Manufacturing Resource Design Quiz

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Questions and Answers

What is the primary focus of product design in manufacturing?

Arrangement of machines in the facility

Determination of resource types and amounts

Determination of manufacturing operations and tools (correct)

Calculation of machine efficiency

Which formula correctly represents the Machine Requirements Problem?

X = (P imes U) / (H imes t ext{ min})

X = (P imes H) / (t imes U)

X = (t ext{ min} / 60) imes (P / hu) (correct)

X = (t imes P) / (60 imes H)

How does the Template Shuffling Approach handle resource layout problems?

Through geometric replicas arranged by trial and error (correct)

Using mathematical models to deduce optimal layouts

By ranking layouts based on quantitative data

By using automated simulations for layout optimization

What characterizes the Relationship Chart Approach to resource layout problems?

A qualitative formulation based on adjacency desirability Signup and view all the answers

In the context of resource design, which aspect is NOT determined?

Visual appeal of resources Signup and view all the answers

What is the main goal of purchasing?

To obtain goods and services at reasonable prices Signup and view all the answers

Which of the following is a function of after-sales service?

Returns and repairs management Signup and view all the answers

In the context of contract logistics, what does 4PL stand for?

Logistics Integrator Signup and view all the answers

What does the ABC analysis primarily focus on?

Raw material categorization by importance Signup and view all the answers

Which of the following is NOT a reason for outsourcing logistics activities?

Improved product quality Signup and view all the answers

What percentage of purchasing cost is typically attributed to product quality?

45% Signup and view all the answers

What are the two key elements of purchasing?

Strategic sourcing and operative procurement Signup and view all the answers

Which process is NOT part of the core process in purchasing?

Quality assurance Signup and view all the answers

What is a key characteristic of production synchronous delivery?

It relies on cycle time-based production processes. Signup and view all the answers

Which of the following is NOT a prerequisite for production synchronous delivery?

Inventory carryover from previous orders Signup and view all the answers

Which of the following accurately describes Just In Time (JIT) delivery?

Involves staging production factors at the time they are needed. Signup and view all the answers

What is a disadvantage of using Just In Time (JIT) delivery?

Breakdowns can disrupt the entire value adding chain. Signup and view all the answers

What does the consignment concept entail?

Suppliers are responsible for managing the customer's warehouse. Signup and view all the answers

What is one of the advantages of Just In Time (JIT) delivery?

Avoidance of redundant quality controls. Signup and view all the answers

Which of the following best defines Just in Sequence (JIS) delivery?

Vendor parts are assembled and delivered directly to the assembly line. Signup and view all the answers

What does the letter code 'X' indicate about the adjacency of two departments?

The two departments should not be adjacent Signup and view all the answers

Which element is essential for the successful implementation of Just In Time (JIT) delivery?

Continuous material and information flows. Signup and view all the answers

Which code represents departments that are marginally beneficial to be located adjacent?

O Signup and view all the answers

Which of the following represents an 'essential' requirement for department adjacency?

A Signup and view all the answers

What is a key objective when evaluating different layouts in a material flow system?

To find the layout with the highest score Signup and view all the answers

Which factor is NOT considered a decision variable in material flow planning?

Duration of planning Signup and view all the answers

In production planning and control, what aspect must be coordinated across departments?

Demand and supply Signup and view all the answers

What does the term 'frequency' refer to in planning?

The number of planning executions per time unit Signup and view all the answers

Which of the following describes a planning unit?

A fraction of time within the planning horizon Signup and view all the answers

What is the primary focus of logistics within a company?

Maintaining material flow Signup and view all the answers

What is the goal of supply chain management?

To integrate planning and control of goods, information, and monetary flows Signup and view all the answers

Which of the following best describes the '6 R's' in logistics?

Right objects, quantity, place, time, quality, costs Signup and view all the answers

How is procurement logistics primarily characterized?

It manages the relationship with suppliers and raw materials Signup and view all the answers

What aspect does logistic efficiency directly relate to?

Optimizing product and information flow Signup and view all the answers

Which of the following is NOT a function of production logistics?

Managing supplier negotiations Signup and view all the answers

What does the term 'trade-off' refer to in the context of logistics?

Evaluating opportunity cost in decision-making Signup and view all the answers

Which element is crucial in the procurement logistics process?

Supplier management Signup and view all the answers

What is the primary purpose of the Kraljic Portfolio Matrix?

To classify commodities/supplies based on organizational weaknesses Signup and view all the answers

Which product classification is characterized by stable consumption and rare fluctuations?

X Items Signup and view all the answers

In the context of categorizing products to ABC based on demand, what does 'Threshold Value' refer to?

A predefined point to classify products based on their cumulative percentage of demand Signup and view all the answers

What is the correct order of steps to use when analyzing products with respect to their demand predictability?

