Cpim-Bscm Session 3

Front 1

PAB

Back 1

Projected Available Balance: An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders

Front 2

Projected Available Balance

Back 2

An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders. PAB tells you if you need to schedule an MPS.

Front 3

Master Planning

Back 3

A group of business processes that includes the following activities:
Demand Management (which includes forecasting and order servicing); Production and Resource Planning; and Master Scheduling (which includes the Master Schedule and the Rough-ut Capacity Plan (RCCP).

Front 4

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

Back 4

Level Schedule

Front 5

The amount of time a plan extends into the future?

Back 5

Planning Horizon

Front 6

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

Back 6

Hybrid

Front 7

A process to develop tactical plans based on setting the overall level of manufacturing output to best satisfy the current planned levels of sales?

Back 7

Production Planning

Front 8

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

Back 8

Resource

Front 9

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

Back 9

Due Date

Front 10

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

Back 10

Master Production

Front 11

An open order that has an assigned due date?

Back 11

Scheduled Receipt

Front 12

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

Back 12

Resource Planning

Front 13

A group of business processes that includes the following activities: demand management, production and resource planning, and master scheduling?

Back 13

Master Planning

Front 14

A type of capacity planning; the process of converting the MPS into requirements for key resources, often including labor, machinery, warehouse space, supplier's capabilities, and, in some cases, money?

Back 14

Rough Cut

Front 15

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

Back 15

Chase

Front 16

1. Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
A. Chase
B. Level Production Strategy
C. Cycle Counting Strategy
D. Demand Matching Strategy

Back 16

B. Level Production Strategy

Front 17

2. For the purposes of production planning, product families should be established on the basis of
A. Market segments
B. Similarity of manufacturing process
C. The availability of materials
D. The availability of machinery

Back 17

B. Similarity of manufacturing process

Front 18

3. If the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, what will manufacturing produce?
A. 300 units
B. 400 units
C. 500 units
D. 600 units

Back 18

D. 600 units

Front 19

4. Under which of the following circumstances will firms generally make-to-stock?
A. Demand is unpredictable
B. Many product options exist
C. Required delivery times are shorter than the time needed to make the product
D. Customers require special engineering

Back 19

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

Front 20

5. The information needed to develop a master schedule will come from which of the following?
A. The capacity requirements plan
B. The forecast of individual end items
C. Production activity control
D. The material requirements plan

Back 20

B. The forecast of individual end items

Front 21

6. Which of the following is a characteristic of the MPS?
A. It facilitates forecasting
B. It works with families of products
C. It is an agreed-upon plan between production and marketing and sales
D. It cannot be used for ordering

Back 21

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

Front 22

7. Which of the following is an objective of an MPS?
A. Maximize utilization of equipment
B. Keep the sales department happy
C. Maintain the desired level of customer service
D. Minimize inventory investment

Back 22

C. Maintain the desired level of customer service

Front 23

8. Which of the following statements is most accurate about the MPS?
A. It is an agreed-upon plan between finance and manufacturing
B. If it is poorly done, we can expect past-due schedules and unreliable delivery promises
C. It is a plan for families of products that manufacturing expects to make over some period of time in the future
D. It provides input to the production plan

Back 23

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

Front 24

9. What is the name for the portion of inventory or production not committed to customer orders?
A. Free Stock
B. ATP
C. Excess Production
D. Waste

Back 24

B. ATP

Front 25

10. Which of the following is true about time fences in a master schedule system?
A. Changes far out in the planning horizon can be made with little or no cost to manufacturing
B. In the “frozen zone,” capacity and materials can easily be committed to new orders
C. Changes in the near future on the planning horizon are less costly to make than changes in the distant future
D. The master planner should be authorized to make changes in the frozen zone

Back 25

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

Front 26

1. Which of the following are prerequisites to implementing a master production scheduling system?
I. Define master production schedule (MPS) unit
II. Install an enterprise resource planning (ERP) system
III. Train an employee in MPS concepts and techniques
A. I only
B. I and II only
C. I and III only
D. I, II, and III

Back 26

C. I and III only

Front 27

2. The master production schedule (MPS) translates the sales and operations plan (SOP) into:
A. Specific production orders
B. Forecast demand
C. A specific production plan
D. Efficient lot sizes

Back 27

C. A specific production plan

Front 28

3. The master production schedule (MPS) shows when products will physically be available to ship.
A. True
B. False

Back 28

B. False

Front 29

4. The master production schedule (MPS) is:
A. A statement of current production
B. A statement of current demand
C. A statement of both current production and current demand
D. Neither a statement of current production nor current demand

Back 29

D. Neither a statement of current production nor current demand

Front 30

5. The master production schedule (MPS) differs from the forecast by considering:
I. Capacity Limits
II. Production Costs
III. The Sales and Operations Plan (S&OP)
A. I only
B. I and II only
C. I and III only
D. I, II, and III

Back 30

D. I, II, and III

Front 31

6. The master production schedule (MPS) must be stated in terms that relate to a producible product.
A. True
B. False

Back 31

A. True

Front 32

7. The master production schedule (MPS) must be stated in terms of actual products.
A. True
B. False

Back 32

B. False

Front 33

8. In which environment is a planning bill-of0materila (BOM) most likely to be used?
A. Make-to-Stock
B. Assemble-to-Order
C. Engineer-to-Order
D. All are equally likely

