ÜRETİM YÖNETİMİ - Deneme Sınavı - 6

The followings are some of the essential activities and responsibilities of a product design:
• Reflect customer needs and requirements to product requirements
• Refine or modify current products
• Develop new products
• Formulate quality goals and cost targets
• Construct and test prototypes
• Document specifications
• Translate product specifications into process specifications.

The general characteristics of the product layout are summarized below.
• Production resources are designed for the purpose of high-speed production.
• Automation systems used to improve production speed and performance result in high installation costs.
• The process rate is faster as all the resources are ordered for efficient production.
• The arrangement of production resources according to the product, the proximity of the production lines to each other leads to lower material transportation costs compared to the process layout.
• The warehouse requirement for inventory is lower.
• Since all facilities and resources are customized for the production of certain products, there is no flexibility when a new product is added to the system or when substantial changes to the product are required.

Lot size refers to the quantity of an item ordered for delivery on a specific date or manufactured in a single production run.

Continuous review system refers to a process designed to track the remaining inventory of an item each time when a withdrawal is made to determine whether it is time to reorder.

In periodic review system, the inventory level is controlled at the beginning or end of predetermined time intervals.

Visual control, is a simple and practical method that is widely used in small businesses or markets. In this method, inventory levels are periodically reviewed by an experienced warehouse officer. Order items that fall below a certain level are immediately ordered. The level of order and the order quantity are entirely left to the official’s experience.

Material Requirement Planning (MRP) is a system that regulates production plans for final product’s production decisions, control of inventory levels of raw materials and parts, and programs of workshop and assembly unit. MRP is a method that tries to find the most economical answer to the questions of “when to order” and “how much to order” for dependent inventory items.

Aspects of material requirement planing are as follows:

The three important factors for successful implementation of the MRP system are:

Inventory holding cost (H): Costs are arising due to inventory holding. Inventory holding cost is the sum of the cost of capital plus the variable costs of keeping items on hand, such as storage and handling costs and taxes, insurance, and shrinkage costs. When these components change with inventory levels, so does the holding cost.

Following are the underlying assumptions for the EOQ model. • The demand rate for the product (D) is constant and uniform throughout the entire planning horizon. • The order quantity (Q) is constant. • The demand rate for the year is known and evenly spread throughout the year. The product price is constant for the entire planning period. • The lead time is not fluctuating. • The average inventory level is taken into account when calculating the cost of holding. • The cost of ordering is constant and independent from order quantity. • All the demand in the planning period must be met. • All orders are delivered simultaneously.

Pareto principle can be interpreted as that a minority of inputs (around 20 percent of the input) results in the majority of outputs (around 80 percent of the output).

Inventory management refers to the process of ordering, storing, and using a company’s inventory.

The purpose of inventory control is to ensure that the material requirements are met at the “desired time”, at the “desired quantity”, at the “desired location” and at the “desired quality”. In order to achieve this goal, it is necessary to determine “which materials” are to be stocked and to decide “what amount of inventory” is to be kept.

Continuous Review System: A system designed to track the remaining inventory of an item each time when a withdrawal is made to determine whether it is time to reorder.

Visual control is the review of inventory levels by the experienced worker individually on the place of the inventory.

The MRP system contributes to the provision of effective inventory management at the following points:
• Inventory investments are kept in a minimum level.
• The MRP system is sensitive to changes.
• MRP creates a forward-looking perspective based on inventory items.
• Order quantities are determined according to the requirements.
• It focuses on the timing and complete fulfillment of requirements.

The seven wastes that causes the costs to increase were determined by Toyota, the developer of the lean production system, as follows:
1. Overproduction
2. Transport
3. Inventory
4. Motion
5. Defects
6. Over-processing
7. Waiting

Lean Enterprise Institute (LEI) (http://www.lean.org/), is a nonprofit publication-training and research organization founded in the United States in 1997 to promote a broad range of lean thinking principles from production to service sectors and in all aspects of business.