question

Why is manufacturing important to the economy?

answer

It addes value to products to generate wealth

question

In a traditional manufacturing environment, which of the following objectives are in conflict?

answer

Minimizing production costs and decreasing inventory investment

question

Which of the following statements is true?

answer

The objectives of marketing and production can be met with higher inventories

question

WHich of the following production environments (mfg strategies) produces the longest delivery lead time?

answer

Make-to-order

question

Which of the following is a major objective of materials management?

answer

Provide the required level of customer service (and manage materials)

question

Which of the following are primary activites of manufacturing planing and control?

answer

Production planning and inventory management

question

Which of the following systems is the performance measure that related to daily work routines, such as cycle time and utilization?

answer

Operations

question

Which of the following systems is unique in its focus on the reduction of defects by reducing variation?

answer

Six Sigma

question

Which of the following statements is true about the product layout (continuous process)?

answer

There is little buildup of WIP

question

Which of the following statements is true regarding process layout (intermittent manufacturing)?

answer

Each workstation must be flexible

question

Value

answer

The worth of an item, good or service

question

Make-to-stock

answer

A production environment where products can be and usually are finished before receipt of a customer order

question

Voice of the customer

answer

Actual customer descriptions in words for the functions and features customer desire for goods and services

question

Tactical Plan

answer

The set of functional plans (production plan, sales plan, marketing plan) synchronizing activities across functions that specify production levels, capacity levels, staffing levels, funding levels, and so on, for achieving the intermediate goals and objectives to support the organization's strategic plan

question

Mass customization

answer

The creation of high-volume product with large variety so that a customer may specify an exact model out of a large volume of possible end items, while manufacturing cost is low due to large volume.

question

Layout

answer

Physical arrangement of resources or centers of economic activity (machines, groups of people, workstations, storage areas, aisles) within a facility

question

Engineer-to-order

answer

Products whose customer specifications require unique engineering design, significant customization, or new purchased materials

question

Assemble-to-order

answer

A production environment where a good or service can be assembled after receipt of a customer's order

question

Gross profit

answer

Earnings from an ongoing business after direct costs of goods sold have been deducted from sales revenue for a given period (gross)

question

Make-to-order

answer

A production environment where a good or service can be made after recipt of a customer's order

question

Supply Chain

answer

The global network used to delivery products and services from raw materials to end customers thru an engineered flow of information, physical distribution, and cash.

question

Enterprise Resource Planning

answer

Framework for organizing, defining, and standardizing the business processes necssary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage

question

What is the primary goal of manufacturing?

answer

To create value for producers and customers. In this way, wealth is created for society as a whole.

question

What is CRM (Customer Relationship Management)?

answer

The philosophy based on putting the customer first. It involves the collection and analysis of information to support customers

question

What are the 3 major factors affecting organizations today?

answer

Global competition, regulatory influences, and customer expectations

question

Order Qualifiers

answer

Those competitive characteristics that a firm's products must exhibit to be viable competitors

question

Order Winners

answer

Those competitive characteristics that cause a firm's customer to choose that firm's goods and services over those of its competitors

question

What influences the chioce of production environment (ETO, MTO, MTS, ATO)?

answer

Lead time expectations, product design input from customers, product volume and variety, product life cycle

question

What are the phases of the product life cycle?

answer

Introduction, Growth, Maturity, Decline, Phase-out

question

What are the 3 choices of processes and layouts?

answer

Intermittent, Flow, and Project

question

What are two types Flow manufacturing?

answer

Repetitive/Line & Continuous Flow

question

What are the advantages of Flow manufacturing?

answer

Low WIP, Short throughput and mfg lead times, Low unit costs

question

Supply Chain Management

answer

The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a cmpetitive infrastructure, leveraging world-wide logistics, synchronizing supply with demand, and measuring performance globally

question

Basic elements of Supply Chain Management

answer

Suppliers > Producers/Manufacturers > Distributors > Retailers > Consumers > Flow of information, cash, goods, and services

question

3 types of performance measures

answer

Strategic, Tactical, Operational

question

Strategic performance measures

answer

Relate to the long-term goals of a business. Examples include profitability, market share, growth, and productivity

question

Tractical performance measures

answer

Relate to intermediate-term goals and objectives to support the organization's strategic plan. Examples include adherence to production plans and budgets, percentage on-time delivery, and inventory turns

question

Operational performance measures

answer

Relate to daily work routines. Examples include work center cycle times, utilization, and efficiency

question

What is the function of the Balance Scorecard?

answer

to assess performance against KPIs for a certain time period

question

What is the role of Materials Management?

answer

Balance conflicting objectives of marketing, production, and finance by managing the flow of materials. Balancing resources of the company with demand

question

Lean/JIT focus?