Back 33

B. Assemble-to-Order

Front 34

9. The master production schedule (MPS) considers preferred lot sizes when constructing the plan.
A. True
B. False

Back 34

A. True

Front 35

10. Cycle stock is:
A. Inventory created to fulfill demand in a seasonal cycle
B. Inventory carried as a result of lot size requirements
C. The total stock built during a given period
D. Inventory carried to cover emergency or unforeseen demand

Back 35

B. Inventory carried as a result of lot size requirements

Front 36

11. Available to promise (ATP) is likely to be least useful in which environment?
A. Make-to-Stock
B. Make-to-Order
C. Assemble-to-Order
D. All are equally likely

Back 36

A. Make-to-Stock

Front 37

12. Which formula is used to calculate the projected available inventory balance ?
A. Projected available inventory = Previous available inventory + Master production schedule – AVG (Forecast, Actual Orders)
B. Projected available inventory = Previous available inventory + Master production schedule + AVG (Forecast, Actual Orders)
C. Projected available inventory = Previous available inventory + Master production schedule + MAX (Forecast, Actual Orders)
D. Projected available inventory = Previous available inventory + Master production schedule - MAX (Forecast, Actual Orders)

Back 37

D. Projected available inventory = Previous available inventory + Master production schedule - MAX (Forecast, Actual Orders)

Front 38

13. A Planning Bill of Material is:
A. Any bill of material used in planning activities
B. A bill of material for new products
C. A bill of material for products still in development
D. A bill of material that represents probably usage in an assemble-to-order environment

Back 38

D. A bill of material that represents probably usage in an assemble-to-order environment

Front 39

14. A super bill represents average usage of components in an assemble-to-order environment
A. True
B. False

Back 39

A. True

Front 40

15. The final assembly schedule (FAS) represents which of the following?
I. The assembly plan when a planning bill-of-material (BOM) is used
II. The exact set of end products to be built in an assemble-to-order environment
III. The plan for moving pre-fabricated components into completed products
A. I only
B. II only
C. III only
D. I, II, and III

Back 40

D. I, II, and III

Front 41

16. When the master production schedule (MPS) is frozen from some period, changes to the plan within that period are typically prohibited.
A. True
B. False

Back 41

A. True

Front 42

17. Inside the demand fence, which of the following is true?
A. Changes to production orders are not allowed
B. New customer orders are not accepted
C. Available-to-promise (ATP) calculations ignore forecasts
D. New production orders cannot be entered

Back 42

C. Available-to-promise (ATP) calculations ignore forecasts

Front 43

18. Inside the planning fence, which of the following is true?
A. Changes to production orders are not allowed
B. New customer orders are not accepted
C. Available-to-promise (ATP) calculations ignore forecasts
D. New production orders can be entered

Back 43

A. Changes to production orders are not allowed

Front 44

19. One key to avoiding an overstated master production schedule (MPS) is to
A. Force the MPS to match the production plan (in terms of total units)
B. Always maintain a positive available-to-promise (ATP) balance
C. Always maintain a negative available-to-promise (ATP) balance
D. Freeze the MPS for at least four weeks

Back 44

A. Force the MPS to match the production plan (in terms of total units)

Front 45

6. The function of priority planning in a manufacturing company is to determine what material is needed and:
A. Potential sources for it
B. The capacity required
C. Where it is needed
D. When it is needed

Back 45

D. When it is needed. Priority planning is, by definition, the function of determining what material is needed and when. A and C may be used to get and deliver the material identified by priority planning. B deals with producing the product based on the priority plan.

Front 46

7. The point in time inside which changes to the master schedule typically must be approved by an authority higher than the master scheduler is referred to as the:
A. Capable-to-promise
B. Cutoff Date
C. Demand time fence
D. Planning time fence

Back 46

C. Demand time fence. The demand time fence is a point in time inside of which demand is based on customer orders, rather than forecasts, and changes to the master schedule must be approved by an authority higher than the master scheduler. D - changes made be made within constraints of the production plan - manually by the master scheduler.

Front 47

8. The portion of inventory and planned production that can be committed to customer orders typically is referred to as the:
A. Available-to-promise
B. Excess quantity
C. Projected available balance
D. On-hand balance

Back 47

A. Available-to-promise - is the committed portion of a company's inventory and planned production maintained in the master schedule to support customer orders. C is the inventory balance projected into the future. D is incorrect because the on-hand balance does not include planned production.

Front 48

The role of MPC is to synchronize and translate Independent demand into __________ demand.

Back 48

Dependent demand

Front 49

The setting and maintaining of time-phased due dates is called ___________ planning.

Back 49

Priority planning

Front 50

_____________ means that the material or component has been completed and is ready for use by the next operation, or is available as an end item to be delivered or stocked.

Back 50

"Available for use"

Front 51

__________ develops plans for products at the family level.

Back 51

S & OP

Front 52

_____________ scheduling develops due dates and quantities at the end item level.

Back 52

Master

Front 53

A major output of S&OP?

Back 53

The Production Plan