Term
|
Definition
| Classification of a group of items in decreasing order of annual dollar volume or other criteria |
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|
Term
| What are the typical groupings and percentages of ABC classification |
|
Definition
The typical groupings of ____ are:
A: 10 - 20% #, 50 - 70% $
B: 20% #, 20% $
C: 60 - 70% #, 10 - 30% $ |
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Term
| Accessibility (Transportation) |
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Definition
| Facility with which a carrier provides service from one point to another |
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|
Term
| Accessibility (Warehousing) |
|
Definition
| The ability to get to and within the point of storage easily |
|
|
Term
|
Definition
| The labor (L), material (M), and associated overhead (OH) costs that are charged against a job as it moves through the production process |
|
|
Term
| Advance ship notice (ASN) |
|
Definition
| An electronic date interchange (EDI) notification of shipment of product |
|
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Term
|
Definition
| A dimension of product quality that intends to appeal to the senses |
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Term
|
Definition
| An estimate of sales, often time-phased, fr a grouping of products or product families produced by a facility or firm. |
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Term
| What is the purpose of the Aggregate forecast |
|
Definition
| The ____, stated in terms of units, dollars, or both, is used for sales and production planning (or for sales and operations, S&OP, planning) purposes |
|
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Term
|
Definition
1) An electronic board that provides visibility of floor status and supplies information to help coordinate the efforts to linked work centers;
2) A visual signaling system |
|
|
Term
| What are the different signals and meanings of an Andon |
|
Definition
| In a ____, signal lights are green (running), red (stop), and yellow (needs attention) |
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Term
|
Definition
| Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations |
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Term
|
Definition
| A production environment where a good or service can be assembled after receipt of a customer's order. |
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Term
| What are some of the major concepts of Assemble-to-order |
|
Definition
In ____:
1) the key components (bulk, semi-finished, intermediate, etc) used in the assemble or finishing process are planned and usually stocked in anticipation of customer order
2) Receipt of an order initiates assembly of the customized product
3) Useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components |
|
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Term
|
Definition
| An assembly process in which equipment and work centers are laid out to follow the sequence in which raw material and parts are assembled |
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Term
|
Definition
| An accounting/financial term representing the resources owned by a company, whether tangible or intangible |
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|
Term
| What are examples of tangible Assets? Intangible Assets? |
|
Definition
Examples of ____ are cash and inventories
Examples of ____ are patents and goodwill |
|
|
Term
| What are the two ranges of Assets |
|
Definition
____ may be:
1) Short-term horizon (such as cash, A/R, and inventory)
2) Long-term value (equipment, land, buildings) |
|
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Term
|
Definition
| A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation |
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|
Term
| Automated storage/retrieval system (AS/RS) |
|
Definition
| A high-density, rack inventory storage system with vehicles automatically loading and unloading the racks |
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Term
|
Definition
| The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called "beginning available balance" |
|
|
Term
| Available-to-promise (ATP) |
|
Definition
The uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order promising.
The ___ quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled. |
|
|
Term
| What is included in the first period of ATP |
|
Definition
| In the first period, ____ includes on-hand inventory less customer orders that are due and overdue |
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|
Term
| What are the three main methods of calculating ATP |
|
Definition
The three main methods of calculating ___ are:
1) Discrete ____
2) Cumulative ____, with look-ahead
3) Cumulative ____, without look-ahead |
|
|
Term
|
Definition
| The estimated total cost, including allocated overhead, to produce a batch of goods divided by the total number of units produced |
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Term
|
Definition
| One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time. |
|
|
Term
| What are the two ways to calculate Average inventory? |
|
Definition
The two ways to calculate ____ are:
1)When demand and lot size are uniform: average of several observations taken over several historical time periods
2) When demand and lot size are not uniform: stock level versus time is graphed to determine average |
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Term
|
Definition
| A method of inventory bookkeeping where the book (computer) inventory of components is automatically reduced by the computer after completion of activity on the component's upper-level parent item based on what should have been used as specified on the BOM and allocation records. |
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|
Term
| What is a major disadvantage of Backflush inventory method? |
|
Definition
| A major disadvantage of the ____ inventory method is the built-in differential between the book record and what is physically in stock |
|
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Term
|
Definition
| The process of a transportation vehicle returning from the original destination point to the point of origin |
|
|
Term
| What did the 1980 Motor Carrier Act due in relation to Backhauling |
|
Definition
| The ____ Act deregulated interstate commercial trucking and thereby allowed carriers to contract for the return trip |
|
|
Term
| What are the three types of Backhauling? |
|
Definition
| The three types of ____ are full, partial, and empty (deadhead) |
|
|
Term
|
Definition
| The return of an empty transportation container to its point of origin |
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Term
|
Definition
| All of the customer orders received but not yet shipped. Sometimes referred to as open orders or the order board |
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|
Term
|
Definition
| A technique for calculating operation start and due dates. The schedule is computed starting with the due date for the order and working backward to determine the required start date and/or due dates for each operation |
|
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Term
|
Definition
| An unfulfilled customer order or commitment. A ____ is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand |
|
|
Term
|
Definition
| A financial statement showing the resources owned, the debts owed, and the owner's share of a company at a given point in time |
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|
Term
|
Definition
| In repetitive Just-in-Time production, matching actual output cycle times of all operations to the demand or use for parts as required by final assembly and, eventually as quired by the market |
|
|
Term
|
Definition
| A series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers |
|
|
Term
| What is a use of a Bar code? |
|
Definition
| ____ are used to facilitate timely and accurate input of data to a computer system |
|
|
Term
|
Definition
| A quantity scheduled to be produced or in production |
|
|
Term
| Batch (for discrete products) |
|
Definition
| For ____ products, the ____ is planned to be the standard batch quantity, but during production, the standard batch quantity may be broken into smaller lots |
|
|
Term
| Batch (for non-discrete products) |
|
Definition
| For ____ products, the ____ is a quantity that is planned to be produced in a given time period based on a formula or recipe that often is developed to produce a given number of end items |
|
|
Term
| Batch (manufacturing process) |
|
Definition
| ____ is a type of manufacturing process used to produce items with similar designs and that may cover a wide range of order volumes. Typically, items ordered are of a repeat nature, and production may be for a specific customer order or for stock replenishment |
|
|
Term
|
Definition
| A method of picking orders in which order requirements are aggregated by produce across orders to reduce movement to and from product locations. The aggregated quantities of each product are then transported to a common area where the individual orders are consructed |
|
|
Term
|
Definition
| A consistent deviation from the mean in one direction (high or low). A normal property of a good forecast is that it is not biased |
|
|
Term
| Billing and collection costs |
|
Definition
| In transportation, the costs related to issuing invoices or bills. These amounts can be reduced by combining shipments in an order to limit transportation frequency |
|
|
Term
|
Definition
| A carrier's contract and receipt for goods the carrier agrees to transport from one place to another and to deliver to a designated person. In case of loss, damage, or delay, the ____ is the basis for filing freight claims |
|
|
Term
|
Definition
1) A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly
2) A list of all the materials needed to make one production run of a product, by a contract manufacturer, of piece parts/components for its customers
AKA: formula, recipe, ingredients list |
|
|
Term
| What is a use of the Bill of Materials (BOM) |
|
Definition
| The ____ is used in conjunction with the master production schedule (MPS) to determine the items for which purchase requisitions and production orders must be released |
|
|
Term
| What are some display formats for Bills of materials (BOMs)? |
|
Definition
Some display formats for ____ are:
1) Single-level ____
2) Indented ____
3) Modular (planning) ____
4) Transient ____
5) Matrix ____
6) Costed ____ |
|
|
Term
|
Definition
| A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. Often ____ cover only one item with predetermined dates |
|
|
Term
|
Definition
| Builders or parts of builders designated by the U.S. Secretary of Treasury for storing imported merchandise, operated under U.S. Customs supervision |
|
|
Term
|
Definition
| A facility, function, department, or resource whose capacity is less than the demand placed upon it. For example, a ____ machine or work center exists where jobs are processed at a slower rate than they are demanded |
|
|
Term
|
Definition
| Dividing truckloads of homogeneous items into smaller, more appropriate quantities for use |
|
|
Term
| Buffer (basic definition) |
|
Definition
| A quantity of materials awaiting further processing. Can refer to raw materials, semifinished stores or hold points, or a work backlog that is purposely maintained behind a work center |
|
|
Term
| Buffer (theory of constraints) |
|
Definition
| In the Theory of constraints, ____ can be time or material and support throughput and/or due date performance. ____ can be maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points |
|
|
Term
|
Definition
| A process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, and assembly buffers) |
|
|
Term
| What are some benefits of Buffer management in Theory of constraints (TOC) |
|
Definition
| By expediting material into buffers, ____ system helps avoid idleness at the constraint and missed customer due dates. In addition, the causes of items missing from the buffer are identified, and the frequency of occurrence is used to prioritize improvement activities |
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|
Term
|
Definition
| An exterme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain. Inventory can quickly move from being backordered to being excess. This is caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving product down the chain |
|
|
Term
| How can the Bullwhip effect be eliminated? |
|
Definition
| The ____ can be eliminated by synchronizing the supply chain |
|
|
Term
|
Definition
| A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow statements. |
|
|
Term
| How is a Business plan created and structured? |
|
Definition
1) A ____ is usually stated in terms of dollars and grouped by product family
2) It is then translated into synchronized tactical functional plans through the production planning process
3) Though frequently stated in different terms (dollars vs. units), these tactical plans should agree with each other and the ____ |
|
|
Term
| Business plan (entrepreneurship) |
|
Definition
| A document consisting of the business details (organization, strategy, and financial tactics) prepared by an entrepreneur to plan for a new business |
|
|
Term
|
Definition
| The capacity of a system or resource to produce a quantity of output of a particular time period |
|
|
Term
|
Definition
| The process of measuring production output and comparing it with the capacity plan, determining if the variance exceeds pre-established limits, and taking corrective action to get back on plan if the limits are exceeded |
|
|
Term
|
Definition
| The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules |
|
|
Term
| What are the four levels at which Capacity management is executed? |
|
Definition
The four levels at which ____ is executed are:
1) Resource requirements planning
2) Rough-cut capacity planning (RCCP)
3) Capacity requirements planning (CRP)
4) Input/output control |
|
|
Term
|
Definition
| The capacity of a system or resource needed to produce a desired output in a particular time period |
|
|
Term
| Capacity Requirements Planning (CRP) |
|
Definition
| The function of establishing, measuring, and adjusting limits or levels of capacity. The term ____ in this context refers tot he process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production |
|
|
Term
| How is Capacity requirements planning (CRP) determined? |
|
Definition
| Open shop orders and planned orders in the MRP system are input to ____, which through the use of parts routing and time standards translates these orders into hours of work by work center by time period |
|
|
Term
| How may Rough-cut capacity planning (RCCP) and Capacity requirements planning (CRP) differ |
|
Definition
| Even though ____ may indicate that sufficient capacity exists to execute the MPS, ____ may show that capacity is insufficient during specific time periods |
|
|
Term
|
Definition
| The cost of holding inventory, usually defined as a percentage of the dollar value of inventory per unit of time (generally one year). ____ is ultimately a policy variable reflecting the opportunity cost of alternative uses for funds invested in inventory |
|
|
Term
| What are the determinates of Carrying cost? |
|
Definition
The determinates of ____ are:
1) Cost of capital invested (biggest factor)
2) Taxes
3) Insurance
4) Obsolescence
5) Spoilage
6) Space occupied |
|
|
Term
|
Definition
The net flow of dollars into or out of the proposed project. The algebraic sum, in any time period, of all cash receipts, expenses, and investments.