answer

- identifying and eliminating non-valued-added activities and resources, which are considered waste - creating continuous flow in manufacturing as a result of pull by the customer - empowering employees - continuous improvement

question

TQM (Total Quality Management) key principles?

answer

- Customer focus - Identifying costs of quality - Taking actions to solve problems - Continous improvement

question

Six Sigma important elements?

answer

- variation causes defects - goals is to have no more than 3.4 defects per million opportunities (six sigma level performance) - continuous improvement and problem solving to reduce variation and defects

question

Theory of Constraints

answer

A holistic management philosophy based on teh principle that systems have constraints that limit their ability to meet the system's goals. It's objective is to achieve throughput goals by identifying and managing a few leverage points

question

Which of the following is a characteristic of demand?

answer

Seasonal variation

question

Product A is made from components B and C. Component B is made from parts D and E. Which items should be forecast?

answer

Only A (end item)

question

Which of the following is the best statement about the general principles of forecasting?

answer

Every forecast should include an estimate of error

question

What important assumption is made about quantitative forecasting methods?

answer

The past is a valid indicator of the future

question

Which forecasting technique takes the average demand for some past number of periods?

answer

Moving average

question

Why is it important to monitor the forecast?

answer

To improve our forecasting methods

question

Which of the following statements is most accurate?

answer

The seasonal index is an estimate of how much the demand during the season will be above or below the average demand

question

Which of the following causes forecast error?

answer

Random variation from the average demand

question

Which of the following statements is most accurate?

answer

Independent demand items should be forecast

question

Which of the following statements is most accurate?

answer

The circumstances relating to demand data should be recorded

question

Order Qualifiers

answer

Those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace

question

Random Variation

answer

A fluctuation in data that is casued by uncertain or random occurrences

question

Moving Average

answer

An arithmetic average of a certain number (n) of the most recent observations. As each new observation is added, the oldest observation is dropped.

question

MAD - Mean Absolute Deviation

answer

The average of these absolute values of the deviation of observed values from some expected value

question

Dependent

answer

Demand that is driectly related to or derived from the bill of material structure from other items or end products

question

Trend

answer

Methods for forecasting sales data when a definite upward or downward patter exists

question

Seasonal

answer

Inventory built up to smooth production in anticipation of peak seasonal demand

question

Forecast

answer

An estimate of future demand

question

Intrinsic

answer

A forecast based on internal factors, such as an average of past sales. Ant. Extrinsic Forecast

question

Exponential Smoothing

answer

A type of moving average forecasting technique in which planners can choose the relative weighting of the latest period's actual demand and its forecast in developing the forecast for the next period

question

Qualitative

answer

An approach to forecasting that is based on intruitive or judgemental evaluation

question

Order Winners

answer

Those competitive characteristics that cause a firm's customers to choose that firm's goods and services over thsoe of it competitors

question

Independent

answer

The demand for an item that is unrelated to the demand for other items

question

Bias

answer

A consistent deviation from the mean in one direction (high or low)

question

Quantitative

answer

An approach to forecasting where historical demand data is used to project future demand

question

Extrinsic

answer

A forecast method on a correlated leading indicator, such as estimating furniture sales based on housing starts

question

Demand

answer

A need for a particular product or component

question

225 Units

answer

Beginning Inventory = 100 Ending Inventory = 100 Sales Forecast: Month 1 2 3 4 5 Qty 150 175 200 300 300 What is the required monthly production to achieve level production?

question

8

answer

Periods 1 2 3 4 5 Forecast 30 30 30 30 25 Actual Demand 22 18 25 20 20 What is the MAD for the data given?

question

104

answer

Month 1 2 3 4 5 6 Projection 100 100 100 100 100 100 Demand 95 102 105 105 104 103 The project for the 7th month using a three-month moving average is?

question

1,200,000

answer

Revenue 2,500,000 Direct Labor 300,000 Direct Material 500,000 Overhead 400,000 G&A Expenses 150,000 What is total Cost of Goods Sold (COGS)?

question

1,300,000

answer

Revenue 2,500,000 Direct Labor 300,000 Direct Material 500,000 Overhead 400,000 G&A Expenses 150,000 What is total Gross Income?

question

1,150,000

answer

Revenue 2,500,000 Direct Labor 300,000 Direct Material 500,000 Overhead 400,000 G&A Expenses 150,000 What is total Net Income?

question

What important assumption is made about quantitative forecasting methods?

answer

The past is a valid indicator of the future

question

Which of the following causes forecast error?

answer

Random variation from the average demand

question

Under which of the following circumstances will firms generaly make-to-stock?

