plan their inputs so they have enough resources
- can meet customer demand
- money is not tied up in idle stock
negatives:
- relies on forecasting which isnt always accurate

6

Master requirements plan definition

determines the types and quantities of materials that will need to be supplied in order to meet the requirements of the master production schedule. it includes employees, materials, time and stock on hand as well as supplier lead time

7

MRP pos and neg

pos:
- available as required while not being overstocked leading to less storage costs, deterioration and money tied up in idle stock
neg :
- relies on mps and forecasting

8

inventory management definition

is the storage of raw materials and component parts, unfinished production, finished goods ready for production, inventory takes up space and is expensive

9

inventory management aim

aim is to ensure correct quantity of parts and materials are available for the operations system to keep running an ensuring there are enough finished products to satisfy the demand. its the balance between costs and storage

10

just in time definition

is a strategy that ensures the right amount of materials arrive just as they are needed in the production process.
small quantities of inputs but delivered more frequently
inventory replaced as it is used
employee participation required to identify wasteful practices and continually eliminate them
good relationships with suppliers

11

just in time pos and neg

pos:
- reduces storage costs and idle stock costs
- reduces damaged lost and stolen goods
- expands production space
- less waste and improved competitive advantage
neg:
- has to have strong relo with suppliers
- no control over issues at suppliers which could cause halt or slow of production
- allows less time for qual checks on supplies that come in