SECTION C QUIZ

With a holiday season fast approaching, a factory's capacity is deemed insufficient to meet the orders placed by a highly-valued customer. The orders cannot be changed, nor can the load be rebalanced. Which of the following strategies could the manufacturer use to fulfill the orders and meet deadlines? A) Scheduling more overtime B) Hire part-time workers C) Hire subcontractors A B C All of the above

A) Scheduling more overtime If the required capacity or load exceeds the available capacity for any critical resource, the master planner can either find ways to increase capacity or revise plans. If there is available capacity in other periods, the load might be rebalanced. Possible solutions include scheduling overtime, hiring part-time workers to pick up slack, subcontracting. If these are not economical, then the master planner will need to negotiate with sales and marketing to shift demand. For more information, refer to Module 1, Section C, Topic 2

The process of order entry is Qualifying the customer's credit worthiness, ship-to qualification, and assigning a sales person. Accepting and translating what a customer wants into terms used by the manufacturer or distributor. Releasing the shop order into manufacturing to produce the product. The complete cycle of the sales order from creation to closure and payment.

Accepting and translating what a customer wants into terms used by the manufacturer or distributor. Order entry is the process of accepting and translating what a customer wants into terms used by the manufacturer or distributor. For more information, refer to Module 1, Section C, Topic 3

Plans expressed for sales and operations planning are at the Aggregate product family level. Customer level. Detailed SKU level. Manufacturing site level.

Aggregate product family level. The sales and operations planning process must reconcile all supply, demand, and new-product plans at both the detail and aggregate levels and tie to the business plan. For more information, refer to Module 1, Section C, Topic 1

The uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order promising is known as On hand Inventory Available-to-promise Work in Process Capable-to-promise

Available-to-promise Available-to-promise (ATP) is the uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order promising. For more information, refer to Module 1, Section C, Topic 3

Sales and operations planning is focused on which of the following objectives? Bringing together all the plans for the business into one integrated set of plans. Converting the master production schedule into requirements for key resources Making recommendations to release replenishment orders for material and rescheduling existing orders to align with the master schedule. Stating what the company plans to produce expressed in specific configurations, quantities, and dates.

Bringing together all the plans for the business into one integrated set of plans. The sales & operations planning process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financial) into one integrated set of plans. For more information, refer to Module 1, Section C, Topic 1

Resource planning takes place at which of the following levels? Master production schedule Business plan Shop floor execution Material requirements plan

Business plan Resource planning addresses capacity planning conducted at the business plan level. For more information, refer to Module 1, Section C, Topic 1

A customer contacts a manufacturer's salesman and wants to purchase all production supply and capacity for a given item. Which of the following values will the salesman need to obtain from his company to respond to his customer? Capable-to-promise Master schedule Available-to-promise Rough Cut capacity plan

Capable-to-promise Capable-to-promise is the process of committing orders against available capacity as well as inventory. This process may involve multiple manufacturing or distribution sites. For more information, refer to Module 1, Section C, Topic 3

The process of committing orders against available capacity as well as inventory is called Work in Process Capable-to-promise Available-to-promise On hand Inventory

Capable-to-promise Capable-to-promise is the process of committing orders against available capacity as well as inventory. This process may involve multiple manufacturing or distribution sites. For more information, refer to Module 1, Section C, Topic 3

A production planning method that maintains a stable inventory level while varying production to meet demand is called the Level loading method Critical chain method Critical path method Chase production method

Chase production method The chase production method weeks to keep inventory levels stable while varying production levels based on demand. This method typically has higher costs associated with varying staffing and overtime. For more information, refer to Module 1, Section C, Topic 2

Rough-cut capacity planning performs a Material requirements explosion. Detailed capacity analysis. Comparison to available or demonstrated capacity. Scheduling routine and then checks capacity availability.

Comparison to available or demonstrated capacity. Rough-cut capacity planning is compared to available or demonstrated capacity and is usually done for each key resource. For more information, refer to Module 1, Section C, Topic 2

Rough-cut capacity planning checks which of the following data? Critical resources Inventory Resources for a family of products Materials and labor

Critical resources In order to validate the feasibility of MPS, RCCP uses a bill of resources to check critical resources. For more information, refer to Module 1, Section C, Topic 2

A manager at a lean facility wants to ensure that the workstations under her control are operating continuously. She therefore needs to ensure that there is an uninterrupted flow of materials to each workstation. The best way to ensure this is for the master production schedule to use what length of time bucket? Annually Daily Weekly Monthly

Daily As fits with one-piece flow, often master schedules will use daily time buckets rather than weekly, to better schedule an uninterrupted, smooth flow to each workstation. For more information, refer to Module 1, Section C, Topic 2

The level of detail for the master production schedule is At the raw material level. Identical to the production plan. Product family level Developed for individual items.

Developed for individual items. The master production schedule details schedule at the individual item level. For more information, refer to Module 1, Section C, Topic 2

To minimize costs and meet predictable seasonal demand, a manufacturer may need to develop a customized strategy drawing from multiple approaches. This is known as what type of strategy? Level Synthesized Hybrid Chase

Hybrid Hybrid strategies can combine chase, level and subcontracting strategies in different ways to arrive at custom solutions. Often a custom solution will be optimal in terms of minimizing costs and meeting other objectives such as labor relations. For more information, refer to Module 1, Section C, Topic 1

In relation to time fences, in which of the following zones can scheduling software make automatic adjustments without the input of the master scheduler? Slushy zone Liquid zone Frozen zone Forecast zone

Liquid zone In the liquid zone, scheduling software may automatically make adjustments without input from the master scheduler. Manual changes can also be made in this zone. The only constraint will be the limits set in the production plan. This zone is usually the extra time added beyond the cumulative lead time of the product. For more information, refer to Module 1, Section C, Topic 2