answer

Required delivery timers are shorter than the time needed to make the product

question

Which of the following statements is most accurate about the MPS?

answer

If it is poorly done, we can expect past-due schedules and unreliable delivery promises

question

Which of the following statements is true about the product layout (continuous process)?

answer

There is little buildup of work-in-process inventory

question

What is the name of the set of priority planning techniques for planning component items below the end-item level?

answer

Material requirements planning

question

Which of the following is a major input to an MRP system?

answer

The master production schedule

question

Wha tis hte term for the ability to relate the demand for a item shown on an MRP record back to the parent causing the demand?

answer

Pegging

question

Which statement is correct?

answer

Planned order receipts show when the order is released

question

58 hours

answer

A work center consists of 2 machines working 8 hours a day and 5 days a week. Historically, utilization has been 80%, and efficiency has been 90%. To the nearest hour, what is the rated capacity?

question

What term indicates the percentage of time the work center is active compared to the available time?

answer

Utilization

question

Which of the following company objectives are in conflict?

answer

Maximum customer service and low-cost plant operation

question

Which of the following are considered ordering costs?

answer

Production control costs

question

Which of the following costs is relevant to inventory management decisions?

answer

Storage costs

question

What term is used for the ratio of standard hours or work produced to hours actually worked?

answer

Efficiency

question

Which of the following statements is most accuarte?

answer

A bottleneck will control the throughput of all products processed by it (5,10)

question

8

answer

Level 0 1 2 2 1 1 Part A B C E C G Qty 2 2 2 4 4 How many units of part C are required to produce one unit of part A?

question

A & B only

answer

Level 0 1 2 2 1 1 Part A B C E C G Qty 2 2 2 4 4 Which of the items in the BOM are parents?

question

Total = $11,500 Average = $11.50 per unit

answer

To make a particular component requires an overhead [fixed] cost of $6000 and a variable unit cost of $5.50 per unit. What is the total cost and the average cost of producing a lot of 1000?

question

40 days

answer

A company has 7000 units on hand and the annual usage is 42,000 units. There are 240 working days in the year. What is the days of supply?

question

week 1

answer

Complete the table: Week 1 2 3 4 5 6 Gross Requirements 10 10 10 10 10 10 Projected Available 20 Net Requirements Planned Order Receipts Planned Order Release __What week is the first that requires action?

question

Planning Horizon

answer

The amount of time a plan extends into the future. It is normally set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers

question

Capacity Available

answer

The capability of a system or resource to produce a quantity of output in a particular time period. Capacity available is based on the following: Available time, Utilization, and Efficiency

question

Available Time

answer

No. of machines (or workers) x hrs/day x days/wk

question

Utilization %

answer

hrs actuall worked / hrs of available time x 100%

question

Efficiency %

answer

std hours actually worked / hours of work produced x 100%

question

Rated Capacity (std hrs)

answer

available time x utilization x efficiency

question

Demonstrated Capacity (std hrs)

answer

sum of std hrs for N past periods / N past periods

question

Operation Time

answer

Setup time plus run time

question

Critical Ratio

answer

Time remaining / Work remaining

question

Capacity

answer

Measured in terms of output per time period

question

Inventory Turnover

answer

Annual COGS / Avg inventory in dollars

question

Annual Ordering Costs

answer

No. of orders per year x cost per order ($)

question

Quality

answer

Conformance to requirements or fitness for use

question

Sales & Ops Planning, Master Scheduling

answer

Master Planning

question

Production Plan

answer

What is the output of the Sales & Ops Plan?

question

Families

answer

What types of products are forecasted at the Sales & Ops level?

question

End-Items

answer

What types of products are forecasted at the Master Scheduling level?

question

Components & Subassembly

answer

What types of products are forecasted at the Material Requirements Planning level?

question

Master Production Schedule

answer

What is the output of Master Scheduling?

question

Sales & Ops Planning, Master Scheduling, Materials Requirements Planning

answer

What does Priority Planning consist of?

question

Tactical Plan

answer

What type of plan is the Sales & Ops plan?

question

Production Plan

answer

What type of plan is the Master Schedule?

question

Resource Planning

answer

What type of capacity planning does Sales & Ops Planning utilize?

question

Rough-Cut Capacity Planning

answer

What type of capacity planning does Master Scheduling utilize?

question

Capacity Requirements Planning

answer

What type of capacity planning does Material Requirements Planning utilize?

question

Input/Output Control, Operation Sequencing

answer

What are the major outputs of Production Activity Control (PAC)?

