The document summarizes a thesis on developing a new managerial accounting methodology for inventory management in a manufacturing company. It begins with an introduction and hypothesis that using a multi-product inventory model can create added value. It then reviews classical inventory models and introduces a new Finished Inventory Model. The model is applied to a case study of Company XYZ, a manufacturing company, and recommendations are made to reduce safety stock and cycle stock through improved production planning or a pull-based ordering system. In conclusion, the hypothesis is proven that the new inventory model provides value by helping to identify underlying operational problems.
This document discusses lean management and lean manufacturing systems. It begins by describing the traditional push system of manufacturing, noting its weaknesses like relying on forecasts and long cycles. It then introduces lean manufacturing, developed by Toyota, which aims to do more with less resources by focusing on eliminating waste. The lean system starts with the customer rather than the factory. Finally, it outlines the methodology for establishing a lean system, including improving workplace management with 5S, implementing just-in-time production through a pull system, optimizing processes, and using total productive maintenance to prevent equipment losses.
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which help determine optimal order sizes and quantities. ABC analysis categorizes inventory items into A, B, and C groups to apply different control and recordkeeping policies based on importance and value.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
1. Capacity planning involves estimating current capacity, forecasting future capacity needs, identifying options to meet needs, and selecting sources of additional capacity.
2. Capacity can be measured using output rate, input rate, capacity utilization percentage, or capacity cushion and is important for meeting demands, costs, competitiveness, and planning.
3. The document discusses definitions of capacity, the capacity planning process, measurements of capacity, forecasting demands, and considerations for evaluating capacity alternatives.
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which aim to minimize total inventory costs. ABC analysis categorizes inventory into A, B, and C items to apply appropriate control policies to each.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Unit 3-IE6605 & PRODUCTION PLANNING AND CONTROLMohanumar S
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
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www.ops571genius.com
1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth
This document discusses lean management and lean manufacturing systems. It begins by describing the traditional push system of manufacturing, noting its weaknesses like relying on forecasts and long cycles. It then introduces lean manufacturing, developed by Toyota, which aims to do more with less resources by focusing on eliminating waste. The lean system starts with the customer rather than the factory. Finally, it outlines the methodology for establishing a lean system, including improving workplace management with 5S, implementing just-in-time production through a pull system, optimizing processes, and using total productive maintenance to prevent equipment losses.
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which help determine optimal order sizes and quantities. ABC analysis categorizes inventory items into A, B, and C groups to apply different control and recordkeeping policies based on importance and value.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
1. Capacity planning involves estimating current capacity, forecasting future capacity needs, identifying options to meet needs, and selecting sources of additional capacity.
2. Capacity can be measured using output rate, input rate, capacity utilization percentage, or capacity cushion and is important for meeting demands, costs, competitiveness, and planning.
3. The document discusses definitions of capacity, the capacity planning process, measurements of capacity, forecasting demands, and considerations for evaluating capacity alternatives.
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which aim to minimize total inventory costs. ABC analysis categorizes inventory into A, B, and C items to apply appropriate control policies to each.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Unit 3-IE6605 & PRODUCTION PLANNING AND CONTROLMohanumar S
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
FOR MORE CLASSES VISIT
www.ops571genius.com
1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth
Unit 4-IE6605 & PRODUCTION PLANNING AND CONTROLMohanumar S
The document discusses various production scheduling concepts and methods. It describes the functions of loading and scheduling, including determining operation times and sequencing work. Common scheduling tools are also explained, such as Gantt charts, which illustrate project schedules and task dependencies. Other scheduling methods covered include line of balance, linear scheduling, batch production scheduling, MRP, Kanban, and dispatching. Progress reporting and expediting are also summarized as important functions to ensure planned performance is achieved.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory carrying costs.
This document discusses production planning and control. It outlines several key objectives of production planning including minimizing costs and inventory while maximizing customer service and production efficiency. The document then describes different types of production systems like continuous, job-based, and intermittent production. It also discusses important aspects of production like product design, development, marketing, functional operations, aesthetics, and profit considerations. Standardization, simplification, and break-even analysis are also covered as important strategies for production.
Unit 5-IE6605 & PRODUCTION PLANNING AND CONTROLMohanumar S
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which aim to minimize total inventory costs. ABC analysis categorizes inventory into A, B, and C items to allow for different control and record-keeping based on importance and cost.
The document discusses various production planning and scheduling functions including scheduling, loading, sequencing, expediting, Gantt charts, line of balance, linear scheduling method, batch production scheduling, MRP, kanban, dispatching, progress reporting, and manufacturing lead time. Scheduling determines when operations are performed and works are completed. Loading adds total operation times to planned workstation utilization. Sequencing and dispatching authorize starting operations. Expediting ensures plans meet commitments.