AKA: cash proceeds, cash generated |
|
|
Term
|
Definition
A tool for analyzing process dispersion. Illustrates the main causes and subcauses leading to an effect (symptom)
AKA: Ishikawa diagram, fishbone diagram |
|
|
Term
|
Definition
| A manufacturing process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell |
|
|
Term
|
Definition
| In statistics, values near the middle of results from a process |
|
|
Term
| Centralized inventory control |
|
Definition
| Inventory decision making for all stockkeeping units exercised from one office or department for an entire company |
|
|
Term
|
Definition
| Using a central location for storing all inventory items in order to obtain more control of inventory and to improve inventory record accuracy |
|
|
Term
|
Definition
| A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required |
|
|
Term
|
Definition
| Variation in a process results occurring because of numerous small factors such as workers, equipment, raw material, work methods, and environmental differences |
|
|
Term
|
Definition
| A production planning method that maintains a stable inventory level while varying production to meet demand |
|
|
Term
|
Definition
| A system built around material requirements planning (MRP) that includes the additional planning processes of production planning (S&OP), master production scheduling (MPS), and capacity requirements planning (CRP). The term ____ implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times |
|
|
Term
|
Definition
| Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A ____ must obtain a certificate of public convenience and necessity from the FTC for interstate traffic |
|
|
Term
|
Definition
| Causes of variation that are inherent in a process over time. They affect every outcome of the process and everyone working in the process |
|
|
Term
|
Definition
| The advantage a company has over its rivals in attracting customers and defending against competitors. Sources of the advantage include characteristics that a competitor cannot duplicate without substantial cost and risk, such as manufacturing technique, brand name, or human skill set |
|
|
Term
|
Definition
| The raw material, part, or subassembly that goes into a higher level assembly, compound, or other item. May also include packaging materials for finished items |
|
|
Term
|
Definition
1) A shipment that is handled by a common carrier
2) The process of a supplier placing goods at a customer location without receiving payment until after goods are used or sold |
|
|
Term
| Constraint (process engineering) |
|
Definition
| Any element or factor that prevents a system from achieving a higher level of performance with respect to its goal. Can be physical, such as a machine center or lack of material, or managerial, such as a policy or procedure |
|
|
Term
| Constraint (optimization) |
|
Definition
| One of a set of equations that cannot be violated in an optimization procedure |
|
|
Term
|
Definition
| A person who purchases a good or service for his or her own use (not for resale) |
|
|
Term
|
Definition
| A production system in which the productive equipment is organized and sequenced according to the steps involved to produce the product. This term denotes that material flow is continuous during the production process. The routing of jobs is fixed and setups are seldom changed |
|
|
Term
|
Definition
| A process by which a supplier is notified daily of actual sales or warehouse shipments or commits to replenish these sales without stockouts, and without receiving replenishment orders |
|
|
Term
| What is a result of Continuous replenishment? |
|
Definition
| A result of ____ is a lowering of associated costs and an improvement in inventory turnover |
|
|
Term
|
Definition
| A carrier that does not service the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract |
|
|
Term
|
Definition
| A graphic comparison of process performance data with predetermined computed control limits. The process performance data usually consist of groups of measurements selected in regular sequence of production that preserve the order. One of the seven tools of quality |
|
|
Term
| What is the primary use control charts? |
|
Definition
| The primary use of ____ is to detect assignable causes of variation in the process as opposed to random variations |
|
|
Term
|
Definition
An operation in a production process where multiple materials/parts/components are combined into a single component.
EX: An assembly operation |
|
|
Term
| Cost equalization point (CEP) |
|
Definition
| A point or quantity at which the cost curves of two manufacturing methods have an equal value |
|
|
Term
| Cost of goods sold (COGS) |
|
Definition
| An accounting classification useful for determining the amount of direct materials (DM), direct labor (DL), and allocated overhead (OH) associated with the products sold over a given period of time |
|
|
Term
|
Definition
| The costs associated with providing poor quality products or services |
|
|
Term
| What are the four categories of Costs of poor quality? |
|
Definition
The four categories of costs of ____ are:
1) Internal failure costs
2) External failure costs
3) Appraisal costs
4) Prevention costs |
|
|
Term
| Internal failure costs (Cost of poor quality) |
|
Definition
| Costs associated with defects found before the customer receives the product or service |
|
|
Term
| External failure costs (Cost of poor quality) |
|
Definition
| Costs associated with defects found after the customer receives the product or service |
|
|
Term
| Appraisal costs (Cost of poor quality) |
|
Definition
| Costs incurred to determine the degree of conformance to quality requirements |
|
|
Term
| Prevention costs (Cost of poor quality) |
|
Definition
| Costs incurred to keep failure and appraisal costs to a minimum |
|
|
Term
|
Definition
| Considering the advantages and disadvantages of one method to another, such as different avenues of distribution or providing customer service |
|
|
Term
|
Definition
| The number of times an item in inventory is counted during a period of time. Generally, high-value inventories are counted more frequently than low-value items, although properties other than value can influence the frequency |
|
|
Term
|
Definition
| In the Theory of constraints (TOC), a network planning technique for the analysis of a project's completion time, used for planning and controlling project activities. The critical chain, which determines project duration, is based on technological and resource constraints. Strategic buffering of paths and resources is used to increase project completion success |
|
|
Term
| Critical path method (CPM) |
|
Definition
| A network planning technique for the analysis of a project's completion time used for planning and controlling the activities of a project. By showing each of these activities and their associated times, the critical path, which identifies those elements that actually constrain the total time for the project, can be determined |
|
|
Term
|
Definition
| The concept of packing products on the incoming shipment so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination. The items are carried from the incoming vehicle docking point to the outgoing vehicle docking point without being stored in inventory at the warehouse. ____ requires inventory investment and storage space requirements |
|
|
Term
|
Definition
| The longest planned length of time to accomplish the activity in question |
|
|
Term
| How do you determine the Cumulative lead time? |
|
Definition
| The ____ is found by reviewing the lead time for each BOM path below the item; whichever path adds up to the greatest number defines the ____ |
|
|
Term
| Customer (basic definition) |
|
Definition
| A person or organization receiving a good, service, or information |
|
|
Term
| Customer (in project management) |
|
Definition
| Every project has a ____ who may be internal or external to the organization and who is responsible for the final project acceptance |
|
|
Term
| Customer relationship management (CRM) |
|
Definition
| A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support (as contrasted to enterprise resources planning information) to understand and support existing and potential customer needs. It includes account management, catalog and order entry, payment processing, credits and adjustment, and other functions |
|
|
Term
| Customer service (ability) |
|
Definition
| The ability of a company to address the needs, inquiries, and requests from customers |
|
|
Term
| Customer service (measurement) |
|
Definition
| A measure of the delivery of a product to the customer at the time the customer specified |
|
|
Term
|
Definition
| An inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on a regular, defined basis. Most effective ____ systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency |
|
|
Term
| What is the key purpose of Cycle counting? |
|
Definition
| The key purpose of ____ is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors |
|
|
Term
|
Definition
| One of the two main conceptual components of any item inventory, the ____ is the most active component; the ____ depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. The other conceptual component of item inventory is safety stock |
|
|
Term
| What are the two main conceptual components of any item inventory? |
|
Definition
The two main conceptual components of any ____ are:
1) Cycle stock
2) Safety stock |
|
|
Term
| Cycle time (industrial engineering) |
|
Definition
The time between completion of two discrete units of production
EX: The ____ of 120 units/hr would be 30 secs |
|
|
Term
| Cycle time (materials management) |
|
Definition
| Refers to the length of time from when material enters a production facility until it exits |
|
|
Term
| Decentralized inventory control |
|
Definition
| Inventory decision making exercised at each stocking location for SKUs at that location |
|
|
Term
|
Definition
| An amount of inventory kept between entities in a manufacturing or distribution network to create independence between processes or entities |
|
|
Term
| What is the objective of decoupling inventory? |
|
Definition
| The objective of ____ is to disconnect the rate of use from the rate of supply of the item |
|
|
Term
|
Definition
| The time from the receipt of a customer order to the delivery of the product |
|
|
Term
|
Definition
| A need for a particular product or component. The ____ could come from any number of sources. |
|
|
Term
| At the finished goods level, what is the difference between demand data and sales data? |
|
Definition
At the finished goods level, ____ data is usually different from ____ because ____ does not necessarily result in ____.
EX: If there is no stock, there will be no sale |
|
|
Term
| What are the four components of Demand? |
|
Definition
The four components of ____ are:
1) Cyclical component
2) Random component
3) Seasonal component
4) Trend component |
|
|
Term
|
Definition
| The amount of time potential customers are willing to wait for the delivery of a good or a service |
|
|
Term
| Demand (basic definition) |
|
Definition
| The function of recognizing all demand for gods and services to support the marketplace. It involves prioritizing demand when supply is lacking. |
|
|
Term
| What does proper Demand management facilitate? |
|
Definition
| Proper ____ facilitates the planning and use of resources for profitable business results |
|
|
Term
| Demand management (marketing) |
|
Definition
| The process of planning, executing, controlling, and monitoring the design, pricing, promotion, and distribution of products and services to bring about transactions that meet organizational and individual needs |
|
|
Term
|
Definition
| The triggering of material movement to a work center only when that work center is ready to begin the next job. In effect, it shortens or eliminates the queue from in front of a work center, but it can cause a queue at the end of the previous work center. Demand pull can also occur within a supply chain, in which case it often is called a demand chain |
|
|
Term
|
Definition
| Proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by the standard hours per item |
|
|
Term
|
Definition
| The carrier charges and fees applied when rail freight cards and ships are retained beyond a specified loading or unloading time |
|
|
Term
|
Definition
| A measure of the weight of an item compared to its volume. Because ____ can influence the number of units that can be carried by a particular truck, this is a factor in defining transportation charges |
|
|
Term
|
Definition
| Demand that is directly related to or derived from the bill of material (BOM) structure for other items or end products. Such demands are therefor calculated and need not and should not be forecast. A given inventory item may have both dependent and independent demand at any given time |
|
|
Term
| Describe how a given inventory item may have both Dependent and Independent demand |
|
Definition
| A part may simultaneously be the component of an assembly (____ demand) and sold as a service part (____ demand) |
|
|
Term
|
Definition
| A Japanese word meaning student |
|
|
Term
|
Definition
| Carrier charges and fees applied when truck trailers are retained beyond a specified loading or unloading time |
|
|
Term
|
Definition
| Labor that is specifically applied to the good being manufactured or used in the performance of the service |
|
|
Term
|
Definition
| Material that becomes a part of the final product in measurable quantities |
|
|
Term
|
Definition
| The production of distinct items such as automobiles, appliances, or computers |
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Term
|
Definition
| A method of picking orders in which the items on one order are picked before the next order is picked |
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Term
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Definition
| The selection and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers |
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Term
|
Definition
| The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. It includes all activities related to physical ____, as well as the return of goods to the manufacturer. In many cases, this movement is made through one or more levels of field warehouses |
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Term
| Distribution (secondary definition) |
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Definition
| The systematic division of a whole into discrete parts having distinctive characteristics |
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Term
| What are some of the functions that are encompassed by Distribution activities? |
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Definition
| The activities of ____ encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management |
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Term
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Definition
| A warehouse with finished goods and/or service items. ____ is synonymous with the term "branch warehouse", although the former has become more commonly used recently. When a warehouse serves a group of satellite warehouses, it is usually called a regional ____ |
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Term
|
Definition
| The distribution route, from raw materials through consumption, along which products travel |
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Term
|
Definition
| Those items of cost related to the activities associated with the movement and storage of finished products |
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Term
| What are some examples of Distribution costs? |
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Definition
| Some examples of ____ include inventory costs, transportation costs, and order processing costs |
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Term
|
Definition
| Inventory, usually spare parts and finished goods, located in the distribution system (in warehouses, in-transit between warehouses and the customers) |
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Term
| Distribution requirements planning (DRP) |
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Definition
The function of determining the need to replenish inventory at branch warehouses. A time-phased order point approach is used where the planned orders at the branch warehouse level are "exploded" via MRP logic to become gross requirements on the supplying source.
