a. INVENTORY PLANNING PPROCESS PLANNING AND LINE BALANCING SCHEDULING AND SEQUENCING MRP AND ERP CONCEPT OF PPC 1. Aggregate planning determines capacity and then minimizes the cost by balancing them against such capacity. A fuzzy, knowledgebased decision support tool for production operations management. This research involves the optimization of aggregate production using the Taguchi approach to maximize the production rate of Gneiss stone. Activities involved in the Internal Supply Chain Management (ISCM) macro process include all of the following except a. planning of internal production and storage. Businesses use different types of plans such as strategic, tactical, operational, and contingency plans to achieve organizational goals. Q. All of the following are detailed by the aggregate plan except for? C. Improved employee morale and safer working conditions. Production activities B. Wild, R. (1983). Improve customer satisfaction. A good production control system means more production on the same investment without unduly speeding up workers. In addition, if you allow no back orders, the size of the workforce is changed initially so that all demand is met on time. Ensure an efficient schedule. 1. Materials Requirement Planning - MRP: One of the first software based integrated information systems designed to improve productivity for businesses. e. call center management. Aggregate planning is an operational activity critical to the organization as it looks to balance long-term strategic planning with short term production success. Q. Aggregate Production Planning a) Aggregate production planning involves all of the following except i) hiring and laying off workers ii) subcontracting work out iii) building up inventories iv) purchasing new equipment Answer: iv) b) Which of the following statements concerning aggregate planning is true? 70% B: . B. The CSS, as well as the throw, eccentric speed, and particle size . True B. Forecasting demand for output. Aggregate planning refers to the process of developing, maintaining, and analyzing the approximate scope of the operations of a company. 2. Learning Aims: The syllabus aims to test the student's ability to: . For example, demand for Birla cement, demand for Raymond clothes, etc. Ensuring that appropriate attention is devoted to important areas of the audit. b. order fulfillment. a) Quantitative b) Qualitative c) Scientific d) All of the given options 18. D. Determining the amounts of human and material resources needed to produce the product at a reasonable cost. intermediate term. There will probably be quite a bit of fluctuation from period to period in direct labor cost. A. Capacity based options for aggregate planning include all of the following EXCEPT. False 3. Keeping a constant level of production in every time division of a planning period (month, week, etc.) 44. A planner has developed an aggregate forecast for demand for the next 6 months as shown below: Use the following information to develop aggregate plans: Regular production cost: $10.00 per case . Q38 - Managers typically do not use sophisticated planning models for aggregate planning because. True B. It involves the choice of technology, the definition of work tasks, the estimation of the required resources and durations for individual tasks, and the identification of any interactions . Service activities C. Both A&B D. None 17.Indirect production costs are incurred in three main ways: Production activities: costs arising in production departments such as fuel, depreciation, supervision Based on the Time Period. (a) The preferences and purchasing power of customer. Aggregate planning refers to the process of developing, maintaining, and analyzing the approximate scope of the operations of a company. Supply planning involves translating the demand plan into an appropriate supply plan. The L18 orthogonal array has been used to investigate how the CSS, throw, eccentric speed, and particle size affect the products of the cone of the crusher (its cumulative weight fraction). Expert Systems, 11(1), 3-11. 16) Production overheads represent indirect materials, indirect wages and indirect expenses attributable to: A. When a level aggregate plan is used, all of the following are likely EXCEPT. . a) purchases of components from vendors b) the aggregate production rate c) subcontracting d) the amount of overtime authorized e) back ordering of customer orders a) purchases of components from vendors 4. It is important that these materials are procured and delivered on time so that production can begin. The company can either opt for the following methods: Mix Method of Production: The aggregate production plan is designed to establish overall production targets and as input for planning availability of other inputs and supporting activities to meet the production targets. Building inventory ahead of planned demand. c. Identifying the areas that need a service of an . The process of forecasting generally involves the following steps: 1. Capacity-based options are used primarily with is usually the best way to perform aggregate planning. The aggregate plans then form the basis of more comprehensive production such as daily and weekly production schedules and customer delivery schedules. Production Planning & Control, 10(2), 162-174. 22. B. Aggregate Planning: Example Total cost = (411-300) (500)+5963 (80) = 532,540 Month Production Per worker Monthly Production (Bx411) Cumulative production Cumulative Net demand Inven tory Aggregate Production/capacity plan. 23. INTRODUCTION . Specification of objectives helps the organization to move towards a particular direction. 