POM 343 0 Ch 14 Qz Cheat Sheet PDF

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POM 3430: Ch 14 Qz Cheat Sheet- Professor Nathan Jolliff...

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Enterprise Resource Planning (ERP) -ERP:Large, sophisticated software system used in identifying & planning the enterprise-wide resources needed to coordinate all activities involved in producing & delivering products. -Modules share information across all business functions. -Can share customer sales data with the supply chain to help with global replenishment. -All modules are fully integrated & use a common database. FIGURE 14.1 Enterprise resource management -ERP is software designed for organizing & managing business processes (core & administrative) by sharing info across functional areas. Core processes include production planning & control, inventory management, purchasing, & distribution; administrative processes include accounting (cost control, accounts payable & receivable, etc.) & HR management.

ERP Modules: 4 Categories 1) Finance & accounting -Investment mgmt, cost, asset, capital, debt mgmt -Budgets, profitability analysis, performance reports 2) Sales and marketing -Pricing, availability, orders, shipments, billing, product registration, customer complaints 3) Production and materials management -Process planning, BOM, product costing, ECNs, MRP; allocation of resources, schedules, POs, inventory 4) Human resources Workforce planning, payroll & benefits, organization charts, work-flow analysis Evolution of ERP Sytems -SCM software is designed to improve decision making in the supply chain -Supply chain intelligence (SCI) enables strategic decision making along the supply chain -Application service provider (ASP) sets up and runs ERP systems (ERP vendor) Benefits of ERP Systems -ERP presents a holistic view of the business functions from a single information and IT architecture -Increases organizational information flow -Increases ability to incorporate better management control, speedier decision making, and cost reductions -Allows replacement of disparate systems; e.g., ExxonMobil replaced 300 different systems Tangible and Intangible Benefits of ERP Systems Tangible -Reduction in inventory, Reduction in staffing, Increased productivity, Improved order mgmt, Quicker closing of financial cycles, Reduced IT & purchasing costs, Improved cash flow mgmt, Increased revenue & profits, Reduced transportation & logistics costs, Improved on-time delivery performance Intangible -Improved visibility of corporate data, Improved customer responsiveness, Better integration btwn systems, Standardization of computing platforms, Improved flexibility, Global sharing of info, Better visibility in SCM The Costs of ERP Systems -Major suppliers are SAP, Oracle, Epicor, NetSuite, and Infor.

-Costs for larger ERP systems range from hundreds of thousands to several million dollars. -Outside consultants (cost 3x mor than syst) are usually involved in selection, configuration, and implementation. Material Planning Systems (MRP) -MRP systems translate a master schedule of final products into time-phased net requirements for subassemblies, assemblies, & parts. -The initial MRP systems evolved into closed-loop MRP. -In the mid-1970s, MRPII systems added functionality to plan and execute all internal functions. An Overview of MRP -MRP uses the concept of backward scheduling to determine how much and when to order and replenish. -The CRP module checks to make sure the scheduled workload profile is feasible. -The MPS module contains the authorized schedule. -The BOM module contains the product structure for each unique product. -MRP output includes schedules for all internal activities and parts as well as orders for all supply chain items. Objectives of MRP -Determines the quantity and timing of material requirements MRP determines what to order (checks BOM), how much to order (lot size rules), when to place the order (need date minus lead time), and when to schedule delivery (on date needed). Maintain priorities In a changing environment, MRP reorganizes priorities to keep plans current and viable. Two types of Demand Independent demand Is the demand for finished products? Does not depend on the demand for other products. Needs to be forecasted. Dependent demand Is the demand derived from finished products? Is the demand for component parts based on the number of end items being produced and is managed by the MRP system? MRP Inputs for CD Cabinet 1. Authorized MPS- stmnt of what & when to build 2. Bill of material 3. Individual item inventory records Time-phased: Expressing future demand, supply, and inventories by time period. Gross requirements: The total-period demand for an item. Comparison of Lot Size Rules -FOQ (fixed-order quantity)-Order same quantity each time -L4L (lot-for-lot)- Order just enough for the next period; Minimizes company investment -POQ (period-order quantity)-Order enough to satisfy requirements for next n periods Capacity Requirements Planning (CRP) Open shop orders — released manufacturing orders Planned shop orders — scheduled to be done Questions An error in replenishment ordering can result from a(n) = inaccuracy in the inventory records file A computer-based information system designed to manage dependent demand inventory is? =material requiremt planning Closed-loop MRP is an MRP systems that includes production planning, master production scheduling, & capacity requirements planning. Companies use _capacity requirements planning_ to check that enough work is scheduled for operations and that the amount of work scheduled is feasible. CRP systems are used to check that the amt of work? =is feasible Different lot size rules determine the quantity of the order and? = change the frequency of replenishment orders

ERP systems provide _tangible_ & _intangible_ benefits. For any period the beginning inventory. plus any replenishment orders due. less the gross requirement equals is called the =projected available quantity For capacity requirements planning, loads for critical work centers are calculated based on = open shop orders & planned shop orde Gross requirements for finished products are taken from =the authorized MPS Independent demand is the demand for =finished products Information in the inventory records file that can change with inventory transactions includes the ? =projected inventory level Information that may be contained in the inventory records file includes all except which of the following? =run times for manufactured parts In MRP the starting pts for each part & material needed to accomplish the master production schedule are the? =gross re Owens Corning reported savings of _$65M_ by using ERP Scheduled receipts are = replenishment orders that have been placed but not yet received Second generation ERP systems adressed the first generation deficiency of: =continuous planning capabilities Second-generation ERP systems are referred to as _SCM_ software The authorized MPS is a statement of? =what the company expec to build and when it expects to build it The Bill of material file lists the material needed to build a product The cumulative lead time is= sum of the lead time & the safety tim The ERP system provides a single interface:= to external members the supply chain as well The __inventory records__ is (are) checked for the materials on hand and those that need to be procured.? The lead time can be less than the cumulative lead time when? = the company has inventory on hand The quantity of the replenishment order is based on the =lot sizing ruled used The most critical factors for successful EPR implementation are =leadership & top mgmt commitment The MRP file that contains data on specific materials used to make final products and their correct quantities is the =Bill of material fil The MRP input listing the intermediate assemblies. subassemblies. component parts. raw materials. and the quantities of each neede to produce one final product is the? =bill of materials file The master production schedule details the company's planned products, quantity, and the schedule used by marketing when promising deliveries? The time interval necessary to either manufacture or purchase an item is its =lead time What is an info system designed to integrate internal & external members of the supply chain? = enterprise resource planning What is a technique for improving inventory record accuracy? =cycle counting What information system enables companies to have the right material in the right amounts available at the right time? =materia requirements planning What proportion of U.S. companies with greater than $1 billion in annual revenues has implemented ERP? =40% Which of the following is not an intangible benefit of ERP? =improved on-time delivery performance Which of the following is not true concerning indented bills of materials? = Lead times determine how far children are indented. Which of the following is not true concerning replenishment orders? = They are orders for the final product. Which of the following most closely describes dependent demand = demand derived from finished products...