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which help determine optimal order sizes and quantities. ABC analysis categorizes inventory items into A, B, and C categories to allow for different control and record-keeping based on importance.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
Operation & material management-line balancing & capacity planning decisionRohit Raina
This document discusses line balancing and capacity planning. It defines line balancing as balancing the workload across assembly line stations to optimize output, reduce costs, and identify bottlenecks. Three types of assembly line models are described: single-model, mixed-model, and multi-model. Capacity planning is defined as determining short and long-term needs by estimating requirements for machines, labor, resources and analyzing processes. It helps make strategic, tactical and operational decisions about system availability and sizing capacity.
4.types of manufacturing system and layoutsAkash Bakshi
Mass production involves breaking tasks down into their simplest elements and grouping them according to production norms. It uses assembly lines where material moves continuously between work stations to complete portions of the process. It is suitable for large quantities of standardized products with less variety produced continuously over time. Batch production uses general machines to produce different products in batches when volumes do not warrant dedicated lines for each. Economic lot size balances carrying costs of inventory with ordering costs to minimize total costs.
Work measurement increases productivityand role of jit omHallmark B-school
Work measurement is a technique used to establish the time required for workers to complete tasks. It involves systematically observing and analyzing job tasks to set standard times, improve procedures, and increase productivity. Work sampling also examines how workers spend their time by making observations over an extended period. Predetermined motion time systems break down jobs into basic movements and assign standardized times based on movement type and conditions. Just-in-time manufacturing aims to minimize inventory by receiving goods only as needed in production, requiring accurate demand forecasting. It shifts away from maintaining large safety stocks and toward rapid response to customer demand.
The document discusses work study and method study. It provides details on the basic procedures for method study which include selecting work to study, recording the existing method, examining the facts critically, developing a more efficient method, defining the new method, installing it, and maintaining it. It describes different charts that can be used for process recording like operation process charts, flow process charts, two-handed process charts, and multiple activity charts. The principles of motion economy relating to the human body, work place arrangement, and tool/equipment design are also summarized.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
Material and capacity requirements planning (mrp and crp) part 2Dr. Mahmoud Al-Naimi
Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq
A company's production process has an 80 percent learning curve rateyearstart1
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
1.
Which of the following is a measure of operations and supply management efficiency used by Wall Street?
Dividend payout ratio
Receivable turnover
Current ratio
Financial leverage
Earnings per share growth
The document discusses various production scheduling concepts and methods. It describes the loading and scheduling process, which involves determining the work required, computing total time needed, and adding it to existing workplans. Scheduling then determines operation start/finish times. Master scheduling and Gantt charts are also referenced. Benefits of scheduling include reduced inventory and setups. MRP, Kanban, dispatching, progress reporting and expediting are additionally summarized.
Implementation of Business Process Reengineering in Thermax Ltd.Pramod Patil
Implementation of Business Process Reengineering in Thermax Ltd. to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed by the fundamental rethinking and radical redesign of business processes
The document discusses various topics related to inventory management, lean production systems, just-in-time manufacturing, material requirements planning, and total quality management in the context of management accounting. It provides details on calculating economic order quantity and describes the differences between traditional push production systems and lean pull systems. Benefits of JIT include reduced inventory costs and increased throughput while drawbacks include vulnerability to supply chain disruptions. MRP is used to ensure the right materials are available at the right time. Activity-based management focuses on analyzing and assigning costs to activities rather than products or departments. Total quality management aims to minimize costs through continuous quality improvement and customer satisfaction.
OPS 571 HELP Inspiring Innovation--ops571help.comclaric77
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a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined? c. What
- Just-in-Time (JIT) and Total Quality Control (TQC) aim to improve efficiency and quality by reducing waste. JIT exposes problems while TQC eliminates constraints.
- JIT uses a pull system, small batch sizes, continuous flow, and kanban cards to minimize inventory and response times. TQC follows the plan-do-check-act cycle to continuously improve processes.
- The seven types of waste include overproduction, waiting time, transportation, inventory, unnecessary motion, defects, and excess processing. JIT and TQC work together to maximize customer value while using resources efficiently.
Vladimir Krasojevic managed several supply chain optimization projects, three of which are summarized here:
1. An assembly lead time reduction project at a watch factory reduced lead time from 35 to 12 days by optimizing thermal testing, batch release processes, and activities.
2. A material pull and production smoothing project at a factory reduced average inventory from 25 to 10 days by implementing weekly material pulls and a flat pricing model with suppliers.
3. A process flow optimization project reduced repacking lead time at two social work companies from 45 to 20 days by standardizing their process to continuous small-cell production.
OPS 571 HELP Lessons in Excellence / ops571help.comkopiko46
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a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined? c. What would happen if activity F was revised to take
OPS 571 HELP Education Counseling--ops571help.comvenkat60041
This document contains information about operations management concepts and assignments. It includes critical path diagrams, operations forecasting assignments, and a final exam guide with multiple choice questions covering topics like production layout, forecasting methods, inventory models, quality control, and lean manufacturing. Key terms and concepts are defined such as synchronous manufacturing, statistical process control, utilization, lead time, waste reduction, and learning curves. True/false statements are also presented about services, operations consulting processes, and transportation modes.
