APICS Deck 1 OO

Question 1

APICS Deck 1

Term

Answer 1

Definition

Question 2

APICS Deck 1

demand manager

Answer 2

Person who assists sales and marketing in the development and maintenance of sales forecasts and reconciles volume and mix variations in the forecast.D

Question 3

APICS Deck 1

product audit

Answer 3

The reinspection of any product to verify the adequacy of acceptance or rejection decisions made by inspection and testing personnel.P

Question 4

APICS Deck 1

twenty-foot equivalent unit (TEU)

Answer 4

A measure of cargo capacity equivalent to a standard container (i.e., 20-feet long, 8-feet wide, and approximately 8-feet high).T

Question 5

APICS Deck 1

cash-to-cash cycle time

Answer 5

An indicator of how efficiently a company manages its assets to improve cash flow. Inventory days + accounts receivable days – accounts payable days = cash-to-cash cycle time. See: cash conversion cycle.C

Question 6

APICS Deck 1

process flexibility

Answer 6

The design of the manufacturing system, including operators and machinery, that allows quick changeovers to respond to near-term changes in product volume and mix. A necessary tool in lean and just in time.P

Question 7

APICS Deck 1

product engineering

Answer 7

The discipline of designing a product or product line to take advantage of process technology and improve quality, reliability, and so forth.P

Question 8

APICS Deck 1

assembly

Answer 8

A group of subassemblies and/or parts that are put together and that constitute a major subdivision for the final product. An assembly may be an end item or a component of a higher level assembly.A

Question 9

APICS Deck 1

net weight

Answer 9

The weight of an article exclusive of the weights of all packing materials and containers.N

Question 10

APICS Deck 1

growth rate; and (4) Question marks

Answer 10

low market share, high growth rate. Sometimes this same set of terms is used to categorize products by market share and profitability. See: cash cow, dog, question mark, star.G

Question 11

APICS Deck 1

operation

Answer 11

1) A job or task, consisting of one or more work elements, usually done essentially in one location. 2) The performance of any planned work or method associated with an individual, machine, process, department, or inspection. 3) One or more elements that involve one of the following: the intentional changing of an object in any of its physical or chemical characteristics; the assembly or disassembly of parts or objects; the preparation of an object for another operation, transportation, inspection, or storage; planning, calculating, or giving or receiving information.O

Question 12

APICS Deck 1

multinational strategy

Answer 12

A strategy that focuses on opportunities to achieve cross-business and cross-country coordination, thereby enabling economies of scope and an improved competitive position with regard to reducing costs, cross-country subsidization, and so on, to outcompete rivals. See: global strategy. multiphase system Syn: multiple-phase queuing system.M

Question 13

APICS Deck 1

nonlinear programming

Answer 13

Programming similar to linear programming but incorporating a nonlinear objective function and linear constraints or a linear objective function and nonlinear constraints or both a nonlinear objective function and nonlinear constraints.N

Question 14

APICS Deck 1

deadhead

Answer 14

The return of an empty transportation container to its point of origin. See: backhauling.D

Question 15

APICS Deck 1

countertrade

Answer 15

Any transaction in which partial or full payment is made with goods instead of money. This often applies in international trade.C

Question 16

APICS Deck 1

production cycle elements

Answer 16

Elements of manufacturing strategy that define the span of an operation by addressing the following areas: (1) the established boundaries for the firm’s activities, (2) the construction of relationships outside the firm’s boundaries (i.e., suppliers, distributors, and customers), (3) circumstances under which changes in established boundaries or relationships are necessary, (4) the effect of such boundary or relationship changes on the firm’s competitive position. The production cycle elements must explicitly address the strategic implications of vertical integration in regard to (a) the direction of such expansion, (b) the extent of the process span desired, and (c) the balance among the resulting vertically linked activities.P

Question 17

APICS Deck 1

planned receipt

Answer 17

1) An anticipated receipt against an open purchase order or open production order. 2) Syn: planned order receipt.P

Question 18

APICS Deck 1

gatekeeping

Answer 18

A group technique applied by a team leader to effectively manage a situation, discussion, or meeting. For example, in a situation where a dominant spokesperson or person of authority monopolizes a discussion, the gatekeeper will intervene by requesting additional group member’s input.G

Question 19

APICS Deck 1

idle inventory

Answer 19

The inventory generally not needed in a system of linked resources. From a theory of constraints perspective, idle inventory generally consists of protective inventory and excess inventory. See: excess inventory, productive inventory, protective inventory.I

Question 20

APICS Deck 1

plan make

Answer 20

Establishing plans for action over time that project appropriation of production resources to meet production requirements.P

Question 21

APICS Deck 1

material index

Answer 21

The total of raw material weights divided by final product weight.M

Question 22

APICS Deck 1

seven tools of quality

Answer 22

Syn: basic seven tools of quality.S

Question 23

APICS Deck 1

enterprise

Answer 23

Any undertaking, venture, initiative, or business organization with a defined mission.E

Question 24

APICS Deck 1

cloud computing

Answer 24

An emerging way of computing where data is stored in massive data centers which can be accessed from any connected computers over the internet.C

Question 25

APICS Deck 1

decision theory

Answer 25

A systematic approach to making decisions, particularly when uncertainty is present.D

Question 26

APICS Deck 1

sampling distribution

Answer 26

The distribution of values of a statistic calculated from samples of a given size.S

Question 27

APICS Deck 1

clearinghouse

Answer 27

An entity restricted to providing services such as settling accounts.C

Question 28

APICS Deck 1

forty-foot equivalent unit

Answer 28

A measure of container capacity that is equivalent to two 20-foot equivalency units; that is, a unit equivalent to 40-feet long, 8-feet wide, and approximately 8-feet high.F

Question 29

APICS Deck 1

equal employment opportunity (EEO)

Answer 29

In the United States, the laws prohibiting discrimination in employment because of race or color, sex, age, handicap status, religion, and national origin.E

Question 30

APICS Deck 1

any-quantity rate

Answer 30

A situation in which no quantity discount is available for large shipments.A

Question 31

APICS Deck 1

work sequence

Answer 31

Ordered activities performed to accomplish work.W

Question 32

APICS Deck 1

direct-deduct inventory transaction processing

Answer 32

A method of inventory bookkeeping that decreases the book (computer) inventory of an item as material is issued from stock, and increases the book inventory as transactions processed for each item. The key concept here is that the book record is updated coincidentally with the movement of material out of or into stock. As a result, the book record is a representation of what is physically in stock. Syn: discrete issue.D

