Mexico

Chapter 4

Questions: 1,4,5,7

1. A materials requirements plan is the system used to avoid missing parts. It is establishes a schedule (priority plan) showing the components required at each level of the assembly and, based on lead times, calculates the time when these components will be needed.

4. The objectives of MRP are broken down into two objectives: determine requirements and keep priorities current.

5. There is a relationship between MPS and MRP. The MPS if any components is missing, the product can not be built and shipped on time. MRP establishes a schedule (priority plan) showing the components required at each level of the assembly and, based on lead times, calculates the time when these components will be needed. These two kinds of planning must work with each other to make sure the production is not interrupted. We have to also remember that that MRP is a input to the MPS.

7. Major inputs to the MRP system are:

- Master production schedule: is a statement of which end items are to be produced, the quality of each, and the dates they are to be completed. It drives the MRP system by providing the initial inputs for the items needed.

- Inventory records: Major input to the MRP system is inventory. When a calculation is made to find out how many are needed, the quantities available must be considered.

-Bill of Materials: The bill of materials is one of the most important document in a manufacturing company.

Case 25: Cranfield Manufacturing Company

1. a. $267.00

b. $495.00

c. 3 shortages

d. $4.57

2. EOQ = 292

3. Lot size = 110

4. 196 days

5. Try and use historical data to see if you can see any trends in the demand. If so then they you can plan your lot size change accordingly. Management wise I would have more qualified individuals to evaluate the process as well. The lack of knowledge at the top management level I feel is holding them back. Also I feel that they could hire some part time consultants to evaluate their process and give his input. Sometimes an outside eye can really bring fresh ideas to the table.

Chapter 5

Questions: 1,2,7,9,10,13,17,20

1. The responsibilities of capacity management is: to achieve the priority plans as well as providing, monitoring, and controlling that capacity so the priority plan can be met.

2. Capacity planning is concerned with supplying the necessary resources. Capacity is the amount of work that that can be done in a specified time period.

7. A. Open order file: is a record of all the active shop orders.

B. Route file: is the path that work follows from work center to work center as it is completed. A routing file should exist for every component manufacturing and contain the following info: operations to be preformed, sequence of operations, work centers used, possible alternative work centers, tooling needed at each operation, standard times: setup times and run times per piece.

C. Work center file: contains info on the capacity and move, wait, and queue times associated with the center.

9. A. A scheduled receipt: open order

B. A planning receipt: work center

C. Efficiency and utilization: routing file

D. Sequence of operations on a part: routing file

10. Capacity available is the capacity of a system or resource to produce a quantity of output in a given time period. The 4 factors are:

-Product specification: if the product specifications change, the work content will change, thus affecting the number of units that can be produced.

- Product mix: each product has its own work content measured in the time it takes to make the product.

- Plan and equipment: this relates to the methods used to make the product.

- Work effort: this relates to the speed or pace at which the work is done.

13. Measured or demonstrated capacity is figured from historical data. Rated capacity is different because it is capacity the product of available time, utilization and efficiency.

17. Process of back scheduling is:

- For each work order, calculate the capacity required (time) an each work center.

- Starting with the due date, schedule back to get the completion and start dates for each operation.

20. Feedback is necessary in a control system because it allows for the system to be revised so that the process can be more efficient and completed on time.

Case 17: Sandbar Beach Hotel

1999: 20,989

2000: 22,003

2001: 23,890

2002: 25,657

2003: 26,798

Add 35 rooms @ 875000+200000 = 1075000

It will be paid back by the month of aug.

Other factors you might have to consider is the economic market place if the market stays good then more people are willing to spend. For a business to expand and to be successful with this expansion they need customers to be walking in the door. Also you have to look at the cost of expansion how this going to change is your business. For example larger crew, up keep expenses and growing operational expenses must be consider and be weighted out before going though with this kind of action.

Chapter 6

1. What is the responsibility of production activity control?

Production activity control (PAC) is responsible for executing the master production schedule and the material requirement plan.