SCM 421 Exam 3

Production planning and control systems are comprised of these 2 activities: - Answer- 1. Planning and control of materials "Materials management" 2.Planning and control of capacities "Capacity planning" Materials Management - Answer- supports the transformation of raw materials and component parts into shipped or finished goods Capacity Planning - Answer- The process of determining how much capacity is needed (and when) in order to produce in the future What materials do we buy? - Answer- -Raw Materials -Purchased Parts and Components Raw Materials - Answer- Materials not yet committed to production ex: "commodities" such as crude oil, coal, paperboard. paper, lumber, copper, wheat, cotton Purchased Parts and Components - Answer- Includes semi-finished items that will be further processed or finished materials that will become components of finished goods MRO stands for - Answer- maintenance, repair, and operating (suppliers) Maintenance - Answer- Items we expect to periodically replace in a piece of equipment, overtime parts wear and are replaced -original manufacturer expects to supply these parts during the life of the equip. -application or renewal (lubricant and coolants) -periodic maintenance ensures longevity -less expensive ex: car getting an oil change Repair - Answer- -should be infrequent -suggests the unexpected -having to deal with equipment that wasn't expected to fail -sudden/urgent Operating supplies - Answer- Parts of the end items , essential for production, BUT unit value or size is too small to plan or control usage unit by unit "Indirect Materials" -st