Question 33

APICS Deck 1

funnel experiment

Answer 33

An experiment that demonstrates the effects of tampering. Marbles are dropped through a funnel in an attempt to hit a flat-surfaced target below. The experiment shows that adjusting a stable process to compensate for an undesirable result or an extraordinarily good result will produce output that is worse than if the process had been left alone. See: tampering.F

Question 34

APICS Deck 1

harmonic smoothing

Answer 34

An approach to forecasting based on fitting some set of sine and cosine functions to the historical pattern of a time series. Syn: seasonal harmonics.H

Question 35

APICS Deck 1

futures

Answer 35

Contracts for the sale and delivery of commodities at a future time, made with the intention that no commodity be delivered or received immediately.F

Question 36

APICS Deck 1

range

Answer 36

In statistics, the spread in a series of observations. For example, the anticipated demand for a particular product might vary from a low of 10 to a high of 500 per week. The range would therefore be 500 – 10, or 490.R

Question 37

APICS Deck 1

pre-receiving

Answer 37

Paying for materials before receipt to prepare for incoming products and goods.P

Question 38

APICS Deck 1

lateness

Answer 38

Delivery date minus due date. Lateness may be positive or, in the case of early jobs, negative. See: earliness, tardiness.L

Question 39

APICS Deck 1

order entry

Answer 39

The process of accepting and translating what a customer wants into terms used by the manufacturer or distributor. The commitment should be based on the available-to-promise (ATP) line in the master schedule. This can be as simple as creating shipping documents for finished goods in a make-to-stock environment, or it might be a more complicated series of activities, including design efforts for make-to-order products. See: master schedule, order service.O

Question 40

APICS Deck 1

electronic commerce application

Answer 40

A computer interface between two organizations that is used to carry out business transactions electronically.E

Question 41

APICS Deck 1

business process management (BPM)

Answer 41

A business discipline or function that uses business practices, techniques, and methods to create and improve business processes. BPM is a holistic approach to the use of appropriate process-related business disciplines to gain business performance improvements across the enterprise or supply chain. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Most process improvement disciplines or activities can be considered as BPM.B

Question 42

APICS Deck 1

priority control

Answer 42

The process of communicating start and completion dates to manufacturing departments in order to execute a plan. The dispatch list is the tool normally used to provide these dates and priorities based on the current plan and status of all open orders.P

Question 43

APICS Deck 1

proxy

Answer 43

1) A written document authorizing an agent to vote a shareholder’s stock at a shareholder meeting. 2) The agent designated in 1).P

Question 44

APICS Deck 1

organizational development (OD)

Answer 44

The process of building and strengthening core competencies and organizational capabilities that enable the execution of the business strategy and provide a sustainable competitive advantage over time. Organizational development includes staffing the organization, building core competencies and organizational capabilities, and continuous improvement initiatives in response to the changing business environment.O O

Question 45

APICS Deck 1

failure mode effects analysis (FMEA)

Answer 45

A procedure in which each potential failure mode in every sub-item of an item is analyzed to determine its effect on other subitems and on the required function of the item.F

Question 46

APICS Deck 1

bar code

Answer 46

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. A bar code is used to facilibar B tate timely and accurate input of data to a computer system.B

Question 47

APICS Deck 1

contestable market

Answer 47

A market having low entry costs.C

Question 48

APICS Deck 1

open-end purchase order

Answer 48

A purchase agreement similar to a blanket purchase order that provides the added convenience of being able to negotiate additional items and expiration dates.O

Question 49

APICS Deck 1

MRP nervousness

Answer 49

See: nervousness.M

Question 50

APICS Deck 1

customer-defined attributes

Answer 50

The characteristics of a good or service that are viewed as being important in addressing the needs of the customer. See: house of quality.C

Question 51

APICS Deck 1

horizontal dependency

Answer 51

The relationship between the components at the same level in the bill of material, in which all must be available at the same time and in sufficient quantity to manufacture the parent assembly. See: vertical dependency.H

Question 52

APICS Deck 1

resource-constrained schedule

Answer 52

Syn: resource-limited schedule. See: drum-buffer-rope.R

Question 53

APICS Deck 1

FPO

Answer 53

Abbreviation for firm planned order.F

Question 54

APICS Deck 1

design for quality

Answer 54

A product design approach that uses quality measures to capture the extent to which the design meets the needs of the target market (customer attributes), as well as its actual performance, aesthetics, and cost. See: total quality engineering.D

Question 55

APICS Deck 1

parametric estimating

Answer 55

The use of statistical and historical data to estimate activity parameters such as time or budget.P

Question 56

APICS Deck 1

ISO certification

Answer 56

In quality management, denotes that a company has obtained an ISO9000 quality standard. Also, it is the process by which a firm achieves such certification. I

Question 57

APICS Deck 1

product differentiation

Answer 57

A strategy of making a product distinct from the competition on a nonprice basis such as availability, durability, quality, or reliability.P

Question 58

APICS Deck 1

backward integration

Answer 58

The process of buying or owning elements of the production cycle and channel of distribution back toward raw material suppliers. See: vertical integration.B

Question 59

APICS Deck 1

QRM

Answer 59

Abbreviation for quick-response manufacturing.Q

Question 60

APICS Deck 1

part type

Answer 60

A code for a component within a bill of material (e.g., regular, phantom, reference).P P

Question 61

APICS Deck 1

total cost of quality

Answer 61

A sum that includes costs associated with rework, scrap, warranty costs, and other costs associated with preventing or resolving quality problems.T

Question 62

APICS Deck 1

authorized deviation

Answer 62

Permission for a supplier or the plant to manufacture an item that is not in conformance with the applicable drawings or specifications.A

Question 63

APICS Deck 1

engineering drawings

Answer 63

A visual representation of the dimensional characteristics of a part or assembly at some stage of manufacture.E

Question 64

APICS Deck 1

weight confirmation

Answer 64

The process of confirming a shipment arrival only by confirming the correct weight has been delivered.W

Question 65

APICS Deck 1

supply chain risk

Answer 65

The variety of possible events and their outcomes that could have a negative effect on the flow of goods, services, funds, or information resulting in some level of quantitative or qualitative loss for the supply chain.S

Question 66

APICS Deck 1

order release

Answer 66

The activity of releasing materials to a production process to support a manufacturing order. See: planned order release.O

