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APICS CPIM Module 4 Full Course | Explanation & Practice Test (68 MIN)

Introduction

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We hope you enjoy the CPIM course with us. Please like, subscribe, and share your comments below. In this video, we will continue with Module 4: Supply Management, which consists of six sections:

  1. Creating and Validating the Master Schedule
  2. Using and Maintaining the Master Schedule
  3. Material Requirements Planning (MRP)
  4. Capacity Requirements Planning (CRP) and Scheduling
  5. Suppliers and Purchasing
  6. Changes and Product Life Cycle Management

Section A: Creating and Validating the Master Schedule

Overview: Creating and validating the master schedule is crucial in supply chain management. It develops a detailed plan for product quantities and timelines, ensuring alignment with the company's production goals and customer demand.

Key Topics:

  1. Purpose of the Master Schedule:

    • Guides manufacturing and aligns with business objectives.
    • Example: Toyota uses master scheduling for car production.

  2. Steps in Creating the Master Schedule:

    • Demand Forecasting: Using historical data and market analysis.
    • Resource Planning: Identifying necessary materials, labor, and machinery.
    • Schedule Development: Detailed production timelines.
    • Validation: Ensuring feasibility and resource availability.
    • Example: Apple uses forecasts for iPhone production planning.

  3. Validating the Master Schedule:

    • Ensuring material, labor, and machinery availability.
    • Example: Ford checks parts availability from suppliers.

  4. Benefits of an Effective Master Schedule:

    • Improved efficiency, resource utilization, and customer satisfaction.
    • Example: Procter & Gamble achieves efficient production.

  5. Challenges in Creating and Validating the Master Schedule:

    • Demand variability, resource constraints, departmental coordination.
    • Example: Samsung addresses variability with advanced forecasting.

Section B: Using and Maintaining the Master Schedule

Overview: Continuous monitoring and updating ensure the master schedule remains aligned with real-time data and changing conditions.

Key Topics:

  1. Execution:

    • Implementation and coordination across departments.
    • Example: General Electric uses the master schedule for jet engines.

  2. Monitoring Progress:

    • Tracking key performance indicators and identifying variances.
    • Example: Tesla monitors production lines for models 3 and Y.

  3. Updating the Master Schedule:

    • Incorporating feedback and adjusting for changes.
    • Example: Intel frequently updates its master schedule.

  4. Maintaining Data Integrity:

    • Accurate data collection and integration.
    • Example: Amazon integrates data across its network.

  5. Benefits:

    • Increased efficiency and flexibility, improved customer satisfaction.
    • Example: Boeing ensures timely deliveries.

  6. Challenges:

    • Dynamic market conditions, resource limitations, coordination.
    • Example: Nike faces fast-paced market demands.

  7. Technological Support:

    • ERP Systems, advanced analytics.
    • Example: Siemens uses ERP and analytics for production schedules.

Section C: Material Requirements Planning (MRP)

Overview: MRP ensures material availability for production and timely product delivery, managing inventory and scheduling.

Key Topics:

  1. Basic Concepts:

    • Demand-driven planning, bill of materials (BOM), inventory status records.
    • Example: Toyota uses MRP for vehicle production.

  2. Steps in the MRP Process:

    • Netting Inventory: Calculating net requirements.
    • Lot Sizing: Order quantity determination.
    • Scheduling Orders: Planning order timing.
    • Example: Apple uses MRP for iPhone components.

  3. Benefits:

    • Improved inventory management, production efficiency, customer service.
    • Example: Dell uses MRP for its build-to-order process.

  4. Challenges:

    • Data accuracy, complexity, integration needs.
    • Example: Ford ensures data accuracy.

  5. MRP and Supply Chain Management:

    • Supplier coordination, demand management, capacity planning.
    • Example: Procter & Gamble uses MRP for raw material delivery.

  6. Technological Advancements:

    • ERP integration, cloud-based MRP, advanced analytics.
    • Example: Nike uses cloud-based MRP.

Section D: Capacity Requirements Planning (CRP) and Scheduling

Overview: CRP ensures production capacity meets demands without overloading resources, through efficient scheduling.

Key Topics:

  1. Basic Concepts:

    • Capacity, load, work center.
    • Example: Boeing uses CRP for aircraft production.

  2. Steps in the CRP Process:

    • Determine capacity requirements, compare available capacity, adjust plans.
    • Example: Toyota balances workload across production lines.

