Operations Management Test 3

Front 1

Sales and Operations Planning

Back 1

A business process that helps firms plan and coordinate operations and supply chain decisions over a tactical time horizon (usually 4 to 12 months)Same as Tactical planning.

Front 2

strategic planning

Back 2

Planning that takes place at the highest levels of the firm, addressing needs that might not arise for years into the future.

Front 3

Tactical Planning

Back 3

Planning that covers a shorter period, usually four months to a year, although the planning horizon may be longer in industries with very long lead times such as engineer-to-order firms.

Front 4

Detailed planning and control

Back 4

Planning that covers time periods ranging from weeks, down to just a few hours out into the future.

Front 5

Top-Down Planning

Back 5

an approch to S&P where a single, aggregated sales forecast drives the planning process. For top-down planning to work, the mix of products or services must be essentially the same from one time period to the next, or the products or services to be provided must have very similar resource requirements.

Front 6

Bottom-up Planning

Back 6

An approach to S&OP that is used when the product/service mix is unstable and resource requirements vary greatly across the offerings. Under such conditions, managers will need to estimate the requirements for each set of products or services separately and then add them up to get an overall picture of the resource requirements.

Front 7

Planning Values

Back 7

Values that decision makers use to translate the sales forecast into resource requirements and to determine the feasibility and cost of alternative sales and operations plans.

Front 8

Level production plan

Back 8

a sales and operations plan in which production is held constant and inventory is used to absorb differences between production and the sale forecast.

Front 9

Chase Production planning

Back 9

Plan in which production is changed in each time period to match the sales forecast.

Front 10

Mixed production plan

Back 10

plan that varies both in production and inventory levels in an effort to develop the most effective plan.

Front 11

Load Profile

Back 11

A display of future capacity requirements based on released and/or a given span of time.

Front 12

Net Cash Flow

Back 12

The net flow of dollars into or out of a business over some period of time.

Front 13

Tiered workforce

Back 13

A strategy used to vary workforce levels, where additional full-time or part time employees are hired during peak demand periods, while a smaller, permanent staff is maintained year-round.

Front 14

offloading

Back 14

a strategy for reducing and smoothing out workforce requirements by having the customers perform part of the work themselves.

Front 15

optimization models

Back 15

a class of mathematical models used when the user seeks to optimize some objective function subject to some constraints.

Front 16

objective function

Back 16

a quantitative function that an optimization model seeks to optimize. maximize or minimize

Front 17

constraints

Back 17

quantifiable conditions that place limitations on the set of possible solutions. the solution to an optimization model is acceptable only if it does not break any of the constraints.

Front 18

The three approaches to planning, Detailed, Tactical, and Strategic differ in?

Back 18

1)the time covered
2)the level of planning detail required
3)the degree of flexibility managers have to change capacity

Front 19

Aspects of Detailed planning and control are?

Back 19

Limited ability to adjust capacity
detailed planning (day to day, hour to hour)
Lowest risk, Specific products and times, scheduling of people and equipment,
Also known as short-range plans

Front 20

Aspects of Tactical Planning are?

Back 20

-Workforce, inventory, subcontracting, and logistics decisions
Planning numbers somewhat “aggregated” (month to month)
Moderate risk

Front 21

Aspects of Strategic planning are?

Back 21

“Bricks and mortar” and major process choice decisions
Planning done at a very high level (Product and process)
(quarterly or yearly)
High risk
Also called long-range plans

Front 22

Top down planning consists of three steps what are they?

Back 22

1) Develop the aggregate sales forecast and planning values.
2) Translate the sales forecast into resource requirements(Personnel, equipment, Materials)
3) Generate alternative production plans( Chase, level, mixed)

Front 23

What are the three phases of implementing Sales and operations planning?

Back 23

1)Developing the foundation
2)Integrating and streamlining the process
3)gaining a competitive advantage

Front 24

What are the key steps in developing the foundation?

Back 24

Educating all participants about the benefits of s&op, identifying the appropriate product or service families to plan around, and establishing the information systems needed to provide accurate planning values.

Front 25

Two options for aligning resources with demand are?

Back 25

Making sales match capacity, and making capacity match sales.

Front 26

Yield management

Back 26

An approach commonly used by services with highly perishable products in which prices are regularly adjusted to maximize total profit.

Front 27

sales and operations planning purpose

Back 27

select capacity options over the intermediate time horizon.

Front 28

What are the capacity options for sales and operations planning?

Back 28

-workforce
-shifts
-overtime
-subcontracting
-inventories

Front 29

Inputs to the process of sales and operations planning

Back 29

Strategic capacity levels
Demand management
External Capacities

Front 30

Sales and operations planning consists of

Back 30

Monthly meetings by senior management
Evaluates supply, demand, cash flow for future periods
Aligns tactical plans- consensus on single operating plan
Allocates critical resources of people, capacity, materials, time and money.