In recent years attention has moved away from the concept of supply chain management (SCM).
Just-in-time (JIT) concepts were originally developed by Motorola and other American companies in the 1970s.
More and more companies are subcontracting some of their work to suppliers, keeping only their most important core competencies as internal activities.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. A ________ function is needed to transform our resources into useful goods.
Operations management works in a complex environment affected by:
all of the above
For the products or services they buy, customers expect:
13)
A) no after-sale service
a fair price C) no pre-sale service
lower quality
Generally a supplier must meet set minimum requirements to be considered a viable competitor in the marketplace. Customer requirements may be based on price, quality, delivery, and so forth and are called ________.
14) ______ A)
order price
order qualifiers C)
order flexibility
order winners
Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a ________ level of acceptance for each of the order qualifiers but ________ try to be the best in the market for the order winner(s).
15) ______
maximum, should
minimal, should C)
minimal, should not
maximum, should not
________ means that the manufacturer does not start to make the product until a customer's order is received. 16)
A)
Make-to-order
Make-to-stock C)
Assembly-to-order
Engineer-to-order
________ means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.
17) ______ A)
Engineer-to-order
Make-to-stock C)
Assemble-to-order
Make-to-order
________ means that the supplier manufacturers the goods and sells from finished goods inventory.
Make-to-order
usually flow from supplier to customers and design.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
Identify and briefly describe the primary activities carried out in manufacturing planning and control.
Identify the basic inputs to the manufacturing planning and control system.
Discuss the activities involved in physical supply and distribution.
Why is materials management seen as a "balancing act"?
What factors or major challenges are currently shaping production control's demand environment? 25)
Fill in the missing data in the profit and loss statement below.
Using the data below, if direct materials can be reduced by 10% and direct labor by 5%, the improvement in profit would be:
Using the data below, to achieve a $60,000 increase in revenue, how much would sales have to increase?
If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?
29)
Consider the following situation: If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales? How much would sales have to increase to provide the same increase in profits?
Manufacturing planning and control are responsible for the planning and control of the flow of materials through the manufacturing process. The primary activities are: production planning (to be able to meet the demands of the market place through forecasting, master planning, material requirements planning, and capacity planning), implementation and control (to put into action and achieve the production plans), and inventory management (to provide materials or supplies to the production process). These three activities work together.
22)
There are five basic inputs to the manufacturing planning and control system. (1) The product description shows how the product will appear at some stage of production. (2) Process specifications describe the steps necessary to make the end product. (3) The time needed to perform operations is needed and usually expressed in standard time, which is the time taken by an average operator, working at a normal pace, to perform the task. (4) available facilities. And, (5) Quantities required which comes from forecasts, customer orders, orders to replace finished-goods inventory, and the material requirements plan.
23)
Physical supply and distribution includes all the activities involved in moving goods, from the supplier to the beginning of the production process, and from the end of the production process to the consumer. The activities involved are transportation, distribution inventory, warehousing, packaging, materials handling, and order entry.
24)
The objective is to be able to deliver what customers want, when and where they want it, and do so at a minimum cost. To achieve this objective, materials management must make trade-offs between the level fo customer service and the cost of providing that service. As a rule, costs rise as the service level increases, and materials management must find that combination of inputs to maximize service and minimize costs.
25)
The key factors are several. First, customers are never satisfied. Also supply chains are large and must be continually managed. Product life cycles are getting shorter and shorter. Production control requires a vast amount of data that must be managed. There is an emphasis on profit margins that are being continually squeezed. Finally, there are an increasing number of alternatives.
26)
Direct Labor is $200,000; Direct Material represents 50% of Sales, and Gross Profit represents 10% of Sales.
27)
28)
29)
Profit would increase or improve by 200%.
30)
Profit would increase or improve by 200%; Sales would have to increase 20%.