MPR Chapter 1

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Sandy2015
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306406
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MPR Chapter 1
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2015-10-04 21:22:44
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MPC
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Master Planning and Control systems and Mater Planning of Resources
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  1. What is MPC?
    Manufacturing Planning and Control systems
  2. What are the objectives of MPC in achieving manufacturing and service objectives from a customer perspective?
    • ·The right goods and services
    • ·The right quality
    • ·The right quantity
    • ·The right time
    • ·The right place
    • ·The right price
  3. What are the objectives of MPC in achieving manufacturing and service objectives from a Supplier perspective?
    • · High levels of customer service
    • ·Efficient use of resources
    • ·Low inventory investment
  4. What are the two aspects of quality?
    Conformance - products and services meet regulatory standards

    Specification - the need to design, manufacture, and deliver products and services that provide the requisite functionality, aesthetics, and value customers want.
  5. Delivering products to the right place depends on what?
    Sales channels - internal functions and external parties (distributors and retailers) that support the marketing, promotion, and sale of products and services to customers in the supply chain.

    Distribution channels - determine the physical flow of goods and services to customers at required delivery points.
  6. What are the 4 generic performance objectives in meeting on time delivery requirements?
    • Speed
    • Quality
    • Flexibility
    • Dependability of production and distribution processes

     - These are all related to a 5th performance measure - Cost
  7. What key issues does manufacturing planning address in order to meet customer demand?
    1. Flow of raw materials from suppliers, work in process through production, and finished product and delivery channels to customers

    2. Delivery lead time customers are willing to accept

    3. Deployment and use of production resources: Labor, equipment, technology, and plant infrastructure

    4. Appropriate relationships with other organizations in the supply chain, including outsourcing, arm's length relationships, partnerships, alliances, and vertical integration.
  8. What are the conflicting business objectives in MPC?
    • 1. Customer service levels
    • a. acceptable lead times
    • b. shipped complete, arrives on time
    • c. right quality and price
    • 2. Inventory investment
    • a. low WIP
    • b. high turnover
    • c. faster throughput
    • 3. Costs of production
    • a. minimizing of setups
    • b. longer production runs and high utilization
    • c. low cost of materials
  9. What 3 business objectives are in conflict with MPC?
    • 1. Customer Service Levels
    • 2. Inventory Investment
    • 3. Costs of Production
  10. If you have high utilization achieved by long production runs that might lower the per-unit cost of production - what is the impact to inventory?
    Higher finished goods inventory and increases in inventory investment
  11. What is the impact on inventory and customer service when you have low cost of materials achieved through volume discounts for buying in large lot sizes and buying low quality components?
    Increase inventory levels and lead to quality problems and delays in fulfilling customer orders
  12. what manufacturing practices help mitigate the inherent conflict among the 3 objectives of MPC?
    Deployment of lean and theory of constraints
  13. True or False:
    A key role of MPC is balancing supply and demand.
    True
  14. What does demand management consist of?
    demand forecasts, order management, and customer relationship management
  15. True or false: 
    Supply is a function of the efficiency of production and distribution planning and the availability of production resources including materials, labor, equipment, technology and facilities
    True
  16. Imbalances in supply and demand are a result of what?
    • 1. failure to understand the forecast demand accurately
    • 2. long order-fulfillment lead times through large-batch production, which increase reliance on forecasts rather than more reliable customer orders in planning production
    • 3. lack of process flexibility to respond to changes in customer orders or market conditions
  17. Imbalances in supply and demand can lead to what types of problems?
    • 1. poor levels of customer services
    • 2. buildup of inventory from large-batch production
    • 3. Weakened competitive position
  18. What is the difference between strategic planning and business planning?
    Strategic planning - the strategic portion of direction setting addresses long term objectives relating to products, customers, and markets

    Business Planning - This planning activity also is long term in focus and much of it is denominated by monetary terms. It is the bridge from strategic planning to tactical or cross functional planning at the MPR level discussed below.
  19. What is the bridge from strategic planning to tactical or cross functional planning at the MPR level?
    Business Planning
  20. Two processes that are closely linked in direction setting for an organization
    Strategic planning 