In the case of multilevel distribution networks, this explosion process can continue down through the various levels of regional warehouses (master warehouse, factory warehouse, etc) and become input to the master production system (MPS). Demand on the supplying sources is recognized as dependent, and standard MRP logic applies |
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Term
| Distribution requirements planning (DRP) (more general definition) |
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Definition
| Replenishment inventory calculations, which may be based on other planning approaches such as period order quantities or "replace exactly what was used", rather than being limited to the time-phased order point approach |
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Term
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Definition
| A facility that receives items in large lots, stores them temporarily, and breaks them into smaller lots destined for a variety of locations |
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Term
|
Definition
| A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory |
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Term
|
Definition
| A program by which specific quality and packaging requirements are met before the product is released. Prequalified product is shipped directly into the customer's inventory. ____ eliminates the costly handling of components, specifically in receiving and inspection and enables products to move directly into production |
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Term
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Definition
| A Japanese word meaning "hall" |
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Term
|
Definition
To take the title of the product but not actually handle, stock, or deliver it
EX: to have one supplier ship directly to another or to have a supplier ship directly to the buyer's customer |
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Term
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Definition
| The theory of constraints (TOC) method for scheduling and managing operations that have an internal constraint or capacity-constrained resource |
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Term
|
Definition
| The detailed production schedule for a resource that sets the pace for the entire system. The ____ must reconcile the customer requirements with the systems' constraint(s) |
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Term
|
Definition
| The date when purchased material or production material is due to be available for use |
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Term
|
Definition
| An area where merchandise is brought into the country for further work to be done. Duty is paid only on the items brought in, normally at a lower rate than finished goods, and paid only at the time of sale |
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Term
| Economic order quantity (EOQ) |
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Definition
| A type of fixed order quantity model that determines the total amount of an item to be purchased or manufactured at one time |
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Term
| What is the intent of Economic order quantity (EOQ)? |
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Definition
| The intent of ____ is to minimize the combined costs of acquiring and carrying inventory |
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Term
| What is the basic formula of Economic order quantity (EOQ)? |
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Definition
The basic formula of ____ is:
quantity = √((2AS)/iC)
A: annual usage in units
S: ordering costs in dollars
i: annual inventory carry cost rate
C: unit cost |
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Term
|
Definition
| A measurement of the actual output to the standard output expected. Efficiency measures how well something is performing relative to existing standards; in contrast, productivity measures output relative to a specific input |
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Term
| What are three examples of of the ratio of Efficiency? |
|
Definition
Three examples of the ratio of ____ are:
1) Actual units produced to the standard rate of production expected in a time period
2) Standard hours produced to actual hours worked (taking longer means less ____)
3) Actual dollar volume of output to a standard dollar volume in a time period |
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Term
|
Definition
| A term relating to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, ____ percent of the effects come from ____ percent of the possible causes |
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Term
| Electronic data interchange (EDI) |
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Definition
| The paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices (ASNs), and invoices, using standardized document formats |
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Term
|
Definition
| The practice of giving non-managerial employees the responsibility and the power to make decisions regarding their jobs or tasks. It is associated with the practice of transfer of managerial responsibilities to the employee. ____ allows the employee to take on responsibility for tasks normally associated with staff specialists |
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Term
| Employee involvement (EI) |
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Definition
| The concept of using the experience, creative energy, and intelligence of all employees by treating them with respect, keeping them informed, and including them and their ideas in decision-making processes appropriate to their areas of improvement |
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Term
| On what does Employee involvement (EI) focus? |
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Definition
| ____ focuses on quality and productivity improvements |
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Term
|
Definition
| Products whose customer specifications require unique engineering design, significant customization, or new purchased materials. Each customer order results in a unique set of part numbers, bills of material (BOM), and routings |
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Term
| Enterprise resources planning (ERP) |
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Definition
| Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage |
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Term
|
Definition
| Capacity that is not used to either produce or protect the creation of throughput |
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Term
|
Definition
| Any inventory in the system that exceeds the minimum amount necessary to achieve the desired throughput rate at the constraint or that exceeds the minimum amount necessary to achieve the desired due date performance |
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Term
| What is the Total inventory equation? |
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Definition
| ____ = Productive inventory + protective inventory + excess inventory |
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Term
|
Definition
| To rush or chase production or purchase orders that are needed in less than the normal lead time; to take extraordinary action because of an increase in relative priority |
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Term
|
Definition
| To perform a bill-of-materials (BOM) explosion |
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Term
|
Definition
| The time associated with elements of a setup procedure performed while the process or machine is running |
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Term
| Extrinsic forecasting method |
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Definition
| A forecasting method on a correlated leading indicator, such as estimating furniture sales based on housing starts. ____ tend to be useful for large aggregations, such as total company sales, than for individual product sales |
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Term
|
Definition
| The functions of installing and maintaining a product for a customer after the sale or during the lease. ____ may also include training and implementation assistance |
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Term
| Final assembly schedule (FAS) |
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Definition
| A schedule of end items to finish the product for specific customers' orders in a make-to-order (MTO) or assemble-to-order (ATO) environment. It is also referred to as the finishing schedule because it may involve operations other than the final assembly (EX: final mixing, cutting, packaging). The ___ is prepared after receipt of a customer order as constrained by the availability of material and capacity, and it schedules the operations required to complete the product from the level where it is stocked to the end-item level |
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Term
|
Definition
| Those items on which all manufacturing operations, including final test, have been completed. These products are available for shipment to the customer as either end items or repair parts |
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Term
| Finite forward scheduling |
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Definition
| An equipment scheduling technique that builds a schedule by proceeding sequentially from the initial period to the final period while observing capacity limits. A Gantt chart may be used with this technique |
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Term
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Definition
| Assigning no more work to a work center than the work center can be expected to execute in a given time period. The specific term usually refers to a computer technique that involves calculating shop priority revisions in order to level load operation by operation |
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Term
|
Definition
| A planned order that can be frozen in quantity and time. the computer is not allowed to change it automatically; this is the responsibility of the planner in charge of the item that is being planned. This technique can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders. In addition, ____ are the normal method of stating the master production schedule (MPS) |
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Term
|
Definition
| A technique to organize the elements of a problem or situation to aid in the determination of the causes of the problem or situation. The analysis relates the effect of the environment to the several possible sources of the problem |
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Term
|
Definition
| In the Theory of constraints (TOC), a process to continuously improve organizational profit by evaluating the production system and market mix to determine how to make the most profit using the system constraint |
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Term
| What are the Five focusing steps? |
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Definition
The ____ are:
1) Identifying the constraint to the system
2) Deciding how to exploit the constraint to the system
3) Subordinating all non constraints to the constraint
4) Elevating the constraint to the system
5) Returning to Step 1 if the constraint is broken in any previous step, while not allowing inertia to set in |
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Term
|
Definition
| Five terms beginning with "S" used to create a workplace suitable for lean production. |
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Term
| What are the 5 S's (English) |
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Definition
The ____ are:
1) Sort
2) Simplify
3) Scrub
4) Standardize
5) Sustain |
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Term
| What are the 5 S's (Japanese) |
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Definition
The ____ are:
1) Seiri
2) Seiton
3) Seiso
4) Seiketsu
5) Shitsuke |
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Term
|
Definition
| To separate needed items from unneeded ones and remove the latter |
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Term
|
Definition
| To neatly arrange items for use |
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Term
|
Definition
|
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Term
|
Definition
| To sort, simplify, and scrub daily |
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Term
|
Definition
| To always follow the first 4 S's |
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Term
|
Definition
| The common practice in Total quality management is to ask "why" five times when confronted with a problem. By the time the answer to the fifth "why" is found, the ultimate cause of the problem is identified |
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Term
|
Definition
| A method of storage in which a relatively permanent location is assigned for the storage of each item in a storeroom or warehouse. Although more space is needed to store parts than in a random-location system, ____ become familiar, and therefore a locator file may not be needed |
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Term
|
Definition
| A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a predetermined fixed quantity, or multiples thereof, if net requirements for the period exceed the ____ |
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Term
|
Definition
| Traditionally, all manufacturing costs--other than Direct labor (DL) and Direct materials (DM)--that continue even if products are not produced. Although ____ is necessary to produce the product, it cannot be directly traced to the final product |
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Term
| Fixed-position manufacturing |
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Definition
Similar to project manufacturing, this type of manufacturing is mostly used for large, complex projects, where the product remains in one location for its full assembly period or may move from location to location after considerable work and time are spent on it.
