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53 Cards in this Set

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PAB
Projected Available Balance: An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders
Projected Available Balance
An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders. PAB tells you if you need to schedule an MPS.
Master Planning
A group of business processes that includes the following activities:
Demand Management (which includes forecasting and order servicing); Production and Resource Planning; and Master Scheduling (which includes the Master Schedule and the Rough-ut Capacity Plan (RCCP).
A production schedule that generates materials and labor requirements that are as evenly spread over time as possible.
Level Schedule
The amount of time a plan extends into the future?
Planning Horizon
A production strategy that combines the aspects of both the chase and level production strategies?
Hybrid
A process to develop tactical plans based on setting the overall level of manufacturing output to best satisfy the current planned levels of sales?
Production Planning
Anything that adds value to a good or service in its creation, production or delivery?
Resource
The date when purchased material or production material is due to be available for use?
Due Date
A type of schedule, a line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler?
Master Production
An open order that has an assigned due date?
Scheduled Receipt
Capacity planning conducted at the business plan level; the process of establishing, measuring, and adjusting limits or levels of long-range capacity?
Resource Planning
A group of business processes that includes the following activities: demand management, production and resource planning, and master scheduling?
Master Planning
A type of capacity planning; the process of converting the MPS into requirements for key resources, often including labor, machinery, warehouse space, supplier's capabilities, and, in some cases, money?
Rough Cut
A production strategy that maintains a stable inventory level while varying production to meet demand?
Chase
1. Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
A. Chase
B. Level Production Strategy
C. Cycle Counting Strategy
D. Demand Matching Strategy
B. Level Production Strategy
2. For the purposes of production planning, product families should be established on the basis of
A. Market segments
B. Similarity of manufacturing process
C. The availability of materials
D. The availability of machinery
B. Similarity of manufacturing process
3. If the opening inventory is 100 units, sales are 500 units, and the ending inventory is 200 units, what will manufacturing produce?
