TY308-OL Study Guide

Controls can be categorized into three types:

precontrols, concurrent controls, and postcontrols.

Name the five generally accepted steps involved in the scientific method.

- 1. Observe a problem. - 2. Define the problem. - 3. Develop design for solution to problem. - 4. Test. - 5. Draw conclusions.

List and discuss the six rules of Kanban.

- Do not allow defective products to go to the subsequent process - The subsequent process withdraws only what it is needed - Produce only the exact quantity withdrawn by the subsequent process - Equalize production through load smoothing - Kanban provides the means used to fine-tune production - Stabilize and rationalize each process

What is considered the worst offense against cost reduction?.

- Waste from defective goods Describe the role of the purchasing department., The purchasing department must ensure that the purchased material is delivered to the right place

Which category of waste is Kanban used to control?

- Waste from overproduction

Which categories of waste can be reduced by having parts and materials arrive just-in-time?

- Waste from overproduction, waste from transportation, and waste from processing

List the four steps in the decision-making process.

-1. Seeking new goals., -2. Formulating objectives., -3. Developing strategies to meet the objectives., -4. Selecting a strategy.

When problem solving what are the four basic questions used in determining the cause of the problem?

-1. What is the deviation?-2 Where is the deviation occurring? -3. When did the deviation occur? -4. What is the extent of the deviation?

Describe the five-step method for reducing set-up time.

1) Study the existing set-up procedure. 2) Consider whether elimination of the existing setup is possible. 3) Identify which set-up activities can be performed while the previous job is running. 4) Identify which set-up activities can be performed while the new job is running. 5) Develop the new set-up procedure.

Wickham Skinner has suggested four basic questions that need to be answered for managers to understand and make sound decisions regarding the equipment and process technology of their company. What are they?

1. What will it cost? -2. What will it do? -3. What will it require? -4. How certain are the aspects above?

How many production system classifications did Joan Woodward identify?

11

How do a cumulative and noncumulative PSI graph differ?

A noncumulative PSI graph is sometimes considered more useful tan the cumulative PSI graph, because an individual month's projection can be read more easily than it appears on the cumulative plan. One needs only to read along the X-axis to the month and along the Y-axis to the corresponding demand.

If one of the subsystems in Question 13 changes what happens to the other subsystems

Any change in one area affects the others as they interact, interrelate, and are interdependent on each.

Prior to approximately 1910 how was production planning and control done?

Any production planning and controlling prior to 1910 was done on the basis of hunches, intuition, and guesswork.

What is the difference between backward scheduling and forward scheduling?

Backward scheduling is the scheduling of the operations necessary to complete parts and components in the same manner as MRP was backward scheduled from the required completion date. In forward scheduling, the activities necessary are scheduled for as soon as possible after the order is received.

Production systems can be classified into three broad categories

Continuous production, batch production, and unit production

Define controlling.

Controlling involves getting events to conform to plans by comparing the actual performance with planned performance and taking corrective action.

What control system developed approximately 500 years ago greatly enhanced trade?

Double-entry bookkeeping

True or False? Frederick Taylor's argument was that standards should be developed

False

Name the two steps in identifying qualified vendors.

First, identify possible vendors. Second, screen to establish which are qualified. Both of the steps are the responsibility of the purchasing department.

Which processes are dealt with by management according to Henri Fayol?

Henri Fayol in France argued that management was a teachable theory and that it dealt with the processes of forecasting and planning, organizing, commanding, controlling, and coordinating.

Describe ISO 9000.

In 1987, the International Standards Organization (ISO) published a set of standards on quality management. These international standards are usually referred to as ISO 9000 although the five standards are officially ISO 9000-ISO 9004. The United States and most other industrial countries quickly adopted them as national standards.

Discuss the three broad categories.

In continuous production, the product flows from operation to operation, usually at a predetermined rate. In batch production, the product is produced in specific quantity groups or lots called, "batches". Unit production is when the product is made one piece or unit at a time.

Explain the term "industrial dualism"

Industrial dualism is the term used to refer to the dual systems necessary for repetitive or mass production to take place.

Why is it that the future demand for some products is easier to forecast than others?

It all depends on how much data is available for certain products, whether it can affect the thing(s) we are trying to forecast, and how well we understand the factors that contribute to it. For instance, some products may have a more sufficient history of data than others.

How old is the art of planning and controlling?

It wasn't until the late 1800s when significant process was made in systematically studying and applying methods of planning and controlling. However planning and controlling has been around and practiced in some form and certain developments couldn't have happened without it (for example the building of the Egyptian pyramids).

Explain the two factors that make up the order point.

Lead time requirements and reserve stock

Discuss the difference between the two MPS classifications.

Make-to-stock products are put into finished goods inventory prior to receiving a customer's order. A product may even be shipped to a storage facility that is closer to potential customers. Make-to-order products are completed after receiving a customer's order.

Name the three categories of purchasing.

Material for production, material for support functions, and equipment

What is multiple sourcing? Explain why it is used.

Multiple sourcing is a strategy to maintain product flow by using more than one supplier for each component. It is used if one supplier is unable to deliver, then the user is not completely deprived of the product. Multiple sourcing may also be used when a large order is made and no single supplier is capable of timely delivery of such an order.