Input Data -> Calculate CoV -> Order CoV -> Decide Threshold -> Categorize Products Signup and view all the answers

In the Kraljic Portfolio Matrix, what characterizes Strategic Items?

High profit impact and high supply risk Signup and view all the answers

What should be done periodically in the matrix analysis process?

Decide whether to move purchases to different quadrants Signup and view all the answers

Which of the following best describes a Bottleneck Item?

Items that have stable demand and low availability Signup and view all the answers

What does the Coefficient of Variation (CoV) express in demand analysis?

The fluctuation and predictability of demand Signup and view all the answers

Study Notes

General Logistics - Introduction (Class 1)

Lectures: 5 ECTS, Labs: 2.5 ECTS
Written Exam: 2/3%, Group Projects: 1/3%, Bonus 1/3 based on 70% bonus assignment score
Bonus Assignments: 2 homework assignments, 3 quizzes per lecture
Group Project: Main Project (50%), Excel Homework (30%), Assignments (20%)
Materials Needed: Pencil
Project Materials: Cedar Logs (Northwest, US), Graphite (Sri Lanka), Rapeseed oil (Indonesia), Zinc and copper (China), Castor beans (East Africa), Pumice (Italy), Sulfur Chloride, Aluminum (China), Candelilla Wax (Mexico), Clay (Mississippi), Aluminum Hydroxide
Topics Covered: Logistics, Product and Information Flow, Supply Chain Management (SCM)

General Logistics - Class 2

Supply Chain: A network of companies working together for a product or service.
Supply Chain Management: All companies involved in a supply chain.
Trade-offs: Involve Opportunity Cost.
Logistics: Optimizing planning, control, and material and information flow within a company or between multiple companies.
Logistics Goal: Delivering the right items (6 R's) in the right quantity to the right place at the right time, in the right quality, for the right cost.
Integrated planning and control of goods, information, and monetary flows throughout the value-added chain, from supplier's supplier to customer's customer.

Production Logistics

Orientation: connecting procurement and distribution logistics.
Objects: Semi-finished goods in the process of value adding.
Function: Utilizing available production capacities and producing products for distribution logistics.
Processes: Organizational logistics, layout planning, production planning, and control.
Targets: Short throughput time, high due date reliability, low inventory level, and high resource utilization (human and machinery).

Distribution Logistics

Orientation: reaching the customer.
Object: finished goods
Function: ensuring the current management of goods from production to the customer.
Processes: Order processing, warehousing, and transportations.
Criteria for Evaluation: Cost, time, and environmental factors.
Operational steps: Picking, packaging, storing, and transport using various options (road, airway, water, rail).

Disposal Logistics

Orientation: managing the flow of objects in reverse (reverse logistics/reverse supply chain).
Object: Used, damaged, and waste materials
Function: Returning, recycling, and disposing of materials at the end of their useful life.

After-Sales Logistics

Orientation: providing services after product delivery.
Object: Spare parts
Function: Ensuring the use of products throughout their life cycle.
Processes: Managing returns, repairs, and distributing spare parts.
Spare Parts: Distribution network

Contract Logistics

Outsourcing: Companies outsourcing logistics to another company for core competencies, increased flexibility, and cost-effectiveness.
Sustainable Co-operation: Contract basis for long-term work-sharing between companies.

Class 3 (Purchasing, Sourcing, and Procurement)

Orientation: Interaction with suppliers
Objects: Raw material and semi-finished goods
Function: Acquiring goods and services at fair prices.
Core Processes: Market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order monitoring.
Strategic Sourcing: Finding, selecting, contracting, and managing suppliers.
Operative Procurement: Ordering, Expediting, and Following Up
Material Categorization: ABC analysis (based on purchase volume/value), prioritizing important items.

ABC Analysis:

Prioritization of purchasing items based on their value and importance
Steps: listing purchases by order, analyzing risk and complexity, positioning each item on the matrix, and adjusting the system periodically

XYZ Analysis:

Classifies items based on the predictability of demand.

Kraljic Portfolio Matrix

Categorization of commodities based on profit impact and supply risk.

Strategic Sourcing:

Finding, selecting, and contracting suppliers.
Focus on core competencies and cost effectiveness.

Operative Procurement:

Ordering, expediting, and following up on orders.
Focus on order execution and efficiency

Class 4: Global Sourcing

Benefits: Reduced purchasing costs, increased revenue, improved market access, and competitive advantage.
Risks: Total cost of ownership, transportation risks, quality, exchange rate fluctuations, and other logistical concerns
Global sourcing barriers: Trade barriers, information problems, currency volatility, local issues, time issues, relationship issues, and customs and taxes.

Single Sourcing

Advantages: reduced cost, standardization, and quality.
Disadvantages: Dependence on a single provider and lower innovation potential.