    Business planning
  21. True or false: 
    MPC consists of short, intermediate, and long term planning processes
    True
  22. MPR
    Master planning of resources
  23. ____________ consists of cross functional tactical plans that are implemented by operational planning activities
    MPR
  24. MPR is intermediate to Long term (True or False)
    True
  25. S&OP is responsible for?
    • 1. processing inputs from the business plan, demand forecast, production resource planning and logistics resource requirements planning , which is part of distribution planning. 
    • 2. Translating these inputs into intermediate to long term sales, production, and distribution plans at the aggregate volume or product family level.
    • 3. validating plans against required production and distribution resources.
  26. S&OP and resource planning go hand in hand (true or false)
    true
  27. Master scheduling and Rough cut capacity planning (RCCP) 
    is responsible in the intermediate term for
    • 1. processing inputs on product volumes from production plans at the family level, forecasts and customer orders on hand, RCCP, and logistics requirements planning that is part of distribution planning. 
    • 2. disaggregating product family volume data from the prodcution plan into a master production schedule (MPS) for individual end items. 
    • 3. validating the MPS against required production and distribution resources.
  28. What is demand managements role in MPC?
    • 1. Recognizes demand for products and services through forecasts, customer order management or order servicing by sales, marketing and customer service and CRM.
    • 2. provides inputs on demand for goods at the product family level to S&OP and at the end item level for master scheduling.
  29. What is Distribution planning's role in MPC?
    • 2 types of support to S&OP and master scheduling in the long and intermediate terms:
    • 1. planning of inventory levels at distributed stocking points at the product family and end item levels based on local demand forecasts, customer orders, and disaggregated demand data from the central supply point
    • 2. providing inputs on distribution resources necessary to support the s&OP and MPS through a subprocess called logistics resource requirements planning.
  30. Material requirements planning and capacity requirements planning are near term planning horizons also known as ____________.
    Detailed scheduling and planning (DSP)
  31. What is the objective of DSP?
    Determine the material, labor, and equipment capacity required to support the MPS for individual end items
  32. What does DSP Determine?
    • 1. End item and component quantities needed to make or buy to fulfill the MPS
    • 2. When these items and quantities will be needed
    • 3. how many now are in stock
    • 4. which are on order
    • 5. the sufficiency of workers and equpiment
  33. What is PAC?
    Production activity control
  34. What is production activity control also known as?
    ECO - Execution and control
  35. What are the objectives of EXO (PAC)?
    • 1. Prioritizing and sequencing work to be performed
    • 2. executing plans, implementing factory floor controls, and reporting activity results
    • 3. Performance reporting and feedback so that preceding MPC processes can make necessary adjustments for shortages or overages in the production process.
  36. Annual corporate budgets and projected sales are in what planning horizon and fall in what business process?
    • Planning horizon: Intermediate
    • Process: S&OP
  37. What Planning horizon and business process? 

    Appropriate mix of human resources and technology
    Planning horizon: Long term, Intermdeiate

    Process: Strategic Business and S&OP
  38. What Planning horizon and business process? 
    Availability of materials and equipment for planned order releases
    Planning Horizon:Near

    Process: MRP/CRP
  39. What Planning horizon and business process?

    Balancing of supply (capacity) and demand at the individual product (mix) level
    Planning Horizon: Intermediate

    Process: MS/RCC - master scheduling and RCCP
  40. What Planning horizon and business process?

    Capacity needed to meet aggregate market demand/customer requirements
    Planning Horizon: Long term, Intermediate

    Process: Strategic/Business planning and S&OP
  41. What Planning horizon and business process?

    Communication with suppliers and customers on annual requirements
    Planning Horizon: Intermediate

    Process:S&OP
  42. What Planning horizon and business process?

    Decisions on inventory stocking locations for make to stock items
    Planning Horizon: Long term and Intermediate

    Process: Distribution planning
  43. What Planning horizon and business process?

    forecasts at the product family (volume) level in physical units
    Planning Horizon: Intermediate

    Process: Demand management
  44. What Planning horizon and business process?

    Labor, overtime, and subcontracting needs
    Planning Horizon:  Intermediate

    Process: S&OP
  45. What Planning horizon and business process?

    Reporting of work/service order completion
    Planning Horizon: Near term

    Process: PAC
  46. What Planning horizon and business process?

    Scheduling and tracking the use of resources to meet production requirements
    Planning Horizon: Near

    Process: PAC
  47. What Planning horizon and business process?