16. It includes reviews of the past month's performance and sales data, along with quantitative-based assumptions behind the numbers. 27. Have resources ready when needed. The supply chain management process is composed of four main parts: demand management, supply management, S&OP, and product portfolio management. Estimation of Future Operations: "Quality is defined by the customer" is : a) An unrealistic definition of quality b) A user-based definition of quality c) A manufacturing-based definition of quality d) A product-based definition of quality Prashant B. Kalaskar. of aggregate production planning and materials requirement planning, see Bitran and Hax [5] and Smith [36] respectively). All of the following are forces that create high rivalry within an industry EXCEPT; a. numerous or equally balanced competitors. Demand management consists of three parts: demand planning, merchandise planning, and trade promotion planning. (b) Total demand. Q37 -Aggregate planning is concerned with determining the quantity and timing of production in the. d. high storage costs. b. SURVEY. Creating a media plan is a detailed process that requires planners to consider the needs of target consumers as well as the goals of the business. research has demonstrated that such models seldom work well. C. Improved employee morale and safer working conditions. The production process of a product involves the following. is usually the best way to perform aggregate planning. (c) Practices of middle man. Q. Disaggregation is: answer choices. This policy supersedes all prior Office of the Chief Financial Officer (CFO) guidance on accounting for property, plant, and equipment. and subassemblies into production and not starting final assembly until a customer order is received E.g. Learning Objective: LO 4 20. Aggregate planning is the process to plan the overall capacity so that it can respond to predicted demand in a cost-effective manner. The objectives to be focused on are: (a) Potential buyer. Business Continuity Planning - BCP: The business continuity planning (BCP) is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that . Aggregate planning is most often focused on targeted sales forecasts, inventory management and production levels in the mid-term (3-to-18-month) future. Construction Planning 9.1 Basic Concepts in the Development of Construction Plans. 43. Disaggregating an aggregate plan involves creating a master schedule for production of the end items included in the aggregate plan. Transportation method is a _____ approach. It looks at resource availability at the skill set/team level. To ensure capacity utilization is in tune with forecast demand at all the time. Related to this article: Entrepreneur story - 5 tips on implementing your strategic plan Related topics. 4. The analysis involves 20 different dispatching rules in a 9-machine shop, for 4 sets of 10000 jobs. Therefore, objectives of production planning are as follows: To ensure right quantity and quality of raw material, equipment, etc. marketing. the varying of workforce size. Aggregate planning aims to maximize profit for a supply chain while satisfying its demand. Financial accounting for PP&E is governed by the following basic principles: (1) Department of Energy (DOE) property . Entities in which the aggregate of one or more blocked persons' ownership stakes has fallen below 50 percent are not considered blocked pursuant to OFAC's 50 Percent Rule, and therefore property of such entities that comes into the United States or the possession or control of a U.S. person while the aggregate of one or more blocked persons . Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand. Better service to customers. are available during times of production. 2. Aggregate planning is long-range planning (2 years or more) for large products. A job shop model may include the following components: a. operations - elemental tasks. Keep inventory at optimal levels. In addition, if you allow no back orders, the size of the workforce is changed initially so that all demand is met on time. If you use the level plan with inventories and back orders, the aggregate production rate is set equal to average demand. Optimize resources and the scheduling of resources to meet production demand. The first function of supply chain management is purchasing. Forecasting demand for output. Defining an information structure to analyse resource spending changes of operations management decisions. This unit deals with the concept of 'Aggregate Planning', which is an operational activity which does an aggregate plan for the production process, in advance of 3 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organisation is kept to the minimum over . Planning c. Field work d. Organizing 3. a.Material b.Machine c.Motion d.Method Answer: c 2. Aggregate Planning involves the following activities, EXCEPT: A. Typically the planning horizon incorporate the next seasonal peak in demand. Aggregate Plan. The five functions of supply chain management include the following: 1. Construction planning is a fundamental and challenging activity in the management and execution of construction projects. Verdaasdonk, P. (1999). Ans : False. If you use the chase . Reactive options, in which the operations department uses inventories and back orders to react to demand fluctuations. With an eye on financial and business impact, the goal of S&OP software is to . 