db18 materials planning

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db18 materials planning

At a minimum, each student will be expected to post an original and thoughtful response to the DB question and contribute to the weekly dialogue by responding to at least two other posts from students. The first contribution must be posted before midnight (Central Time) on Wednesday of each week. Two additional responses are required after Wednesday of each week. Students are highly encouraged to engage on the Discussion Board early and often, as that is the primary way the university tracks class attendance and participation.

The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each unit.

You drop in at a lunchtime discussion among several of the manufacturing supervisors. Most of them have been around for years. They have been discussing how their own performance evaluation criteria may change with the transition to more modern techniques of operations and inventory control.

They turn to you and ask for your opinions on these topics, which are near and dear to them.

  • What is your understanding of the traditional measures of operational performance? 
    • include which traditional measures each of the following managers would be held responsible for: 
      • manufacturing supervisors
      • purchasing agents
      • schedulers 
  • Most importantly, they asked you to identify the following: 
    • typical metrics to use with the new system
    • what you believe would be reasonable goals for each of the following managers: 
      • manufacturing supervisors
      • purchasing agents
      • schedulers 

In your own words, please post a response to the Discussion Board and comment on at least 2 other postings. You will be graded on the quality of your postings.

 

 

Grading Criteria

                      

% of grade for this assignment

Provide your understanding of the traditional measures of operational performance. Include which traditional measures each of the following managers would be held responsible for:

·         manufacturing supervisors

·         purchasing agents

·         schedulers

30%

Identify the typical metrics to use with the new system.

15%

Identify what you believe would be reasonable goals for each of the following managers:

·         manufacturing supervisors

·         purchasing agents

·         schedulers

15%

Response to Peer Posts (2)

35%

APA citation and references

5%

 

 

 

 

Material Planning

MGMT333-1404B-01

Unit 2 – Main Post DB

Shannon Cusson

 

          My understanding of the traditional measures of operational performance is to focus on the forecast verses the real demand.  Operations is driven by the forecast.  There are many departments in the traditional ways.  There is forecasting department, master scheduling, purchasing, manufacturing, shipping, quality metrics, and inventory.  These departments are what make up the traditional ways of operations.

          There are at least five different areas that manufacturing supervisors are responsibilities for.  The first is percent efficiency.  This is where they have to compare hours.  There is an allotted industrial-engineering standard of hours.  They would compare direct labor to actual direct labor and put up against the industrial-engineering standard allowance.  The second is indirect and direct labor.  Direct labor is the actual labor for an order or service.  Indirect labor is the labor that is not directly for an order or service.  The third and fourth are scrap costs and percent rework.  Scrap cost are about parts that do not make it as a finish part.  For percent rework is the measure of hours worked and the additional hours fixing the parts.  The last one is schedule compliance.  This is the measure of time that it took to complete the order.  The purchasing agents deal with four main areas purchase price variance, on-time performance, quality performances, and premium freight costs.  Purchase price variance is the negotiations of price and so forth.  On-time performance is the observing of what is delivered on time.  Quality performance is about what orders meet and what does not meet delivery.  Premium freight costs are the unexpected costs that is added.  Master schedulers have three areas to keep track of percent on-time, actual on-time shipping performance and percent complete performance, and premium inbound freight.  Percent on-time master schedule compliance is looking at the products and looking at their due dates that have been completed in any time frame.  The second is about how many lines where shipped on an order verses what didn’t ship on that same order.  For the premium inbound freight is the extra that was either not considered with that order or even any late items for that order (Traditional (MUSE), 2013).

          To find the correct metrics use for the company is one simple question.  What proportion of our customers’ orders were on-time (Choosing (MUSE), 2013)?  Instead of forecasting and trying to predict the future let’s focus on the real demand of our customers and try to meet those demands.  With the new system, we need to focus on the time spent in each area.  By creating working cells and quicker changeover time will help with getting our product to the customer on time.  The new system will have fewer departments.  Instead of having eight department, the new system could potentially cut it in half.  The new system will have forecasting, purchasing and master scheduling, manufacturing, and a quality department.  Purchasing and master scheduling would be a combined department.  They would keep track of due date for each order.  They would be in constant watch over customers’ orders and making sure that everything is available to manufacturing.  Manufacturing supervisors would work in cell and looking for areas that might need to become leaner.  They want to concentrate on reducing changeover time in every operation.  They will need to focus on decreasing indirect labor (New Performance (MUSE), 2013).  These would be realistic goals for the company to set.

 

Reference:

AIU Online. (2013) MGMT333: Unit 2: Choosing the Best Metrics. [Multimedia presentation].

       Retrieved from AIU Online Virtual Campus. Measuring Business Performance: MGMT333-1404:01 website.

AIU Online. (2013) MGMT333: Unit 2: New Performance Measures. [Multimedia presentation].

       Retrieved from AIU Online Virtual Campus. Measuring Business Performance: MGMT333-1404:01 website.

AIU Online. (2013) MGMT333: Unit 2: Traditional Performance Measures. [Multimedia

       presentation]. Retrieved from AIU Online Virtual Campus. Measuring Business Performance: MGMT333-1404:01 website.

 
 
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