Midterm Review

3/15/15

Lectures 1, 2

Timevalue added MCE = _____________

Total Mfg. Time

Manufacturing Cycle Efficiency Work In Process (Not raw material inventory, not finished

products, just everything thats partially finished) Working capital=inventory - payables + receivables Throughput=average time in system=I/X (Littles Law)

Cost of Goods Manufactured = Total mfg cost + initial WIP value - ending WIP value

Cost of Goods Sold (COGS) = Cost of Goods Manufactured + initial finished goods value - final finished goods value

Lecture 3 Holding costs vs order costs (optimize via EOQ); shortage costs

Production system layouts

Lecture 4, 5

Forecasting, MSE, least squares, residuals

Exponential smoothing S1 = D1 + (1 - )S0

Operating Cycle Time: for single machine includes time for operation + handling + fixturing

Production time for job shop and batch processing

Mass production in a synchronous flow line

WIP Changing with production stages

i

t

i

Dt

S

1

0

1

Lecture 6, 7

Engineering Economics

Net Present Worth/Value (NPV)

Uniform Annual Cash Flow (UACF)

Breakeven Analysis

Assembly line balancing Identifying bottleneck

Ideal Tc = Tr + Max (Tsci)

RPW PW=time to do task + all dependent tasks

Make list sorted by PW, make stations that satisfy precedence and time constraints

Lecture 8, 9

EMQ

Throughput time factor, w

WIP costs now included

Minimum number of changeovers

Make sure to check against external setup!

Lectures 10, 12

Supply chain management

Periodic ordering (demand forecasting, order-up-to-target)

Variance acceleration/ bull whip effect

Statistics review

Safety stock at warehouse and retailers

Lecture 13, 14

Learning curve

Winters Model

Lectures 15, 16

Materials Resource Planning

Takes demand, lead times, and BOM dependencies into account

Calculate PORs

Lot-for-lot versus EOQ or POQ

Manufacturing Resources Planning

Rough cut capacity planning

Acronyms MCE = Manufacturing Cycle Efficiency

FGI = Finished Goods Inventory

WIP = Work in Process

VAT = Value Added Time

DFX = Design for X, X can be any desired objective

JIT = Just in Time

MLT = Manufacturing Lead Time

FMS = Flexible Manufacturing Systems

ROI = Return on Investment

ABC = Activities Based Costing

EOQ = Economic Order Quantity

COGS = Cost of Goods Sold

COGM = Cost of Goods Manufactured

NPV = Net Present Value

UACF = Uniform Annual Cash Flow

EMQ = Economic Manufacturing Quantity

RPW = Rank Positional Weight

MSE = Mean Square Error

MPS: Master Production Schedule

BOM: Bill of Materials

MRP: Materials Requirement Planning

MRP-II: Manufacturing Resource Planning

LFL: Lot for lot

POQ: Periodic Order Quantity

POR: Planned Order Releases

ERP: Enterprise Resource Planning

RCCP: Rough Cut Capacity Planning

Previous Midterm Topics

Midterm 1:

MCE

Littles Law

WIP

EMQ

Throughput time

Topics from movies

Statistics

Engineering Economics

Forecasting

Winters Model (x2)

Exponential smoothing

Learning curve

EMQ

RPW

Breakeven analysis

Variance acceleration

Min # of changeovers

Previous Midterm Topics

Midterm 2:

Topics from movie

Winters Method

Throughput time

Assembly line balancing

RPW

WIP

EMQ

Breakeven

Learning curve

Statistics

Engineering economics