Question 67

APICS Deck 1

resellers

Answer 67

Organizations intermediate in the manufacturing and distribution process, such as wholesalers and retailers.R

Question 68

APICS Deck 1

aggregate lead time

Answer 68

Syn: cumulative lead time.A

Question 69

APICS Deck 1

tipping point

Answer 69

The moment when something unique becomes common. The term often refers to the popular acceptance of new technologies. The concept has been applied to any process in which beyond a certain point, the rate at which the process (chemical, sociological, environmental, etc.) proceeds increase dramatically.T

Question 70

APICS Deck 1

dashboard

Answer 70

An easy-to-read management tool similar to an automobile’s dashboard designed to address a wide range of business objectives by combining business intelligence and data integration infrastructure. See: executive dashboard.D

Question 71

APICS Deck 1

base inventory level

Answer 71

The inventory level made up of aggregate lot-size inventory plus the aggregate safety stock inventory. It does not take into account the anticipation inventory that will result from the production plan. The base inventory level should be known before the production plan is made. Syn: basic stock. See: aggregate inventory.B

Question 72

APICS Deck 1

pallet ticket

Answer 72

A label to track pallet-sized quantities of end items produced to identify the specific sublot with specifications determined by periodic sampling and analysis during production.P

Question 73

APICS Deck 1

piece parts

Answer 73

Individual items in inventory at the simplest level in manufacturing (e.g., bolts and washers).P

Question 74

APICS Deck 1

repair bill of material

Answer 74

In remanufacturing, the bill of material defining the actual work required to return a product to service. This bill is constructed based on inspection and determination of actual requirements. See: disassembly bill of material.R

Question 75

APICS Deck 1

FMECA

Answer 75

Abbreviation for failure mode effects and criticality analysis.F

Question 76

APICS Deck 1

project team directory

Answer 76

A list of team member names, roles, and communication information.P

Question 77

APICS Deck 1

put-away time

Answer 77

The lead time between when a raw material or component arrives and when the items are available in the store. Syn: dock-to-stock time.P

Question 78

APICS Deck 1

internet

Answer 78

A worldwide network of computers belonging to businesses, governments, and universities that enables users to share information in the form of files and to send electronic messages and have access to a tremendous store of information.I

Question 79

APICS Deck 1

remedial maintenance

Answer 79

Unscheduled maintenance performed to return a product or process to a specified performance level after a failure or malfunction.R

Question 80

APICS Deck 1

proportional rate

Answer 80

A lower rate given to specific parts of a shipment, instead of the entire rate being charged for only one part of the shipment.P

Question 81

APICS Deck 1

cumulative receipts

Answer 81

A cumulative number, or running total, as a count of parts received in a series or sequence of shipments. The cumulative receipts provide a number that can be compared with the cumulative figures from a plan developed by cumulative MRP.C

Question 82

APICS Deck 1

traveling requisition

Answer 82

Syn: traveling purchase requisition.T

Question 83

APICS Deck 1

budget

Answer 83

A plan that includes an estimate of future costs and revenues related to expected activities. The budget serves as a pattern for and a control over future operations.B

Question 84

APICS Deck 1

machine downtimes

Answer 84

Periods during which a machine is unavailable due to tool breakage, worker unavailability, machine breakdown, maintenance, teardown, setup, and other factors.M

Question 85

APICS Deck 1

income

Answer 85

Syn: profit.I

Question 86

APICS Deck 1

allocation

Answer 86

1) The classification of quantities of items that have been assigned to specific orders but have not yet been released from the stockroom to production. It is an “uncashed” stockroom requisition. 2) A process used to distribute material in short supply. Syn: assignment. See: reservation.A

Question 87

APICS Deck 1

product-based layout

Answer 87

A type of layout where resources are arranged sequentially according to the steps required to make a particular complex product.P

Question 88

APICS Deck 1

manufacturability

Answer 88

A measure of the design of a product or process in terms of its ability to be produced easily, consistently, and with high quality.M

Question 89

APICS Deck 1

full pegging

Answer 89

The ability of a system to automatically trace requirements for a given component all the way up to its ultimate end item, customer, or contract number. Syn: contract pegging.F

Question 90

APICS Deck 1

single-minute exchange of die (SMED)

Answer 90

The concept of setup times of less than 10 minutes, developed by Shigeo Shingo in 1970 at Toyota. See: single-digit setup.S

Question 91

APICS Deck 1

functional organizational structure

Answer 91

An organizational structure based on functional specialization, such as sales, engineering, manufacturing, finance, and accounting.F

Question 92

APICS Deck 1

workstation

Answer 92

The assigned location where a worker performs the job; it could be a machine or a workbench.W

Question 93

APICS Deck 1

blockage

Answer 93

See: blocking.B

Question 94

APICS Deck 1

lean manufacturing

Answer 94

Syn: lean production.L

Question 95

APICS Deck 1

cargo container capacity

Answer 95

The inside usable cubic volume of a container.C

Question 96

APICS Deck 1

linking tactical plans to strategic plans

Answer 96

production planning and sales and operations planning. See: operational planning, strategic planning, tactical plan.T

Question 97

APICS Deck 1

reservation

Answer 97

The process of designating stock for a specific order or schedule. See: allocation.R

Question 98

APICS Deck 1

direct loading

Answer 98

Syn: cross-docking.D D

Question 99

APICS Deck 1

contract labor

Answer 99

Self-employed individuals or firms contracted by an organization to perform specific services on an intermittent or short-term basis.C

Question 100

APICS Deck 1

location audit

Answer 100

A methodical verification of the location records for an item or group of items in inventory to ensure that when the record shows an item’s location, it is, in fact, in that location.L

Question 101

APICS Deck 1

NVOCC

Answer 101

Abbreviation for non-vessel-operating common carrier.N O

Question 102

APICS Deck 1

bespoke

Answer 102

A custom-made product or service. The term originally was applied to clothing, but now applies to software as well.B

Question 103

APICS Deck 1

North American Free Trade Agreement (NAFTA)

Answer 103

An agreement among the United States, Canada, and Mexico to promote economic prosperity by reducing trade barriers.N

Question 104

APICS Deck 1

semifinished goods

Answer 104

Products that have been stored uncompleted awaiting final operations that adapt them to different uses or customer specifications.S

