test 3

Question 1

7 types of layouts

Answer 1

Office Layout 
Retail Layout 
Warehouse Layout 
Fixed position Layout 
Process oriented Layout 
Work cell Layout 
Product-oriented Layout

Question 2

Office Warehouse and Retail Layout

Answer 2

Office - Positions workers, their equipment, and spaces/offices to provide for movement of information
Retail - Allocates display space and responds to customer behavior
Warehouse - Addresses trade-offs between space and material handling

Question 3

Fixed Position and process oriented Layout

Answer 3

Fixed Position Layout - Addresses the layout requirements of large, bulky projects such as ships and buildings
Process oriented Layout - Deals with low-volume, high-variety production (also called job shop or intermittent production)

Question 4

Work cell and product oriented Layout

Answer 4

Work cell layout - Arranges machinery and equipment to focus on production of a single product or group of related products
Product Oriented Layout -seeks the best personnel and machine utilizations in repetitive or continuous production

Question 5

Takt Time

Answer 5

Total work time available / Units required to satisfy customers

Question 6

Takt time number of operaters required

Answer 6

Workers required = Total operation time/Takt time

Question 7

What is assembly line balancing?

Answer 7

Objective is to minimize the imbalance between machines or personnel while meeting required output

Question 8

Cycle time assembly line balancing

Answer 8

Production time available per day/Units required per day

Question 9

4 functions of inventory

Answer 9

1. separate various parts of production process
2. To provide a stock of goods that provides selections from customers
3. Take advantage of quanitity discounts
4. Hedge against inflation

Question 10

4 types of inventory

Answer 10

1. raw material
2. Work in process
3. Maintenance/repair
4. finished goods

Question 11

ABC analysis

Answer 11

Class A - high dollar volume
Class B - medium dollar volume
Class C - low annual dollar volume

Question 12

Cycle counting

Answer 12

Items are counted and records update on a periodic basis (A every 20 days, B every 60 days, C every 120 days)

Question 13

2 types of demand

Answer 13

Independent and Dependent:
Independent: demand is entirely independent from other products
Dependent: demand is based on the demand from other products

Question 14

3 models for independent demand

Answer 14

1. Basic economic order quantity
2. Production order quantity
3. Quantity discount model

Question 15

What does the recorder point do?

Answer 15

It tells when to order    
step 1. d= Demand / Number of working days 
step 2 (d x Lead time)

Question 16

Single order model

Answer 16

Used when units have little or no value at the end of the period.

Cost of shortage/Cost of shortage+cost of overage

Question 17

Production order quantity model

Answer 17

Used when units are ordered and sold simultaneously or when inventory builds up after a period of time after an order is placed

Question 18

Sales and Operations planning

Answer 18

It is the coordination of demand forecasts with functional areas and supply chain.

Usually done in cross functional teams and determines which plans are feasible

Provides warning when resources do not match expectations

Question 19

S&OP requirements

Answer 19

• A logical unit for measuring sales
• A forecast of demand for a reasonable intermediate planning period in aggregate terms
• A method to determine the relevant costs
• A model that combines forecasts and costs so scheduling decisions can be made

Question 20

Aggreate planning objective:

Answer 20

meet forecast demand while minimizing cost over the planning period

Question 21

Aggreate planning

Answer 21

It is a part of a larger production planning process

Question 22

5 aggregate capacity options

Answer 22

1. Changing inventory levels
2. Vary workforce size (hires and layoffs)
3. Varying production rates through overtime or idle time
4. Subcontracting
5. Using part time workers

Question 23

Aggregate demand options (3)

Answer 23

1. Influencing demand
2. back ordering during high demand times
3. Counter seasonal product and service mixing

Question 24

Aggregate mixed stratagies

Answer 24

Chase strategy and level strategy

Question 25

Graphical method

Answer 25

Easy to understand and use Trial-and-error approaches that do not guarantee an optimal solution Require only limited computation

Question 26

What is Revenue management?

Answer 26

Allocating resources to customers at prices that will maximize revenue

Question 27

Chase strategy

Answer 27

- Match output rates to demand forecast for each period - Vary workforce levels or vary production rate - Favored by many service organizations

Question 28

Level strategy

Answer 28

- Daily production is uniform - Use inventory or idle time as buffer - Stable production leads to better quality and productivity

Question 29

Benefits of MRP (Materials required Planning) (4)

Answer 29

- Better response to customer orders - Faster response to market changes - Improved utilization of facilities and labor - Reduced inventory levels

Question 30

requirements of dependent demand inventory

Answer 30

``` Master production schedule Specifications or bill of material Inventory availability Purchase orders outstanding Lead times ```

Question 31

Master production schedule

Answer 31

- What is to be made and when - Inputs from financial plans, customer demand, engineering, labor availability, inventory fluctuations, supplier performance - Must be in accordance with the aggregate production plan

Question 32

Bill of Material

Answer 32

Lists components, ingredients and materials needed to make a product

Question 33

Accurate inventory records

Answer 33

These are entirely necessary for MRP to operate correctly. They require more than 99% accuracy.

Question 34

Purchase orders outstanding

Answer 34

Outstanding purchase orders must accurately reflect quantities and scheduled receipts

Question 35

gross requirement plan / net requirement plan

Answer 35

This involves determining when an order should be made. Net requirement plan takes into account how many products are already on hand

Question 36

Lot sizing techniques? (3)

Answer 36

1. Lot for lot 2. Economic order quantity 3. Periodic order quantity

Question 37

Lot for lot

Answer 37

orders just what is required for production based on net requirements. May not always be feasible, if setup costs are high lot for lot can be expensive (Lowest holding costs)

Question 38

Economic order quantity lot sizing

Answer 38

expects a known constant demand | Often deal with unknown and variable demand

Question 39

Periodic order quantity

Answer 39

orders quantity needed for a predetermined time period

Question 40

7 wastes

Answer 40

``` Overproduciton Queues Transportation Inventory Motion Overprocessing Defective Products ```

Question 41

Variability

Answer 41

Less variability results in less waste. Lean systems remove variability

Question 42

Sources of variability

Answer 42

- Incomplete or inaccurate drawings or specifications - Poor production processes resulting in incorrect quantities, late, or non-conforming units - Unknown customer demands - Inadequate maintenance

Question 43

Kanban

Answer 43

The card is an authorization for the next container of material to be produced

Question 44

Advantages of Kanban

Answer 44

- Allow only limited amount of faulty or delayed material - Problems are immediately evident - Puts downward pressure on bad aspects of inventory - Standardized containers reduce weight, disposal costs, wasted space, and labor