Unit 4-IE6605 & PRODUCTION PLANNING AND CONTROLMohanumar S
The document discusses various production scheduling concepts and methods. It describes the functions of loading and scheduling, including determining operation times and sequencing work. Common scheduling tools are also explained, such as Gantt charts, which illustrate project schedules and task dependencies. Other scheduling methods covered include line of balance, linear scheduling, batch production scheduling, MRP, Kanban, and dispatching. Progress reporting and expediting are also summarized as important functions to ensure planned performance is achieved.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory carrying costs.
This document discusses production planning and control. It outlines several key objectives of production planning including minimizing costs and inventory while maximizing customer service and production efficiency. The document then describes different types of production systems like continuous, job-based, and intermittent production. It also discusses important aspects of production like product design, development, marketing, functional operations, aesthetics, and profit considerations. Standardization, simplification, and break-even analysis are also covered as important strategies for production.
Unit 5-IE6605 & PRODUCTION PLANNING AND CONTROLMohanumar S
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which aim to minimize total inventory costs. ABC analysis categorizes inventory into A, B, and C items to allow for different control and record-keeping based on importance and cost.
The document discusses various production planning and scheduling functions including scheduling, loading, sequencing, expediting, Gantt charts, line of balance, linear scheduling method, batch production scheduling, MRP, kanban, dispatching, progress reporting, and manufacturing lead time. Scheduling determines when operations are performed and works are completed. Loading adds total operation times to planned workstation utilization. Sequencing and dispatching authorize starting operations. Expediting ensures plans meet commitments.
Inventory control aims to ensure adequate supply without excessive overstock. It answers questions about when to order, where to store inventory, and how much to order. Two common inventory management techniques are the two-bin system and economic order quantity (EOQ) modeling, which help determine optimal order sizes and quantities. ABC analysis categorizes inventory items into A, B, and C categories to allow for different control and record-keeping based on importance.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
Operation & material management-line balancing & capacity planning decisionRohit Raina
This document discusses line balancing and capacity planning. It defines line balancing as balancing the workload across assembly line stations to optimize output, reduce costs, and identify bottlenecks. Three types of assembly line models are described: single-model, mixed-model, and multi-model. Capacity planning is defined as determining short and long-term needs by estimating requirements for machines, labor, resources and analyzing processes. It helps make strategic, tactical and operational decisions about system availability and sizing capacity.
4.types of manufacturing system and layoutsAkash Bakshi
Mass production involves breaking tasks down into their simplest elements and grouping them according to production norms. It uses assembly lines where material moves continuously between work stations to complete portions of the process. It is suitable for large quantities of standardized products with less variety produced continuously over time. Batch production uses general machines to produce different products in batches when volumes do not warrant dedicated lines for each. Economic lot size balances carrying costs of inventory with ordering costs to minimize total costs.
Work measurement increases productivityand role of jit omHallmark B-school
Work measurement is a technique used to establish the time required for workers to complete tasks. It involves systematically observing and analyzing job tasks to set standard times, improve procedures, and increase productivity. Work sampling also examines how workers spend their time by making observations over an extended period. Predetermined motion time systems break down jobs into basic movements and assign standardized times based on movement type and conditions. Just-in-time manufacturing aims to minimize inventory by receiving goods only as needed in production, requiring accurate demand forecasting. It shifts away from maintaining large safety stocks and toward rapid response to customer demand.
The document discusses work study and method study. It provides details on the basic procedures for method study which include selecting work to study, recording the existing method, examining the facts critically, developing a more efficient method, defining the new method, installing it, and maintaining it. It describes different charts that can be used for process recording like operation process charts, flow process charts, two-handed process charts, and multiple activity charts. The principles of motion economy relating to the human body, work place arrangement, and tool/equipment design are also summarized.
Product planning identifies market requirements to define a product's features. It serves as the basis for pricing, distribution, and promotion decisions. Value analysis aims to increase value, defined as function over cost, by improving function or reducing cost. Lack of product planning can lead to unsatisfied customers, quality issues, and loss of brand name. Process planning involves routing, scheduling, dispatching, and follow up based on product information, processes, capacity, orders, due dates, and resources. Economic batch quantity determines the optimal batch size to minimize average costs by balancing setup costs and inventory holding costs.
Material and capacity requirements planning (mrp and crp) part 2Dr. Mahmoud Al-Naimi
Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq
A company's production process has an 80 percent learning curve rateyearstart1
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
1.
Which of the following is a measure of operations and supply management efficiency used by Wall Street?
Dividend payout ratio
Receivable turnover
Current ratio
Financial leverage
Earnings per share growth
The document discusses various production scheduling concepts and methods. It describes the loading and scheduling process, which involves determining the work required, computing total time needed, and adding it to existing workplans. Scheduling then determines operation start/finish times. Master scheduling and Gantt charts are also referenced. Benefits of scheduling include reduced inventory and setups. MRP, Kanban, dispatching, progress reporting and expediting are additionally summarized.