EX: Shipbuilding, aircraft assembly |
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Term
|
Definition
| The output of a flowcharting process, a chart that shows the operations, transportation, storages, delays, inspections, and so on related to a process. One of the seven tools of quality |
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Term
|
Definition
| ____ are drawn to better understand processes |
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Term
|
Definition
| A system in which work flows over a stationary path, usually with little variance in the rate of flow. This is known as repetitive manufacturing if discrete units are produced, and otherwise is referred to as continuous manufacturing |
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Term
|
Definition
| A form of manufacturing organization in which machines and operators handle a standard, usually uninterrupted, material flow. The operators generally perform the same operations for each production run. A ____ is often referred to as a mass production shop or is said to have a continuous manufacturing layout. The plant layout is designed to facilitate a product "flow". Some process industries are extreme examples of ____. Each product, through variable in material specifications, uses the same flow pattern through the shop. Production is set at a given rate, and the products are generally manufactured in bulk |
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Term
|
Definition
| Inventory that is carried as a cushion to protect against forecast error |
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Term
|
Definition
| Inventory that is carried as a cushion to protect against forecast error |
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Term
|
Definition
| An estimate of future demand. Various techniques attempt to predict one or more of the four components of demand |
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|
Term
| What are the three ways a Forecast can be constructed? |
|
Definition
A ____ can be constructed using:
1) Quantitative methods
2) Qualitative methods
3) Combination |
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|
Term
| What are the four components of Demand? |
|
Definition
The four components of ____ are:
1) Cyclical
2) Random
3) Seasonal
4) Trend |
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Term
|
Definition
| The difference between actual demand and forecast demand, stated as an absolute value or as a percentage |
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Term
|
Definition
| The practice of buying materials in a quantity exceeding current requirements but not beyond the point that the long-term need exists |
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Term
|
Definition
| A scheduling technique where the scheduler proceeds from a known start date and computes the completion date for an order, usually proceeding from the first operation to the last. Dates generated by this technique are generally the earliest start dates for operations |
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Term
|
Definition
| A set of marketing tools to direct the business offering to the customer |
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Term
|
Definition
The ____ are:
1) Product
2) Price
3) Place
4) Promotion |
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Term
|
Definition
| W. Edward Deming's 14 management practices to help companies increase their quality and productivity |
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Term
|
Definition
The ____ are:
01) Create constancy of purpose for improving products and services
02) Adopt the new philosophy
03) Cease dependence on inspection to achieve quality
04) End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier
05) Improve constantly and forever every process for planning, production, and service
06) Institute training on the job
07) Adopt and institute leadership
08) Drive out fear
09) Break down barriers between staff areas
10) Eliminate slogans, exhortations, and targets for the workforce
11) Eliminate numerical quotas for the workforce and numerical goals for management
12) Remove barriers that rob people of pride in workmanship and eliminate the annual rating or merit system
13) Institute a vigorous program of education and self-improvement for everyone
14) Put everybody to work to accomplish the transformation |
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Term
|
Definition
| The terms of sale that identify where title passes to the buyer |
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Term
|
Definition
| The grouping of shipments to obtain reduced costs or improved utilization of the transportation function |
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|
Term
| What are the three ways Freight consolidation can occur? |
|
Definition
The three ways ____ can occur are:
1) Market area grouping
2) Grouping according to scheduled deliveries
3) Using third-party pooling services such as public warehouses and freight forwarders |
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Term
|
Definition
| A facility configuration in which operations of a similar nature or function are grouped together; an organization structure based on departmental specialty (EX: saw, lathe, mill, press) |
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|
Term
| GAAP (Generally accepted accounting practices) |
|
Definition
| Accounting practices that conform to conventions, rules, and procedures that have general acceptability by the accounting profession |
|
|
Term
| G&A (General and administrative expenses) |
|
Definition
| The category of expenses on an income statement that includes the costs of general managers, computer systems, research and development, and more |
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Term
|
Definition
| The earliest and best-known type of planning and control chart, especially designed to show graphically the relationship between planned performance and actual performance over time. Named after it's originator, Henry L. Gantt |
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|
Term
| What are the two reasons for which a Gantt chart is used? |
|
Definition
The two reason why a ____ is used are:
1) Machine loading: one horizontal line is used to represent capacity and another is used to represent load against that capacity
2) Monitoring job progress: one horizontal line represents the production schedule and another parallel line represents the actual progress of the job against the schedule in time |
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Term
|
Definition
| A Japanese word meaning "shop floor" |
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|
Term
|
Definition
| A Japanese phrase meaning "visit the shop floor to observe what is occurring" |
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|
Term
| General-purpose machinery |
|
Definition
| Manufacturing resources that can perform several kinds of operations |
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Term
|
Definition
| The responsibility of the supplier to dispose of packaging materials or environmentally sensitive materials such as heavy metals |
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Term
|
Definition
| The difference between total revenue and the Costs of goods sold (COGS) |
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Term
|
Definition
| The total of independent and dependent demand for a component before the netting of on-hand inventory and scheduled receipts |
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|
Term
|
Definition
|
|
Term
|
Definition
| A Japanese word meaning "reflection" |
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Term
|
Definition
| A form of inventory buildup to buffer against some event that may not happen. ____ planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair a company's strategic initiatives. Risk and consequence are unusually high, and top management approval is often required |
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Term
|
Definition
| In Just-in-time philosophy, an approach to level production throughout the supply chain to match the planned rate of end product sales |
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Term
|
Definition
| A graph of contiguous vertical bars representing a frequency distribution in which the groups or classes of items are marked on the x-axis and the number of items in each class is indicated on the y-axis. The pictorial nature lets people see patterns that are difficult to see in a simple table of numbers |
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Term
|
Definition
| A Japanese word meaning "statement of objectives" |
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|
Term
| Hoshin kanri/Hoshin planning |
|
Definition
| Breakthrough planning. A Japanese strategic planning process in which a company develops up to four vision statements that indicate where the company should be in the next five years. Company goals and work plans are developed based on the vision statements. Periodic audits are then conducted to monitor progress |
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Term
|
Definition
| The available capacity that exists on nonconstraint resources beyond the capacity required to support the constraint |
|
|
Term
| What are the two components of Idle capacity? |
|
Definition
The two components of ____ are:
1) Protected capacity
2) Excess capacity |
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Term
|
Definition
| The inventory generally not needed in a system of linked resources |
|
|
Term
| From a Theory of Constraints (TOC) perspective, what are two things of which idle inventory consists? |
|
Definition
From a Theory of constraints (TOC) perspective, what are two components of ____:
1) Protective inventory
2) Excess inventory |
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Term
|
Definition
| A financial statement showing the net income for a business over a given period of time |
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|
Term
|
Definition
| The demand for an item that is unrelated to the demand for other items |
|
|
Term
| What are some examples of Independent demand? |
|
Definition
Some examples of ____ are:
1) Finished goods
2) Parts required for destructive testing
3) Service parts requirements |
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Term
|
Definition
| Material handling devices used in warehouses. Unlike conveyors, ____ are not confined to a fixed route |
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Term
|
Definition
| Calculation of the capacity required at work centers int eh time period regardless of the capacity required to perform the work |
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|
Term
| Input/output control (I/O) |
|
Definition
| A technique for capacity control where planned and actual inputs and planned and actual outputs of a work center are monitored |
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|
Term
|
Definition
| Measuring, examining, testing, or gauging one or more characteristics of a product and comparing the results with specified requirements to determine whether conformity is achieved for each characteristic |
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Term
|
Definition
| A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing |
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Term
|
Definition
1) Shipments moved by different types of equipment combining the best features of each mode
2) The use of two or more different carrier modes in the through movement of a shipment |
|
|
Term
|
Definition
| The time associated with elements of a setup procedure performed white the process or machine is not running |
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Term
|
Definition
| One plant's need for a part or product that is produced by another plant or division within the same organization. Although it is not a customer order, it is usually handled by the master production scheduling system in a similar manner |
|
|
Term
|
Definition
| One plant's need for a part or product that is produced by another plant or division within the same organization. Although it is not a customer order, it is usually handled by the master production scheduling system in a similar manner |
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Term
|
Definition
| Material moving between two or more locations, usually separated geographically |
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|
Term
| Intrinsic forecast method |
|
Definition
| A forecast based on internal factors, such as an average of past sales |
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|
Term
|
Definition
| Those stocks or items used to support production (raw materials and WIP), supporting activities (MRO), and customer service (finished goods and spare parts). |
|
|
Term
| Inventory (Theory of constraints) |
|
Definition
| All the money currently tied up in the system. ____ refers to the equipment, fixtures, buildings, and so forth that the system owns-as well as in the form of raw materials, WIP, and finished goods |
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|
Term
|
Definition
| The branch of accounting dealing with valuing inventory. Inventory may be recorded or valued using a perpetual or periodic system |
|
|
Term
| Describe the differences between a Perpetual and Periodic inventory record |
|
Definition
| A ____ record is updated frequently or in real time, while a ____ record is counted or measured at fixed time intervals |
|
|
Term
|
Definition
| A change made to an inventory record to correct the balance, to bring it in line with actual physical inventory balances. |
|
|
Term
| What does an Inventory adjustment do? |
|
Definition
| A ____ either increases or decreases the item record on-hand balance |
|
|
Term
|
Definition
| Inventory used to protect the throughput of an operation or the schedule against the negative effects caused by delays in delivery, quality problems, delivery of incorrect quantity, etc |
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|
Term
|
Definition
| The activities and techniques of maintaining the desired level of items, whether raw materials, WIP, or finished goods |
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|
Term
|
Definition
1) Items released from an inventory location for use or sale
2)The inventory record transaction reducing the inventory balance by the amount released |
|
|
Term
|
Definition
| The branch of business management concerned with planning and controlling inventories |
|
|
Term
| Inventory ordering system |
|
Definition
| Inventory models for the replenishment of inventory. Independent demand inventory ordering models include |
|
|
Term
| What are the 6 steps in the House of Quality? |
|
Definition
The 6 steps in the ____ are:
1) Identify customer requirements
2) Identify supporting technical design requirements
3) Compare customer requirements to the technical design requirements and assign relationship ratings
4) Assign importance to the customer requirements
5) Evaluate competitors
6) Identify technical features to be deployed in the final design of the product |
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Term
|
Definition
| Items returned to the manufacturer as defective, obsolete, overages, and so forth. An inventory item record transaction records the return or receipt into physical stores of materials from which the item may be scrapped |
|
|
Term
|
Definition
| The number of times that an inventory cycles, or "turns over" during the year |
|
|
Term
|
Definition
| A certification process requiring a third-party audit that defines, in broad terms, what must be done to manage company quality and to document these quality processes. |
|
|
Term
|
Definition
| The Japanese term for the practice of stopping the production line when a defect occurs |
|
|
Term
|
Definition
| A Japanese word meaning voluntary study groups |
|
|
Term
|
Definition
| A cost accounting system in which costs are assigned to specific jobs. The system can be used with either actual or standard costs in the manufacturing of distinguishable units or lots of products |
|
|
Term
|
Definition
| An organization in which similar equipment is organized by function. each job follows a distinct routing through the shop |
|
|
Term
|
Definition
| The production planning and control techniques used to sequence and prioritize production quantities across operations in a job shop |
|
|
Term
|
Definition
| A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity |
|
|
Term
| What are the primary elements of Just-in-Time? |
|
Definition
The primary elements of ____ are:
1) To only have the required inventory when needed
2) To improve quality to zero defects
3) To reduce lead times by reducing set up times, queue lengths, and lot sizes
4) To incrementally revise the operations themselves
5) To accomplish all of these activities at minimum cost |
|
|
Term
|
Definition
| The Japanese term for improvement; continuing improvement involving everyone-managers and workers |
|
|
Term
|
Definition
| Finding and eliminating waste in machinery, labor, or production methods |
|
|
Term
|
Definition
| A method of JIT production taht uses standard containers or lot sizes with a single card attached to each. It is a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers |
|
|
Term
| Key performance indicator (KPI) |
|
Definition
| A financial or nonfinancial measure, either tactical or strategic, that is linked to specific strategic goals or objectives |
|
|
Term
|
Definition
| This cost includes the product cost plus the cost of logistics, such as warehousing, transportation, and handling fees |
|
|
Term
|
Definition
| A specific business activity index that indicates future trends |
|
|
Term
|
Definition
| A span of time required to perform a process (or series of operations) |
|
|
Term
|
Definition
| The time between recognition of the need for an order and the receipt of the goods |
|
|
Term
| What are some of the individual components of Lead time? |
|
Definition
Some of the individual components of ____ are:
1) Preparation time
2) Queue time
3) Processing time
4) Move or transportation time
5) Receiving and inspection time |
|
|
Term
|
Definition
| A technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on the lead time for the item |
|
|
Term
|
Definition
| A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise |
|
|
Term
|
Definition
| A measure of satisfying demand through inventory or by the current production schedule in time to satisfy the customers' requested delivery dates and quantities |
|
|
Term
| How is Level of service calculated in a Make-to-stock environment? |
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Definition
In a ____ environment, Level of service is calculated as:
1) The percentage of orders picked complete from stock upon receipt of the customer order
2) The percentage of line items picked complete
3) The percentage of total dollar demand picked complete |
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Term
| How is Level of service calculated in Make-to-order and Engineer-to-order environments? |
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Definition
| In ____ environments, Level of service is the percentage of times the customer-requested or acknowledged date was met by shipping complete product quantities |
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Term
| Level schedule (traditional management) |
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Definition
| A production schedule or MPS that generates material and labor requirements that are as evenly spread over time as possible. Finished goods inventories buffer the production system against season demand |
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Term
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Definition
| Each day's customer demand is scheduled to be built on the day it will be shipped. A ____ is the output of the load-leveling process |
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Term
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Definition
| An accounting/financial term representing debts or obligations owed by a company to creditors |
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Term
|
Definition
| Securing inventory, usually in a locked environment, to protect it from theft and to help improve inventory count accuracy |
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Term
|
Definition
| Within physical distribution, cost elements that vary by distance traveled and not by weight carried |
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Term
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Definition
| The amount of planned work scheduled for actual work released to a facility, work center, or operation for a specific span of time. Usually expressed in terms of standard hours of work or, when items consume similar resources at the same rate, units of production |
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Term
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Definition
