CHAPTER 14

1. materials requirements planning: a planning system used to ensure the

right quantities of materials are available when needed
2. master production schedule: the quantities of each finished product to be
completed each period
3. bill of materials: detailed description of an end item and list of all of its raw
materials, parts and subassemblies
4. capacity requirements planning: an estimate of the capacity needed at work
centers

1. This is the process of coordinating and moving material and other resources
from one location to another.
Logistics
2. A company that is hired to handle logistics functions.
Third-party logistics company
3. A mode of transportation that is the most flexible relative to cost, volume, and
speed of delivery.
Highway
4. When large shipments are broken down directly into smaller shipments for
local delivery.
Cross-docking
5. Sorting goods is the main purpose of this type of warehouse.
Hub
6. A place where foreign goods can be brought into the United States without
being subject to normal customs requirements.
Free trade zone
7. The main cost criterion employed when a transportation model is used for
analyzing a logistics network.
Cost of shipping
8. The Microsoft Excel function used to solve the transportation model.
Solver
9. For the transportation model to be able to find a feasible solution, this must
always be greater than or equal to total demand.
Total capacity
10. The "changing cells" in a transportation model represent this.
Allocation of demand to a plant warehouse
11. This is a method that locates facilities relative to an X, Y grid.
Centroid method
12. A technique that is useful for screening potential locations for services.
Regression analysis

1. Lean production integrated activities designed to achieve high-volume production

using minimal inventories
2. Value chain: each step in the supply chain should create value
3. Customer value: something for which the customer is willing to pay
4. waste: anything that does not add value from the customer's perspective
5. Lean is based on the logic that nothing will be produced until it is ______needed
6. Elimination of Waste
1. Waste from overproduction
2. Waste of waiting time
3. Transportation time
4. Inventory waste
5. Processing waste
6. Waste of motion
7. Waste from product defects
7. Value stream:
the value-adding and non-value- adding activities required to design, order, and
provide a product or service from concept to launch, order to delivery, and raw
materials to customers
8. Specialized plants
-Small specialized plants rather than large
vertically integrated manufacturing facilities
-Can be constructed and operated cheaper
9. Lean suppliers
-Able to respond to changes
-Lower prices
-Higher quality
10. Lean procurement
-Key is automation (e-procurement)
-Suppliers must see into the customers'
operations and customers must see into their
suppliers' operation
11. Lean warehousing
Eliminate non-value-added steps and waste in storage process
12. Lean logistics
- Optimized mode selection and pooling orders
- Combined multi-stop truckloads
- Optimized routing
- Cross docking
- Import/export transportation processes
- Backhaul minimization
13. Lean customers
-Understand their business needs
-Value speed and flexibility
-Establish effective partnerships with suppliers
14. Value stream mapping:
a special type of flowcharting tool for development of lean processes (identifies value
and non-value adding processes
15. Lean Supply Chain Design Principles:
1.) lean layouts
2.) lean production schedules
3.) lean supply chains
16. Lean Layouts
a. Group technology
b. Quality at the source
c. JIT production
17. Lean Production Schedules
a. Uniform plant loading
b. Kanban production control system
c. Determination of number of Kanbans needed
d. Minimize setup times
18. Lean supply chains
a. Specialized plants
b. Collaboration with suppliers
c. Building a lean supply chain
19. Group technology
a philosophy in which similar parts are grouped into families
-The processes required to make the parts are
arranged in a manufacturing cell
-Eliminates movement and queue time between
operations, reduces inventory, and reduces
employees
20. Quality at the source
do it right the first time and if something goes wrong, stop the process immediately
-Workers are personally responsible for the quality
of their output
-Workers become their own inspectors
-Workers are empowered to do their own
maintenance
21. JIT production
producing what is needed when needed and nothing more
-Anything over the minimum is waste
-Typically applied to repetitive manufacturing
-Ideal lot size is one
-Vendors ship several times a day
-JIT exposes problems otherwise hidden by inventor
22. Level schedule
pulls material into final assembly at a constant rate
23. Freeze windows
the period of time during which the schedule is fixed and no further changes are
possible
24. Backflush: calculation of how many of each part were required to produce the
actual quantity of finished products built
25. Uniform plant loading
smoothing the production flow to dampen schedule variation
26. Kanban: means "sign" or "instruction card" in Japanese (cards or containers are
used)
27. Plant layout is designed to: ensure balanced work flow with a minimum of WIP
inventory
28. Preventive maintenance is emphasized to: avoid downtime and keep
equipment reliable
29. Group technology eliminates:
movement and queue time between operations, reduces inventory, and reduces
employees