    Time phased plans for component parts and raw materials
    Planning Horizon: Near

    Process: MRP/CRP
  48. 3 generic levels of processes for linking suppliers to customers in MPC systems
    1. MPR - Demand managemnt, resource planning, S&OP, MPS, Distribution planning

    2. DSP - detailed capacity planning, detailed material planning

    3. ECO - priorities and sequencing, controls and reporting, production activity control, supplier systems
  49. What do ERP Systems do?
    Cover Core MPC processes and integrate them with value chain support processes such as: finance, CRM, sales and marketing, and human resources management.
  50. Master planning of resources (MPR) is a majore business process of MPC (Manufacturing planning and control).
    True
  51. Material requirements planning (MRP) + Capacity Requirements Planning = ?
    Detailed Scheduling and planning (DSP)
  52. Production activity control  is also known as what?
    Execution and control
  53. What are near term planning horizon events?
    • Availability of materials and equipment for planned order releases.
    • Reporting of work/service order completion
    • Scheduling and tracking the use of resources to meet production requirements
    • Time-phased plans for component parts and raw materials
  54. What are Interim Planning Horizons?
    • Annual corporate budgets and projected sales
    • Balancing of supply (capacity) and demand at the individual product ( mix) level
    • Labor, overtime, and subctonracting needs.
    • Forecasts at the product family (volume) level in physical units. 
    • Appropriate mix of human resources and technology
    • Capacity needed to meet aggregate market demand/customer requirements
    • Decisions on inventory stocking locations for make to stock items
  55. What are long term planning horizons?
    • Appropriate mix of human resources and technology
    • Capacity needed to meet aggregate market demand/customer requirements
    • Decisions on inventory stocking locations for make to stock items.
  56. What types of issues are worked with S&OP processes?
    • Annual corporate budges and projected sales
    • Appropriate mix of human resources and technology
    • Capacity needed to meet aggregate market demand / customer requirements
    • Communication with suppliers and customers on annual requirements
    • Labor, overtime, and subcontracting needs
  57. What types of issues will be worked in the Strategic/business planning process?
    • Appropriate mix of human resources and technology
    • Capacity needed to meet aggregate market demand/customer requirements
  58. What types of issues will be worked in the Master Scheduling (MS)/RCCCP planning process?
    Balancing of supply (capacity) and demand at the individual product (mix) level
  59. What types of issues will be worked in the Demand Management process?
    Forecasts at the product family (volume) level in physical units
  60. What types of issues will be worked in the (DP) Distribution Planning process?
    Decisions on Inventory stocking locations for make to stock items
  61. What types of issues will be worked in the MRP/CRP process?
    • Availability of materials and equipment for planned order releases
    • Time phased plans for component parts and raw materials.
  62. What types of issues will be worked in the PAC process?
    • Reporting of work/service order completion
    • Scheduling and tracking the use of resources to meet production requirements.
  63. What roles are included in MPR?
    • Demand management
    • S&OP
    • MPS
    • Resource Planning
    • And Distribution Planning
  64. What roles are included in DSP?
    • Detailed capacity planning
    • Detailed material planning
  65. What roles are included in Execution and Control?
    • Priorities and Sequencing
    • Controls and reporting
    • Production activity control
    • Supplier systems
  66. What support systems are there in MPC?
    • Finance and accounting
    • Customer/supplier relationship management
    • Sales and marketing
    • Human Resources management
  67. What manufacturing environment should be used when the process of manufacturing is "Project" and the following is true:
    High  number of parts 
    Very low production rate
    Variety is high
    Engineer to Order (ETO)
  68. What manufacturing environment should be used with the production process is Job shop and batch and the following is true:
    medium / high number of parts
    Volume of parts is Low
    Variety is high
    Production rate is low/medium
    Make to order (MTO)
  69. What manufacturing environment should be used with the production process is Cellular and the following is true:

    medium number of parts
    Volume of parts is Medium/High
    Variety is low/medium
    Production rate is medium/high
    Assemble to order and Make to Order
  70. What manufacturing environment should be used with the production process is Repetitive and the following is true:
    Low / medium number of parts
    Production rate is high
    Volume of parts is High
    Variety is low
    Make to stock and Assemble to order
  71. What manufacturing environment should be used with the production process is Flow and the following is true:
    Low number of parts
    Volume of parts is High
    Variety is low/medium
    Production rate is High
    Make to stock
  72. Strategic and Business planning provides
    Direction Setting
  73. Demand Management provides
    forecast and customer order information
  74. Resourcing planning does what?
    Serves as a check on capacity and resource availability required by the production plan in the S&OP Planning horizon
  75. Distribution planning does what?
    • Can serve as a source of demand forecasts and actual orders generated by stocking locations and organizations in the supply chain.
    • Uses demand data from S&OP systems for logistics planning at the product family level.
    • Validates the adequacy of distribution resources to carry out the production plan.
  76. S&OP results in What?
    several plans that provide input to master scheduling.
  77. What is the unit of measure for MTS?
    Material supply capacity
  78. What is the unit of measure for MTO?
    Machine and labor hours
  79. What is the unit of measure for ETO?
    Engineering labor hours
  80. What is an MPC business process as well as an ERP module?
    Master scheduling
  81. What is the primary input to master scheduling?
    The production plan
  82. True or false:

