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34 Cards in this Set
- Front
- Back
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Strategic Company Objectives |
-Determine “best” sales and operations plan to: -“maximize profits -Meet all expected customer demand -“minimize” inventory investment -“minimize” adverse impacts to workers -“maximize” working capital |
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Lead Times |
For external purhase orders: -Comes from supplier For internal production orders: -Purchasing lead time -Move time -Setup time -Processing time -Wait Time (for rest of the batch) -Queue Time (for production) |
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Time Buckets |
-Standard increment of time (months, weeks, days) |
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Least Unit Cost |
-Evaluates potential for savings from quantity discount -Considers order cost, inventory holding costs, and price |
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Least Period Cost |
-Evaluates potential for savings from quantity -Uses cost per period instead of cost per unit |
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Pegging |
-where problem components are used in upper level products -flags them in MRP |
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MRP Challenges |
-Data Accuracy -User knowledge -Overloaded MPS -Top management commitment -Capacity insensitivity -Excessive inventory due to push nature of system |
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System Nervousness |
-Small changes in final delivery schedule can result in large changes to component or departments |
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Capacity Bills |
-Method utilizes BOMS and rouiings |
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Vertical Loading vs Horizontal Loading |
Vertical Loading -WC loaded independently -Jobs loaded into individual WC based on priority rule Horizontal Loading -Highest priority job loaded into all WC, then next highest.... |
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Corrective Actions |
-Subcontracting or purchasing parts -Lot splitting -Operation overlapping (transfer batches) -Operation splitting (duplicate resources in parallel -Alternative routing -Order cancellation or reschduling |
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Common Manufacturing Wastes |
-Movement of material -Long production lead times -Long supplier lead times -Large amounts of inventory -Poor quality |
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Little's Law |
I=RT Inventory = production rate * Throughput Time |
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Push System |
-Plan does not manage changes and disruptions very well -Fixed Lead times are often padded, worst case scenarios -Lead to excessive levels of inventory |
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Pull System |
-Produce only what is needed to satisfy demand -Similar to reorder point system -Does not work well with large lot sizes and long lead times -Frequent orders of very small batches |
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How to calculate # of Kanban Cards |
-Number of kanban cards as well as how it works -Y = DT(1+x) -D = Demand per unit of time -T = Lead time to replace container -X = safety factor (decimal) -C = container size |
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Where you can utilize Kanban Cards |
Companies with: -Relatively stable demand -Limited number of products -MTS |
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Theory of Constraints |
-A series of linked processes needed to provide a service or make a product -Each process has a certain capacity or production capability -The one with the least capacity or lowest production rate is the constraint |
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Constraint |
-anything that limits the firm from meeting its goal -Limits throughput capability of entire series of linked processes -Improving anything other than constraint does not improve system performance -leads to greater WIP |
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Fundamental Principles |
-Ideas are not solutions -Systems are like chains -Core problems are almost never obvious |
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Process Improvement |
-Identify the constraint -Exploit the constraint -Subordinate everything to the constraint -Elevate the constraint -One no longer a constraint, find new one and repeat |
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Drum-Buffer-Rope |
-Constraints acts as drumbeat -Time buffer in front of constraint -Items pulled to the constraint for processing |
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Process Batches |
-Material/item produced in one setup -Large enough not to spend too much of available capacity doing setup |
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Transfer Batches |
-Material/items moved from one operation to the next -Small enough to keep WIP inventory low |
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Upstream and Downstream Activities Involved in Supply Chain Management |
-Planning -Inventory Control -Purchasing -Distribution |
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Vendor Managed Inventory |
-Supplier stocks inventory in location of customer's factory -Customer will pull inventory when needed and pay |
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Designating Phantoms |
-MRP Explosion goas as phantom component records: lot sizing, ofsetting lead time, releasing orders -Part Demand transferred to next lower level of system |
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Managing Load imbalances |
-Select different routes through a cell -Move jobs to other cells -change lot sizes -Control mix of orders released -Move Operators |
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Applicability for Generic Pull System |
-ATO, MTO -Varying Product Volumes -Varying Product mixes -Systems wiht linear routing between work centers |
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Adv and Disadv of Pull System |
Advantages: -Reduced inventory -Stabalized lead times -Simple to use -Low Maintenance -Can be operated without computers Disadvantages -Cards can be lost, turned in late, or hung correctly on the board -WIP limit set by kanban squares or cards might not be respected |
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Order Qualifier |
-Criteria used by customers to determine which suppliers deserve consideration |
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Order Winner |
-Criteria used by customers to determine which qualified |
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Analysis tools/techniques |
-Kaizen -Value Stream Mapping -Process mapping -Process Re-Engineering |
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Forecasting Principles |
-Almost always wrong -More accurate for groups or families of items -More accurate for shorter time periods -No substitute for calculated -Forecasts should include an estimate |