A. 300 units
B. 400 units
C. 500 units
D. 600 units
D. 600 units
4. Under which of the following circumstances will firms generally make-to-stock?
A. Demand is unpredictable
B. Many product options exist
C. Required delivery times are shorter than the time needed to make the product
D. Customers require special engineering
C. Required delivery times are shorter than the time needed to make the product
5. The information needed to develop a master schedule will come from which of the following?
A. The capacity requirements plan
B. The forecast of individual end items
C. Production activity control
D. The material requirements plan
B. The forecast of individual end items
6. Which of the following is a characteristic of the MPS?
A. It facilitates forecasting
B. It works with families of products
C. It is an agreed-upon plan between production and marketing and sales
D. It cannot be used for ordering
C. It is an agreed-upon plan between production and marketing and sales
7. Which of the following is an objective of an MPS?
A. Maximize utilization of equipment
B. Keep the sales department happy
C. Maintain the desired level of customer service
D. Minimize inventory investment
C. Maintain the desired level of customer service
8. Which of the following statements is most accurate about the MPS?
A. It is an agreed-upon plan between finance and manufacturing
B. If it is poorly done, we can expect past-due schedules and unreliable delivery promises
C. It is a plan for families of products that manufacturing expects to make over some period of time in the future
D. It provides input to the production plan
B. If it is poorly done, we can expect past-due schedules and unreliable delivery promises
9. What is the name for the portion of inventory or production not committed to customer orders?
A. Free Stock
B. ATP
C. Excess Production
D. Waste
B. ATP
10. Which of the following is true about time fences in a master schedule system?
A. Changes far out in the planning horizon can be made with little or no cost to manufacturing
B. In the “frozen zone,” capacity and materials can easily be committed to new orders
C. Changes in the near future on the planning horizon are less costly to make than changes in the distant future
D. The master planner should be authorized to make changes in the frozen zone
A. Changes far out in the planning horizon can be made with little or no cost to manufacturing
1. Which of the following are prerequisites to implementing a master production scheduling system?
I. Define master production schedule (MPS) unit
II. Install an enterprise resource planning (ERP) system
III. Train an employee in MPS concepts and techniques
A. I only
B. I and II only
C. I and III only
D. I, II, and III
C. I and III only
2. The master production schedule (MPS) translates the sales and operations plan (SOP) into:
A. Specific production orders
B. Forecast demand
C. A specific production plan
D. Efficient lot sizes
C. A specific production plan
3. The master production schedule (MPS) shows when products will physically be available to ship.
A. True
B. False
B. False
4. The master production schedule (MPS) is:
A. A statement of current production
B. A statement of current demand
C. A statement of both current production and current demand
D. Neither a statement of current production nor current demand
D. Neither a statement of current production nor current demand
5. The master production schedule (MPS) differs from the forecast by considering:
I. Capacity Limits
II. Production Costs
III. The Sales and Operations Plan (S&OP)
A. I only
B. I and II only
C. I and III only
D. I, II, and III
D. I, II, and III
6. The master production schedule (MPS) must be stated in terms that relate to a producible product.
A. True
B. False
A. True
7. The master production schedule (MPS) must be stated in terms of actual products.
A. True
B. False
B. False
8. In which environment is a planning bill-of0materila (BOM) most likely to be used?
A. Make-to-Stock
B. Assemble-to-Order
C. Engineer-to-Order
D. All are equally likely
B. Assemble-to-Order
9. The master production schedule (MPS) considers preferred lot sizes when constructing the plan.
A. True
B. False
A. True
10. Cycle stock is:
A. Inventory created to fulfill demand in a seasonal cycle
B. Inventory carried as a result of lot size requirements
C. The total stock built during a given period
D. Inventory carried to cover emergency or unforeseen demand
B. Inventory carried as a result of lot size requirements
11. Available to promise (ATP) is likely to be least useful in which environment?
A. Make-to-Stock
B. Make-to-Order
C. Assemble-to-Order
D. All are equally likely
A. Make-to-Stock
12. Which formula is used to calculate the projected available inventory balance ?
A. Projected available inventory = Previous available inventory + Master production schedule – AVG (Forecast, Actual Orders)
B. Projected available inventory = Previous available inventory + Master production schedule + AVG (Forecast, Actual Orders)
C. Projected available inventory = Previous available inventory + Master production schedule + MAX (Forecast, Actual Orders)
D. Projected available inventory = Previous available inventory + Master production schedule - MAX (Forecast, Actual Orders)
D. Projected available inventory = Previous available inventory + Master production schedule - MAX (Forecast, Actual Orders)
13. A Planning Bill of Material is:
A. Any bill of material used in planning activities
B. A bill of material for new products
C. A bill of material for products still in development
D. A bill of material that represents probably usage in an assemble-to-order environment
D. A bill of material that represents probably usage in an assemble-to-order environment
14. A super bill represents average usage of components in an assemble-to-order environment
A. True
B. False
A. True
15. The final assembly schedule (FAS) represents which of the following?
I. The assembly plan when a planning bill-of-material (BOM) is used
II. The exact set of end products to be built in an assemble-to-order environment
III. The plan for moving pre-fabricated components into completed products
A. I only
B. II only
C. III only
D. I, II, and III
D. I, II, and III
16. When the master production schedule (MPS) is frozen from some period, changes to the plan within that period are typically prohibited.
A. True
B. False
A. True
17. Inside the demand fence, which of the following is true?
A. Changes to production orders are not allowed
B. New customer orders are not accepted
C. Available-to-promise (ATP) calculations ignore forecasts
D. New production orders cannot be entered
C. Available-to-promise (ATP) calculations ignore forecasts
18. Inside the planning fence, which of the following is true?
A. Changes to production orders are not allowed
B. New customer orders are not accepted
C. Available-to-promise (ATP) calculations ignore forecasts
D. New production orders can be entered
A. Changes to production orders are not allowed
19. One key to avoiding an overstated master production schedule (MPS) is to
A. Force the MPS to match the production plan (in terms of total units)
B. Always maintain a positive available-to-promise (ATP) balance
C. Always maintain a negative available-to-promise (ATP) balance
D. Freeze the MPS for at least four weeks
A. Force the MPS to match the production plan (in terms of total units)
6. The function of priority planning in a manufacturing company is to determine what material is needed and:
A. Potential sources for it
B. The capacity required
C. Where it is needed
D. When it is needed
D. When it is needed. Priority planning is, by definition, the function of determining what material is needed and when. A and C may be used to get and deliver the material identified by priority planning. B deals with producing the product based on the priority plan.
7. The point in time inside which changes to the master schedule typically must be approved by an authority higher than the master scheduler is referred to as the:
A. Capable-to-promise
B. Cutoff Date
C. Demand time fence
D. Planning time fence
C. Demand time fence. The demand time fence is a point in time inside of which demand is based on customer orders, rather than forecasts, and changes to the master schedule must be approved by an authority higher than the master scheduler. D - changes made be made within constraints of the production plan - manually by the master scheduler.
8. The portion of inventory and planned production that can be committed to customer orders typically is referred to as the:
A. Available-to-promise
B. Excess quantity
C. Projected available balance
D. On-hand balance
A. Available-to-promise - is the committed portion of a company's inventory and planned production maintained in the master schedule to support customer orders. C is the inventory balance projected into the future. D is incorrect because the on-hand balance does not include planned production.
The role of MPC is to synchronize and translate Independent demand into __________ demand.
Dependent demand
The setting and maintaining of time-phased due dates is called ___________ planning.
Priority planning
_____________ means that the material or component has been completed and is ready for use by the next operation, or is available as an end item to be delivered or stocked.
"Available for use"
__________ develops plans for products at the family level.
S & OP
_____________ scheduling develops due dates and quantities at the end item level.
Master
A major output of S&OP?
The Production Plan