Purchase Order - Answers Commercial document Issued by a buyer to a seller for products or services
The purchase order indicates - Answers Types
Quantities
Prices
Other terms and conditions
A PO is a - Answers legal offer to buy products or services
A contract exists when the seller accepts the - Answers PO
Electronic Data Interchange (EDI) - Answers the computer-to-computer exchange of business documents
in a standard format. These include invoices, purchase orders, payments, order status, etc
Benefits of EDI - Answers - Minimize data entry time & eliminate redundant entry
- Save time and cost due to standardized process
- Reduce errors & paper consumption
- Improve quality and increase productivity
EDI is a special software that - Answers translates such documents into and out of a generic form
enablers buyers and sellers to exchange information regardless of any hardware and software
differences
EDI essentially is - Answers Used to transfer business data from one computer system to another
computer system
EDI systems were created by the idea of - Answers a paperless office and better communication
EDIFACT = - Answers electronic data interchange for administration, commerce, and transport processes
EDI plays a role in global - Answers financial systems
UN EDIFACT - Answers international EDI standards developed within the united nations
First patent for a barcode product was issued in - Answers 1952
The barcodes we know didn't come around until ___ and the UPC, Universal product code, invented in
___ is still in use today - Answers 1966, 1973
,RFID - Answers use of a wireless non contact system that uses radio frequency electromagnetic fields
from a tag attached to the object for the purpose of automatic identification and tracking
RFID has - Answers more features than a barcode, also move expensive, which is why barcode is used
more extensively
Technology in the supply chain has helped with - Answers speed and accuracy
Vendor managed inventory with suppliers (supplier-facing VMI) enables you to - Answers share on-hand,
supplies, and forecast information with suppliers, transfer replenishment responsibility to suppliers, and
automate replenishment processes
Collaborative planning uses VMI with suppliers to - Answers automate the replenishment process, lower
inventory, improve supplier performance, and drive out non-value added costs
You can provide suppliers necessary information to manage inventory they provide. - Answers VMI
Vendor managed inventory is integrated with the execution system to enable any desired level of -
Answers automation in fulfillment
Another tool used with VMI is consignment inventory, where - Answers the customer does not pay until
the inventory is used, whether in production or delivered to their customers. It reduces the suppliers
cost a bit, the customer benefits most primarily in a reduction in the cash-to-cash cycle time, however
there is no savings due to the reduced inventory and the current inventory at the customer location still
incurs carrying cost and included in the cost that the customer pays the supplier
All production generally starts with - Answers a production order
Every parent item in the BOM will have its - Answers own work order and any number of production
orders may be created before goods go into inventory
Role of the production order - Answers Authorize production
Provide instructions
Track progress through the plant
Report materials usage
Completion of the order
Order creation - Answers the production order and tells people what to start doing
Lifecycle of a production order - Answers - Order creation
- Component and machine availability check
- order releae
, - download and print order on floor
- stage and reserve material
- comfirmation
- WIP
- quality checks
- good receipt
- deviation determinations
- order settlement
- move to next stage of production or DC
The component and machine availability checks ensure - Answers you have enough materials and
machine capacity to run the order before putting it out on the shop
With material staging/reserving, - Answers Staging should only be for a short time because you don't
release it unless you have all of the parts needed
In lean organizations, many of these steps have been __ and most manual transaction reporting has
been __ - Answers automated, eliminated
Manufacturing Facility Layout Strategies is - Answers how you arrange your equipment and tradeoff
between efficiency and responsiveness
Manufacturing Facility Layout Strategies - Answers Process, Product, of Fixed
Product focused facility layout - Answers Lower cost efficiency but lose flexibility
Process focused facilities - Answers High flexible but have many set ups, company order placement
costs, and long lead times
Job Shop - Answers low volume of any single items and no standardization, which lines up with the
jumbled flow job shop process.
Example of a job shop - Answers custom made furniture or cars, commercial printers
Disconnected line flow (batch) - Answers Large variety of products but there are multiples of each, giving
us the opportunity to batch units into a single production order.
Both job shops and batch production use a - Answers process layout: material moves from work center
to work center as it moves through the required processes