8. False 2. Aggregate Planning involves the following activities, EXCEPT: A. The _____ is the input to Materials Requirements Planning which lists the assemblies, 1.2 Meaning of Production 1.3 Types of production systems 1.4 Types of manufacturing processes 1.5 Meaning of Production Planning and Control (PPC) 1.6 Procedure of Production Planning and Control 1.7 Elements of Production Planning and Control 1.8 Summary 1.9 Self- assessment Question 2.0 Key Words 2.1 References 1.0 Objective s: It's a strategic planning process designed to help you determine if the organization has the production capacity required to meet demand. B. Reporting b. The first three describe how the economy works. c. fast industry growth. INTRODUCTION. Firm-level forecasting: It means forecasting the demand for a particular firm's product. Form the above definitions it is clear that production planning and its control are the main characteristics of production management. Promised delivery dates are kept, production flows as per scheduled time. The syllabus comprises the following topics and study weightage: A Operations Management . c. fast industry growth. Design and development of production process 2. Before the 1980s, companies tended to rely on more siloed approaches, focusing planning . Although the term has been used (and abused) to describe many things over the years, six principal tenets seem central to Keynesianism. S&OP, or sales & operations planning, is a monthly integrated business management process that empowers leadership to focus on key supply chain drivers, including sales, marketing, demand management, production, inventory management, and new product introduction. A. b. high fixed costs. short term. c. According to the five factors model, an attractivecharacteristics EXCEPT: industry would have all of the following; a. low barriers to entry. A situational analysis must be done to know about -. Step 2 Based on the aggregate plan, determine the aggregate production rate. This cycle of operations and resource planning involves the Aggregate Production Plan, and could involve building facilities and/or buying major equipment: a Long range b. c. According to the five factors model, an attractivecharacteristics EXCEPT: industry would have all of the following; a. low barriers to entry. In this work, the automated targeting model (ATM) that was originally developed for resource conservation network is extended for use in aggregate planning for production and energy supply chains. the process of planning for long term. Following factors are critical before an aggregate planning process can actually start; A complete information is required about available production facility and raw materials. Step 1. All of the following are forces that create high rivalry within an industry EXCEPT; a. numerous or equally balanced competitors. Ans. Deciding in which periods that output is to be produced. If you use the level plan with inventories and back orders, the aggregate production rate is set equal to average demand. Implementation of the plan and related activities to produce the Ans: FalseDifficulty: Easy. the process of breaking a forecast into aggregate plan. A well thought production . b. order fulfillment. Which of the following is not a part of Five M's? The Marketing Plan identifies all but which of the following: a) targeted market segments This review takes place during the monthly demand planning review meeting with sales. Operations & Supply Chain Management (205) 2. The proactive option, in which marketing tries to shift the demand . Inventory and backorders are used to absorb demand fluctuations. d. order management. When demand drops you hold on to extra and when demand is high you use backorders and extra inventory. Then it facilitates the decision-making process to hire resources or defer/approve/cancel projects. Aggregate production planning is concerned with the determination of production, inventory, and work force levels to meet uctuating demand requirements over a planning horizon that ranges from six months to one year. c. Policy/Objectives. d. order management. The following table is an example of a(n) Week 1 Week 2 Week 3 Week 4 Week 5 Clothes Washer 200 100 Clothes Dryer 300 100 100 100 Upright Freezer 200 500 A. aggregate plan B. load report C. master production schedule D. inventory record Answer: C. 9. the process of breaking an aggregate plan into greater detail. The planning horizon is often divided into periods. Step 2 Based on the aggregate plan, determine the aggregate production rate. Demand-based options. 9. A materials requirement planning (MRP . Seasonal range c. Intermediate range d. A. Determine Media Goals and Objectives. 1. Here are the essential steps and considerations marketers must make when creating a media plan. 1. b. high fixed costs. Increase productivity of internal resources (human, work centers, machines, tooling, etc.) Zanda uses a level production plan while Jones prefers a chase production plan. : - Dell computers The MPS unit is stated in planning bills of material The MPS unit (Planning bill) has its components as a set of common parts and options Note Choice of MPS unit is somewhat open to definition by the firm c. supply planning. level aggregate plan A planning approach that produces the same quantity each time period. A Keynesian believes [] all of the following are detailed by the aggregate plan except for a. purchase of components from vendors the marketing plan identifies all but which of the following e. resources the production plan is usually updated and reevaluated b. monthly the goal of developing an aggregate plan using composite product information is Poor quality adversely affects: a) Costs b) Productivity c) Profitability Purchasing. It usually contains targeted sales forecasts, inventory levels, and production levels. bulk/aggregate acquisition, except as noted in the chart above , to . The company is concerned about the overall production process and it therefore tries to decide on the kind of production process that is suited to its production plans. The ATM is an optimization framework that is based on the insight-based technique of pinch analysis, with . 