EXAM 1 CH1

The trade off of materials management is between

Customer Service & The Cost of Providing the Service

Describe how the objectives of Marketing,Production, and finance are in conflict over customer service, disrupton to production, and inventories

Customer Service: Marketing- top priority is best customer Customer Service: Production- top priority is minimum level of operating cost instead of customer service Customer Service: Finance- minimum investment and costs instead of customer service

Inventory Management

Inventories are materials and supplies carried on hand either for sale or to provide material or supplies to the production process. They are part of the planning process and provide a buffer against the differences in demand rates and production rates

What Is Make to Order

Inventory--> Manufacture--> Assemble-->Ship the manfacturer does not start to make the product untill a customers order is recieved. Little Design time and inventory is held as raw materials

WHat is Configure to Order

Inventory-->Manufacture-->Assemble-->Ship

How is the Economy operating environment affected

It Affects Demand, Shortages,& Surplus

How is Qualitys Operating Environment Affected

It exceeds customers expectations

Why can materials management be considered a balancing act

Its Main Concern is to balance the market demand with firms resources and production capacity

Trade Offs to Make to Order

Lead Time is Less

Trade offs to Engineer to Order

Lengthy Process Customization Process

The Supply Chain may contain intermediaries such as:

Wholesalers Warehouses Retailers

What is the supply chain

it includes all activities and processes to supply a produc or service to the customer

What are the objectives of Production? How can these objectives be met

keep the operating cost as minimum as possible 1) Long Production Runs 2) High Inventory levels or R.M & WIP

What is the Purpose of Material Management

to achieve economies of scale fulfill the market demand maintain high inventory level of stock provide adequate level of services maintain the stability in consumption

What is the objective of marketing? what three ways will help it achieve this objective

to maintain and increase the companys profit 1) Keep high amount of inventories in stock 2) Create Extensive distribution system 3) Manufacture the non-inventoried items

How does Competition that is now global affect Operating Environment

1) Reduced Costs of Transportation 2)Communications, Reduced Costs, and Increased speed

Tradeoffs to Configure to Order

" Smaller adjustments"

Order Qualifiers

( Items that get you into the game) Customer Requirements for Price,Quality, Delivery etc..)

Order Winners

( Why we choose particular companies) Characteristics that persuade customers to select a product/service from a qualifying company.

What are Some Challenges In the Supply Chain/ Operating Environment

1) Customers are rarely satisfied 2) Supply Chains are Large 3) Product Life Cycles are Getting Shorter 4) Lots of Data 5) Narrow Profit Margins 6) Increasing Number of Alternatives

What are the Manufacturing Strategies

1) Engineer to Order 2) Make to Order 3) Configure to Order 4) Assemble to Order 5) Make to Stock

Name and describe four major factors affecting operations managements

1) Government Regulations 2) Economic Conditions 3) Market Competitors 4) Customers

What do Customers Demand

1) Lower Prices 2) Improved Quality 3) Reduced Lead Time 4) Improved Pre Sale and After Sale Service 5) Problem and Volume Flexibility

What are the four objectives of a firm wishing to maximize profit

1) Offer Best Service 2) Minimum cost of production 3) Minimum investment in inventory 4) Minimum Distribution costs

Name and describe the inputs to a manufactoring planning and control system

1) Product Description 2) Process Specifications 3) Time 4) Available Facilities 5) Quantities Required

Planning and Controlling the flow of materials the manufacturing process through...

1) Production Planning 2) Implementation & Control 3) Inventory Management

Name and Describe the three primary activities of manufacturing planning and control

1) Production Planning--find most productive way of production 2) Implementation and Control-- Puts Plan into action and achieve the plan 3) Inventory Management--

Name and Describe the three main divisions of supply,production,and distributions

1) Supply: It Focuses on R.M Supplied from suppliers to the manufacturing firm including when,where how and what 2) Production: Focuses on conversion of R.M into final and F.G 3) Distrubution: Distrubution of Finished Goods among the end consumers through the organized distrubution system`

What are the six activities involved in the physical supply/distrubution

1) Transportation 2) Distribution of Inventory 3) Warehousing 4)Packaging 5) Material Handling 6) Order Entry

what must manufacturing management do to manage a process or operation? what is the major way in which management plans and controls

1) an Effective production process must be designed 2) Selected production process must have low cost and time complexity 3) After Phase is done an active flow must be ensured 4) Disciplinary actions must be taken to have smooth functioning of flow of materials to have effective resource utilization Major Way= Flow of Materials

What is the Act of Postponement

A Strategy in Shifting Differentiation in the Product as close to customers as possible

What is a Metric

A verifiable Measure

Materials Management is considered a....