    Demand management updates forecast and customer order information
    True
  83. RCCP converts _______________________ into requirements for critical production resources such as labor, equipment, and materials.
    Preliminary MPS
  84. Business plan
    A statement of long range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow or source and application of funds statement.
  85. Customer relationship management
    The collection and analysis of information designed for sales and marketing decision support, as contrasted with ERP information, to understand and support existing and potential customer needs.
  86. decoupling points
    The locations in the product structure or distribution network where inventory is placed to create independence between processes or entities.
  87. demand management
    The function of recognizing all demands for goods and services to support the marketplace
  88. distribution planning
    The planning activities associated with transportation, warehousing, inventory levels, materials handling, order administration, site and location planning, industrial packaging, data processing, and communications networks to support distribution.
  89. distribution requirements planning
    The function of determining the need to replenish inventory at branch warehouses.
  90. manufacturing environment
    Often refers to whether a company, plant, product, or service is MTS, MTO, or ATO.
  91. master scheduling
    The process where, upon review, adjustments are made to the MPS to ensure consistency with the production plan.
  92. product mix
    The proportion of individual items that make up the total production or sales volume
  93. resource planning
    Capacity planning conducted at the business plan level
  94. rough-cut capacity planning
    The process of converting the MPS into requirements for key resources
  95. sales and operations planning
    A process to develop tactical plans that provide management with the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer focused marketing plans for new and existing products with the management of the supply chain.
  96. Which of the following is an activity included in MPR?

    Business planning
    Strategic planning
    S&OP
    MRP
    S&OP
  97. Which of the following is an element of demand management?

    A. CRM
    B. RCCP
    C. Master scheduling
    D. Setting overall supply levels
    A. CRM
    (this multiple choice question has been scrambled)
  98. Which of the following processes sets the projected backlog level at the product family level?
    A. master scheduling
    B. S&OP
    C. business planning
    D. demand management
    B. S&OP
    (this multiple choice question has been scrambled)
  99. The planning horizon is which of the following?
    A. The amount of time a plan extends into the future
    B. Two years long
    C. the amount of time it takes to conduct the planning process
    D. The maximum amount of lead time required to order and receive all purchased materials required. 
    A. The amount of time a plan extends into the future
    (this multiple choice question has been scrambled)
  100. Which of the following is part of a business plan?
    A. Statement of profit objectives
    B. the production plan
    C. short term sales objectives
    D. master scheduling
    A. Statement of profit objectives
    (this multiple choice question has been scrambled)
  101. Which of the following includes an analysis of the nature of the firm, the market, and the business environment?
    A. product family analysis
    B. S&OP
    C. benchmarking
    D. the strategic plan
    D. The strategic plan
    (this multiple choice question has been scrambled)
  102. Which of the following descriptions of the decoupling point does not apply in all manufacturing environments?
    A. The location of subassemblies awaiting final assembly
    B. A strategic decision that determines customer lead time and inventory investment
    C. Where inventory is placed to create independence between processes or entities
    D. The latest point in the supply process at which a supplier holds inventory in expectation of a customer order
    A. The location of subassemblies awaiting final assembly
    (this multiple choice question has been scrambled)
  103. The S&OP process occurs at which of the following levels?
    A. product families
    B. individual item
    C. sub-component line items
    D. service parts
    A. product families
    (this multiple choice question has been scrambled)
  104. Distribution planning plans logistics capacity at the product family and end item level at which of the following planning levels?
    A. S&OP and master scheduling
    B. master scheduling and MRP
    C. strategic planning and MRP
    D. business planning and MRP
    A. S&OP and master scheduling
    (this multiple choice question has been scrambled)
  105. RCCP takes place at which of the following planning levels?
    A. business planning
    B. strategic planning
    C. MRP
    D. master scheduling
    D. Master scheduling
    (this multiple choice question has been scrambled)

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