Implementation of Business Process Reengineering in Thermax Ltd.Pramod Patil
Implementation of Business Process Reengineering in Thermax Ltd. to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed by the fundamental rethinking and radical redesign of business processes
The document discusses various topics related to inventory management, lean production systems, just-in-time manufacturing, material requirements planning, and total quality management in the context of management accounting. It provides details on calculating economic order quantity and describes the differences between traditional push production systems and lean pull systems. Benefits of JIT include reduced inventory costs and increased throughput while drawbacks include vulnerability to supply chain disruptions. MRP is used to ensure the right materials are available at the right time. Activity-based management focuses on analyzing and assigning costs to activities rather than products or departments. Total quality management aims to minimize costs through continuous quality improvement and customer satisfaction.
OPS 571 HELP Inspiring Innovation--ops571help.comclaric77
FOR MORE CLASSES VISIT
www.ops571help.com
a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined? c. What
- Just-in-Time (JIT) and Total Quality Control (TQC) aim to improve efficiency and quality by reducing waste. JIT exposes problems while TQC eliminates constraints.
- JIT uses a pull system, small batch sizes, continuous flow, and kanban cards to minimize inventory and response times. TQC follows the plan-do-check-act cycle to continuously improve processes.
- The seven types of waste include overproduction, waiting time, transportation, inventory, unnecessary motion, defects, and excess processing. JIT and TQC work together to maximize customer value while using resources efficiently.
Vladimir Krasojevic managed several supply chain optimization projects, three of which are summarized here:
1. An assembly lead time reduction project at a watch factory reduced lead time from 35 to 12 days by optimizing thermal testing, batch release processes, and activities.
2. A material pull and production smoothing project at a factory reduced average inventory from 25 to 10 days by implementing weekly material pulls and a flat pricing model with suppliers.
3. A process flow optimization project reduced repacking lead time at two social work companies from 45 to 20 days by standardizing their process to continuous small-cell production.
OPS 571 HELP Lessons in Excellence / ops571help.comkopiko46
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www.ops571help.com
a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined? c. What would happen if activity F was revised to take
OPS 571 HELP Education Counseling--ops571help.comvenkat60041
This document contains information about operations management concepts and assignments. It includes critical path diagrams, operations forecasting assignments, and a final exam guide with multiple choice questions covering topics like production layout, forecasting methods, inventory models, quality control, and lean manufacturing. Key terms and concepts are defined such as synchronous manufacturing, statistical process control, utilization, lead time, waste reduction, and learning curves. True/false statements are also presented about services, operations consulting processes, and transportation modes.
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a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined
This document contains three passages related to operations management topics:
1) An assignment on critical path analysis and the impact of changing task durations.
2) An assignment on operations forecasting using Excel and writing a report.
3) A study guide for a final exam covering topics like production processes, forecasting methods, inventory models, and supply chain classification.
A company must perform a maintenance project consistingjohann11369
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1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth
2. An activity-system map is which of the following? A diagram that shows how a company's strategy is delivered to customers A timeline displaying major planned events A network guide to route airlines A facility layout schematic noting what is done where A listing of activities that make up a project
OPS 571 HELP Education for Service--ops571help.commamata44
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a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined? c. What would happen if activity F was revised to take 4 days instead of 2days?
Capacity planning involves determining the production capacity needed to meet demand. It considers the design capacity, effective capacity, and actual capacity of production units. Forecasting helps determine how much capacity is needed and when. Capacity decisions are strategic as they impact costs, competitiveness, and long-term planning. Efficiency and utilization rates show the relationship between actual output and design/effective capacities. Cost-volume analysis examines the relationship between costs, revenues, volume, and profits to aid capacity planning.
This document contains information about operations management concepts and assignments. It includes the critical path of a project, operations forecasting assignment steps, exam questions on topics like forecasting, production planning, quality control and more. It also provides guidance on final exams in operations management classes and definitions of key terms.
Manufacturing's Holy Grail: A Practical Science for Executives and ManagersUBMCanon
Mark Spearman, President and CEO, Factory Physics
In this session we will discuss:
-Manufacturing Myths that Muddle Management:
-Bottlenecks and non-bottlenecks—meeting demand
-One Piece Flow—what is the real cost?
-ABC Inventory Policies—how low can you go?
And many more!
Mark L. Spearman is President and CEO of Factory Physics, Inc., a firm that provides management consulting, training, and software to improve manufacturing and supply chain management. In his former life as an academic, he was Head of the Department of Industrial and Systems Engineering at Texas A&M University and also a professor at Georgia Tech and Northwestern University. He is coauthor, with Wallace J. Hopp, of the book, “Factory Physics” that was named the IIE Book of the Year. He has helped more than one hundred companies over the last twenty five years apply the principles of factory physics to improve operations by increasing productivity, reducing cycle times and inventories by developing integrated supply chain approaches that are both simple and effective.
