62 terms

OM Final Exam: Ch. 14, 15, & 16

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material requirements planning
A dependent demand technique that uses a BOM, inventory, expected receipts, and a master production schedule to determine material requirements
master production schedule
a timetable that specifies what is to be made and when
bill of material
a listing of the components, their description, and the quantity of each required to make one unit of a product
modular bills
bills of material organized by major subassemblies or by product options
planning bills
material grouping created to assign an artificial parent to the bill of material; also called "pseudo" bills
phantom bills of material
bills of material for components, usually subassemblies, that exist only temporarily and are never inventoried
low level coding
a number that identifies items at the lowest level at which they occur
lead time
in purchasing systems, the time between recognition of the need for an order and recieving it; in production systems, it is the order, wait, move, queue, setup, and run times for each component
gross material requirements plan
a schedule that shows the total demand for an item (prior to subtraction of on-hand inventory and scheduled receipts) and (1) when it must be ordered from suppliers, or (2) when production must be started to meet its demand by a particular date
net material requirements
the result of adjusting gross requirements for inventory on hand and scheduled receipts
planned order receipt
the quantity planned to be received at a future date
planned order release
the scheduled date for an order to be released
system nervousness
frequent changes in an MRP system
time fences
a means for allowing a segment of the master schedule to be designated as "not to be rescheduled"
pegging
in material requirements planning systems, tracing upward the bill of material from the component to the parent item
buckets
time units in a material requirements planning system
bucketless system
time-phased data are referenced using dated records rather than defined time periods, or buckets
back flush
a system to reduce inventory balances by deducting everything in the bill of material on completion of the unit
supermarket
an inventory area that holds common items that are replenished by a kanban system
lot sizing decision
the process of, or techniques used in, determining lot size
lot for lot
a lot-sizing technique that generates exactly what is required to meet the plan
part period balancing
inventory ordering technique that balances setup and holding costs by changing the lot size to reflect requirements of the next lot size in the future
economic part period
period of time when the ratio of setup cost to holding cost is equal
wagner whitin procedure
a technique for lot-size computation that assumes a finite time horizon beyond which there are no additional net requirements to arrive at an ordering strategy
material requirements planning II
a system that allows, with MRP in place, inventory data to be augmented by other resource variables; in this case, MRP becomes material resource planning
closed loop mrp system
a system that provides feedback to the capacity plan, master production schedule, and production plan so planning and expected orders
load report
a report for showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders
distribution resource planning
a time-phased stock-replenishment plan for all levels of a distribution network
enterprise resource planning
an information system or identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders
efficient consumer response
supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production
forward scheduling
scheduling that begins the schedule as soon as the requirements are known
backward scheduling
scheduling that begins with the due date and schedules the final operation first and the other job steps in reverse order
loading
the assigning of jobs to work or processing centers
input output control
a system that allows operations personnel to manage facility work flows by tracking work added to a work center and its work completed
conWIP cards
cards that control the amount of work in a work center, aiding input-output control
gantt charts
planning charts used to schedule resources and allocate time
assignment method
a special class of linear programming models that involves assigning tasks or jobs to resources
sequencing
determining the order in which jobs should be done at each work center
priority rules
rules used to determine sequence of jobs in process-oriented facilities
first come, first served
jobs are completed in the order they arrived
shortest processing time
jobs with the shortest processing times are assigned first
earliest due date
earliest due date jobs are performed first
longest processing time
jobs with the longest processing time are completed first
critical ratio
a sequencing rule that is an index number computed by dividing the time remaining until due date by the work time remaining
johnsons rule
an approach that minimizes processing time for sequencing a group of jobs through two work centers while minimizing total idle time in the work centers
finite capacity scheduling
computerized short term scheduling that overcomes the disadvantage of rule based systems by providing the user with graphical interactive computing
level material use
the use of frequent, high-quality, small lot sizes that contribute to just-in-time production
just in time
continuous and forced problem solving via a focus on throughput and reduced inventory
toyota production system
focus on continuous improvement, respect for people, and standard work practices
lean operations
eliminates waste through a focus on exactly what the customer wants
seven wastes
overproduction, queues, transportation, inventory, motion, overprocessing, defective product
5Ss
a lean production checklist: sort, simplify, shine, standardize, sustain
variability
any deviation from the optimum process that delivers perfect product on time, every time
throughput
the time required to move orders through the production process, from receipt to delivery
manufacturing cycle time
the time between the arrival of raw materials and the shipping of finished products
pull system
a concept that results in material being produced only when requested and moved to where it is needed just as it is needed
jit partnerships
partnerships of suppliers and purchasers that remove waste and drive down costs for mutual benefits
consignment inventory
An arrangement in which the supplier maintains title to the inventory until it is used
just in time inventory
the minimum inventory necessary to keep a perfect system running
level schedules
scheduling products so that each day's production meets the demand for that day
kanban
a Japanese word meaning "card", which has come to mean "signal'; a system that moves parts through production via a "pull" from a signal
kaizen
a focus on continuous improvement
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