3. If you use the chase . next term. Production planning and control 3. 3. (b) Action and strategies of the competitors. In the manufacturing process, raw materials are required to produce goods and products. For the level aggregate plan, fluctuations in demand are absorbed by: Possible poor customer service from extensive use of backorders A disadvantage of the level of aggregate plan is Average demand In the level of production plan, equipment is set equal to 6 1200/20=60 60/10=6 Raissa's Pizza parlor has an average monthly demand of 1200 pizzas. False. Chapter 12 Quiz, Aggregate Planning 1. Step 3: Supply Planning. Capacity planning is about supply and demand. The Output stays the same. It usually contains targeted sales forecasts, inventory levels, and production levels. D. Determining the amounts of human and material resources needed to produce the product at a reasonable cost. Aggregate planning determines capacity and then minimizes the cost by balancing them against such capacity. The advantages of production planning and control are given below: 1. d. high storage costs. 27. c. sales. The art of efficient inventory management is to maintain the minimal level of raw materials on hand to feed the production of the maximum quantity of finished goods at any point in time. Keynesian economics is a theory of total spending in the economy (called aggregate demand) and its effects on output and inflation. All of the following are detailed by the aggregate plan except for? It involves taking a long-term view at overall production planning. Functions of production management: 1. analyze operations, production planning and strategic : management. a) purchases of components from vendors b) the aggregate production rate c) subcontracting d) the amount of overtime authorized e) back ordering of customer orders a 4. Aggregate planning is a method for analyzing, developing and maintaining a manufacturing plan with an emphasis on uninterrupted, consistent production. A. 2. Ans. Forecasting based on time may be short-term forecasting and long-term forecasting. Adequate planning of the audit work helps the auditor of accomplishing the following objectives, except: a. Aggregate planning involves the process of determining the timing and quantity of production for an individual item over an intermediate time frame. long term. This characteristic has mainly been addressed by inventory theory models (see van der Laan, 1997 ), but little has been done to integrate these models formally into a production . Gathering of all corroborating audit evidence. Aggregate Plan. A group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern. Sales and operations planning, sometimes called aggregate planning, started in the 1980s as a way to manage problems caused by overproduction or underproduction, including wasted resources, poor customer service, and the hit on a company's bottom line. The level production strategy provides a constant rate of output over the entire planning time period and requires no: All of the above Zanda Corp. and Jones Corp. are identical in every way (products produced, costs demand, etc.) Regional factors for location planning include all of the following except: a) Raw materials b) Markets c) Labor considerations d) Attitudes 17. Demand management. With a pure strategy for aggregate planning only one capacity variable is changed. Aggregate production planning models detailing alternatives between core acquisition, parts disposal, and purchased parts would be of benefit to practicing managers. The Marketing Plan identifies all but which of the following: Resource aggregate planning - Material requirements planning - Manufacturing resource planning . True. The integrated Master Production Schedule (MPS), Materials Requirements Planning (MRP) and Bill of Materials is the engine that drives optimal inventory . Demand planning is the process of forecasting demand to make sure . This simple infographic clearly sets out the different stages of the strategic planning process, explaining objectives and targets at each step. Keeping a constant level of production in every time division of a planning period (month, week, etc.) 6 steps to plan better by using financial models; 2. The correct sequence of operations in production planning and control is a.Routing-Scheduling-Dispatching-Follow up 60 seconds. Only proper organisation ensures the optimal planning and coordination of the manufacturing process, as a basic process that transforms material inputs into products or services (Gerak, 1993).In this regard, it is also worth mentioning the engineering function during manufacture, for this involves the design, planning and control of manufacturing processes and manufacturing production. Discover the differences between these four types of . except for one. Developing the Basis: The future estimates of various business operations will have to be based on the results obtainable through systematic investigation of the economy, products and industry. Deciding in which periods that output is to be produced. By changing the size of the workforce firms can maintain a balance between capacity and demand.