FINAL: Supply Chain Ch 6
Which of the following is considered an advantage/benefit of utilizing in ERP system?
Allows organizations to more easily communicate information about operational changes to supply chain members
Organizations that choose to implement the best applications or modules for each of the different functional departments associated with the supply chain versus choosing to implement one single system with all of the desired applications from a single vendor is said to have chosen a(n):
BEST OF BREED SOLUTION
What is a challenge of resource planning?
Balancing capacity vs. output requirements
Which of the following is considered an advantage/benefit of utilizing an ERP system?
Enables the company to utilize a single centralized database system, thus eliminating duplicate data entry.
Organizations that choose to implement one single system with all of the desired applications from a single vendor versus choosing to implement the best applications or modules for each of the different functional departments associated with the supply chain is said to have chosen a(n):
Single Intergrator Solution
Capacity Planning: Resource Requirement Plan
The long-range capacity plan that checks whether aggregate resources are capable of satisfying the aggregate production. (Strategic decision)
Production Planning: Aggregate Production Plan
The long-range plan that translates annual business & marketing plans & demand forecasts into a production plan for a product family (products that share similar characteristics) in a plant or facility. Strategic decision
Available to Promise Quantity
The difference between confirmed customer orders & the quantity the firm planned to produce (amount available to other orders).
Capacity Planning: Rough-Cut Capacity Plan
The medium-range capacity plan used to check the feasibility of the Master Production Schedule (MPS). Converts MPS from production needed to capacity required, then compares it to capacity available. Tactical decision
Production Planning: Master Production Schedule
The medium-range plan that provides a detailed breakdown of the aggregate production plan, listing the exact end items to be produced by a specific period. Tactical decision
According to the textbook, which of the following is considered a reason that ERP implementations fail?
The organization may lack the necessary workforce and expertise to properly implement the system
Production Planning: Material Requirements Plan
The short-range plan from a computer-based materials management system that calculates the exact quantities, need dates, & planned order releases for subassemblies & materials required to manufacture a final product. Execution decision
Which of the following could be considered a master production schedule for a service firm? a. The reservation book utilized by a restaurant b. The employee shift schedule utilized by an auto shop c. A hospital patient's personal information fill d. The recipe book utilized by a chef at a restaurant
a. The reservation book utilized by a restaurant
Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities? a. discrete available to promise b. cumulative available to promise without looking ahead c. indiscrete available to promise d. cumulative available to promise with looking ahead
c. indiscrete available to promise
Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include: a. Customer Relationship Management and human resource management b. Human resource management and accounting and finance c. Supplier relationship management and customer relationship management d. All of these
d. all of these
Bill of Materials
document that shows an inclusive listing of all component parts & assemblies making up the final product. Dependent Demand - the internal demand for parts based on the demand of the final product in which the parts are used (e.g., subassemblies). Independent Demand - demand for final products affected by trends, seasonal patterns, & general market conditions. Multilevel Bill of Materials - shows the parent-component relationships & the specific units of components known as the planning factor. Can be presented as an indented bill of materials. Common Component - used in more then one subassembly
T OR F An MRP system has a subassembly with a lot size of 100 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 100 units.
false
T OR F MRP systems are simply a more modern version of the ERP systems of the 1980's.
false
T OR F Organizations that choose to discontinue use of old and inefficient computer and information systems in favor of adopting a modern ERP system are said to have implemented a decentralized database solution.
false
T OR F The three basic production strategies for addressing the aggregate planning problem are the capacity production strategy, the level production strategy, and the chase production strategy.
false
Enterprise Resource Planning System
information system connecting all functional areas & operations of an organization via common software infrastructure and database
Resource Planning
is the process of determining the required resources to effectively and efficiently produce the output required. The aggregation of all resources committed to production (space, equipment, personnel) determines the capacity to meet demand
Production Capacity
the maximum amount an organization can complete in a given period of time based on the resources available
T OR F A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a SINGLE centralized database. (NOT MULTIPLE)
true
T OR F Key requirements to a successful ERP implementation include adequate computer support, accurate system inputs, and flexible business processes that can conform to the approaches used in the ERP software logic.
true
T OR F System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.
true
T OR F The process of converting a parent item's planned order releases into component gross requirements is referred to as the MRP explosion.
true
T OR F The resource and operations planning done by operations managers is intended to balance capacity and output.
true
T OR F The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy.
true
Chase Strategy
Adjusts capacity to match demand. Firm hires & lays off workers to match demand. Finished goods inventory remains constant. Works well for make-to-order firms
What are the three hierarchical components of materials planning?
Aggregate Production Plan - APP − long-range materials plan/more than 1 year. Master Production Schedule - MPS − a medium range materials plan/6 to 18 months. Materials Requirement Planning - MRP − a short-range materials plan/days or weeks.
Which of the following basic production strategies used for addressing the aggregate planning problem would work best with make-to-order manufacturing firms?
CHASE Production Strategy bc make to order, "chasing" the order
3 basic Production Strategies
Chase Strategy Level Strategy Mixed Production Strategy
What is ERP?
ERP stands for Enterprise Resource Planning systems. ERP systems are manufacturing information systems that are intended to connect all functional areas and operations of an organization, as well as its suppliers and customers, in some cases, via a common software infrastructure and database. The systems utilize a centralized and shared database that allows the organization and easily share information and communicate quickly with all of its internal functional members as well as any participating supply-chain partners.
Ways to fix System Nervousness (a small change in the upper-level-production plan which causes major changes in the lower-level production plan)
Firmed Segment (demand time fence), from current period to several weeks into future. This is determined by component and resource lead times and can only be altered by senior management due to impact on profitability. Tentative segment (planning time fence), from end of firmed segment to several weeks into the future. This is determined by long lead time components, capacity and demand planning.
Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?
MRP
Mixed Production Strategy
Maintains stable core workforce while using other short-term means, such as overtime, subcontracting & part time helpers to manage short-term demand.
Examples of Materials Planning
Production Planning strategies Discrete Available to Promise (ATP) Bill of Materials (BOM) Materials Requirements Plan (MRP)
Level Strategy
Relies on a constant output rate while varying inventory & backlog according to fluctuating demand. Firm relies on fluctuating finished goods & backlogs to meet demand. Works well for make-to-stock firms.
What are the three hierarchical components of capacity planning?
Resource Requirement Planning - RRP − This is a long-range capacity planning module. Rough Cut Capacity Planning - RCCP − the medium-range capacity planning. Capacity Requirement Planning - CRP − this is a short-range capacity planning.
Difference between Best of Breed solution and Single Integrator Solution
The best-of-breed solution takes the best application or module for each individual function and supply chain. The single integrator approach, on the other hand, would utilize all the desired applications from a single vendor.
Capacity Planning: Capacity Requirement Plan
a short-range capacity plan that is used to check the feasibility of the material requirements plan. Execution decision