AND SOLUTIONS RATED A+
✔✔Material requirements planning
(MRP) - ✔✔A set of techniques that uses bill of material data, inventory data, and the
master production schedule to calculate requirements for materials. It
makes recommendations to release replenishment orders for material.
Further, because it is time-phased, it makes recommendations to
reschedule open orders when due dates and need dates are not in phase.
The time-phased version of this begins with the items listed on the MPS
and determines (1) the quantity of all components and materials required to
fabricate those items and (2) the date that the components and materials
are required. This time-phased approach is accomplished by exploding the
bill of material, adjusting for inventory quantities on hand or on order, and
offsetting the net requirements by the appropriate lead times.
✔✔Mix forecast - ✔✔Projection of the proportion of products that will be sold
within a given product family, or the proportion of options
offered within a product line. Product and option mix as
well as aggregate product families must be projected.
Even though the appropriate level of units is forecasted
for a given product line, an inaccurate projection can
create material shortages and inventory problems.
✔✔Multisourcing - ✔✔Procurement of a good or service from more than one
independent supplier.
✔✔Ordering cost - ✔✔Used in calculating order quantities, the costs that
increase as the number of orders placed increases. It
includes costs related to the clerical work of preparing,
releasing, monitoring, and receiving orders, the physical
handling of goods, inspections, and setup costs, as
applicable.
✔✔Outsourcing - ✔✔The process of having suppliers provide goods and
services that were previously provided internally. It
involves substitution the replacement of internal capacity
and production by that of the supplier.
✔✔Payment terms - ✔✔Conditions surrounding payment for a sale, providing a
time frame in which a customer can pay without late
penalties or additional fees.
✔✔Pipeline inventory - ✔✔Inventory in the transportation network and the
distribution system, including the flow through
, intermediate stocking points. The flow time through the
system has a major effect on the amount of inventory
required. Time factors involve order transmission, order
processing, scheduling, shipping, transportation,
receiving, stocking, review time, and so forth.
✔✔Plan-do-check-action (PDCA) - ✔✔A four-step process for quality improvement. In
the first step, a
strategy to effect improvement is developed. In the second step, the
strategy is carried out, preferably on a small scale. In the third step,
the effects of the strategy are observed. In the last step, the results
are studied to determine what was learned and what can be
predicted. This cycle is sometimes referred to as the Shewhart cycle
(because Walter A. Shewhart discussed the concept in his book
Statistical Method from the Viewpoint of Quality Control) and as the
Deming circle (because W. Edwards Deming introduced the concept
in Japan; the Japanese subsequently called it the Deming circle).
✔✔Planning horizon - ✔✔The amount of time a plan extends into the future. For a
master schedule, this is normally set to cover a minimum
of cumulative lead time plus time for lot sizing low-level
components and for capacity changes of primary work
centers or of key suppliers. For longer term plans it must
be long enough to permit any needed additions to
capacity
✔✔Portal - ✔✔A multiservice website that provides access to data that may be
secured by each user's role. Users can aggregate data and
perform basic analysis. Ownership can be independent, private,
or consortium-based. Business versions are often connected
with a customer relationship management or supplier
relationship management system. These can include structured
data, such as ERP information, pictures, and documents. Unlike
exchanges or marketplaces, these generally can display and
aggregate data without integration between application software.
✔✔Private trading exchange (PTX) - ✔✔A trade exchange hosted by a single company
to facilitate
collaborative e-commerce with its trading partners. As opposed to
public e-marketplaces, this type of exchange provides the host
company with control over many factors, including who many
participate (and in what manner), how participants may be
connected, and what contents should be presented (and to whom).
The ultimate goal might be to improve supply chain efficiencies and
responsiveness through improved process visibility and
collaboration, advanced integration platforms, and customization