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The document outlines key concepts in project management and production processes, including project structures (pure, functional, matrix), critical path analysis, and lean production principles. It also covers inventory management techniques such as MRP, safety stock, and cycle counting, along with ERP systems and their functionalities. Overall, it serves as a comprehensive guide to managing projects and production efficiently while optimizing resources and reducing waste.

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Diego Hoyos Hdz
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2 views

Doc2

The document outlines key concepts in project management and production processes, including project structures (pure, functional, matrix), critical path analysis, and lean production principles. It also covers inventory management techniques such as MRP, safety stock, and cycle counting, along with ERP systems and their functionalities. Overall, it serves as a comprehensive guide to managing projects and production efficiently while optimizing resources and reducing waste.

Uploaded by

Diego Hoyos Hdz
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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A series of related jobs usually directed toward some major output and

requiring a significant period of time to perform


Project
Planning, directing, and controlling resources (people, equipment,
material) to meet the technical, cost, and time constraints of a project.
Project management
A structure for organizing a project where a self-contained team works full
time on the project
Pure project
In this structure, team members are assigned from the functional units of
the organization. The team members remain a part of their functional
units and typically are not dedicated to the project.

Functional project
A structure that blends the functional and pure project structures. Each
project uses people from different functional areas. A dedicated project
manager decides what tasks need to be performed and when, but the
functional managers control which people to use

Matrix project
A specific event in a project.
Project milestone
The hierarchy of project tasks, subtasks, and work packages.
Work breakdown structure (WBS)
Pieces of work within a project that consume time. The completion of all
the activities of a project marks the end of the project
Activities
Critical path
The sequence(s) of activities in a project that form the longest chain in
terms of their time to complete. This path contains zero slack time. It is
possible for there to be multiple critical paths in a project. Techniques
used to find the critical path are called CPM, or critical path method,
techniques.
Critical path
Activities that need to be completed immediately before another activity

Immediate predecessor
The time that an activity can be delayed without delaying the entire
project; the difference between the late and early start times of an
activity.
Slack time

A project schedule that lists all activities by their early start times.
Early start schedule
A project schedule that lists all activities by their late start times. This
schedule may create savings by postponing purchases of material and
other costs associated with the project.

Late start schedule


Extension of the critical path models that considers the trade-off between
the time required to complete an activity and the cost. This is often
referred to as “crashing” the project.
Time–cost models
Integrated activities designed to achieve high-volume, high-quality
production using minimal inventories of raw materials, work-in process,
and finished goods.
Lean production
In the context of lean production, something for which the customer is
willing to pay.
Customer value
Anything that does not add value from the customer’s perspective.
Waste
These are the value-adding and non–value-adding activities required to
design, order, and provide a product from concept to launch, order to
delivery, and raw materials to customers.
Value stream
The optimization of value-adding activities and elimination of non–value-
adding activities that are part of the value stream.
Waste reduction

A graphical way to analyze where value is or is not being added as


material flows through a process.
Value stream mapping
Periodic inspection and repair designed to keep equipment reliable.
Preventive maintenance

A philosophy in which similar parts are grouped into families, and the
processes required to make the parts are arranged in a specialized
work cell.
Group technology
The philosophy of making workers personally responsible for the quality
of their output. Workers are expected to make the part correctly the first
time and to stop the process immediately if there is a problem.
Quality at the source
A schedule that pulls material into final assembly at a constant rate.

Level schedule
The period of time during which the schedule is fixed and no further
changes are possible.
Freeze window
Calculating how many of each part were used in production and using
these calculations to adjust actual on-hand inventory balances. This
eliminates the need to actually track each part used in production.
Backflush
Smoothing the production flow to dampen schedule variation.
Uniform plant loading
A signaling device used to control production.

Kanban
An inventory or production control system that uses a signaling device to
regulate flows.
Kanban pull system
A computer system that integrates application programs in accounting,
sales, manufacturing, and the other functions in a firm. This integration is
accomplished through a database shared by all the application programs.
Enterprise resource planning (ERP)
This is the posting and tracking of the detailed activities of a business.
Transaction processing
This is the ability of the system to help a user make intelligent judgments
about how to run the business
Decision support
This is the posting and tracking of the detailed activities of a business.

Transaction processing
This is the ability of the system to help a user make intelligent judgments
about how to run the business.
Decision support
As soon as a transaction is entered, the effect is known by all users of the
system.

Real time
A special program that is designed to automatically capture and process
data for uses that are outside the basic ERP system applications.
Data warehouse
The average number of days that it takes a business to convert cash spent
for raw material and other resources into cash inflows from sales.
Cash-to-cash cycle time
All the money that the system has invested in purchasing things it
intends to sell (Goldratt’s definition).
Inventory (Goldratt’s definition)

The demands for these items are unrelated to each other, or to activities
that can be predicted with certainty.
Independent demand
The need for an item is a direct result of the need for some other item,
usually an item of which it is a part. Also, when the demand for the item
can be predicted with accuracy due to a schedule or specific activity.

Dependent demand
Answers the question of how much to order when an item is purchased
only one time, and it is expected that it will be used and then not
reordered.
Single-period problem
An inventory control model where the amount requisitioned is fixed and
the actual ordering is triggered by inventory dropping to a specified level
of inventory.

Fixed–order quantity model (Q-model)


An inventory control model that specifies inventory is ordered at the end
of a predetermined time period. The interval of time between orders is
fixed and the order quantity varies.
Fixed–time period model (P-model)

The amount on hand plus on-order minus backordered quantities. In the


case where inventory has been allocated for special purposes, the
inventory position is reduced by these allocated amounts.
Inventory position
This order size minimizes total annual cost.

Optimal order quantity (Qopt)


The amount of inventory carried in addition to the expected demand.
Safety stock
A measure of the expected number of times inventory is replaced over a
year.
Inventory turn

This model is useful for finding the order quantity of an item when the
price of the item varies with the order size.
Price-break model
Divides inventory into dollar volume categories that map into strategies
appropriate for the category.
ABC inventory classification
A physical inventory-taking technique in which inventory is counted on a
frequent basis rather than once or twice a year.
Cycle counting
The logic for determining the number of parts, components, and
materials needed to produce a product.
Material requirements planning (MRP)
A time-phased plan specifying how many of each end item the firm
plans to build and when.
Master production schedule (MPS)

A feature of MRP systems that identifies the difference between the


number of units currently included in the master schedule and the actual
(firm) customer orders.
Available to promise
The complete product description, listing the materials, parts, and
components; the quantity of each item; and also the sequence in which
the product is created.
Bill-of-Materials (BOM)
MRP systems that calculate the impact of a change in the MRP data (the
inventory status, BOM, or master schedule) immediately.
Net change systems

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