OM Finals

**OM FINALS: PLEASEE PUMASOK KA SA UTAK NAMIN!!!\ ** **DEFINITION OF TERMS** **Low-level coding** [Restructuring the bill of materials] so that multiple occurrences of a component all coincide with the lowest level at which the component occurs. **Human resources.** Hiring activities, including r...

**OM FINALS: PLEASEE PUMASOK KA SA UTAK NAMIN!!!\ ** **DEFINITION OF TERMS** **Low-level coding** [Restructuring the bill of materials] so that multiple occurrences of a component all coincide with the lowest level at which the component occurs. **Human resources.** Hiring activities, including recruitment, *[interviewing,]* and training; layoff planning, including outplacement counseling. **Gantt chart** used as [visual aid for loading] and schedulingpurposes. **CPM (critical path method)** are useful for [planning, coordinating, and controlling] large-scale projects. **Capacity requirements planning** The process of determining [short-range capacity] requirements. - conversion of quantity requirements into labor and machine requirements. **Scheduling** [Establishing the timing of the use of equipment], facilities, and human activities in an organization. **Johnson's rule** Technique for minimizing makespan for a group of jobs to be processed on two machines or at two work centers. **Muda** Waste and inefficiency. **Planned-order releases** Planned amount to order in each time period; plafnned-order receipts offset by lead time. **Forward scheduling** Scheduling ahead from a point in time. **Grosss requirements** Total expected demand for an item or raw material in a time period. **Kanban** A manual system that signals the need for parts or materials. **Return on quality (ROQ)** An approach that evaluates the financial return of investments in quality. **Value stream mapping** A visual tool to systematically examine the flow of materials and information. **DISTRIBUTION REQUIREMENTS PLANNING (DRP)** A method used for planning orders in a supply chain. **infinite loading** Jobs are assigned to work centers without regard to the capacity of the work center. **Load reports** Department or work center reports that compare known and expected future capacity requirements with projected capacity availability. **nterprise resource** **planning (ERP)** Integration **Enterprise resource planning (ERP)** of financial, manufacturing, and human resources on a single computer system**.** **Scatter diagram** A graph that shows the degree and direction of relationship between two variables. **Order releases** Authorization for the execution of planned orders. **Activity-on-arrow (AOA)** Network diagram convention in which arrows designate activities. **Process variability** Natural or inherent variability in a process. **Loading** The assignment of jobs to processing centers. **Project champion** A person who promotes and supports a project. **Single-minute exchange of die (SMED)** A system for reducing changeover time. **Closed-loop supply chain** A manufacturer controls both the forward and reverse shipment of product. **Activities** Project steps that consume resources and/or time. **Pull system** Replacing materials or parts based on demand. **Activity-on-node (AON)** Network diagram convention in which nodes designate activity. **Jidoka:** Quality at the source. A machine automatically stops when it detects a bad part. **Net-change system** Approach that updates MRP records continuously. **Flow-shop scheduling** Scheduling for flow system. - also can be used in medium-volume systems. **Dependent demand** Demand for items that are subassemblies or component parts to be used in the production of finished goods. **Safety stock** Extra inventory carried to reduce the probability of a stockout due to demand and/ or lead time variability. ***Kaizen*** Japanese term for continuous improvement. **Holding (carrying) cost** to carry an item in inventory for a length of time, usually a year. - relate to physically having items in storage. **Work breakdown structure (WBS)** A hierarchical listing of what must be done during a project. **Planning reports** Data useful for assessing future material Requirements. - useful in forecasting future inventory requirements **PERT (Program evaluation and review technique**), for planning and coordinating large projects. **Available-to-promise (ATP**) inventory quantities have been added to the master schedule. **Just-in-time (JIT)** A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed. **Job-shop scheduling** Scheduling for low-volume systems with many variations in requirements. - usually fairly complex. - The *two major problems in job-shop scheduling* are assigning jobs to machines or work centers. **Heijunka** Workload leveling. - Variations in production volume lead to waste. **Channel** A server in a service system. - Note that the terms "server" and "channel" mean the same thing. **Master Scheduling the heart of production planning and control.** - **based on decisions made during aggregate planning.** **\ \ \ Finite loading Jobs are assigned to work centers taking into account the work center capacity and job processing times.** **Infinite loading Jobs are assigned to work centers without regard to the capacity of the work center.** **Projects Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame.** - **unique aspect of business operations that require a special management approach.** **Network (precedence) diagram Diagram of project activities that shows sequential relationships by use of arrows and nodes.\ ** **Gatekeeping Screening returned goods to prevent incorrect acceptance of goods.** **Flow system High-volume system in which jobs all follow the same sequence.** **Events The starting and finishing of activities, designated by nodes in the AOA convention.** **Net requirements The actual amount needed in each time period.** - Net requirements= Gross requirements -Project need on-hand inventory. **Pegging The process of identifying the parent items that have** **generated a given set of material requirements for an item.** ***p* -chart Control chart for attributes, used to monitor the** **proportion of defective items in a process.** - **A *p* -chart is used to monitor the proportion of defective items generated by a process.** - **Lean systems are demand driven.** - **is a flexible system of operation that uses considerably fewer resources (activities, people, inventory, and floor space).** - **an alternative to traditional operation** **Toyota Approach in Production:** 1. **Muda** 2. **Pull System** 3. **Kanban** 4. **Heijunka** 5. **Kaizen** 6. **Jidoka** 7. **Team concept** **Methods of inventory costing** 1. First-in, first-out (FIFO) 2. Last-in, first -out (LIFO) 3. Weighted Average Cost 4. Specific Identification **Wastes in lean philosophy** 1. Inventory 2. Overproduction 3. Waiting time 4. Unnecessary transporting 5. Processing waste 6. Inefficient work methods 7. Product defects **Forms of business organization** 1. Sole proprietorship 2. Partnership 3. Corporation 4. Limited Liability Company (LLC) **Common approaches in order fulfillment** 1. Engineer-to-Order (ETO) 2. Make-to-Order (MTO) 3. Assemble-to-Order (ATO) 4. Make-to-Stock (MTS) **Project life cycle (in order)** 1. Definition 2. Planning 3. Execution 4. Termination **Elements of productive system** 1. Inputs 2. Transformation Processes 3. Outputs 4. Feedback 5. Control Mechanisms 6. Environment **Steps in creating a supply chain (in order)** 1. Plan 2. Source 3. Make 4. Deliver 5. Manage returns **Different types/kinds of inventories** 1. Raw materials and purchased parts. 2. Partially completed goods, called work-in-process (WIP). 3. Finished-goods inventories or merchandise. 4. Tools and supplies. 5. Maintenance and repairs inventory (MRO). 6. Goods-in-transit to warehouses, distributors, or customers (pipeline inventory) **Business cycle** 1. Expansion 2. Peak 3. Contraction 4. Trough 5. Depression 6. Recovery **Four basic steps in the cycle** 1. Plan 2. Do 3. Study 4. Act **Where to Inspect in the Process** 1. Raw materials and purchased parts 2. Finished products. 3. Before a costly operation. 4. Before an irreversible process. 5. Before a covering process