If the actual output of a piece of equipmentjohann11371
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1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth
2. An activity-system map is which of the following? A diagram that shows how a company's strategy is delivered to customers A timeline displaying major planned events A network guide to route airlines A facility layout schematic noting what is done where A listing of activities that make up a project
For more course tutorials visit
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a. Observe the critical path diagram. Why are there two arrows pointing to task F? b. Why is the critical path shown as A-B-E-G-I? How is the critical path defined? c. What would
This document discusses corporate strategy and strategy development processes. It covers learning curve theory, which states that the time to complete a task decreases each time it is undertaken at a decreasing rate. It provides guidelines for improving individual performance based on learning curves, such as proper training and work specialization. Finally, it discusses managerial considerations for using learning curves, such as incentives, differences between new and old jobs, and how improvements come from working smarter.
A simple project listing of five activities and their respective timejohann11370
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1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth
2. An activity-system map is which of the following? A diagram that shows how a company's strategy is delivered to customers A timeline displaying major planned events A network guide to route airlines A facility layout schematic noting what is done where A listing of activities that make up a project
A company has actual unit demand for three consecutive yearsjohann11369
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1. Which of the following is a measure of operations and supply management efficiency used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial leverage Earnings per share growth
2. An activity-system map is which of the following? A diagram that shows how a company's strategy is delivered to customers A timeline displaying major planned events A network guide to route airlines A facility layout schematic noting what is done where A listing of activities that make up a project
Similar to Managerial accounting on a manufacturing enterprise (20)
This document discusses the history and current state of women in business in Germany and Russia. It outlines the challenges women have faced over time in gaining rights and access to business opportunities. Some key points include:
- Women's rights have expanded since the 19th century with things like the right to vote being adopted in some places in the late 1800s.
- Today in Germany, conservative attitudes still exist where the roles of women are seen as family focused rather than having a career. Quotas have been adopted to increase women in leadership.
- In Russia, the current situation and laws regarding women in business are not described in detail.
- Women's business clubs have formed starting in the 1820s to support each
This document discusses positive and negative product positioning strategies. It defines product positioning as the image a product creates in customers' minds compared to competitors' products. Criteria for successful positioning include clarity, consistency, credibility, and competitiveness. McDonald's is used as an example of positive positioning, targeting families and different demographics through strategies like Happy Meals and McCafe. The document lists five best positioning strategies and provides an example of a bad strategy where Volvo incorrectly positioned a car as a sports car without changing the product.
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ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
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This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
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Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
Managerial accounting on a manufacturing enterprise
1. Managerial accounting on a
manufacturing enterprise
by Semenov R.M.
Thesis Supervisor – Sokolnikova I.V.
2. Contents
- Introduction
– Why managerial accounting?
– Narrowing the scope with a hypothesis
– Goals and objectives
- Theory
– Classical methodology, new qualitative concepts
– A new man. acc. methodology developed
- Practical implementation
– Company XYZ
– Results of applying a new methodology
- Conclusions
3. Why managerial accounting?
• Broad scope of practice
• Changing role of financial departments
• No clear-cut methodology in Russia
• Predators of business-consulting
A need to develop new managerial accounting
methodology and implement foreign practice
4. Narrowing the scope with a hypothesis
• Working Capital Management in part of Inventory is a
concept not as developed as other parts of managerial
accounting (like costing)
• Russian economy is in need of effective process
manufacturing
• Increasing Internal competences in manufacturing
industries helps Russian finished products to be
competitive and leads to increased import substitution
Hypothesis
“Using a multi-product inventory management model for
finished goods in a manufacturing company creates added
value.”
5. Goals and Objectives
The ultimate goal of this research is to develop and
successfully apply an inventory model.
The objectives of it are:
• To review
• To develop
• To test
• To recommend
Informational base – actuals of an existing
manufacturing enterprise.
6. Classical methodology
• “ABC” method of classification and similar
• Economic Order Quantity (EOQ) inventory
model
– Deterministic (a.k.a. “Wilson” model)
• With back-ordering
• Price-sensitive
– Stochastic continuous review model (R, Q)
(a.k.a. (s,S) or (Q,r) model)
7. Classical methodology: EOQ
(Basic inventory pattern used in EOQ model. Q –
optimal reorder level.)
cpFSEOQ /2 - Wilson’s formula
Where: F - fixed costs, S - quantity of demand in physical
terms, c - % of holding cost in the average cost of a stock-
keeping unit (SKU), p - price of an SKU.
9. Modern qualitative theories
-JIT (Just-In-Time) principles
-Kanban as a part of lean production
-TOC (Theory of Constrains) by Eliyahu M.