Question 105

APICS Deck 1

engineering change order

Answer 105

Syn: engineering change.E

Question 106

APICS Deck 1

final assembly

Answer 106

The highest level assembled product, as it is shipped to customers.F

Question 107

APICS Deck 1

part standardization

Answer 107

A program for planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation.P

Question 108

APICS Deck 1

strategic deployment

Answer 108

See hoshin planning.S

Question 109

APICS Deck 1

product velocity

Answer 109

Units sold per period.P

Question 110

APICS Deck 1

finish-to-start

Answer 110

In project management, a network requirement that activity A must be finished before activity B can start. See: logical relationship.F

Question 111

APICS Deck 1

accessory

Answer 111

A choice or feature added to the good or service offered to the customer for customizing the end product. An accessory enhances the capabilities of the product but is not necessary for the basic function of the product. In many companies, an accessory means that the choice does not have to be specified before shipment but can be added at a later date. In other companies, this choice must be made before shipment. See: feature.A

Question 112

APICS Deck 1

cross-docking

Answer 112

The concept of packing products on the incoming shipments 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. Cross-docking reduces inventory investment and storage space requirements. Syn: direct loading.C

Question 113

APICS Deck 1

commodity procurement strategy

Answer 113

The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.C

Question 114

APICS Deck 1

process

Answer 114

A six sigma improvement process comprised of five stages: (1) Determine the nature of the problem, (2) Measure existing performance and commence recording data and facts that offer information about the underlying causes of the problem, (3) Study the information to determine the root causes of the problem, (4) Improve the process by effecting solutions to the problem, and (5) Monitor the process until the solutions become ingrained.D

Question 115

APICS Deck 1

break-even analysis

Answer 115

A study of the number of units, or amount of time, required to recoup an investment.B

Question 116

APICS Deck 1

line efficiency

Answer 116

A measure of actual work content versus cycle time of the limiting operation in a production line. Line efficiency (percentage) is equal to the sum of all station task times divided by the longest task time multiplied by the number of stations. In an assembly line layout, the line efficiency is 100 percent minus the balance delay percentage.L

Question 117

APICS Deck 1

lot size

Answer 117

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. Syn: order quantity.L

Question 118

APICS Deck 1

field finished goods

Answer 118

Finished goods kept in distribution centers or warehouses.F

Question 119

APICS Deck 1

intermediate part

Answer 119

Material processed beyond raw material and used in higher level items. See: component.I

Question 120

APICS Deck 1

capacity cushion

Answer 120

Extra capacity that is added to a system after capacity for expected demand is calculated. Syn: safety capacity. See: protective capacity.C

Question 121

APICS Deck 1

end-of-life management

Answer 121

Planning for the phase-out of one product and the phase-in of a new product to avoid both the excessive inventory of and an out-of-stock situation with the old product before the replacement product is available.E

Question 122

APICS Deck 1

count point

Answer 122

A point in a flow of material or sequence of operations at which parts, subassemblies, or assemblies are counted as being complete. Count points may be designated at the ends of lines or upon removal from a work center, but most often they are designated as the points at which material transfers from one department to another. Syn: pay point.C

Question 123

APICS Deck 1

TQE

Answer 123

Abbreviation for total quality engineering.T

Question 124

APICS Deck 1

overtime

Answer 124

Work beyond normal established working hours that usually requires that a premium be paid to the workers.O

Question 125

APICS Deck 1

blend formula

Answer 125

An ingredient list for a product in process industries. See: batch card, manufacturing order, mix ticket.B

Question 126

APICS Deck 1

supply chain visibility

Answer 126

The ability of supply chain partners to access demand and production information from trading partners.S

Question 127

APICS Deck 1

form-fit-function

Answer 127

A term used to describe the process of designing a part or product to meet or exceed the performance requirements expected by customers.F

Question 128

APICS Deck 1

systems view

Answer 128

A holistic approach to management that considers how actions impact the production process. Included within the system are suppliers, product design, process design, the production process, distribution, and customers.S T

Question 129

APICS Deck 1

special warranty

Answer 129

An assurance that the product is fit for the specific purpose for which the product will be used. See: general warranty, warranty.S

Question 130

APICS Deck 1

program evaluation and review technique (PERT)

Answer 130

In project management, a network analysis technique in which each activity is assigned a pessimistic, most likely, and optimistic estimate of its duration. The critical path method is then applied using a weighted average of these times for each node. PERT computes a standard deviation of the estimate of project duration. See: critical path method, graphical evaluation and review technique, and network analysis.P

Question 131

APICS Deck 1

loss leader pricing

Answer 131

Pricing some products below cost to attract customers into the store, in the expectation that they will buy other items as well.L

Question 132

APICS Deck 1

define-measure-analyze-design-verify

Answer 132

A six sigma process that outlines the steps needed to create a completely new business process or product at six sigma quality levels.D

Question 133

APICS Deck 1

tactical planning

Answer 133

The process of developing a set of tactical plans (e.g., production plan, sales plan, marketing plan). Two approaches to tactical planning exist for

Question 134

APICS Deck 1

financial forecasting

Answer 134

Estimating a firm’s future financial statements.F

Question 135

APICS Deck 1

part master record

Answer 135

Syn: item record.P

Question 136

APICS Deck 1

multiple-factor productivity

Answer 136

A measure of the productivity of two or more inputs, especially labor, capital costs, energy, and material. See: single-factor productivity.M

Question 137

APICS Deck 1

hub-and-spoke systems

Answer 137

In warehousing, a system that has a hub (or center point) where sorting or transfers occur, and the spokes are outlets serving the destinations related to the hub.H

Question 138

APICS Deck 1

plan-do-check-action (PDCA)

Answer 138

A four-step process for quality improvement. In the first step (plan), a plan to effect improvement is developed. In the second step (do), the plan is carried out, preferably on a small scale. In the third step (check), the effects of the plan are observed. In the last step (action), the results are studied to determine what was learned and what can be predicted. The plan-do-check-¬action cycle is sometimes referred to as the Shewhart cycle (because Walter A. Shewhart discussed the concept in his book Statistical Method from the Viewpoint of Quality Control) and as the Deming circle (because W. Edwards Deming introduced the concept in Japan; the Japanese subsequently called it the Deming circle). Syn: plan-do-check-act cycle, Shewhart circle of quality, Shewhart cycle. See: Deming circle.P

