SCMT2103 MAKING & DELIVERING
(EXAM 3)
Customers and service demanded - Correct Answers -Customers grow more
sophisticated every year and demanding higher levels of service. Continuous
improvements needed to deliver efficiency and responsiveness that evolve Supply
Chain.
Product Design (MAKE) - Correct Answers -Product designs and selections of the
components needed to build these products are based on the technology available and
product performance requirements As Components costs can become 50 percent or
more of the product's cost.
From a Supply Chain Perspective aim is to design with Fewer parts, Simple Designs,
and Modular Construction from Generic Subassemblies.
More Flexible, Responsive, and Cost Efficient the supply chain is, more likely the
product will succeed in its market.
Teams Working Together - Correct Answers -If Product Design, Procurement, and
Manufacturing people work together in the design of a product, there is a tremendous
opportunity to create product that will be successful and profitable.
There is natural tendency for Design, Procurement, and manufacturing people to have
different Agendas UNLESS their actions are coordinated.
Design people are concerned with meeting the customer requirements.
Procurement people are interested in getting the best prices from a group of
prescreened preferred suppliers.
Manufacturing are looking for simple fabrication and assembly methods and long
production runs.
Production Scheduling (MAKE) - Correct Answers -Allocates Available Capacity
(Equipment, Labor, and Facilities)
to the work that needs to be done.
, Goal is to use available capacity in most efficient and profitable manner.
Production Operation Scheduling - Correct Answers -Process of finding the right
balance between several competing objectives:
* High Utilization Rates: Often means long production runs and centralized
manufacturing and distribution centers. Idea is to generate and profit from economies of
scale.
* Low Inventory Levels: Short production runs and just in time delivery of raw materials.
This idea is to minimize the assets and cash tied up in inventory.
* High Levels of Customer Service: Often requires high levels of inventory or many short
production runs. Aim is to provide customers with quick delivery of products and not to
run out of stock in any product.
Scheduling - Correct Answers -First, determine the economic lot size for the production
runs of each product. Calculation is much like Economic Order Quantity (EOQ) and
used in the inventory control process.
Balancing production setup costs with the carrying cost.
IF SETUPS are done frequently and production runs are done in small batches. Results
low levels of inventory but production costs will be higher DUE to increase SETUP
activity.
When production costs are minimized by doing long production runs, then inventory
levels will be higher and product inventory carrying cost will be higher.
Scheduling - Correct Answers -Second, Set the right sequence of production runs for
each product.
Basic rule is that if inventory for a certain product is low relative to its expected demand,
then production of this product should be scheduled ahead of other products that have
higher levels of inventory relative to their expected demand.
A common technique is to schedule production runs based on the concept of a
product's "runout time". The runout time is calculated by:
R=P/D
R = Runout time
P = Number of units of products on hand
D = Product demand in units for a day or week
(EXAM 3)
Customers and service demanded - Correct Answers -Customers grow more
sophisticated every year and demanding higher levels of service. Continuous
improvements needed to deliver efficiency and responsiveness that evolve Supply
Chain.
Product Design (MAKE) - Correct Answers -Product designs and selections of the
components needed to build these products are based on the technology available and
product performance requirements As Components costs can become 50 percent or
more of the product's cost.
From a Supply Chain Perspective aim is to design with Fewer parts, Simple Designs,
and Modular Construction from Generic Subassemblies.
More Flexible, Responsive, and Cost Efficient the supply chain is, more likely the
product will succeed in its market.
Teams Working Together - Correct Answers -If Product Design, Procurement, and
Manufacturing people work together in the design of a product, there is a tremendous
opportunity to create product that will be successful and profitable.
There is natural tendency for Design, Procurement, and manufacturing people to have
different Agendas UNLESS their actions are coordinated.
Design people are concerned with meeting the customer requirements.
Procurement people are interested in getting the best prices from a group of
prescreened preferred suppliers.
Manufacturing are looking for simple fabrication and assembly methods and long
production runs.
Production Scheduling (MAKE) - Correct Answers -Allocates Available Capacity
(Equipment, Labor, and Facilities)
to the work that needs to be done.
, Goal is to use available capacity in most efficient and profitable manner.
Production Operation Scheduling - Correct Answers -Process of finding the right
balance between several competing objectives:
* High Utilization Rates: Often means long production runs and centralized
manufacturing and distribution centers. Idea is to generate and profit from economies of
scale.
* Low Inventory Levels: Short production runs and just in time delivery of raw materials.
This idea is to minimize the assets and cash tied up in inventory.
* High Levels of Customer Service: Often requires high levels of inventory or many short
production runs. Aim is to provide customers with quick delivery of products and not to
run out of stock in any product.
Scheduling - Correct Answers -First, determine the economic lot size for the production
runs of each product. Calculation is much like Economic Order Quantity (EOQ) and
used in the inventory control process.
Balancing production setup costs with the carrying cost.
IF SETUPS are done frequently and production runs are done in small batches. Results
low levels of inventory but production costs will be higher DUE to increase SETUP
activity.
When production costs are minimized by doing long production runs, then inventory
levels will be higher and product inventory carrying cost will be higher.
Scheduling - Correct Answers -Second, Set the right sequence of production runs for
each product.
Basic rule is that if inventory for a certain product is low relative to its expected demand,
then production of this product should be scheduled ahead of other products that have
higher levels of inventory relative to their expected demand.
A common technique is to schedule production runs based on the concept of a
product's "runout time". The runout time is calculated by:
R=P/D
R = Runout time
P = Number of units of products on hand
D = Product demand in units for a day or week