| Spreading orders out in time or rescheduling operations sot hat the amount of work to be done in sequential time periods tends to be distributed evenly and is achievable |
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Term
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Definition
| The art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities |
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Term
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Definition
| A quantity produced together and sharing the same production costs and specifications |
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Term
|
Definition
| A set of procedures used to maintain lot integrity from raw materials, from the supplier through manufacturing to consumers |
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Term
|
Definition
| A lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period |
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Term
|
Definition
| The amount of a particular item that is ordered from the plant or a supplier or issued as a standard quantity to the production process |
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Term
|
Definition
| Inventory that results whenever quantity price discounts, shipping costs, setup costs, or similar considerations make it more economical to purchase or produce in larger lots than are needed for immediate purposes |
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Term
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Definition
| In work-cell design, choosing between general-purpose machinery versus special-purpose machinery, so that the lowest cost and most adaptability is achieved |
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Term
| Maintenance, repair, and operating supplies (MRO) |
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Definition
| Items used in support of general operations and maintenance such as maintenance supplies, spare parts, and consumables used in the manufacturing process and supporting operations |
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Term
|
Definition
| The act of deciding whether to produce an item internally or buy it from an outside supplier |
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Term
| What are some factors to consider in the Make-or-buy decision? |
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Definition
Some factors to consider in the ____ decision are:
1) Costs
2) Capacity availability
3) Proprietary and/or specialized knowledge
4) Quality considerations
5) Skill requirements
6) Volume
7) Timing |
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Term
|
Definition
| A production environment where a good or service can be made after receipt of a customer's order |
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Term
|
Definition
| A production environment where products can be and usually are finished before receipt of a customer order |
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Term
|
Definition
| A calendar used in inventory and production planning functions that consecutively numbers only the working days so that the component and work order scheduling may be done based on the actual number of workdays available |
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Term
|
Definition
| The total time required to manufacture an item, exclusive of lower level purchasing lead time |
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Term
|
Definition
| A document, group of documents, or schedule conveying authority for the manufacture of specified parts or products in specified quantities |
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Term
|
Definition
| The set of guiding principles, driving forces, and ingrained attitudes that helps communicate goals, plans, and policies to all employees and that is reinforced through conscious and subconscious behavior within the manufacturing organization |
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Term
|
Definition
| The series of operations performed upon material to convert it from the raw material or a semi-finished state to a state of further completion |
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Term
| What are the 4 ways that a Manufacturing process can be laid out? |
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Definition
The 4 ways that a ____ can be laid out are:
1) Process layout
2) Product layout
3) Cellular layout
4) Fixed-position layout |
|
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Term
| Manufacturing resource planning (MRP II) |
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Definition
| A method for the effective planning of all resources of a manufacturing company |
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Term
|
Definition
| Responding to customers' needs |
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Term
|
Definition
| The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services |
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Term
| What are the 3 types of Market research, and about what is each concerned? |
|
Definition
The 3 types of ____ are:
1) Market analysis: the study of the size, location, nature, and characteristics of markets
2) Sales analysis: systematic study and comparison of sales data
3) Consumer research: the discovery and analysis of consumer attitudes, reactions, and preferences |
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Term
|
Definition
| The basic plan marketing expects to use to achieve its business and marketing objectives in a particular market |
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Term
| What are the parts of the Marketing plan? |
|
Definition
The parts of the ____ are:
1) Marketing expenditures
2) Marketing mix
3) Marketing allocation |
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Term
|
Definition
| The actual portion of current market demand that a company or product achieves |
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Term
|
Definition
| The creation of a high-volume product with large variety so that a customer may specify an exact model out of a large volume of possible end items while manufacturing cost is low due to large volume |
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Term
|
Definition
A group of business processes that includes the following activities:
1) Demand management
2) Production and resource planning
3) Master scheduling |
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Term
| Master production schedule (MPS) |
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Definition
| A line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler. It represents what the company plans to produce expressed in specific configurations, quantities, and dates |
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Term
|
Definition
| A format that includes time periods, the forecast, customer orders, projected available balance (PAB), ATP, and the MPS |
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Term
| What are some of things that the Master schedule takes into account? |
|
Definition
Some of the things that the ____ takes into account are:
1) The forecast
2) The production plan
3) Backlog
4) Availability of resources
5) Availability of capacity
6) Management policies and goals |
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Term
| Materials requirements planning (MRP) |
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Definition
| A set of techniques that uses bill of materials (BOM) data, inventory data, and the MPS to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase |
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Term
| Beginning with the items listed on the MPS, what does time-phased MRP determine? |
|
Definition
Beginning with the items listed on the MPS, the ____ determines:
1) The quantity of all components and materials required to fabricate those items
2) The date that the components and material are required |
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|
Term
| How is time-phased MRP accomplished? |
|
Definition
____ is accomplished by:
1) Exploding the BOM
2) Adjusting for inventory quantities on hand or on order
3) Offsetting the net requirements by the appropriate lead times |
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Term
|
Definition
| The movement of items from one point to another inside a facility or between facilities |
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Term
|
Definition
| The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of WIP to the warehousing, shipping, and distribution of the finished product |
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Term
| Mean absolute deviation (MAD) |
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Definition
| The average of th absolute values of the deviations of observed values from some expected value |
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Term
|
Definition
| A paradigm of how the world works formed by a person's experiences and assumptions |
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Term
|
Definition
| A regular route for pickup of mixed loads from several suppliers |
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Term
|
Definition
| A type of order point replenishment system where the min is the order point, and the max is the "order up to" inventory level |
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Term
|
Definition
| Making several different parts or products in varying lot sizes sot hat a factory produces close tot eh same mix of products that will be sold that day |
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Term
| What is the goal of Mixed-model production? |
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Definition
| The goal of ____ is to build every model every day, according to daily demand |
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Term
|
Definition
| Using the same set of components in a variety of finished goods |
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|
Term
|
Definition
| The time that a job spends in transit from one operation to another in the plant |
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Term
|
Definition
| Waste; in lean manufacturing, costs are reduced by reducing waste within a system |
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Term
| What are the 7 categories of Muda (waste)? |
|
Definition
The 7 categories of ____ are:
1) Overproduction (excess or too early)
2) Waiting
3) Transportation (unneeded movements)
4) Processing
5) Motion (activities that do not add value)
6) Inventory
7) Defective units |
|
|
Term
| Multilevel bill of material (BOM) |
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Definition
| A display of all of the components directly or indirectly used in a parent, together with the quantity required of each component |
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Term
|
Definition
| Procurement of a good or service from more than one independent supplier |
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Term
|
Definition
| A Japanese word meaning unevenness or variability |
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|
Term
|
Definition
| A Japanese word meaning strain or overburden |
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|
Term
|
Definition
| A Japanese word meaning getting a group to agree on a strategy before beginning to implement it |
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Term
|
Definition
| The act of combining several small processes to form one larger process |
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|
Term
|
Definition
| In MRP, the ____ for a pat or an assembly are derived as a result of applying gross requirements and allocations against inventory on hand, scheduled receipts, and safety stock |
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Term
|
Definition
| A kanban system where only a move card is employed. Typically, the work centers are adjacent, therefore no production card is required |
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Term
|
Definition
| The act of inspecting or testing every item as an incoming or outgoing lot |
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Term
|
Definition
| The quantity shown in the inventory records as physically being in stock |
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|
Term
| On-time schedule performance |
|
Definition
| A measure (percentage) of meeting the customer's originally negotiated delivery request date |
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Term
|
Definition
| A released manufacturing order or purchase order; an unfulfilled customer order |
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Term
|
Definition
| All the money an organization spends in generating "goal units" |
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Term
|
Definition
| The planning, scheduling, and control of the activities that transform inputs into finished goods and services |
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|
Term
| Operations process charts |
|
Definition
| A chart that represents the sequence of work or the nature of events in process. It serves as a basis for examining and possibly improving the way the work is carried out |
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|
Term
|
Definition
| Machine operators having the flexibility to solve problems and to do other tasks beyond their immediate responsibilities |
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Term
|
Definition
| The process of accepting and translating what a customer wants into terms used by the manufacturer or distributer. The commitment should be based on the ATP line in the master schedule. |
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Term
|
Definition
| Used in calculating order quantities, the costs that increase the number of orders placed increases |
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|
Term
| What are some of the costs related to Ordering costs? |
|
Definition
Some of the costs related to ____ are:
1) Preparing orders
2) Releasing orders
3) Monitoring orders
4) Receiving orders
5) Physical handling of goods
6) Inspections
7) Set up costs |
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|
Term
|
Definition
| Selecting or "picking" the required quantity of specific products for movement to a packaging area and documenting that the material was moved from one location to shipping |
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|
Term
|
Definition
| A set inventory level where, if the total stock on hand plus on order falls to or below that point, action is taken to replenish the stock |
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|
Term
| Order processing and communication |
|
Definition
| All activities needed to fill customer orders |
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|
Term
|
Definition
| The process of making a delivery commitment (IE: Answering "when can you ship?") |
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|
Term
|
Definition
| Those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace |
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|
Term
|
Definition
| Those competitive characteristics that cause a firm's customers to chose that firm's goods and services over those of its competitors. ____ can be considered a competitive advantage for the firm |
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|
Term
| What are some strategic initiatives on which an Order winner can focus? |
|
Definition
Some strategic initiatives on which ____ can focus are:
1) Price/cost
2) Quality
3) Delivery speed
4) Delivery reliability
5) Product design
6) Flexibility
7) After-market service
8) Image |
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Term
|
Definition
| The process of having suppliers provide goods or services that were previously provided internally |
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|
Term
|
Definition
| The costs incurred in the operation of a business that cannot be directly related to the individual goods or services produced |
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|
Term
|
Definition
| An accounting/financial term representing the residual claim by the company's owners or shareholders, or both, to the company's assets less its liabilities |
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Term
|
Definition
| In lean the philosophy is to produce at the market rate of consumption. Because lines cannot be perfectly balanced, the ____ is the resource requiring the longest time to produce among the set of activities in a line or cell. This operation determines the flow through the line or cell |
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|
Term
| What is the formula for Order point? |
|
Definition
|
|
Term
| Planning bill of material |
|
Definition
| An artificial grouping of items or events in the BOM format used to facilitate master scheduling and master planning. It does not represent a buildable product, but is used to simplify forecasting, master production scheduling, and MRP |
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|
Term
| What is the book example for Planning BOM? |
|
Definition
The book example for ____ is a bicycle, with:
Color
30% Blue
30% Red
40% White
Size
25% Small
50% Medium
25% Large |
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Term
|
Definition
| A structured process that related customer-defined attributes to the product's technical features needed to support and generate those attributes |
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|
Term
|
Definition
| A production environment in which a good or service can be packaged after receipt of a customer order. The item is common across many different customers; packaging determines the end product |
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Term
|
Definition
| Materials surrounding an item to protect it from damage during transportation. The type of ____ influences the danger of such damage |
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|
Term
|
Definition
| A calculation of the space needed to store a certain number of pallets |
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|
Term
|
Definition
| The item produced from one or more components |
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Term
|
Definition
| A graphical tool for ranking causes from most significant to least significant. One of the seven tools of quality |
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|
Term
|
Definition
| The act of one organization committing to a long-term relationship with another organization based on trust and a shared concept of how to satisfy the customer |
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Term
|
Definition
| In MRP and MPS, the capability to identify for a given item the sources of its gross requirements and/or allocations. ____ can be thought of as active where-used information |
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|
Term
|
Definition
| A method of aggregating requirements to place deliveries of varying quantities at evenly spaced time intervals, rather than variably spaced deliveries of equal quantities |
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|
Term
|
Definition
| A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods |
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|
Term
|
Definition
| The fact that an item has a limited shelf life and may be fragile or require special handling |
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|
Term
| Perpetual inventory record |
|
Definition
| A computer record or manual document on which each inventory transaction is posted so that a current record of the inventory is maintained |
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|
Term
|
Definition
| Determination of inventory quantity by actual count |
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|
Term
|
Definition
| Determination of inventory quantity by actual count |
|
|
Term
| What are the 3 types of Physical inventories |
|
Definition
The 3 types of ____ are:
1) Continuous
2) Periodic
3) Annual |
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|
Term
|
Definition
| The transportation of goods from supplier to buyer |
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|
Term
|
Definition
| A document that lists the material to be picked for manufacturing or shipping orders |
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|
Term
| Pickup and delivery costs |
|
Definition
| Transportation costs based on the number of pick ups and the weight of the cargo |
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|
Term
|
Definition
| Inventory in the transportation network and the distribution system, including the flow through intermediate stocking points |
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|
Term
| What are some examples of flow time factors that influence the amount of Pipeline stock? |
|
Definition
Some flow time factors that influence the amount of ____ are:
1) Order transmission
2) Order processing
3) Scheduling
4) Shipping
5) Transportation
6) Receiving
7) Stocking |
|
|
Term
| Plan-do-check-action (PDCA) |
|
Definition
A four-step process for quality improvements.