Question 139

APICS Deck 1

incremental cost

Answer 139

1) Cost added in the process of finishing an item or assembling a group of items. If the cost of the components of a given assembly equals $5 and the additional cost of assembling the components is $1, the incremental assembly cost is $1, while the total cost of the finished assembly is $6. 2) Additional cost incurred as a result of a decision.I

Question 140

APICS Deck 1

black belt

Answer 140

In six sigma, team leader for process improvement. Responsibilities include defining, measuring, and controlling the improvement process.B

Question 141

APICS Deck 1

ECR

Answer 141

Abbreviation for efficient consumer response.E

Question 142

APICS Deck 1

Wagner-Whitin algorithm

Answer 142

A mathematically complex, dynamic lot-sizing technique that evaluates all possible ways of ordering to cover net requirements in each period of the planning horizon to arrive at the theoretically optimum ordering strategy for the entire net requirements schedule. See: discrete order quantity, dynamic lot sizing.W

Question 143

APICS Deck 1

auxiliary item

Answer 143

An item required to support the operation of another item.A

Question 144

APICS Deck 1

finite loading

Answer 144

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. Syn: finite scheduling. See: drum-buffer-rope.F

Question 145

APICS Deck 1

EAP

Answer 145

Abbreviation for employee assistance program.E

Question 146

APICS Deck 1

grievance procedures

Answer 146

Methods identified in a collective bargaining agreement to resolve problems that develop or to determine if a contract has been violated.G

Question 147

APICS Deck 1

process flow

Answer 147

The sequence of activities that when followed results in a product or service deliverable. See flow process chart, process chart.P

Question 148

APICS Deck 1

product data management (PDM)

Answer 148

A system that tracks the configurations of parts and bills of material and also the revisions and history of product designs. It facilities the design release, distributes the design data to multiple manufacturing sites, and manages changes to the design in a closed-loop fashion. It provides the infrastructure that controls the design cycle and manages change.P

Question 149

APICS Deck 1

distribution curve

Answer 149

A graphic display of numerous data points showing the mean and frequency of occurrences of observations on a chart. See: normal distribution curve.D

Question 150

APICS Deck 1

revenue

Answer 150

The income received by a company from sales or other sources, such as stock owned in other companies.R

Question 151

APICS Deck 1

labor ticket

Answer 151

Syn: labor claim.L

Question 152

APICS Deck 1

risk adjusted discount rate

Answer 152

A discount rate that is higher for more risky projects and lower for less risky projects.R

Question 153

APICS Deck 1

flow rack

Answer 153

A storage rack using metal shelves equipped with wheels or rollers allowing product to flow from the back to the front of the rack to make the product more accessible for order picking.F

Question 154

APICS Deck 1

rack

Answer 154

A storage device for handling material in pallets. A rack usually provides storage for pallets arranged in vertical sections with one or more pallets to a tier. Some racks accommodate more than one-pallet-deep storage.R

Question 155

APICS Deck 1

lost sale

Answer 155

A potential sale that was not completed, usually due to lack of availability of the item in question.L

Question 156

APICS Deck 1

quality, cost, delivery (QCD)

Answer 156

Key measurements of customer satisfaction. Kaizen activity strives to improve these measurements.Q Q

Question 157

APICS Deck 1

intermediately positioned strategy

Answer 157

To position a warehouse halfway between the supplier and the customer.I

Question 158

APICS Deck 1

activity definition

Answer 158

The specific work to be performed that defines a project deliverable.A

Question 159

APICS Deck 1

uniform resource locator (URL)

Answer 159

A means of locating web pages regardless of where they are on the internet.U

Question 160

APICS Deck 1

straight-line schedule

Answer 160

Syn: gapped schedule.S

Question 161

APICS Deck 1

spare parts

Answer 161

Syn: service parts.S

Question 162

APICS Deck 1

brand manager

Answer 162

The person in charge of the marketing program for a given brand. Syn: product manager.B

Question 163

APICS Deck 1

protective capacity

Answer 163

The resource capacity needed to

Question 164

APICS Deck 1

database

Answer 164

A data processing file-management approach designed to establish the independence of computer programs from data files. Redundancy is minimized, and data elements can be added to, or deleted from, the file structure without necessitating changes to existing computer programs.D

Question 165

APICS Deck 1

standard components

Answer 165

Components of a finished product that are easy to manufacture and are made by many suppliers, making them more of commodity to buy at low cost.S

Question 166

APICS Deck 1

calendar time

Answer 166

The passage of days or weeks as in the definition of lead time or scheduling rules, in contrast with running time.C

Question 167

APICS Deck 1

life cycle costing

Answer 167

In evaluating alternatives, the consideration

Question 168

APICS Deck 1

centralized authority

Answer 168

Limiting the ability to make decisions to a few managers.C

Question 169

APICS Deck 1

exponential smoothing forecast

Answer 169

A type of weighted moving average forecasting technique in which past observations are geometrically discounted according to their age. The heaviest weight is assigned to the most recent data. The smoothing is termed exponential because data points are weighted in accordance with an exponential function of their age. The technique makes use of a smoothing constant to apply to the difference between the most recent forecast and the critical sales data, thus avoiding the necessity of carrying historical sales data. The approach can be used for data that exhibit no trend or seasonal patterns. Higher order exponential smoothing models can be used for data with either (or both) trend and seasonality.E

Question 170

APICS Deck 1

zone of freedom

Answer 170

Legal authority for transportation companies to charge, within limits, more than their variable costs.Z

Question 171

APICS Deck 1

disbursement list

Answer 171

Syn: picking list.D

Question 172

APICS Deck 1

demand management process

Answer 172

A process that weighs both customer demand and a firm’s output capabilities, and tries to balance the two. Demand management is made up of planning demand, communicating demand, influencing demand, and prioritizing demand.D

Question 173

APICS Deck 1

pallet positions

Answer 173

A calculation that determines the space needed for the number of pallets for inventory storage or transportation based on a standard pallet size. Pallet dimensions vary around the globe, but are typically a constant in regional markets. The term is frequently used to quote storage and transportation rates.P

Question 174

APICS Deck 1

material specification

Answer 174

An explanation of the characteristics of material to be produced or purchased.M

Question 175

APICS Deck 1

worker productivity

Answer 175

The value of total goods and services produced by an employee divided by the labor hours required to produce those goods and services.W

Question 176

APICS Deck 1

blowthrough

Answer 176

Syn: phantom bill of material.B B

Question 177

APICS Deck 1

np chart

Answer 177

A control chart for evaluating the stability of a process in terms of the total number of units in a sample in which an event of a given classification occurs. Syn: number of affected units chart.N

