GSCM Chapter 6

Reasons for implementation failure:

- Lack of adequate resources - Lack of employee training - Lack of proper communication - Lack of top management support - Incompatible system environment

Advantages of ERP:

- Single database eliminated duplicate data entry - Real-time information helps smooth operations - Helps to meet customer demand at lower costs

Disadvantages of ERP:

- Substantial time and capital investment needed - Very complex system to implement and use - Companies may not adapt to a new system

Master Production Schedule

MEDIUM RANGE usually spans six to twelve months; shows quantity and timing of end items to be produced; done on a weekly basis

This shows quantity and timing of end items to be produced and usually done on a weekly basis

Master Production Schedule

To check the feasibility of the Master Production Schedule, one would look to:

Rough-Cut Capacity Plan

Materials Requirements Planning

SHORT RANGE covers a few days to a few weeks; detailed planning process for components and parts to support the master production schedule

Organizations that choose to implement an ERP system with all of the desired applications from a single vendor is said to have chosen a(n):

Single integrator solution

A Mixed Production Strategy uses a blend of chase and level strategies by striving to maintain a stable core workforce while using other means like temporary workers to manage short-term high demand

True

An ERP system is generally a multi-module application software for managing an enterprise's internal functional activities, as well as its external suppliers and customers

True

Two reasons ERP implementations have been known to fail include: lack of employee training on the new ERP system and lack of adequate resources to support these complex and time consuming implementations

True

Main challenges in the supply chain:

Variable demand & variable lead time

Which of the following is a Long Range Production Plan: a. Aggregate Production Plan b. Master Production Schedule c. Materials Requirements Plan d. Capacity Requirements Plan

a. Aggregate Production Plan

Chase Production Strategy

adjusts capacity to match the demand hiring costs & layoff costs are major concerns

Which strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern? a. Mixed Production Strategy b. Level Production Strategy c. Chase Production Strategy d. Aggregate Production Strategy

b. Level Production Strategy

Which of the following is considered an advantage/benefit of utilizing an ERP system? a. Fairly inexpensive to purchase and implement b. Single database eliminates duplicate data entry c. Usually it is not complex and easy to implement d. All of the above are advantages of ERP system

b. Single database eliminates duplicate data entry

Which of the following results from using the chase production strategy? a. Workforce fluctuates in response to demand b. Finished goods inventories remain constant c. Both A & B d. None of these

c. Both A & B

Resource Requirement Planning

long-range used to check the feasibility of the aggregate production plan

Mixed Production Strategy

maintains stable core workforce while using other short-term means, such as overtime, part-time workers, and subcontracting overtime costs and hiring costs are major concerns

Rough-Cut Capacity Plan

medium-range used to check the feasibility of the master production schedule

Enterprise Resource Planning System

multi-module application software for managing an enterprise's internal functional activities, as well as external suppliers and customers shares common database, allows coordination, provides real-time information

Level Production Strategy

relies on constant output rate while varying the inventory and backlog according to fluctuating demand holding costs & stockout costs are major concerns

Capacity Requirement Planning

short-range used to check the feasibility of the material requirements plan

According to the text, a firm should always run its operations at 100 percent capacity to ensure changes affecting demand can be met

False

According to the text, holding costs and stockout costs are the major cost concerns for Chase Production Strategy

False

Materials Requirements Planning (MRP) is a production planning system intended to develop long-range plans (more than a year away)

False

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the outsourcing production strategy

False

Aggregate Production Planning

LONG RANGE usually covers a year or more, and may involve capacity expansion, major equipment purchases, etc; done on a monthly basis