Goldratt
-Local vs. System Optima
-Constraint Management Assumption #3
10. Impossible to use because:
• One-product
• Centered mainly on costing
• Russian costing traditions
• Does not account for:
– how the company can actually match the demand
with its operations
– the risk-factor of demand being other than predicted
– production reaction time
– delays after production
– the size of production batch
Classical methodology: Conclusion
11. New Finished Inventory Model (FIM)
Start of Shipments
Build Stock for Launch
Produce & Ship
End of
Shipments
TotalSCStock
Time
12. New Finished Inventory Model (FIM)
Anticipation Stock4
4
Frozen Stock: QC Stock
3a
3a
Frozen Stock: Transit Stock to DC3b
3b
Safety Stock1
1
Time
TotalSCStock
Cycle Stock2
2 2
3a 3a
3b3b
Obsolete Stock3c
3c
13. New Finished Inventory Model (FIM)
A protection (buffer) we need to protect ourselves against uncertainty &
unpredictability on Demand Side
14. New Finished Inventory Model (FIM)
Days dailySS k TRT
Where:
SS – Safety Stock
k – risk factor, accounting for target availability and batch
coverage (cycle time)
(Sigma) - Supply chain uncertainty/variability,
TRT – Total Reaction Time
= PRT (Plant Reaction Time)+ EFT (Emergency Frozen Time)
15. New Finished Inventory Model (FIM)
Safety Stock
CS = BC-BD at the end of the production run
On Average: CS = ½(BC-BD)= DBNR/2
• BC: Batch coverage: will influence # of change overs
• BD: Batch Duration, will influence reliability
• DBNR: Days between Run = DBR, will influence Cycle Stock
BD Days Between Run (DBNR)
BC
16. Company XYZ
• FMSG company, 20% share in Russian market
• Very competitive market
• Competes by quality with imported first-class
products
• Import-substitution
• International expansion is initiated
• Problem – inventory grows faster then sales
• Trying a new model as a success-story for a
Siberian plant
17. Company XYZ: results of modeling
(MT) (Days)
Safety Stock 813,0 10,4
Cycle Stock 1268,8 16,2
Frozen Stock 627,5 8,0
Average Usable Total Inventory 2709,3 34,5
Stock in Transit 78,4 1,0
Average Total Inventory Stock 2787,7 35,5
18. Company XYZ: recommendations
To match demand and decrease Safety Stock and Cycle
stock – it is necessary to make change to existing
traditions, and there might be two possibilities:
• To make an investment in computerized production
planning system, thus decreasing the planning time.
Or
• Changing the way of the business – establishing a
“pull” ordering system, so that demand will be the
trigger to produce – kanban principle. Then it will be
necessary to communicate more with consumers the
Reaction Time (its minimum or maximum values).
Good afternoon, dear committee members. I’d like to present to you my master thesis on managerial accounting on a manufacturing enterprise.
Before I start, I’d like to thank my thesis supervisor, Ирина Вячеславовна, who has overseen my work and helped me on deciding what direction to choose, despite her becoming a mother, I also give my thanks to master-program dean’s office for helping me with numerous administrative issues.
Here are the contents of my presentation in brief.
First I’d introduce you to the scope, goals and objectives of my research.
Then I’ll describe the theory and concepts used to develop a new methodology and the model itself, describing principles of the managerial accounting model.
A practical implementation of this model will be shown on the example on company XYZ. The results will be shown.
Then the conclusions on the research will be drawn.
The first question that my thesis should answer is why have I decided on managerial accounting as a theme for my thesis.
First, I thought it will be the easiest for me, as I work in the sphere of managerial accounting. I thought – I can easily choose from any part of managerial accounting, as it has a very broad scope for research.
Second, it’s the fact that the world is changing constantly, and the role of financial department in today’s organization has moved from what was once an accounting control function, only responsible for a few standard reports to a more sophisticated function of a dep-nt that provides timely information support for managerial decisions. Released from purely accounting functions with implementation of relatively automated accounting systems, fin.dep.-s become more of a business integrator, cooperating with every other department, working cross-functionally, so that management can receive reliable analysis of current situation, and not at the end of the year or Q-er, but wherever the need.
But this practice is (traditionally) not widely spread in Russia and thus, there is no technique nor clear-cut methodology implemented in Russian enterprises, so there is need in new ways to manage and process accounting information.
Because of that both foreign and Russian companies started to feed on the incompetence of financial departments, occupying a need for consulting practice with selling nothing at ridiculous practice. (in my enterprise we have already bought nothing for more than 12 mln RUR).
Thus financial departments need to adjust and become more effective in information management, developing new managerial accounting techniques.
Here is where I and my methodology comes in.
When one speaks about managerial accounting it is usually costing that is addressed, as this sphere has well-known methodology, accepted both internationally and locally. It is practically well-developed and there is a hand-full of literature on it.
This is a reason why my thesis is not about costing. A much more interesting theme for me and the company that I work for, that has just recently been addressed by practitioners ,is working capital management in part of inventory. The profitability of an enterprise is dependent on effective inventory management, as building up stock costs money and freezes money that could be re-invested effectively, leaving huge opportunity costs.