Multiple Sourcing

Advantages: Reduced risk and increased competition.
Disadvantages: Increased coordination and communication requirements

Parts Sourcing

Supplier to manufacturer for parts procurement.
Focuses on Module or System Supplier connections.

Modular Sourcing

•Module supplier •Modular delivery

Components and Systems Procurement

Simplified and standardized for managing various factors & procurement quantities.

Competitive Bidding and Negotiating

Competitive Bidding involves high volumes and clear requirements and conditions
Negotiation focuses on missing competitive bidding requirements, requiring early supplier involvement and substantial lead time

Supplier Evaluation

Criteria for evaluating suppliers, including core competence, requirements, production capacity, autonomy, market power, and costs, and capital requirements
Methods: Break even analysis, Make-or-buy portfolio, Investment appraisal, and cost-benefit analysis

Reasons for In-House Manufacturing

Cost Efficiency: In-house can be cheaper
Expertise and Resource Utilization :Boosts overall knowledge
Overhead Cost Management: Improves capacity utilization
Precision Control: Critical in complex production
Control Benefits: Enhances control over variables
Transport Challenges: Production can be easier and cost effective when near the customer.
Secrecy: Provides safeguard on intellectual property
Independence: Reduces reliance on external providers

Reasons for outsourcing Manufacturing

Cost efficiency.
Resource constraints
Investment unattractive
Risk management
Technology and resource advantage

Class 5: Supply Relationship Management

Inventory Problem: Capital tied up, warehouse space (cost related)
Benchmarking
Transactional Purchasing: Short-term, emphasis on price, quality, and delivery
Relationship Purchasing: Long-term, collaboration, emphasis on various factors.
Reverse auctions not applicable for relationship purchasing

Relationship Formation - Supplier Integration:

One-night stand (competitive leverage)
Regular Date (preferred suppliers)
Going steady (performance partnership)
Living together (strategic alliances)
Marriage (co-business integration)

The Bensaou Model (Supplier/Buyer relationship model)

Based on specific investments by both supplier and buyer
Four types (Captive buyer, Market exchange, strategic partnership, and captive supplier).

Operative Procurement

•Sourcing on Demand: The request for single item production from an unsteady/sporadic demand situation. •Order-only-with-customer-demand: Delivery times are associated with customer orders. •Production synchronous delivery: Customer determines frequency and quality Stock Holding

Customer and procurement markets are decoupled by buffers

Class 6-Production Planning and Control (PPC)

•Functions to allocate resources (human labor and production facilities) to items (products, material) in terms of time and volume. •Scheduling point of view: resources and material must be planned in terms of volume and time. •Delivery point of view : delivery date must be planned—planning volume and time limit. •General Terms of Planning: Setting a horizon (the period of time for planning), and the frequency of planning execution for a given period). •Closing date, duration of planning, and objects. •Rolling Horizon Planning –Frozen Period, Roll Period

Class 7-Demand Forecasting

Estimating future demand levels using specific techniques.
Historically forecasted techniques:
-Quantitative techniques: Moving average, exponential smoothing, and regression methods
-Qualitative techniques: Manual forecasting.
Futuristic techniques

Class 8 - Operating Curves (Throughput Diagrams)

Graphical representation of how input and output volumes and WIP levels vary over time and different models.
Focuses on different alternatives
Illustrates ideal minimum WIP level as a product of Throughput and Cycle time

Class 9-Logistic Potential Analysis (LPA)

Focuses on identifying and assessing potential risks on schedule adherence.
Evaluates orders: order throughput times, actual order times
Identifies critical orders through correlation analysis

Class 10 - Distribution Logistics

Customer order decoupling point (Order Penetration Point): The point where procurement/production/delivery shifts to customer-order dependent.
Common Distribution Logistics: Core functions of distribution logistics.
Layouts of distribution channel

Class 11- Peak Demand

Application to medium and high demand stability patterns.
Calculating and using storage throughput diagrams (throughput and storage curves) from known patterns
Safety Stock formula (Considering the demand rate, the variability and the replenishment time).

Class 12-Safety Stock Calculation (Standard Deviation)

Calculating Safety Stock based on the standard deviation of demand for a given period and time factor

Class 13-Inventory Management, ABC/XYZ Analysis

Material categorization based on ABC and XYZ analysis for prioritization of management strategies.
Review of the basic concepts and calculations for inventory management and material categorization.

Cost/Benefit Analysis

Forecasting Methods

Storage Model

Machine Requirement Model

Throughput Diagrams

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Description

Test your knowledge on key concepts in manufacturing and resource design, including product design priorities, machine requirements, and logistics. This quiz covers various approaches and functions related to purchasing and after-sales service in the manufacturing industry. Evaluate your understanding of critical strategies and techniques used in resource layout problems.