Question 178

APICS Deck 1

EPA

Answer 178

Abbreviation for Environmental Protection Agency.E

Question 179

APICS Deck 1

first expiry first out (FEFO)

Answer 179

A picking methodology assuring that the usage shelf life of items is optimized. Years ago, first in, first out (FIFO) was satisfactory as the F shelf-life days for items often didn’t vary and FIFO often coincided with the expiry dates. However, re-testing is frequently done to extend shelf-life dates on some lots or batches, while other lots may have typical shelf-life dates shortened because of quality or processes. Thus, FEFO was introduced by software vendors to provide this picking methodology for use with shelf-life controlled items.F

Question 180

APICS Deck 1

SCOR®

Answer 180

An acronym for Supply Chain Operations Reference-model.S

Question 181

APICS Deck 1

central processing unit (CPU)

Answer 181

The electronic processing unit of a computer, where mathematical calculations are performed.C

Question 182

APICS Deck 1

average cost system

Answer 182

In cost accounting, a method of inventory valuation for accounting purposes. A weighted average (based on quantity) of item cost is used to determine the cost of goods sold (income statement) and inventory valuation (balance sheet). Average cost provides a valuation between last-in, first-out and first-in, first-out methods. See: first in, first out; last in, first out.A

Question 183

APICS Deck 1

globalization

Answer 183

The interdependence of economies globally that results from the growing volume and variety of international transactions in goods, services, and capital, and also from the spread of new technology.G

Question 184

APICS Deck 1

EEO

Answer 184

Abbreviation for equal employment opportunity.E

Question 185

APICS Deck 1

target market

Answer 185

1) A fairly homogeneous group of customers to whom a company wishes to appeal. 2) A definable group of buyers to which a marketer has decided to market.T

Question 186

APICS Deck 1

tank inventory

Answer 186

Goods stored in tanks. These goods may be raw materials, intermediates, or finished goods. The description of inventory as tank inventory indicates the necessity of calculating the quantity on hand from the levels within the tanks.T

Question 187

APICS Deck 1

marginal utility

Answer 187

The additional usefulness and enjoyment received from consuming one more unit of a good or service.M

Question 188

APICS Deck 1

graphical user interface (GUI)

Answer 188

A connection between the computer and the user employing a mouse and icons so that the user makes selections by pointing at icons and clicking the mouse.G

Question 189

APICS Deck 1

standing order

Answer 189

Syn: blanket purchase order.S

Question 190

APICS Deck 1

promotion

Answer 190

One of the four Ps (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Promotion is the mechanism whereby information about the product offering is communicated to the customer and includes public relations, advertising, sales promotions, and other tools used to persuade customers to purchase the product offering. See: four Ps.P

Question 191

APICS Deck 1

rush order

Answer 191

An order that for some reason must be fulfilled in less than normal lead time.R S

Question 192

APICS Deck 1

channel equity

Answer 192

Important affiliations between suppliers and purchasers that improve value for everyone.C

Question 193

APICS Deck 1

supplier-owned inventory

Answer 193

A system in which the supplier not only controls the inventory, but owns it and keeps in close to the consumer until it is purchased by the consumer. Falls within the supplier managed inventory umbrella.S

Question 194

APICS Deck 1

merger

Answer 194

The acquisition of the assets and liabilities of one company by another.M

Question 195

APICS Deck 1

key supply chain processes

Answer 195

Important steps in producing, marketing, and servicing goods and services.K L

Question 196

APICS Deck 1

undertime

Answer 196

A condition occurring when more personnel are on the payroll than are required to produce the planned output.U

Question 197

APICS Deck 1

container

Answer 197

A large box in which commodities to be shipped are placed.C

Question 198

APICS Deck 1

dual sourcing

Answer 198

A method for sourcing requirements by using a few suppliers for the same products or services. See: multisourcing, multiple sourcing, single sourcing.D

Question 199

APICS Deck 1

product quality

Answer 199

Attribute that reflects the capability of a product to satisfy customers’ needs.P

Question 200

APICS Deck 1

strategic planning

Answer 200

The process of developing a strategic plan. See: operational planning, strategic plan, tactical planning.S

Question 201

APICS Deck 1

transportation

Answer 201

The function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization.T

Question 202

APICS Deck 1

statistical quality control (SQC)

Answer 202

The application of statistical techniques to control quality. Often the term statistical process control is used interchangeably with statistical quality control, although statistical quality control includes acceptance sampling as well as statistical process control.S

Question 203

APICS Deck 1

upper specification limit (USL)

Answer 203

In statistical process control, the line that defines the maximum acceptable level of random output. See: tolerance limits.U

Question 204

APICS Deck 1

time bucket

Answer 204

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. Weekly time buckets are considered to be the largest possible (at least in the near and medium term) to permit effective MRP.T

Question 205

APICS Deck 1

ES

Answer 205

Abbreviation for early start date.E

Question 206

APICS Deck 1

configuration audit

Answer 206

A review of the product against the engineering specifications to determine whether the engineering documentation is accurate, up-to-date, and representative of the components, subsystems, or systems being produced.C

Question 207

APICS Deck 1

unplanned issue

Answer 207

An issue transaction that updates the quantity on hand but for which no allocation exists.U

Question 208

APICS Deck 1

bin trips

Answer 208

Usually, the number of transactions per stockkeeping unit per unit of time.B

Question 209

APICS Deck 1

implied contract

Answer 209

A binding agreement inferred from the actions of the parties.I

Question 210

APICS Deck 1

hybrid strategy

Answer 210

Syn: hybrid production method.H

Question 211

APICS Deck 1

enterprise resources planning (ERP)

Answer 211

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.E

Question 212

APICS Deck 1

integrated services digital network (ISDN)

Answer 212

Emerging international standard for using public phone lines to transmit voice and data over the same line.I

Question 213

APICS Deck 1

warranty costs

Answer 213

All of the costs associated with a warranty; these include shipping, receiving, repairing, replacement, and the materials needed for repair or replacement.W

Question 214

APICS Deck 1

firewall

Answer 214

A device used to control access to a company’s data from the internet or other outside sources.F

Question 215

APICS Deck 1

EOQ = 1

Answer 215

Reducing setup time and inventory to the point where it is economically sound to produce in batches with a size of one. Often EOQ = 1 is an ideal to strive for, like zero defects.E

