Midterm Review

3/15/15

Lectures 1, 2
Manufacturing Cycle Efficiency
Work In Process (Not raw material inventory, not finished
products, just everything thats partially finished)
Working capital=inventory - payables + receivables
Throughput=average time in system=I/X (Littles Law)

Cost of Goods Manufactured =

Timevalue added

MCE = _____________
Total Mfg. Time

Total mfg cost +

initial WIP value - ending WIP value

Cost of Goods Sold (COGS) =

Cost of Goods Manufactured +
initial finished goods value - final finished
goods value

Lecture 3
Holding costs vs order costs (optimize via EOQ); shortage costs
Production system layouts

Lecture 4, 5
Forecasting, MSE, least squares, residuals
Exponential smoothing

1 t
S 0 Di
t i 1
S1 = D1 + (1 - )S0

Operating Cycle Time: for single machine includes time for

operation + handling + fixturing
Production time for job shop and batch processing
Mass production in a synchronous flow line
WIP Changing with production stages

Lecture 6, 7
Engineering Economics
Net Present Worth/Value (NPV)
Uniform Annual Cash Flow (UACF)

Breakeven Analysis
Assembly line balancing
Identifying bottleneck
Ideal Tc = Tr + Max (Tsci)

RPW
PW=time to do task + all dependent tasks
Make list sorted by PW, make stations that satisfy precedence and
time constraints

Lecture 8, 9
EMQ
Throughput time factor, w
WIP costs now included

Minimum number of changeovers

Make sure to check against external setup!

Lectures 10, 12
Supply chain management
Periodic ordering (demand forecasting, order-upto-target)
Variance acceleration/ bull whip effect
Statistics review
Safety stock at warehouse and retailers

Lecture 13, 14
Learning curve

Winters Model

Lectures 15, 16
Materials Resource Planning
Takes demand, lead times, and BOM
dependencies into account
Calculate PORs
Lot-for-lot versus EOQ or POQ

Manufacturing Resources Planning

Rough cut capacity planning

Acronyms

MCE = Manufacturing Cycle Efficiency

FGI = Finished Goods Inventory
WIP = Work in Process
VAT = Value Added Time
DFX = Design for X, X can be any
desired objective
JIT = Just in Time
MLT = Manufacturing Lead Time
FMS = Flexible Manufacturing Systems
ROI = Return on Investment
ABC = Activities Based Costing
EOQ = Economic Order Quantity
COGS = Cost of Goods Sold
COGM = Cost of Goods Manufactured
NPV = Net Present Value
UACF = Uniform Annual Cash Flow

EMQ = Economic Manufacturing

Quantity
RPW = Rank Positional Weight
MSE = Mean Square Error
MPS: Master Production Schedule
BOM: Bill of Materials
MRP: Materials Requirement Planning
MRP-II: Manufacturing Resource
Planning
LFL: Lot for lot
POQ: Periodic Order Quantity
POR: Planned Order Releases
ERP: Enterprise Resource Planning
RCCP: Rough Cut Capacity Planning

Previous Midterm Topics

Midterm 1:

MCE
Littles Law
WIP
EMQ
Throughput time
Topics from movies
Statistics
Engineering Economics

Forecasting
Winters Model (x2)
Exponential smoothing
Learning curve
EMQ
RPW
Breakeven analysis
Variance acceleration
Min # of changeovers

Previous Midterm Topics

Midterm 2:
Topics from movie
Winters Method
Throughput time
Assembly line
balancing
RPW
WIP

EMQ
Breakeven
Learning curve
Statistics
Engineering
economics