Why inventory – you may ask. The answer is – Russian economy, that is condensed in raw material extraction and export, needs competitive advantage, not just in political environment, but it needs more business-practice related accomplishments. That is to develop competitive process industries.
For them to be competitive there is a need to increase their internal competences, and a first one is - managing their finished good inventory as closely to the demand as it can be. That is extremely important in terms of import substitution, as the more demand-adjustable is the manufacturer, the less storage costs he manages, the more possibility for a consumer to choose Russian over imported and for the manufacturer to stay profitable.
Thus, my hypothesis I developed, that will be tested further in my thesis is: Using a multi-product inventory management model for finished goods in a manufacturing company creates added value.
The goal of this thesis is to develop and successfully apply a management accounting mechanism, basing it both on classical research, such as EOQ models and proactive modern qualitative theories, such as JIT (Just-in-Time) and TOC (Theory Of Constrains).
The next objectives are to be reached to achieve the aim:
To review classical theories that are taught in managerial accounting
To review modern qualitative theories of lean production
To develop a transparent mathematical model and methodology based on the theories learned
To test its effectiveness by applying it on actuals and forecasts of an existing manufacturing enterprise
To recommend to the existing manufacturing enterprise a course of actions (managerial decision), basing on the results (output) of the model
Informational base (source of raw financial data) – actuals of an existing enterprise (a real business case).
The classical methodology described will be:
- “ABC” method of classification and similar
- Economic Order Quantity (EOQ) inventory model
- Deterministic (a.k.a. “Wilson” model)
- With back-ordering
- Price-sensitive
- Stochastic continuous review model (R, Q)
(a.k.a. (s,S) or (Q,r) model)
Considering ABC-method:
Tracing hundreds and thousands of storage positions with equal care is practically impossible – it could lead only to systematic human errors. The problem is – how to decrease the “pooling under control”. Classification method should be used then, such as ABC, dividing the most costly elements in the structure of inventory in monetary form to one group (A), a less costly in another (B) and the least expensive – in the last one (C).
A very important step of inventory management, included in group A by ABC-method (and maybe, partially, in group B) is finding the optimal re-order quantity. A reorder quantity means an amount of material or a product for re-sale that should be ordered to minimize the costs associated with it.
The main idea of the EOQ concept is to divide the costs into two wide categories:
- Holding costs of inventory (variable part)
Ordering costs of inventory (fixed part)
And then, finding the quantity with minimum total cost by the next formula.
For graphical representation see the next slide (see next slide)
This formula is the main one to use when determining the optimal re-order quantity. It allows to compromise between the costs that rise and cost that fall with the quantities here they are.
Here, for example (TCC) Holding cost = 0,4 USD/unit and (TOC) Ordering cost = 1000 USD, Demand rate is 100 units, thus the value of EOQ is 707.
I also based the methodology on several principles described in modern literature on production management. They include:
JIT principles, implemented by Japanese companies (Toyota first of all), particularly, a kanban principle.
It is a signaling system that allows a manufacturing enterprise to reduce its work-in-process inventory, by making the last production unit (or, in case of Toyota – an assembly line) to initiate the material processing by demanding the needed parts or components of the previous parts of production chain.
the main aim of JIT system – is decreasing Total Reaction Time (time that is needed to produce a finished good), which will be discussed further.
Two main principles of the Theory of Constraints that are directly connected to managerial accounting in part of inventory management:
Local vs. System Optima, that says – “system’s optima is not a simple sum of all of local optima” – it’s actually less. Suboptimization by Goldratt- is evil.
Constraint Management Assumption #3 – “only very few variables or one variable has a deciding influence on the whole system”
Even though it seems quite easy – it is practically impossible to use EOQ methods, even the ones with stochastic demand rates following certain distribution, according to a certain Service level (probability that a stock-out will not occur).
The reasons are:
all the EOQ models described in literature are mainly one-product models, meaning that it is needed to somehow reallocate the costs to every single product, which is practically impossible in a big manufacturing company with hundreds of SKUs.
all the EOQ models are centered mainly on costing, which proves to be their downfall, because the classification of all the costs and dividing it to variable and fixed for the model is no simple task, especially on big manufacturing enterprises.
In practice, especially considering Russian cost-allocation traditions that come from Soviet Union - when variable costs comprise an insignificant part of the overall costs for holding and shipment, they are not easily detached from operational costs.
Brings suboptimization, resulting from looking only at costs, instead of the throughput matching actual demand which is what a manufacturing company as a system needs to achieve the most.
Does not account for several factors.
As you can see – this is the finished inventory pattern that actually takes place in a manufacturing enterprise.
It is quite different from theoretical EOQ example, as you first build-up stock, then regular shipments take place and then you have something left at the end of shipments.
I will go into the details later, but first of all it should be noted, that the inventory is different by the reason of its appearance.
