6. Reorder Point With No Safety Stock and With a Safety Stock Reorder point Lead time Time Safety stock Balance on hand Balance on hand A. No safety stock B. Safety stock C-

9. Customer order file Sales forecast file Finished- goods inventory file Produc- tion capacity file 1.Production scheduling system 2. Material requirements planning system 3. Capacity requirements planning Purchasing system Order release report 4.Order release system Order release report Shop floor control system Performance reports Planning reports Exception reports Changes to planned orders An MRP System C- Bill of material file Planned order schedule Raw materials inventory file Master produc- tion schedule

11. Material requirements planning Order entry Accounts payable Accounts receivable General ledger An MRP II System Other functional information systems Purchasing Receiving Billing C- Executive information system

16. D A T A B A S E Accounting information system Industrial engineering system Manufacturing intelligence subsystem Internal sources Environmental sources Input subsystems Output subsystems Users Data Information A Model of a Manufacturing System C- Production subsystem Inventory subsystem Quality subsystem Cost subsystem

18. Terminal Receiving area Raw-materials storeroom Receiving inspection Shop floor area Finished-goods storeroom Shipping area 1 2 3 4 5 6 7 8 9 10 11 12 Location of Data Collection Terminals C-

22. Units replaced or repaired because of defective parts, supplier spare parts availability, and so on Units rejected upon receipt, units rejected during production, reasons for rejection, and so on Customer service input Quality control input Supplier input Financial strength, quality control emphasis, past quality and delivery performance, and so on Supplier file Input to Supplier Records C-

24. Job Flow Through the Plant Raw materials inventory Plastic top Plastic cylinder Step 1 Step 5 Step 6 Step 7 Step 8 Step 2 Step 3 Step 4 Step 9 Finished goods inventory Flashlight Attach spring Install bulb Install reflector Install red lens Install clear lens Attach switch Attach strap Add batteries Put top on cylinder PRODUCTION AREA C-

26. --------------------------------------------------- Safety stock Average inventory level Safety stock Average inventory level ------------------------------------------------------ A. Order quantity of 20; average level is 15. 0 5 15 25 0 13 5 21 B. Order quantity of 16; average level is 13. Balance on hand Balance on hand Time Time The Effect of Order Quantity on Average Inventory Level C-

28. TQM Philosophy *Customer-driven quality standards *Customer-supplier links *Prevention orientation *Quality at the source *Continuous improvement Total Quality Management Graphical Tools *Process flowcharts *Check sheets *Pareto analysis and histograms *Cause and effect (fishbone) diagrams *Run charts *Scatter diagrams *Control charts Statistical Tools *Sampling plans *Process capability *Taguchi methods C-

30. Subsystem User Inventory Quality Production Cost Vice president of manufacturing Other executives Plant Superintendent Manager of planning and control Manager of Engineering Manager of quality control Director of purchasing Manager of inventory control Other managers How Managers Use the Manufacturing Information System X X X X X X X X X X X X X X X X X X X X X X X X C-