Balancing Act

Product Life Cycle ( Growth)

Brand New Products

WHat is the supply chain metric used to do...

Communicate Expectations Identify problems Direct Action Motivate People

What is Production

Converting Inputs to Outputs

The Priority of Materials Management is the.....

Demand for Products

What is Engineer to Order

Design->Purchase->Manufacture->Assemble->Ship The customer specs require unique engineering design or significant customomization

Describe the four primary manufacturing strategies. How does each affect delivery lead time

Engineer to Order Make to Order Assemble to Order Make to Stock

What is the Implications of importing things from China

Fewer Jobs Manufacturing, More Jobs in S.C

What does Production Planning Involve

Forecasting Master Planning Material Requirements Planning Capacity Planning

What is the official measure of wealth across nations

Gross Domestic Product (GDP)

What are the Stages of a Product Life Cycle

Growth Maturity Decline

Why would we want a reduced number of different items in the supply chain

Implies lower supply chain inventory & Implies Faster Delivery EX: Water Bottles come in 16 not 12, Allows reduction of inventory

what is the goal of profit leverage

Improve Financial Performance(Net Income), However organizations have limited resources

WHat are two organizational strategies as an organization if they want growth:

Increase Sales Revenue Decrease Operating Cost

What is Make to Stock

Manufacture-->Assemble-->Inventory--> Inventory--> Ship the supplier manufactures the goods and sells from a finished goods inventory. Delivery Lead Time is Shortest. The customer has Little Direct involvement in Product Design. EX: Tiny Homes

What is Value added, and how is it achieved

Manufacturing Companies convert Raw Materials into F.G. R.M could be in crude form. When companies convert them into finished products, they add value Can Be Achieved By: 1) Converting Natural Resources in finished and refined products 2) Add Neccessary features to the product as per the customer expectations

Avaiable Facilities

Manufacturing planning & Control must know what plant equipment and labor will be available to process work.

WHat does the Supply Chain Link

Many Companies

Bill of Material

Most Important for Manufacturing Planning & Control Describes the Components used to make the products Describes the subassemblies at various stages of manufacture

What are Performance Measures

Must be Quantified and Objective Must Also Contain Two Parameters ( EX: Orders per day & Sales per Person)

What is the Theory of TradeOffs

Optimization

What are an order qualifier and an order winner

Order Qualifier: Performance Dimensions that a firm must demonstrate to be a good competitor in the marketplace Order Winner: Order Winners are those performance dimensions that differentiate the firms goods and services in the eyes of customers from the competitors goods or services.

Metrics Should Be...

Performance Measures & Performance Standards

Product Life Cycles (Decline)

Products Entering Decline

Product Life Cycles (Maturity)

Products are Developed

The Supply Chain Is a Flow of...

Products, Services,Information and Cash

H0w is the governments operating environment affected

Regulations & Safety

Implemation and Control

Responsible for putting into action and achieving the plans made by production planning. Responsibilities are accomplished through production activity control and purchasing

What are Performance Standards

Sets the Goals & Establishes Controls

What does the supply chain have quite the number of>

Supplier/Customer Relationships

What is a supply chain? Describe five important factors in supply chains

Supply Chain Facilitates the movements of goods and services from the suppliers to end customers 1) S.C encompasses all activities and processes to deliver a final product to end customer 2) There is no limitation on the # of companies that can be linked in the supply chain 3) There can be a # of supplier/customer relationships in a total chain 4) S.C may contain # of wholesalers, warehouses and retailers 5) In a S.C, Flow of Goods and Services is from supplier to customer

The Strategy of Manufacturing planning and control systems

Taking Tradeoffs into consideration

The Capacity of Materials Management is...

The Ability to Produce Products

What is Assemble to Order

The Product is Made from Standard Components That The Manufacturer can inventory and assemble according to customer order. No Design Time Needed, Invdntory is held ready for assembly Manufacture-->Inventory-->Assemble--> Ship " EX: Double Wides"

What are Metrics? What are there uses

The Quantitative or Qualitative measures that provide the accurate measurements Uses: Provide-- 1) Control 2) Effective Communication 3) Learning 4) Improvements

What is Wealth, and how is it created

The Total of Goods/Services Produced by a country during a specific time period. Creates Wealth by Adding Value to Goods

What must the Supply Chain Metric be....

Timely

What are the objectives of finance? How can these objectives be met

To maintain the adequate level of investment and minimum level of costs 1) Keep decent level of inventory 2) Reduce quantity @ plants & Warehouses 3) Long Production Runs 4)Manufacturing as per the customer order

Production Planning

production must be able to meet the demand of the marketplace,