Question 216

APICS Deck 1

fishbone diagram

Answer 216

Syn: cause-and-effect diagram.F

Question 217

APICS Deck 1

equal runout method

Answer 217

Syn: equal runout quantities.E

Question 218

APICS Deck 1

product number

Answer 218

Syn: item number.P

Question 219

APICS Deck 1

price elasticity

Answer 219

The degree of change in buyer demand in response to changes in product price. It is calculated by dividing the percentage of change in quantity bought by the percentage of change of price. Prices are considered elastic if demand varies with changes in price. If demand changes only slightly when the price changes, demand is said to be inelastic. For example, demand for most medical services is relatively inelastic, but demand for automobiles is generally elastic.P

Question 220

APICS Deck 1

unit-of-measure conversion

Answer 220

A standard conversion ratio that a company or its computer system uses to quickly enter in the amount delivered based on a known quantity within each unit of measure (e.g., a case of soda contains 24 cans).U

Question 221

APICS Deck 1

industrial market

Answer 221

A market where most or all customers are individuals or businesses that buy products to produce other goods and services. Syn: business market, producer market. See: consumer market, government market, institutional market.I

Question 222

APICS Deck 1

CCR

Answer 222

Abbreviation for capacity-constrained resource.C

Question 223

APICS Deck 1

order winners

Answer 223

Those competitive characteristics that cause a firm’s customers to choose that firm’s goods and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm. Order winners usually focus on one (rarely more than two) of the following strategic initiatives: price/cost, quality, delivery speed, delivery reliability, product design, flexibility, after-market service, and image. See: order losers, order qualifiers.O

Question 224

APICS Deck 1

elasticity of demand (supply)

Answer 224

The ratio of the percentage change in quantity demanded (supplied) to the percentage change in price.E

Question 225

APICS Deck 1

manual rescheduling

Answer 225

The most common method of rescheduling open orders (scheduled receipts). Under this method, the MRP system provides information on the part numbers and order numbers that need to be rescheduled. Due dates and order quantity changes required are then analyzed and changed by material M planners or other authorized persons. Syn: planner intervention. Ant: automatic rescheduling.M

Question 226

APICS Deck 1

customer order servicing system

Answer 226

An automated system for order entry, where orders are keyed into a local terminal and a bill-of-material translator converts the catalog ordering numbers into required manufacturing part numbers and due dates for the MRP system. Advanced systems contain customer information, sales history, forecasting information, and product option compatibilicustomer C ty checks to facilitate order processing, “cleaning up” orders before placing a demand on the manufacturing system. Syn: configuration system, sales order - configuration.C

Question 227

APICS Deck 1

ISO 14000 Series Standards

Answer 227

A series of generic environmental management standards developed by the International Organization of Standardization, which provide structure and systems for managing environmental compliance with legislative and regulatory requirements and affect every aspect of a company’s environmental operations.I

Question 228

APICS Deck 1

right-to-work state

Answer 228

A state that allows workers to choose whether or not to join a union.R

Question 229

APICS Deck 1

cross plot

Answer 229

Syn: scatter chart.C

Question 230

APICS Deck 1

aggregate plan

Answer 230

A plan that includes budgeted levels of finished goods, inventory, production backlogs, and changes in the workforce to support the production strategy. Aggregated information (e.g., product line, family) rather than product information is used, hence the name aggregate plan.A

Question 231

APICS Deck 1

percent value-added time

Answer 231

The percentage of total cycle time that is spent on activities that provide value to the product or customer.P

Question 232

APICS Deck 1

systems concept

Answer 232

An attempt to create the most efficient complete system as opposed to the most efficient individual parts. A “whole process” or “whole company” operating system that is driven by cause and effect.S

Question 233

APICS Deck 1

turnaround time

Answer 233

Syn: setup.T

Question 234

APICS Deck 1

prime operations

Answer 234

Critical or most significant operations whose production rates must be closely planned.P

Question 235

APICS Deck 1

knowledge-based system

Answer 235

A computer program that employs knowledge of the structure of relations and reasoning rules to solve problems by generating new knowledge from the relationships about the subject.K

Question 236

APICS Deck 1

management by walking around (MBWA)

Answer 236

The management technique of managers touring a facility on a regular basis to talk with workers and staff about problems, trends, and potential solutions.M

Question 237

APICS Deck 1

consolidation warehouses

Answer 237

Collection points that receive less-than-truckload (LTL) shipments from regional sources and then ships in cargo load or truckload quantities to a manufacturing facility.C

Question 238

APICS Deck 1

activity driver

Answer 238

In activity-based cost accounting, a yardstick of demands placed on an activity by given cost objects. Its purpose is to assign activity costs to cost objects.A

Question 239

APICS Deck 1

sequential-sampling plan

Answer 239

Controlling quality by repeatedly sampling units and each time making a decision to accept or reject a batch or to continue sampling.S

Question 240

APICS Deck 1

financial management

Answer 240

The function concerned with ensuring the availability of funds for research and development, operations, and marketing.F

Question 241

APICS Deck 1

defects per million opportunities

Answer 241

The quantity of defects

Question 242

APICS Deck 1

system constraint

Answer 242

In supply chain management, the supply chain is viewed as the complete system. The system constraint is the resource at any one of the trading partners that is most limiting the end-to-end throughput of the supply chain.S

Question 243

APICS Deck 1

reasonable rate

Answer 243

A pricing strategy that allows a company to profit, but not to achieve monopolistic profits. Normally determined by industry pricing analysis.R R

Question 244

APICS Deck 1

performance measurement

Answer 244

Syn: performance measure.P

Question 245

APICS Deck 1

item number

Answer 245

A number that serves to uniquely identify an item. Syn: part number, product number, stock code, stock number.I

Question 246

APICS Deck 1

helper application

Answer 246

Software that assists the browser when audio, video, or large images are requested.H

Question 247

APICS Deck 1

surge tank

Answer 247

A container to hold output from one process and feed it to a subsequent process. It is used when line balancing is not possible or practical or only on a contingency basis when downstream equipment is nonoperational. S

Question 248

APICS Deck 1

yield

Answer 248

The amount of good or acceptable material available after the completion of a process. Usually computed as the final amount divided by the initial amount converted to a decimal or percentage. In manufacturing planning and control systems, yield is usually related to specific routing steps or to the parent item to determine how many units should be scheduled to produce a specific number of finished goods. For example, if 50 units of a product are required by a customer and a yield of 70 percent is expected then 72 units (computed as 50 units divided by .7) should be started in the manufacturing process. Syn: material yield. See: scrap factor, yield factor.Y

