Key Terms of Integrated Production Processes

Throughput Time: The time it takes from when authorization is made for goods to be produced to when the goods are completed.

Push Manufacturing: An approach to manufacturing management in which sales forecasts drive the production plan, and goods are produced in large batches. Each machine performs its operation on the batch, and then the entire job waits until the operation can be started on the next machine in the sequence.

Pull Manufacturing: An approach to manufacturing where production is initiated as individual sales orders are received. Theoretically, each job consists of a “batch” of one unit. In pacing production, an idle machine pulls the next part from the previous machine as soon as that part is available thus pulling goods through the factory only when needed to satisfy demand.

Cellular Manufacturing: Machines are organized in clusters or “cells” that contain all of the needed resources (machines, tools, labor) to produce a family of products.

Available to promise Planning: An accumulation of the data on current inventories, sales commitments, and planned production to determine whether the production of finished goods will be sufficient to commit to additional sales orders.

Capable to promise Planning: The accumulation of the data on current inventories, sales commitments, planned production and excess production capacity, or other planned production capacity that could be quickly converted to production of the desired finished goods necessary to fulfill a sales order request.

Activity-based Costing: A costing approach where detailed costs to perform activities throughout the value chain are computed and can be managed or assigned to cost objects including products.

Life-cycle costs: The sum of the costs to design, produce, market, deliver, and support a product throughout the product’s lifecycle from conception to ultimate discontinuance.

Computer-aided Design: An application of computer technology that automates the product design process, including but not limited to the functions of geometric modeling, materials stress and strain analysis, drafting, storing product specifications, and mechanical simulation of a product’s performance. Also called computer-aided engineering (CAE).

Computer-aided Engineering: An application of computer technology that automates the product design process, including but not limited to the functions of geometric modeling, materials stress and strain analysis, drafting, storing product specifications, and mechanical simulation of a product’s performance. Also called computer-aided design (CAD).

Bill of Materials: A listing of all the subassemblies, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly.

Parts Master: A list of the detailed specifications for each raw material item contained in a product.

Routing Master: A data store that specifies the operations necessary to complete a subassembly or finished good and the sequence of these operations.

Computer-aided Process Planning: An automated decision support system that generates manufacturing operations instructions and routings based on information about machining requirements and machine capabilities.

Work Center Master: Describes each work center available for producing products, including information such as the machine available at the station, its capacity, its maintenance needs, labor needs to operate it, and so on.

Master Production Schedule: A statement of specific production goals developed from forecasts of demand, actual sales orders, and/or inventory information.

Global Inventory Management: An inventory management approach where inventory needs and inventory and production capabilities are matched across the entire global enterprise, not just at a local or regional level.

Production, Planning and Control: A production subsystem concerned with managing the orderly and timely movement of goods through the production process.

Materials Requirements PlanningThis process uses bills of material, raw material and work-in process (RM/WIP) inventory status data, open order data, and the master production schedule to calculate a time-phased order requirements schedule for materials and subassemblies.

Manufacturing Orders: Orders that convey authority for the manufacture of a specified product or subassembly in a specified quantity and describe the material, labor, and machine requirements for the job.

Flexible Manufacturing Systems: An automated manufacturing operations system that can react quickly to product and design changes because centralized computer control provides real-time routing, load balancing, and production scheduling logic.

Computer-aided Manufacturing: The use of computer and communications technologies to improve productivity by linking computer numerical control (CNC) machines, monitoring production, and providing automatic feedback for control of operations.

Variance Analysis: Process of comparing actual information about input costs and usage to standards for inputs costs and usage. Used primarily in manufacturing.

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