AKA: Shewhart cycle, Deming circle |
|
|
Term
|
Definition
| A suggested order quantity, release date, and due date created by the planning system's logic when it encounters net requirements in processing MRP |
|
|
Term
| What are the 2 inputs to Capacity requirements planning, and what do they show? |
|
Definition
The 2 inputs to ____ are:
1) Planned orders
2) Released orders
These both show the total capacity requirements by work center in future time periods |
|
|
Term
|
Definition
| The quantity planned to be received at a future date as a result of a planned order release. ____ differ from scheduled receipts in that they have not been released |
|
|
Term
|
Definition
| A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time |
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|
Term
|
Definition
| The amount of time a plan extends into the future |
|
|
Term
| For a Master schedule, how long is the Planning horizon usually set? |
|
Definition
| For a Master schedule, the ____ is usually set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers of key suppliers |
|
|
Term
| For a longer term plans, how long is the Planning horizon usually set? |
|
Definition
| For longer term plans, the ____ must be long enough to permit any needed additions to capacity |
|
|
Term
|
Definition
| The relief of inventory and computation of sales data at the time and place of sale, generally through the use of bar coding or magnetic media and equipment |
|
|
Term
|
Definition
| In a JIT system, WIP materials used to build finished goods are relieved from inventory by multiplying the number of units completed by the number of parts in the BOM |
|
|
Term
|
Definition
| A product design strategy that shifts product differentiation closer to the consumer by postponing identity changes, such as assembly or packaging, to the last possible supply chain location |
|
|
Term
|
Definition
| The costs caused by improvement activities that focus on the reduction of failure and appraisal costs |
|
|
Term
| What are some examples of Prevention costs? |
|
Definition
Some examples of ____ are:
1) Education
2) Quality training
3) Supplier certification |
|
|
Term
|
Definition
| The activities, including adjustments, replacements, and basic cleanliness, that forestall machine breakdown |
|
|
Term
| What is the purpose of Preventive maintenance? |
|
Definition
| The purpose of ____ is to ensure that production quality is maintained and that delivery schedules are met. In addition, a machine that is well cared for will last longer and cause fewer problems |
|
|
Term
|
Definition
| One of the four P's that constitute the set of tools used to direct the business offerings to the customer. ____ is the amount charged for the product offering |
|
|
Term
| What must the Price that is set take into account? |
|
Definition
The ____ set must take into account:
1) Competition
2) Substitute products
3) Internal business costs to return a desirable product margin |
|
|
Term
|
Definition
| The process of communicating start and completion dates to manufacturing departments in order to execute a plan |
|
|
Term
| What is the tool normally used to provide start and completion dates and priorities, for Priority control, and upon what is it based? |
|
Definition
| The Dispatch list is the tool normally used to provide start and completion dates and priorities for ____, and it is based on the current plan and status of all open orders |
|
|
Term
|
Definition
| The function of determining what material is needed and when. MPS and MRP are the elements used for the planning and replanning process to maintain proper due dates on required materials |
|
|
Term
|
Definition
| A group that provides transportation exclusively within an organization |
|
|
Term
|
Definition
| A planned series of actions or operations that advances a material or procedure from one stage of completion to another |
|
|
Term
|
Definition
| The quantity or volume of output that is to be completed at a workstation before switching to a different type of work or changing an equipment setup |
|
|
Term
|
Definition
| The speed and ease with which the manufacturing transformation tasks can respond to internal or external changes |
|
|
Term
|
Definition
| A graphic, symbolic representation of the work performed, or to be performed, on a product as it passed through some or all of the stages of a process |
|
|
Term
| What information is typically included on a Flow process chart? |
|
Definition
The information typically included on a ____ is:
1) Quantity
2) Distance moved
3) Type of work done (by symbol)
4) Equipment used
5) Work times (sometimes) |
|
|
Term
|
Definition
| The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations |
|
|
Term
|
Definition
| The time required to design a product, modify or design equipment, conduct market research, and obtain all necessary materials |
|
|
Term
| When does Procurement lead time begin and when does it end? |
|
Definition
| ____ begins when a decision has been made to accept an order to produce a new product, and ends when production commences |
|
|
Term
|
Definition
| Any good or service produced for sale, barter, or internal use |
|
|
Term
| Product (marketing, 4 P's) |
|
Definition
| One of the 4 P's that constitute the set of tools for directing the business offering to the customer. The ____ can be promoted as a distinctive item |
|
|
Term
|
Definition
| Cost allocated by some method to the products being produced. Initially recorded in asset (inventory) accounts, product costs become an expense (cost of sales) when the product is sold |
|
|
Term
|
Definition
| A strategy of making a product distinct from the competition on a nonprice basis such as availability, durability, quality, or reliability |
|
|
Term
|
Definition
| A group of products with similar characteristics, often used in production planning (or S&OP) |
|
|
Term
| Production activity control (PAC) |
|
Definition
| The function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control |
|
|
Term
| What does Production activity control (PAC) encompass, and for what is it needed? |
|
Definition
| ____ encompasses the principles, approaches, and techniques needed to schedule, control, measure, and evaluate the effectiveness of production operations |
|
|
Term
|
Definition
| A series of pieces of equipment dedicated to the manufacture of a specific number of products or families |
|
|
Term
|
Definition
| The agreed-upon plan that comes from the production planning (S&OP) process, specifically the overall level of manufacturing output planned to be produced, usually stated as a monthly rate for each product family |
|
|
Term
|
Definition
| A process to develop tactical plans based on setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned level of sales (sales planes or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times, etc as expressed in the overall business plan |
|
|
Term
| Production planning methods |
|
Definition
| The approach taken in setting the overall manufacturing output to meet customer demand by setting production levels, inventory levels, and backlog |
|
|
Term
| What are the 3 Production planning methods |
|
Definition
The 3 ____ are:
1) Chase
2) Level
3) Hybrid |
|
|
Term
|
Definition
| In the Theory of constraints (TOC), the inventory required to meet production requirements without allowances for unplanned delays |
|
|
Term
|
Definition
| An overall measure of the ability to produce a good or a service. It is the actual output of production compared to the actual input of resources. ____ is a relative measure across time or against common entities (labor, capital, etc) |
|
|
Term
|
Definition
| Layout of resources arranged sequentially based on the product's routing |
|
|
Term
|
Definition
| The stages a new product goes through from beginning to end |
|
|
Term
| What are the 5 stages in the Product life cycle? |
|
Definition
The 5 stages in the ____ are:
1) Introduction
2) Growth
3) Maturity
4) Decline
5) Phase-out |
|
|
Term
| Introduction (Product life cycle) |
|
Definition
| In the ____ stage of the Product life cycle, products are designed and introduced with sales promotion and advertising. Costs can be high at this stage |
|
|
Term
| Growth (Product life cycle) |
|
Definition
| In the ____ stage of the Product life cycle, the product becomes accepted, production increases, and unit cost drops. Consumption may arise in this stage |
|
|
Term
| Maturity (Product life cycle) |
|
Definition
| In the ____ stage of the Product life cycle, the product is well-established in the marketplace. Competing products exist. Some products are in perpetual ____, such as steel and milk |
|
|
Term
| Decline (Product life cycle) |
|
Definition
| In the ____ stage of the Product life cycle, sales volumes decline and profits are reduced. Organizations may introduce new products or improve production methods to reduce costs |
|
|
Term
| Phase-out (Product life cycle) |
|
Definition
| In the ____ stage of the Product life cycle, the product is taken off the market. Advertising and promotions are discontinued, production ends, and sales and support may be outsourced |
|
|
Term
| In the Introduction stage of the Product life cycle, which Production Environments are found? |
|
Definition
In the ____ stage of the Product life cycle, the following Production environments are found:
1) ETO
2) MTO |
|
|
Term
| In the Growth stage of the Product life cycle, which Production Environments are found? |
|
Definition
In the ____ stage of the Product life cycle, the following Production environments are found:
1) MTO
2) ATO
3) MTS
4) MC |
|
|
Term
| In the Maturity stage of the Product life cycle, which Production Environments are found? |
|
Definition
In the ____ stage of the Product life cycle, the following Production environments are found:
1) MTO
2) ATO
3) MTS
4) MC |
|
|
Term
| In the Decline stage of the Product life cycle, which Production Environments are found? |
|
Definition
In the ____ stage of the Product life cycle, the following Production environments are found:
1) MTO
2) ATO |
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Term
| In the Phase-out stage of the Product life cycle, which Production Environments are found? |
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Definition
In the ____ stage of the Product life cycle, the following Production environments are found:
1) MTO |
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Term
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Definition
| The proportion of individual products that make up the total production or sales volume. Changes in the ____ can mean drastic changes in the manufacturing requirements for certain types of labor and material |
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Term
| What are the 3 types of Profit? |
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Definition
The 3 types of ____ are:
1) Gross
2) Operating
3) Net |
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Term
|
Definition
| Earnings from an ongoing business after direct costs of goods sold (COGS) have been deducted from sales revenue for a given period |
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Term
|
Definition
| Earnings or income after all expenses (selling, administrative, depreciation) have been deducted from gross profit |
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Term
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Definition
| Earnings or incoming after adjusting for miscellaneous income and expenses (parent royalties, interest, capital gains) and tax from profit |
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Term
|
Definition
| The difference between the sales and Cost of goods sold (COGS) for an organization, sometimes expressed as a percentage of sales |
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Term
|
Definition
| An endeavor with a specific objective to be met within predetermined time and dollar limitations and that has been assigned for definition or execution |
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Term
| Projected available balance (PAB) |
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Definition
| An inventory balance projected into the future. The running sum of on-hand inventory minus requirement plus scheduled receipts and planned orders |
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Term
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Definition
| The resource capacity needed to protect system throughput-ensuring that some capacity above the capacity required to exploit the constraint is available to catch up when disruptions inevitably occur |
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Term
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Definition
| In the Theory of constraints (TOC) the amount of inventory required relative to the protective capacity in the system to achieve a specific throughput rate at the constraint |
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Term
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Definition
| Protecting items by surrounding them with impact absorbing material. The protected package must be small enough to be transported and stored |
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Term
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Definition
| The warehouse space that is rented or leased by an independent business providing a variety of services for a fee or on a contract basis |
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Term
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Definition
| The production of items only as demanded for use or to replace those taken for use |
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Term
| Pull system (material control) |
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Definition
| The withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user |
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Term
| Pull system (distribution) |
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Definition
| A system for replenishing field warehouse inventories where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant |
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Term
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Definition
| The purchaser's authorization used to formalize a purchase transaction with a supplier |
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Term
| When given to a supplier, what should a Purchase order contain? |
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Definition
When given to a supplier, a ____ should contain statements of:
1) The name
2) Part number
3) Quantity
4) Description
5) Price of goods or services ordered
6) Terms as to payment
7) Discounts
8) Dates of performance
9) Transportation |
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Term
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Definition
| An authorization to the purchasing department to purchase specified materials in specific quantities within a specified time |
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Term
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Definition
| The term used in industry and management to denote the function of and the responsibility for procuring materials, supplies, and services |
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Term