  3. Benefits:

    • Optimized resource utilization, improved planning, customer satisfaction.
    • Example: GE optimizes manufacturing resources.

  4. Challenges:

    • Data accuracy, dynamic changes, complexity.
    • Example: Ford invests in monitoring systems.

  5. Scheduling in CRP:

    • Forward and backward scheduling, finite vs. infinite scheduling.
    • Example: Intel uses backward scheduling.

  6. Integration with Other Systems:

    • ERP and APS systems.
    • Example: Siemens integrates CRP with ERP.

  7. Technological Advancements:

    • Real-time data, AI, cloud-based solutions.
    • Example: Tesla uses AI for production capacity management.

Section E: Suppliers and Purchasing

Overview: Effective supplier and purchasing management ensure materials are available on time, impacting overall efficiency.

Key Topics:

  1. Supplier Selection and Evaluation:

    • Criteria and evaluation methods.
    • Example: Apple evaluates suppliers rigorously.

  2. Strategic Sourcing:

    • Long-term cost-effective purchasing decisions.
    • Example: GM employs strategic sourcing for long-term partnerships.

  3. Purchasing Processes:

    • Purchase requisition, order, and invoice processing.
    • Example: Walmart automates purchasing processes.

  4. Supplier Relationship Management (SRM):

    • Building strong supplier relationships.
    • Example: Toyota collaborates closely with suppliers.

  5. Contract Management:

    • Elements and best practices.
    • Example: Siemens maintains detailed contracts.

  6. Risk Management:

    • Identifying and mitigating risks.
    • Example: Nestle uses a robust risk management framework.

  7. Sustainability and Ethical Sourcing:

    • Eco-friendly and ethical practices.
    • Example: Unilever sources from responsible suppliers.

  8. Technological Advancements in Purchasing:

    • E-procurement, supplier portals, data analytics.
    • Example: Procter & Gamble uses advanced analytics.

Section F: Changes and Product Life Cycle Management (PLM)

Overview: Managing changes and the product lifecycle ensures competitiveness, compliance, and alignment with market demands.

Key Topics:

  1. Change Management:

    • Structured transition approach.
    • Example: Microsoft’s transition from Windows 7 to 10.

  2. Product Life Cycle Stages:

    • Introduction, growth, maturity, decline.
    • Example: Apple’s strategic release of iPhone models.

  3. Product Development and Innovation:

    • Research and development, innovation.
    • Example: Tesla invests in R&D for EV technology.

  4. Cross-Functional Collaboration:

    • Collaboration across departments.
    • Example: Google’s product development teams.

  5. Regulatory Compliance and Quality Control:

    • Adhering to standards, maintaining quality.
    • Example: Pfizer in the pharmaceutical industry.

  6. Sustainability and End-of-Life Management:

    • Eco-friendly practices, product disposal.
    • Example: Dell’s recycling programs.

  7. Customer Feedback and Continuous Improvement:

    • Collecting feedback, making enhancements.
    • Example: Amazon uses feedback for improvement.

  8. Risk Management in Product Life Cycle:

    • Identifying and mitigating risks.
    • Example: Samsung’s comprehensive risk management.

  9. Product Portfolio Management:

    • Managing a collection of products strategically.
    • Example: Procter & Gamble’s consumer goods portfolio.

Keywords

  • Supply Chain Management
  • Master Schedule
  • Material Requirements Planning (MRP)
  • Capacity Requirements Planning (CRP)
  • Supplier Relationship Management (SRM)
  • Change Management
  • Product Life Cycle
  • Strategic Sourcing
  • Data Analytics
  • Sustainability

FAQ

1. What is the main purpose of creating a master schedule?

  • The main purpose is to develop a detailed production plan that aligns manufacturing operations with business goals and customer demand.

2. How does MRP help in inventory management?

  • MRP helps by reducing excess inventory and minimizing stockouts through precise material planning and scheduling.

3. What is capacity requirements planning (CRP)?

  • CRP is the process of determining the production capacity needed to meet changing product demands without overloading resources.

4. What are the benefits of effective supplier management?

  • Effective supplier management ensures reliable material supply, cost savings, improved quality, and stronger supplier relationships.

5. What are the stages of the product life cycle?

  • The stages include introduction, growth, maturity, and decline.

6. How does technology improve the purchasing process?

  • Technology provides real-time data and analytics, streamlines purchasing processes, and enhances supplier collaboration.

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