Name the six reorder methods

Order point method, two-bin method, fixed cycle method, the visual review method, material requirements planning (MRP) and Kanban

Explain process mapping.

Process mapping is a technique increasingly being used to understand and improve the production process. In process mapping, the team develops "maps" to show the flow of activities making up the process from beginning to end.

Shop floor control is also known as

Production activity control (PAC)

What are the two similarities that almost all production systems have in common?

Production systems exist in organizations, and production systems are made up of subsystems.

Which method is more likely to be used if historical data is lacking?

Qualitative

What two broad categories can forecasting methods be divided into?

Quantitative techniques and qualitative techniques

Explain the difference between task teams and quality circles.

Task teams are similar to quality circles, but the team consists of both workers and managers whereas the circle consists of the workers.

Why is ISO 9000 important to a purchasing department?

The ISO 9000 standards are of great important to purchasing because if a vendor becomes ISO 9000 certified the purchaser has verification of the quality system.

Using the basic production model discuss why it is possible for the US to maintain higher wage rates than many other countries.

The United States understands that production requires more than just labor. The US has excelled in goods that require creativity and innovation such as technology institutional structures, specialized types of knowledge etc. They have remained the leader of the world economy because of their flourishing innovations such as technology, biotechnology, and creative industries such as film, art, and advertising which are all dynamic, high-profit, high-wage industries.

What are the three prevalent patterns that often exist in past demand activity?

The demand trend, seasonal demand, and demand cycles

Identify and discuss the four types of inventory.

The four most common forms are raw materials, (the basic materials used by the organization that will be converted into components or products), components (parts waiting for assembly), work-in process (materials that are either being worked on or waiting to be worked on), and finished products (no additional work needs to be done)

One of the MPS classifications in Questions 3 and 4 can be divided into subcategories. Discuss these subcategories.

The make-to-order products category can be subdivided into the following three types: finish-to-order, engineer-to-order, make-to-order products. Substantial amounts of work can be done before the order is received for finish-to-order products, also known as assemble-to-order products. When engineer-to-order products are produced, only the materials to be used can be anticipated. This is often because the technology is such that if other materials were necessary, the organization could not produce the product anyway. Producers of make-to-order products are unable or unwilling to anticipate any factors regarding demand.

Identify and discuss the principal reasons for having inventory.

The principal reasons for having inventory are lot size (quantity produced or ordered together), anticipation (eager expectation), fluctuation, transportation, hedge (occurs when an organization orders more than it usually would because it believes the price will increase, and buying more now will save money later)

What is the difference of between a production plan and a master production schedule?

The production plan relates to the entire production plan's system, whereas a master production schedule is assigned to each product. The production plan shows the plan for all products. The master production schedule shows the plan for only one product. The production plan is simply the sum of the master production schedules. One clearly impacts the other.

What information should the purchase requisition contains?

The requisition must stipulate where the material should be delivered.

Name the two classifications of MPS.

The schedules can be classified into two categories, make-to-stock products and make-to-order products.

What is it that production planners are referring to when they use the term bucket?

The time frame for which project into the future

Why are there different types of master production schedules?

The type of master production schedule and the techniques used by organizations for production scheduling vary because the information available and needed in the various systems differs.

What are some ways in which capacity can be adjusted short term?

The use of overtime, subcontracting, alternative routing, and temporary employees

Plans can be categorized into three types.

They are: long-, medium-, or short-term.

For controls to be successfully implemented they must meet certain criteria. List the criteria.

They should be meaningful, simple, operational, timely, and economical.

Why are even the best of forecasts usually incorrect

With even the best forecast, a deviation can occur due to random activity. There is as much chance that actual demand will exceed the forecasted demand as there is that actual demand will fall short of the figure

From the following PSI pan answer the following questions:

a. When will the level of inventory be highest? December b. When will there be zero inventory? Before January c. During which period will demand exceed supply? April d. During which period will the production rate exceed the sales rate? The chart shows that between May and December, cumulative production rate will exceed the sales rate.

From the following PSI pan answer the following questions:

a. When will the level of inventory be highest? December, b. When will there be zero inventory? Before January, c. During which period will demand exceed supply? April, d. During which period will the production rate exceed the sales rate? The chart shows that between May and December, cumulative production rate will exceed the sales rate.

Name three subsystems of the production system

administrative, social, and technological

Setting objectives and developing action statements

are the two steps in planning.

Uncertainty exists for production planning and control because

decisions must be made with less than complete information.

Until about 1970 attempts to improve production control centered on utilizing

economies of scale

What were the 3 variations in technology that Thompson identified

long-linked, mediating, and intensive

What are the three basic divisions in organizations that produce goods and services?

producing, distributing, and managing

Reprogrammable machines allow for economies of

scope

In simple terms a production system can be explained as

services and the methods you use to produce the goods or services

The two major factors influencing the most efficient type of production system for a product are

the level of demand for the product and the technology used

Plans should provide information on

what is to be done, how it is to be done, and when it is to be done.

Name and describe the seven categories of waste.

• Waste from overproduction • Waste from transportation • Waste from unnecessary stock on hand • Waste from time on hand (waiting) • Waste from processing • Waste from unnecessary motion • Waste from defective goods