|
Definition
| The total lead time required to obtain a purchased item |
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Term
| What is included in Purchasing lead time? |
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Definition
Included in ____ are:
1) Order preparation and release time
2) Supplier lead time
3) Transportation time
4) Receiving, inspection, and put-away time |
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Term
|
Definition
| The production of items at times required by a given schedule planned in advance |
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Term
| Push system (material control) |
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Definition
| The issuing of material according to a given schedule or issuing material to a job order at its start time |
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Term
| Push system (distribution) |
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Definition
| A system for replenishing field warehouse inventories where replenishment decision making is centralized, usually at the manufacturing site or central supply facility |
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Term
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Definition
| Conformance to requirements or fitness for use |
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Term
| What are the 5 principle approaches to Quality |
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Definition
The 5 principle approaches to ____ are:
1) Transcendent quality is an ideal, a condition of excellence
2) Product-based quality is based on a product attribute
3) User-based quality is fitness for use
4) Manufacturing-based quality is conformance to requirements
5) Value-based quality is the degree of excellence at an acceptable price |
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Term
| What are the 2 components of Quality? |
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Definition
The 2 components of ____ are:
1) ____ of conformance: defined by the absence of defects
2) ____ of design: measured by the degree of customer satisfaction with a product's characteristics and features |
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Term
|
Definition
| A producer's responsibility to provide 100% acceptable quality material to the consumer of the material |
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Term
| What is the objective of Quality at the source? |
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Definition
| The objective of ____ is to reduce or eliminate shipping or receiving inspections and line stoppages as a result of supplier defects |
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Term
|
Definition
| The process of measuring quality conformance by comparing the actual with a standard for the characteristic and acting on the difference |
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Term
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Definition
| The overall costs associated with prevention activities and the improvement of quality throughout a firm before, during, and after production of a product |
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Term
| What are the 4 costs of Quality? |
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Definition
The 4 ____ are:
1) Internal failure
2) External failure
3) Appraisal
4) Preventative |
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Term
|
Definition
Costs relating to problems before the product reaches the customer
EX: Rework, scrap, downgrades, reinspection |
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Term
|
Definition
Costs relating to problems found after the product reaches the customer
EX: Warranties, returns |
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Term
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Definition
Costs associated with the formal evaluation and audit of quality in the firm
EX: Inspection, quality audits, testing, calibration, checking time |
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Term
|
Definition
Costs that are caused by improvement activities that focus on reducing failure and appraisal costs
EX: Education, quality training, supplier certification |
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Term
|
Definition
| A price reduction allowance determined by the quantity or value of a purchase |
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Term
|
Definition
| A waiting line. In manufacturing, the jobs at a given work center waiting to be processed. As ____ increase, so do average queue time and WIP inventory |
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Term
|
Definition
| Having a small setup time in order to have small production batches and small WIP inventory |
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Term
| Radio frequency identification (RFID) tag |
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Definition
| A system of using electronic tags to store data about items. Accessing these data is accomplished through a specific radio frequency and does not require close proximity or line-of-site access for data retrieval |
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Term
|
Definition
| A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom |
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Term
| What is the drawback and benefit of Random-location storage |
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Definition
| Although ____ method requires the use of a locator file to identify part locations, it often requires less storage space than a fixed-location storage method |
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Term
|
Definition
| A fluctuation in data that is caused by uncertain or random occurrences |
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Term
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Definition
| The expected output capability of a resource or system. Capacity is traditionally calculated from data such as planned hours, efficiency, and utilization |
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Term
|
Definition
| Purchased items or extracted materials that are converted via the manufacturing process into components and parts |
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Term
|
Definition
| The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the PO (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports |
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Term
|
Definition
| A measure of the conformity of recorded values in a bookkeeping system tot he actual values |
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Term
|
Definition
| Those costs incurred because of a decision. The costs would not have resulted unless the decision was made and implemented |
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Term
|
Definition
| An industrial process in which worn-out products are restored to like-new condition. In contrast, a repaired product normally retains its identity and only those parts that have failed or badly worn are replaced ore serviced |
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Term
| Reorder quantity (fixed-reorder quantity system of inventory control) |
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Definition
| The fixed quantity that should be ordered each time the available stock (on-hand plus on-order) falls to or below the reorder point |
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Term
| Reorder quantity (variable reorder quantity system of inventory control) |
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Definition
| The amount ordered from time period to time period will vary |
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Term
|
Definition
| The repeated production of the same discrete products or family of products |
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Term
|
Definition
| The total period of time that elapses from the moment it is determined that a product should be reordered until the product is back on the shelf, available for use |
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Term
|
Definition
| A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors |
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Term
|
Definition
| The process of calculating the demand for the components of a parent item by multiplying the parent item requirements by the component usage quantity specified in the BOM |
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Term
|
Definition
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Term
|
Definition
| Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long-range capacity |
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Term
|
Definition
| A business that takes title to products and resells them to final consumers |
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Term
|
Definition
| An internet auction in which suppliers attempt to underbid their competitors. Company identities are known only by the buyer |
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Term
|
Definition
| A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycle |
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Term
|
Definition
| Analytical methods to determine the core problem(s) of an organization, process, product, market, etc |
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Term
| Rough-cut capacity planning (RCCP) |
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Definition
| The process of converting the MPS into requirements for key resources, including labor, machinery, warehouse space, suppliers' capacity, and money |
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Term
| What are the 3 approaches to performing RCCP? |
|
Definition
The 3 approaches to performing ____ are:
1) Bill of labor approach
2) Capacity planning using overall factors approach
3) Resource profile approach |
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Term
|
Definition
| Information detailing the method of manufacturing of a particular item |
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Term
| What does Routing include? |
|
Definition
____ includes
1) Operations to be performed
2) The sequence of these operations
3) The various work centers involved
4) Standards for setup and run |
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Term
|
Definition
| The time required to process a piece or lot at a specific operation. ____ does not include setup time |
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Term
|
Definition
| A quantity of stock planned to be in inventory to protect against fluctuations in demand or supply |
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Term
| Safety stock (Master production schedule) |
|
Definition
| The additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog. Overplanning can be used to create ____ |
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Term
| Sales and operations planning (S&OP) |
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Definition
| A process to develop tactical plans that provide management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain |
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Term
|
Definition
| A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item |
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Term
|
Definition
| A quantity-versus-time graphic representation of the order point/order quantity inventory system showing inventory being received and then used up and reordered |
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Term
|
Definition
| A graphical technique to analyze the relationship between two variables. Two sets of data are plotted on a graph, with the y-axis used for the variable to be predicted, and the x-axis used for the variable to make the prediction |
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Term
|
Definition
|
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Term
|
Definition
| An open order that has an assigned due date |
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Term
|
Definition
| The act of creating a schedule, such as a shipping schedule, master production schedule, maintenance schedule, or supplier schedule |
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Term
|
Definition
| Material outside of specifications and possessing characteristics that make rework impractical |
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Term
|
Definition
| Inventory built up to smooth production in anticipation of a peak seasonal demand |
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Term
|
Definition
| A repetitive pattern of demand from year to year with some periods considerably higher than others |
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Term
|
Definition
| A Japanese word meaning teacher or one with experience |
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Term
|
Definition
Sometimes used to describe those activities that support the production or distribution functions in any organization
EX: Customer service, field service |
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Term
|
Definition
| An organization that provides an intangible product; all organizations except farming, mining, and manufacturing |
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Term
|
Definition
| Those modules, components, and elements that are planned to be used without modification to replace an original part |
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Term
|
Definition
| The work required to change a specific machine, resource, work center, or line from making the last good piece of item A to making the first good piece of item B |
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Term
|
Definition
| The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B |
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Term
|
Definition
| An element of variability results that measures the output of a process. If a process results in product dimensions falling within a bell-shaped curve, then the process is running normally |
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Term
|
Definition
| Shigeo Shingo, a pioneer of the Japanese JIT philosophy, identified seven barriers to improving manufacturing |
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|
Term
| What are Shingo's seven wastes? |
|
Definition
____ are:
1) Overproduction
2) Motion
3) Transportation
4) Stocks
5) Motion
6) Making defects
7) Processing itself |
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Term
|
Definition
| A document that lists the pieces in a shipment. A ____ usually covers an entire load regardless of whether the load is to be delivered to a single destination or many destination |
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Term
| What do Shipping manifests usually list? |
|
Definition
____ usually list (for each destination in the load):
1) Items
2) Piece count
3) Total weight
4) Destination name and address |
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Term
|
Definition
| Using the operational data to perform what-if evaluations of alternative plans |
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Term
| What two questions do Simulations answer? |
|
Definition
___ answer the questions:
1) "Can we do it?", if yes...
