SCM 4362 - Chapter 1

project

a unique output - "one of" production: -building a skyscraper -making a movie -developing a new product -selecting/purchasing/installing an ERP system typically the job is performed at a fixed location and requires coordination of many skills and capabilities at different times MPC emphasis is on managing time (and cost) to ensure the project is completed as promised with all the required specifications

performance indicators

all of the following are examples of? -equipment (capacity) utilization -output results, quantity, time, quality -costs associated with different departments, products, labor utilization and project conditions -customer satisfaction such as late deliveries, product returns, quantity errors and quality

-flow -repetitive -just in time (JIT) -material requirements planning (MRP) -project

what are the five main MPC classification schema?

support activities - long term (2+ years)

-direction setting: formulation of business strategies and overall direction of business. typically performed on an annual basis the business strategy provides the mission to be supported by all the functions of the business: -finance -controlling -HR management -purchasing & materials management all functions provide relevant information into this process -the MPC system is responsible for providing information regarding the appropriate amount of resource, labor, and supplier capacity to meet the market demands of the future

just in time (JIT)

-shown as spanning a wide variety of products and processes -many firms today try to apply "lean manufacturing" practices to reduce shorter production cycles and lead times, lower inventory levels, and eliminate waste -its practices are found in repetitive manufacturing and is increasingly being integrated with more traditional MRP based systems

manufacturing planning & control

-the mission of __ is to match supply & demand -__ is concerned with planning and controlling all aspects of manufacturing; from managing materials and scheduling machines and people to coordinating suppliers and planning shipments to customers -thus, an information system is warranted; within which the MPC decisions and activities will be implemented -__ is often a module in an enterprise resource planning (ERP) system

support activities - short term (up to 3 months) - back end

MPC framework - back end -detailed scheduling of resources to meet production requirements -execution of production and purchasing activities as planned by MRP -tracking the utilization of resources and labor time spent of activities, monitoring receipt of input materials from suppliers, and deliveries to customers -feeding back the cost, time, customer service, and quality information to managers, customers, and suppliers

support activities - intermediate term (3-18 months) - engine

MPC framework - engine material requirement planning (MRP) -matches supply of input material, component manufacturing, and assembly requirements to demand determined by the end-item production schedule (MPS) -planning the quantity and timing of all input materials, components, and assemblies needed to build the end-items -utilizes daily, weekly periodicity

support activities - intermediate term (3-18 months) - front end

MPC framework - front end sales & operation planning (S&OP): -matches supply to demand in terms of volume -aggregate production planning, typically for product families -matching aggregate supply to aggregate demand -utilizing monthly, quarterly periodicity master production scheduling (MPS): -matches supply to demand in terms of product mix -matching supply to specific-product demand, determining exactly which end-item (finished-product) is to be produced and when -utilizing weekly periodicity

flow

many high-volume consumer goods and commodities: -light bulbs -oil refining -food processing -paper making products are produced in streams, materials hardly ever stop, __/move constantly from one process step to another with a linear flow character process is product specific, typically requiring very high capital investment and automation; a very efficient process type assuming sufficient continual demand exists to justify such investment MPC emphasis is on determining flow rates, maintaining sufficient input materials, and ensuring very high capital utilization

repetitive (assembly lines)

producing off the shelf standard consumer goods: -automobiles -appliances -computers -consumer electronics -consumer products (sold in retail stores) -many high volume, standard services (specialized) products are produced (in discrete units) on assembly lines; materials move from one process step to another with a linear flow character capital investment and automation are high, but compared to continuous production less automated, more flexible, and more labor intensive tracking the material on the shop floor is less demanding due to standard routing of material on the assembly line MPC emphasis is on determining flow rates, coordinating component parts, and balancing the time spent in subsequent process steps to achieve the assembly rate of end items

material requirements planning (MRP)

products with more complex processing requirements, sharing resources and equipment: -chemicals -apparel -custom made industrial products -all custom made products similar equipment grouped together by function (work centers) because no single product has enough volume to justify the creation of product flow specific array of equipment alternatively, while a linear flow is maintained, different products may share the line; products are produced in batches and the equipment is set up to process the product between batches of production flow of material is complex; materials are routed to work centers based on what is needed for each specific customer order with such complexity, MPC emphasis is on planning the timing and quantity of parts and ensuring that work is performed in a timely manner based on the product routings & work center data for the specific end item

back end

the following below are included in the which phase of the MPC framework? -purchasing systems

front end

the following below are included in the which phase of the MPC framework? -sales & operation planning (S&OP) -master production scheduling (MPS)

engine

the following below are included in the which phase of the MPC framework? material requirement planning (MRP) -detailed material planning -material & capacity plans

MPC system performance general principles

the following below can be used to describe? -different manufacturing processes dictate the need for different MPC designs -MPC systems should support the strategy and tactics pursued by the company -the MPC should evolve to meet changing requirements in the market, technology, products, and processes -an effective MPC can contribute to competitive performance by lowering costs and providing greater responsiveness to the market