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| A production environment where pre-assembled components, subassemblies, and modules are put together in response to a specific customer order. |
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| A process structure designed to make discrete parts. Parts are moved through a set of specially designed workstations at a controlled rate. |
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| An often automated process that converts raw materials into a finished product in one contiguous process. |
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| Here the firm works with the customer to design the product, which is then made from purchased materials, parts, and components. |
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| The time it takes a unit to flow through a process from beginning to end. |
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| The cost of goods sold divided by the total average value of inventory. |
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| The time needed to respond to a customer order. |
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| The attempt to achieve high customer service with minimum levels of inventory investment. |
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A mathematical expression that relates inventory, throughput, and flow time.
Inventory= Throughput Rate * Flow Time |
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| A production environment where the product is built directly from raw materials and components in response to a specific customer order. |
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| A production environment where the customer is served "on-demand" from finished goods inventory. |
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| An area where simple items that are similar in processing requirements are produced. |
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| The order in which tasks must be performed in the assembly process. |
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| Shows the relationships between different production units and how they are used depending on product rather than vice versa. |
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| The long-term average rate that items flow through a process. |
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| Often referred to as a job shop, a process structure suited for low-volume production of a great variety of nonstandard products. Workcenters sometimes are referred to as departments and are focused on a particular type of operation. |
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| The time between successive units coming off the end of an assembly line. |
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