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Table of Contents

Instructor Guide

2013 APICS Confidential and Proprietary


Table of Contents

Participant Workbook Page

Table of Contents
Session 1Execution of Operations
Manufacturing Planning.................................................................................... 1-9
Manufacturing Planning Hierarchy.............................................................................. 1-9
Strategic and Business Planning: Direction- Setting................................................................... 1-11
Manufacturing Planning and Control: Tactical Operations.......................................................... 1-13
DSP and ECO (Near Term Operations)...................................................................................... 1-15
Defining Execution and Control Systems.................................................... 1-19
Manufacturing Environments................................................................................................... 1-19
Process Choices..................................................... 1-21
Process Layouts... 1-23
Batch Versus Flow Process Implications.................................................................................... 1-25
Push Versus Pull Principles....................................................................................................... 1-27

2013 APICS i Instructor Guide Version 3.2


Execution and Control Of Operations

Session 2Scheduling and Authorization


MRP-Based Scheduling.............................................................................. 2-7
MRP-Based Schedule Elements and Inputs............................................................................... 2-9
Interface With Material and Capacity Requirements Planning..................................... 2-11
Operations Scheduling Techniques............................................................................................ 2-13
Other Scheduling Issues......................................................................... 2-31
Theory of Constraints Scheduling....................................................................... 2-37
Lean Scheduling.................................................................................................... 2-41
Overview 2-41
Key Elements and Goals of Lean Systems................................................................................. 2-43
Interface With Manufacturing Planning................................................................................... 2-45
Production Leveling............................................................................................... 2-47

Instructor Guide Version 3.2 ii 2013 APICS


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Session 3Control Of Production


Scope and Principles of Operations Control..................................................... 3-7
Production Activity Control.......................................................................................... 3-9
Quality Control....................................................................................... 3-11
Production Activity Control: MRP-Based........................................................... 3-13
Scheduling and Control Interfaces............................................................................................. 3-13
PAC in Batch Production and Flow Manufacturing... 3-15
Control Techniques.................................................................................................................... 3-19
Production Activity Control: Lean Based........................................................... 3-35
MRP- Versus Lean-Based Control Systems 3-35
Production Control in Lean Systems......................................................................................... 3-37
Heijunka...................................................................................... 3-39
Takt Time........................................................................................ 3-41
Pacemaker...................................................................................... 3-43
The Store........................................................................................ 3-45
Kanban System...................................................................................... 3-47
Transaction Simplification.................................................................. 3-55
Inventory Management Issues.................................................................. 3-57
Customer Service, Inventory Investment, and Efficiency............................................ 3-57
Inventory Storage... 3-59
Inventory Identification...................................................................................... 3-63
Inventory Accuracy and Counting....................................................................................... 3-67
Accounting Classification......................................................................................... 3-71
Vendor Managed Inventory...................................................................................... 3-73

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Execution and Control Of Operations

Session 4Control of Costs and Quality


Cost Control........................................................ 4-7
Cost Control Overview............................................................................................................... 4-9
Product and Period Costs......................................... 4-11
Job Order and Process Costing............................................................................................. 4-13
Absorption and Variable Costing Methods................................................................................. 4-21
Activity Based Cost Accounting.............................................................................................. 4-23
Cost Variances.............................................................................................. 4-25
Cost of Quality............................................................................................... 4-31
Control of Quality............................................... 4-35
Quality Planning................................................................... 4-37
Types of Quality Problems........................................................................ 4-39
Statistical Quality Control....................................................................... 4-43
Process Capabilty.................................................................................................................. 4-59

Instructor Guide Version 3.2 iv 2013 APICS


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Session 5Management and Communication


Approaches to Management............................................................................. 5-7
Taylors Scientific Management......................................................................... 5-7
Worker Self-Control........................................ 5-9
Management Leadership.................................................................................................... 5-11
Worker Development........................................................................ 5-19
State of Self-Control and Responsibility... 5-19
Principles for Worker Development......................................................................................... 5-21
Worker Participation and Involvement............................................... 5-35
Types of participation and Involvement............................................................................... 5-37

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Execution and Control Of Operations

Session 6Quality and Continuous Improvement


The Seven Basic Quality Tools.................................................................. 6-7
Six Sigma DMAIC.......................................... 6-21
Define........................................................................................... 6-21
Measure.............................................................................................. 6-23
Analyze............................................................................................................. 6-25
Improve............................................................................................... 6-25
Control... 6-27
PDCA Cycle................................................................. 6-29
PDCA Activities....................................................................................................................... 6-31
Plan 6-33
Do... 6-35
Check. 6-35
Act.. 6-35
A3 Problem Solving............................................. 6-37
Problem-Solving A3 Report......................................................................................... 6-39

Instructor Guide Version 3.2 vi 2013 APICS


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Session 7Design Tradeoffs


Design Principles. 7-7
Local Design Principles... 7-9
Network Design Principles.. 7-15
Global Design Principles.... 7-21
Design Techniques............................................................ 7-25
Supply Network Performance................................................................................................. 7-25
Improving Supplier Performance and Relationships.. 7-27
Customer Performance and Relationship Improvements.. 7-49
Design of Experiments.... 7-57
Visual Management.... 7-61
Workplace Design.... 7-65

2013 APICS vii Instructor Guide Version 3.2


Execution and Control Of Operations

Session 8Case Studies


Case Studies....................................................................................................... 8-7
Case Study: Productiojn Process AnalysisOverview. 8-7
Case Study Part 1: Functional Layout Analysis..... 8-9
Case Study Part 2: Cellular Layout Design. 8-25

Appendix
Progress Check Answer Sheet......................................................................... A-1
Bibliography......................................................................................... A-2
Course Evaluation

Index
Index.................................................................................................................... Index 1

Instructor Guide Version 3.2 viii 2013 APICS

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