question

Marketing Mix

answer

Product, Price, Promotion, Place

question

Independent & Dependent

answer

2 types of demand

question

Forecast, Customer Orders, Replenishment Orders, Interplant Transfers, Other (promos, prototypes, etc)

answer

5 sources of demand

question

Trend, Seasonal, Random, Cyclical

answer

4 basic demand patterns

question

Stable Demand

answer

Demand that retains general shape over time, are easier to forecast, and remain consistently within predetermined or expected upper and lower limits allowing for random variation

question

Dynamic Demand

answer

Demand that is less predictable, harder to forecast and make forecasting prone to error. Over the long run, dynamic demand has a random pattern (typically).

question

Business, Sales & Ops, Master Scheduling

answer

Demand forecasts support planning at what 3 levels?

question

Marketing Management's role

answer

To develop and implement marketing plans for products with order winning and qualifying characteristics

question

Demand Management

answer

A process that influences and shapes demand though marketing and sales activities, and recognizes demand through forecasting and customer orders.

question

Marketing Management, Customer Relationship Management, Demand Planning

answer

3 processes that related to demand

question

Qualitative & Quantitative

answer

2 categories of forecasting techniques

question

Extrinsic & Intrinsic

answer

2 types of quanititative forecasting

question

Moving Average & Exponential Smoothing

answer

2 types of Intrinsic Forecasting

question

Exponetial Smoothing Formula

answer

(a)(latest or actual demand) + (1-a)(previous or "old" forecast)

question

Seasonal Forecast

answer

Deseasonalized Demand x each Seasonal Index Deseasonalized Demand = total forecast for a year / number of periods Seasonal Index = period average demand / avg demand for all periods

question

Bias & Random Variation

answer

2 forms of forecasting error

question

Why is MAD important?

answer

Indicates the relative cost of different levels of customer service

question

Level Schedule

answer

A production schedule that generates material and labor requirements that are as evenly spread over time as possible

question

Planning Horizon

answer

The amount of time a plan extends into the future

question

Hybrid

answer

A production strategy that combines the aspects of both the chase and level production strategies

question

Production Planning

answer

A process to devlop tractical plans based on setting the overall level of manufacturing putput to best satisfy the current planned levels of sales

question

Resource

answer

Anything that adds value to a good or service in its creation, production, or delivery

question

Due date

answer

The date when purchased material or production material is due to be available for use

question

Master Production

answer

A type of schedule; a line on the master grid that reflects the anticipated build scheduel for those items assigned to the master scheduler

question

Scheduled Receipt

answer

An open order that has an assigned due date.

question

Resource Planning

answer

Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long-range capacity

question

Master Planning

answer

A group of business processes taht includes the following activities: demand management, production adn resource planning; and master scheduling

question

Rough-Cut

answer

A type of capacity planning; the process of converting the master production schedule into requirements for key resources, often including lable, machinery, warehouse space, supplier's capabilities, and, in some cases, money.

question

Chase

answer

A production strategy that maintains a stable inventory level while carying production to meet demand

question

Level Production Strategy

answer

Which basic production planning strategy wil build inventory and aboid the costs of exces capacity?

question

Similiarity of manufacturing process

answer

For the purposes of production planning, product families should be established on the basis of...

question

600 units

answer

If the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, what will manufacturing produce?

question

Required delivery times are shorter than the time needed to make the product

answer

Under which of the following circumstance will firms generally make-to-stock

question

The forecast of individual end items

answer

The information needed to develop a master schedule will come from which of the following?

question

It is an agreed-upon plan between production and marketing/sales

answer

Which of the folling is a characteristic of MPS?

question

To maintain the desired level of customer service

answer

Which of the follwing is an objective of MPS?

question

If it is poorly done, we can expect past-due schedules and unreliable delivery promises

answer

Which of the following statements is most accurate about the MPS?

question

Available-to-promise

answer

What is the portion of inventory or production that is not committed to customer orders called?

question

Changes far out in the planning horizon can be made with little or no cost to manufacturing

answer

Which of the following is true about time fences in a master schedule system?

question

Priority Planning

answer

The function of determining what material is needed and when. master scheduline gna material erquirements planning are the elements used for planning and replanning process to maintain proper due dates on required materials

question

The quantities demanded of each product family or product line in each period; Disired inventory level; The resources of equipment, labor, and material needed in each period; The availability of needed resources

answer

What are the concerns of production planning?

question

Chase, level, subcontractin, hybrid

answer

Four basic production strategies

question

Chase Production Strategy

answer

Production schedule matches the quantity demanded by period

question

Level Production Strategy

answer

Production level is equal to the average demand

question

Subcontracting Production Strategy

answer

Production level is equal to the level of the minimum demand, and the rest is fulfilled through subcontracting

question

Hybrid Production Strategy

answer

Used to balance customer srevice, inventory, and stable labor objectives

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