Total Inventory consists of following components:
- Safety Stock (SS) – builds up to account demand positive deviations.
- Cycle Stock (CS)- the usual amount of stock needed to match the demand
- Frozen Stock (FS)
- On the ground – when products awaits Quality Release
- In transit – when product is transferred to a Distribution Centre (before it becomes available for the customer to pick)
Anticipation Stock (AS) – this stock builds up only occasionally for:
Initiative launch
Shipment Peak
Plant Shut down
- Obsolete Stock (when SKU is too old to be sold or has been damaged).
Still, it is mainly SS, CS and FS that are needed for regular analysis, first – to the concept of SS.
In the model the safety stock depends on the sales forecast accuracy.
The chart shows a typical evolution of inventory over time:
The stock goes up just after we’ve produced.
The stock will go down as we ship product to our customers.
At the end of each cycle, we should be close to our SS.
In cycles where forecast was too high, we do not reach SS. (Eg. 2nd cycle in graph.)
In cycles where we overship vs. forecast, we will dig into safety stock. (Eg. 1st cycle in graph.)
Occasionally (at least, we hope this happens rarely), we will ship a lot more than we forecasted. In these instances, our SS will not be sufficient to cover us for this mistake. In those cycles, we will face an ‘Out of Stock’ or ‘missed volume’.The last case is the one that we should protect us from. For this purpose a formula has been defined:
TRT – is the time between a need for a product arises and it is available for customer to pick.
To facilitate the calculation, TRT is split into two components:
TRT = Plant Reaction Time + Emergency Frozen Time
The Plant Reaction Time (PRT) groups all the delays that happen until actual production.
The Emergency Frozen Time (EFT) deals with the delays after production.
Sigma represents the historical deviation of forecasting error (demand versus forecast)
Risk-factor - K varies between 1.5 and 3 and depends on:
Service Level
The less missed cases you are willing to accept, the more SS you will need to keep.
Standard Deviation
The more uncertainty in your Supply chain, the more SS you will need to keep.
Batch Coverage
The larger the Batch Size, the fewer the ‘low stock’ events, hence the less safety stock you’ll need to keep.
Still, in terms of overall inventory (SS + CS), frequent production (i.e. small batches) will still result in the smallest inventory, due variation in Cycle Stock (CS)
This Cycle is batch coverage (= The quantity produced in one run) minus Batch duration (=The time it takes to produce one batch).
I’ll describe briefly a case of XYZ company.
It operates in market of Fast Moving Consumer Goods (FMCG) and has a leading position, representing about 20% of the Russian market in its sphere of business. The market, though is very competitive as there are at least 100 other brands of the same good, 60 of them are price-competitive, but none compete with XYZ on quality in Russia.
production quality is overviewed by the company of the very first stages of processing – the raw materials for the finished good are produced by an affiliated structure. Thus the company can compete by quality with imported first-class products with American, British, Brazilian and Netherlands importers, and at the same time – staying low cost and being able to compete against Russian brands on price. It also is actively participating in government policy of import-substitution of refined products actively as it is precisely fit for this role.
The average growth rate for finished goods inventory from quarter to quarter is much higher than average monthly sales turnover
Modeling for one plant of XYZ organization resulted in the next:
The Safety Stock turns out to be less then TRT (13) on average = 10 working days, the cycle stock prevails equaling 16 days, and the inventory frozen on ground or in transit takes the value of 8 working days.
The most intriguing fact that arises from the results of calculation – is the forecasting Error and its effect on Safety Stock – the main reason of it is the forecast bucket – days that the forecast covers. That means that there has been a major problem revealed and that problem is the discretion of forecasting.
Then we recalculate the Error for a week, for example – we would have Safety Stock of 4 (!!) working days and the average standard deviation of 135%., switching it to a day makes it 50% standard deviation and 1 day of Safety Stock.
This makes it a ground for qualitative change, because even in the Plant with maximum customer flexibility (small batches), 100% controlled by the enterprise – it is still not possible to match the demand, as forecasting techniques has become outdated. Planning for a month, when the reaction time is 3 times less, due to small batches – that carries the most risk and volatility of sales.
To match demand and decrease Safety Stock – it is indeed necessary to make change to existing traditions, and there might be two possibilities:
-To make an investment in computerized production planning system, thus decreasing the planning time.
Or Changing the way of the business – establishing a “pull” ordering system, so that demand will be the trigger to produce. Then it will be necessary to communicate more with consumers the Reaction Time (its minimum or maximum values).
Draining The lake is the only choice.
The higher the inventory in the SC, the more comfortable you might feel. However this secure feeling is false because:
– You tie up a lot of capital in keeping inventory.
– The more inventory you keep, the higher the risk to hide issues. You might not know you have an unreliable supplier, or very bad forecasts,…
The advice is to reduce your inventory and tackle the issues as they appear.
Hypothesis is thus proven as the model has them uncovered and provide ground for managerial decision making.