Which of the following terms applies to spreading orders out in time or rescheduling operations so that the amount of work to be done in sequential time periods tends to be distributed evenly and is achievable? Capacity management Load leveling Line balancing Input/output control

Load leveling Spreading orders out in time or rescheduling operations so that the amount of work to be done in sequential time periods tends to be distributed evenly and is achievable. For more information, refer to Module 1, Section C, Topic 2

Which of the following situations is a result of anticipation inventory? Lower inventory carrying costs Higher required capacity Lower overtime costs Higher subcontracting costs

Lower overtime costs Building up inventory in advance of an anticipated need would lower the need for overtime, subcontracting and additional capacity later. It would also raise inventory costs. For more information, refer to Module 1, Section C, Topic 1

Order promising is defined as the process of Entering an order. Making a delivery commitment. Staging order content. Routing the order for credit approval.

Making a delivery commitment. Order promising is the process of making a delivery commitment. For more information, refer to Module 1, Section C, Topic 2

The plan that uses a format that includes time periods, the forecast, customer orders, projected available balance, and available-to-promise is called the: Resource requirements Distribution requirements Master schedule Material requirements

Master schedule The master schedule is a format that includes time periods (dates), the forecast, customer orders, projected available balance, available-to-promise, and the master production schedule. For more information, refer to Module 1, Section C, Topic 2

Making several different parts or products in varying lot sizes so that a factory produces close to the same mix of products that will be sold that day is called Assemble-to-order Make-to-order Mixed-mode planning Mixed-model production

Mixed-model production Mixed-model production is making several different parts or products in varying lot sizes so that a factory produces close to the same mix of products that will be sold that day. For more information, refer to Module 1, Section C, Topic 2

A scheduler at a factory is very cautious, and is particularly concerned about the possibility of unanticipated extra orders. To assuage his fears over the long-term, he needs to ensure that what is long enough to factor in potential increases in capacity? Cumulative lead time Final assembly schedule Liquid zone Planning horizon

Planning horizon The planning horizon is the amount of time a plan extends into the future; and is normally set to cover a minimum of cumulative lead time, time for lot sizing love-level components, and time for capacity changes of primary work centers or key suppliers. For more information, refer to Module 1, Section C, Topic 2

A key output of a sales and operations planning process is the Master schedule Material requirements plan Production plan Rough-cut capacity plan

Production plan The production plan is the agreed-upon plan that comes from the production planning (sales and operations planning) process, specifically the overall level of manufacturing output planned to be produced, usually stated as a monthly rate for each product family (group of products, items, options, features, and so on). For more information, refer to Module 1, Section C, Topic 1

Sales and operations planning must Align marketing plans with production plans. Align the master schedule with the business plan. Reconcile all supply, demand, and new-product plans and tie to the business plan. Convert the strategic plan to a detailed capacity plan.

Reconcile all supply, demand, and new-product plans and tie to the business plan. The sales and operations planning process must reconcile all supply, demand, and new-product plans at both the detail and aggregate levels and tie to the business plan. For more information, refer to Module 1, Section C, Topic 1

Sales and operations plans perform which of the following actions? Determine in detail the amount of labor and machine resources required to accomplish the tasks of production. Take into account the forecast; the production plan; and other important considerations such as backlog, availability of material, availability of capacity, and management policies and goals. Reconcile all supply, demand, and new-product plans at both the detail and aggregate levels and tie to the business plan. Describe how to marshal and determine actions to support the mission, goals, and objectives of an organization.

Reconcile all supply, demand, and new-product plans at both the detail and aggregate levels and tie to the business plan. The sales and operations planning process must reconcile all supply, demand, and new-product plans at both the detail and aggregate levels and tie to the business plan. For more information, refer to Module 1, Section C, Topic 1

The process of interpreting the production plan's impact on critical key materials and capacity is Master production scheduling Infinite scheduling Resource requirements planning Strategic business planning

Resource requirements planning Production planning is a long-term planning technique and is checked by means of resource requirements planning for key work centers. For more information, refer to Module 1, Section C, Topic 1

The process of validating the master production schedule against available demonstrated capacity is called Sales & operations planning Resource requirements planning Rough-cut capacity planning Capacity requirements planning

Rough-cut capacity planning Rough-cut capacity planning is the process of converting the master production schedule into requirements for key resources. For more information, refer to Module 1, Section C, Topic 2

The master production schedule serves as the basis for communication between which two functions? Sales and marketing Purchasing and sales Manufacturing and purchasing Sales and manufacturing

Sales and manufacturing The MPS takes the forecast and order information from sales and outputs a schedule for manufacturing. For more information, refer to Module 1, Section C, Topic 2

A manufacturer is unable to meet a customer's demand with their current in-house capacity and strategy. Assuming there are no secret and minimal proprietary design factors, to which strategy could they turn to meet demand, while neither incurring greater inventory costs nor reducing their own capacity? Adding overtime shifts Product redesign Partnering with a competitor Subcontracting

Subcontracting Subcontracting provides all the benefits to staffing and avoidance of excess or insufficient capacity or multiple changeovers are found in this method. There is no excess inventory cost, because supply should always meet the minimum level of demand. However, purchasing and then reselling products or services to fulfill the remaining demand will tend to result in lower profit margins. There may also be quality issues. For more information, refer to Module 1, Section C, Topic 1

In a Lean production environment, a method of balancing the distribution of work between work stations so that the time required for each station to complete all tasks is as close to equal as possible is Value stream Drum-Buffer-Rope Process map Uniform plant loading

Uniform plant loading In a Lean production environment, uniform plant loading balances the distribution of work between work stations so that the time required for each station to complete all tasks is as close to equal as possible. For more information, refer to Module 1, Section C, Topic 2