2) "Do we really want to?" (does it make financial sense) |
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Term
|
Definition
| A display of components that are directly used in a parent item. It shows only the relationships one level down |
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Term
|
Definition
| A company that is selected to have 100% of the business for a part although alternative suppliers are available |
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Term
|
Definition
| A set of concepts and practices that key on reducing variability in processes and reducing deficiencies in the product |
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Term
|
Definition
| Simple, measurable, achievable, reasonable, and trackable |
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Term
|
Definition
| The process of identifying a company that provides a needed good or service |
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Term
|
Definition
| Producing a limited product line in order to focus on a product or process. ____ is often intended to improve productivity or and reduce costs |
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Term
|
Definition
| A manufacturing order quantity that has been divided into two or more smaller quantities, usually after the order has been released |
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|
Term
| What is the purpose of Split lot? |
|
Definition
| The purpose of ____ is to reduce the lead time of the order |
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Term
|
Definition
| Variability of an action. Often measured by the range of standard deviation of a particular dimension |
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Term
|
Definition
| The target costs of an operation, process, or product including direct materials, direct labor, and overhead charges |
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Term
|
Definition
The length of time that should be required to:
1) Set up a given machine or operation and
2) Run one batch or more of parts, assemblies, or end products through that operation |
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Term
|
Definition
| In project management, the time an activity begins; this may be defined as an actual ____ or a planned ____ |
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|
Term
| Statistical process control (SPC) |
|
Definition
The application of statistical techniques to monitor and adjust an operation
AKA: Statistical quality control (SQC) |
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Term
|
Definition
|
|
Term
| Stockkeeping unit (SKU) (distribution system) |
|
Definition
| An item at a particular geographical location |
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Term
|
Definition
| The costs associated with a stockout |
|
|
Term
| What are examples of Stockout costs? |
|
Definition
Examples of ____ are:
1) Lost sales
2) Backorder costs
3) Expediting
4) Additional manufacturing and purchasing costs |
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Term
|
Definition
| A measure of the effectiveness with which a company responds to actual demand or requirements |
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|
Term
|
Definition
| A storage point located upstream of a work station intended to make it easier to see customer requirements |
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|
Term
|
Definition
|
|
Term
|
Definition
| The plan for how to marshal and determine actions to support the missions, goals, and objectives of an organization |
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Term
|
Definition
| Sending production work outside to another manufacturer |
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Term
|
Definition
| A way of managing inventory and improving picking by making all parts easy to take off of a shelf; inventory is restocked in such a way that employees always have easy access |
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Term
|
Definition
| Provider of goods or services; the seller with whom the buyer does business |
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Term
|
Definition
| Certification procedures verifying that a supplier operates, maintains, improves, and documents effective procedures procedures that relate tot he customers' requirements |
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Term
|
Definition
| The amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped |
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Term
|
Definition
| The establishment of a working relationship with a supplier organization whereby two organizations act as one |
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|
Term
| Supplier relationship management (SRM) |
|
Definition
| A comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services the enterprises uses |
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|
Term
|
Definition
| The goal of ____ is to streamline and make more effective the processes between an enterprise and its suppliers |
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|
Term
|
Definition
| The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash |
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|
Term
|
Definition
| The design, planning, execution, control, and monitoring of supply chain activities |
|
|
Term
| What are the objectives of Supply chain management? |
|
Definition
The objectives of ____ are:
1) Creating net value
2) Building a competitive infrastructure
3) Leveraging worldwide logistics
4) Synchronizing supply with demand
5) Measuring performance globally |
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Term
|
Definition
| The set of functional plans synchronizing activities across functions that specify production levels, capacity levels, staffing levels, funding levels, and so on, for achieving the intermediate goals and objectives to support the organization's strategic plan |
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Term
|
Definition
| Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system |
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Term
|
Definition
| An official schedule of taxes and fees imposed by a country on imports or exports |
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Term
|
Definition
| Charges based on the number of times a package is loaded or unloaded. These costs may be reduced by combining shipments |
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Term
|
Definition
| A place where vehicles are loaded and unloaded. Several functions such as weighing cargo and rerouting cargo are performed at terminals |
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Term
|
Definition
| All the provisions and agreements of a contract |
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|
Term
|
Definition
|
|
Term
| Theory of constraints (TOC) |
|
Definition
| A holistic management philosophy developed by Dr. Eliyahu M. Goldratt that is based on the principle that complex systems exhibit inherent simplicity |
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|
Term
| Theory of constraints (TOC) accounting |
|
Definition
A cost and managerial accounting system that accumulates costs and revenues into 3 areas:
1) Throughput
2) Inventory
3) Operating expense |
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|
Term
| Theory of constraints performance measures |
|
Definition
|
|
Term
| Third-party logistics (3PL) |
|
Definition
| A buyer and supplier team with a third party that provided product delivery services |
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|
Term
| Third-party registration system |
|
Definition
| Using an outside party (rather than the buyer) to determine the adequacy of a seller's product quality |
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Term
|
Definition
| The rate at which the system generates "goal units" |
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|
Term
|
Definition
| A number of days of data summarized into a columnar or row-wise display. A weekly time bucket would contain all of the relevant data for an entire week |
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|
Term
| What is considered to be the largest time bucket to permit effective MRP? |
|
Definition
| Weekly time buckets are considered to be the largest possible to permit effective ____ |
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|
Term
|
Definition
| Protection against uncertainty that takes the form of time |
|
|
Term
|
Definition
| A policy or guidelines established to note where various restrictions or changes in operating procedures take place |
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|
Term
| Time-phased order point (TPOP) |
|
Definition
| MRP-like time planning logic for independent demand items, where gross requirements come from a forecast, not via explosion |
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|
Term
|
Definition
| Allowable departure from a nominal value established by design engineers that is deemed acceptable for the functioning of the good or service over its life cycle |
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|
Term
| Total cost curve (cost-volume profit) |
|
Definition
| In breakeven analysis, the ____ is composed of total fixed and variable costs per unit, multiplied by the number of units provided. Breakeven quantity occurs where the total cost curve and total sales revenue curve interesect |
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|
Term
| Total cost curve (inventory theory) |
|
Definition
| The sum of the costs of acquiring and carrying the item |
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|
Term
| Total cost of ownership (TCO) |
|
Definition
| The sum of all costs associated with every activity of the supply chain. The acquisition cost is often a very small portion of the total cost of ownership |
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|
Term
|
Definition
| All the costs of operating a firm; total variable costs plus total fixed costs |
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|
Term
|
Definition
| The essential costs to move a freight cargo including driver's wages, and depreciation of the vehicle; these costs vary with the distance shipped |
|
|
Term
| Total productive maintenance (TPM) |
|
Definition
| Preventative maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows. It is operator-oriented maintenance with the involvement of all qualified employees in all maintenance activities |
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|
Term
| Total quality management (TQM) |
|
Definition
| Japanese-style management approach to quality improvement; a management approach to long-term success through customer satisfaction |
|
|
Term
|
Definition
| The registration and tracking of parts, processes, and materials used in production, by lot or serial number |
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|
Term
|
Definition
| The ratio of the cumulative algebraic sum of the deviations between the forecasts and the actual values to the mean absolute deviation. Used to signal when the validity of the forecasting model might be in doubt |
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|
Term
|
Definition
| A department or function charged with the responsibility for arranging the most economic classification and method of shipment for both incoming and outgoing materials and products |
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Term
|
Definition
| A distribution network that deals with change of ownership of goods and services including the activities of negotiation, selling, and contracting |
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|
Term
|
Definition
| Inventory in transit between manufacturing and stocking locations |
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|
Term
|
Definition
| A standard allowance that is assumed on any given order for the movement of items from one operation to the next |
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|
Term
|
Definition
| The function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization |
|
|
Term
|
Definition
| Inventory that is in transit between locations |
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|
Term
|
Definition
| General upward or downward movement of a variable over time |
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|
Term
|
Definition
| Methods for forecasting sales data when a definite upward or downward pattern exists |
|
|
Term
| What are some Trend forecasting models? |
|
Definition
Some examples of ____ models are:
1) Double exponential smoothing
2) Regression
3) Triple smoothing |
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Term
|
Definition
| Carriers that deliver/charge only for full truckload shipments |
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|
Term
|
Definition
| A type of fixed-order system in which inventory is carried in two bins. A replenishment quantity is is ordered when the first bin is empty |
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|
Term
|
Definition
| A kanban system where a move card and production card are employed. The move authorizes the movement of a specific number of parts from a source to a point of use. The production card authorizes the production of a given number of parts for use or replenishment |
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|
Term
|
Definition
| Production lines shaped like the letter "U". The shape allows workers to easily perform several non-sequential tasks without much walk time |
|
|
Term
|
Definition
| In lean, the distribution of work between work stations sot hat the time required for each station to complete all tasks is as close to equal as possible |
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|
Term
|
Definition
| Total labor, material, and overhead cost for one unit of production |
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|
Term
| Unitization (warehousing) |
|
Definition
| The consolidation of several units into larger units for fewer handlings |
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|
Term
|
Definition
| A unit to be transported that consists of several items arranged so the package can be moved as a single unit |
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|
Term
|
Definition
| The unit in which the quantity of an item is managed |
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|
Term
|
Definition
| Used as a relative reference within a firm or supply chain to indicate moving in the direction of the raw material supplier |
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|
Term
|
Definition
| A measure of how intensively a resource is being used to produce a good or service. ____ compares actual time used to available time |
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|
Term
|
Definition
| A detailed, feasible calendar of specific items flowing into and through a factory |
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|
Term
| Value added (manufacturing) |
|
Definition
| The actual increase of utility from the viewpoint of the customer as it is transformed from raw material to finished inventory |
|
|
Term
|
Definition
| An examination of all links a company uses to produce and deliver its products and services, starting from the origination point and continuing through delivery to the final customer |
|
|
Term
|
Definition
| The process of creating, producing, and delivering a good or service to the market. The value stream may be controlled by a single business or a network of several businesses |
|
|
Term
|
Definition
| Encompasses the raw material supplier, the manufacture and assembly of the good, and the distribution network |
|
|
Term
|
Definition
| Consists of suppliers, support personnel and technology, the service "producer" and the distribution channel |
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|
Term
|
Definition
| A graph displaying the sequence of operations needed to produce and deliver a product or service |
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|
Term
|
Definition
| Drawing the current production process/flow and then attempting to draw the most effective production process/flow |
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| An operating cost that varies directly with a change of one unit in the production volume |
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| The difference between the expected (budgeted or planned) value and the actual |
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| In the Theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished products |
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| Starts with one or a few raw materials, and the product expands into a number of different products as it flows through divergent points in its routings |
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| A structure dominated by convergent points. Many raw materials are fabricated and assembled into a few finished products |
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| A structure consisting of numerous similar finished products assembled from common assemblies, subassemblies, and parts |
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| Carrying and power unit to move goods over ways. Includes all forms of transportation means except pipeline. The carrier generally owns or leases the ____, but a shipper may also own or lease |
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| The relative speed of all transactions, collectively, within a supply chain community |
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| Why is a maximum Velocity desirable? |
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| A maximum ____ is desirable because it indicates higher asset turnover for stockholders and faster order-to-delivery response for customers |
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| Why is a maximum Velocity desirable? |
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| A maximum ____ is desirable because it indicates higher asset turnover for stockholders and faster order-to-delivery response for customers |
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| Any seller of an item in the marketplace |
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| Vendor-managed inventory (VMI) |
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| A means of optimizing supply chain performance in which the supplier has access to the customer's inventory data and is responsible for maintaining the inventory level required by the customer |
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| A simple inventory control system where the inventory reordering is based on actually looking at the amount of inventory on hand. Usually used for low-value items, such as nuts and bolts |
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| Actual customer descriptions in words for the functions and features customers desire for goods and services |
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| The time a job remains at a work center after an operation is complete until it is moved to the next operation |
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| An inventory management technique in which material enters a plant and is processed through the plant into finished goods without ever having entered a formal stock area |
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| The activities related to receiving, storing, and shipping materials to and from production or distribution locations |
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| Any activity that does not add value to the good or service in the eyes of the consumer |
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| A method of selecting and sequencing picking lists to minimize the waiting time of the delivered material. Shipping orders may be picked in waves combined by common carrier or destination, and manufacturing orders in waves related to work centers |
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| A document containing a list of goods with shipping instructions related to a shipment |
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| Paths over which a transportation company moves cargo, including right-of-way, roadbed, and railroad tracks. ____ may be publicly or privately owned |
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| The process of evaluating alternate strategies by answering the consequences of changes to forecasts, manufacturing plans, inventory levels, and so forth |
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| A listing of every parent item that calls for a given component, and the respective quantity required, from a BOM file |
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| Dissimilar machines grouped together into a production unit to produce a family of parts having similar routings |
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| A specific production area, consisting of one or more people and/or machines with similar capabilities, that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling |
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| Stock located in a facility which is used to fulfill demand |
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| A good or goods in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory |
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| An authorization to start work on an activity or product |
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| The amount of good or acceptable material available after the completion of a process |
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| A Japanese term meaning sharing information |
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| A warehouse location methodology that includes some of the characteristics of fixed and random location methods |
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| A method of subdividing a picking list by areas within a storeroom for more efficient and rapid order picking |
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