Question 249

APICS Deck 1

bill-of-material accuracy

Answer 249

The degree to which a list of specified items conforms to administrative specifications and with correct quantities.B

Question 250

APICS Deck 1

single integrator solution

Answer 250

An enterprise resources planning implementation chosen entirely from one vendor.S

Question 251

APICS Deck 1

cost of poor quality

Answer 251

The cost associated with providing poor quality products or services. There are four categories of costs: (1) internal failure costs (costs associated with defects found before the customer receives the product or service); (2) external failure costs (costs associated with defects found after the customer receives the product or service); (3) appraisal costs (costs incurred to determine the degree of conformance to quality requirements); and (4) prevention costs (costs incurred to keep failure and appraisal costs to a minimum). Syn: cost of quality.C

Question 252

APICS Deck 1

authentication key

Answer 252

In information systems, a key that ensures that data in an electronic business transaction A are not changed. It can also be used as a form of digital signature.A

Question 253

APICS Deck 1

backorder

Answer 253

An unfilled customer order or commitment. A backorder is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand. See: stockout.B B

Question 254

APICS Deck 1

pilot test

Answer 254

1) In computer systems, a test before final acceptance of a new business system using a subset of data with engineered cases and documented results. 2) Generally, production of a quantity to verify manufacturability, customer acceptance, or other management P requirements before implementation of ongoing production. Syn: pilot, walkthrough.P

Question 255

APICS Deck 1

blanket order

Answer 255

Syn: blanket purchase order.B

Question 256

APICS Deck 1

packing list

Answer 256

A list showing merchandise packed, a copy of which is sent to the consignee to help verify the shipment.P

Question 257

APICS Deck 1

shop calendar

Answer 257

Syn: manufacturing calendar.S

Question 258

APICS Deck 1

de-expedite

Answer 258

The reprioritizing of jobs to a lower level of activity. All extraordinary actions involving these jobs stop.D

Question 259

APICS Deck 1

six sigma

Answer 259

A methodology that furnishes tools for the improvement of business processes. The intent is to decrease process variation and improve product quality.S

Question 260

APICS Deck 1

scenario planning

Answer 260

A planning process that identifies critical events before they occur and use this knowledge to determine effective alternatives.S

Question 261

APICS Deck 1

network logic

Answer 261

Activity dependencies that make up a project schedule network diagram.N

Question 262

APICS Deck 1

deblend

Answer 262

The further processing of a product to adjust specific physical and chemical properties to within specification ranges.D

Question 263

APICS Deck 1

future order

Answer 263

An order entered for shipment at some future date.F

Question 264

APICS Deck 1

long ton

Answer 264

Two thousand two hundred and forty pounds.L

Question 265

APICS Deck 1

outbound logistics

Answer 265

Every process that is involved in the shipping and holding of products after they are completed until they are received by the customer.O

Question 266

APICS Deck 1

design engineering

Answer 266

The discipline consisting of process engineering and product engineering.D

Question 267

APICS Deck 1

future reality tree (FRT)

Answer 267

In the theory of constraints, a logic-based tool for constructing and testing potential solutions before implementation. The objectives are to (1) develop, expand, and complete the solution and (2) identify and solve or prevent new problems created by implementing the solution.F

Question 268

APICS Deck 1

parent/child relationship

Answer 268

Refers to the logical linkage between higher and lower level items in the bill of material.P

Question 269

APICS Deck 1

date code

Answer 269

A label on products with the date of production. In food industries, it is often an integral part of the lot number.D

Question 270

APICS Deck 1

spend analysis

Answer 270

A purchasing activity in which a firm explores its spending patterns to identify opportunities to reduce costs or improve quality. This process is a part of value analysis as well as cost-benefit analysis.S

Question 271

APICS Deck 1

one-piece flow

Answer 271

A concept that items are processed directly from one step to the next, one unit at a time. This helps to shorten lead times and lines of communication, thus more quickly identifying problems.O

Question 272

APICS Deck 1

inventory investment

Answer 272

The dollars that are in all levels of inventory.I

Question 273

APICS Deck 1

integrated logistics service providers

Answer 273

Organizations that provide one or many logistics services to a customer for a fee.I

Question 274

APICS Deck 1

organizational breakdown structure

Answer 274

In project management, a representation of a project’s organization relating work packages to organizational units.O

Question 275

APICS Deck 1

order

Answer 275

A general term that may refer to such diverse items as a purchase order, shop order, customer order, planned order, or schedule.O

Question 276

APICS Deck 1

EDIFACT

Answer 276

Abbreviation for EDI for administration, commerce, and transport.E EDI for administration, commerce, and transport

Question 277

APICS Deck 1

working capital

Answer 277

Syn: net working capital.W

Question 278

APICS Deck 1

return on assets (ROA)

Answer 278

Net income for the previous 12 months divided by total assets. See: return on owner’s equity (ROE).R

Question 279

APICS Deck 1

queuing theory

Answer 279

The collection of models dealing with waiting line problems; for example, problems for which customers or units arrive at some service facility at which waiting lines or queues may build. Syn: waiting line theory. See: queuing analysis.Q

Question 280

APICS Deck 1

cash budget

Answer 280

A budget based on planned cash receipts and disbursements of a plant, division, or firm.C

Question 281

APICS Deck 1

quotation expiration date

Answer 281

The date on which a quoted price is no longer valid.Q R

Question 282

APICS Deck 1

family

Answer 282

A group of end items whose similarity of design and manufacture facilitates their being planned in aggregate, whose sales performance is monitored together, and, occasionally, whose cost is aggregated at this level.F

Question 283

APICS Deck 1

OSHA

Answer 283

Acronym for Occupational Safety and Health Act.O

Question 284

APICS Deck 1

period order quantity

Answer 284

A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods (e.g., weeks into the future). The number of periods to order is variable, each order size equalizing the holding costs and the ordering costs for the interval. See: discrete order quantity, dynamic lot sizing.P

Question 285

APICS Deck 1

production management

Answer 285

1) The planning, scheduling, execution, and control of the process of converting inproduction P puts into finished goods. 2) A field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, inventory management, accounting, and other functions as they affect the transformation process.P

Question 286

APICS Deck 1

bulk issue

Answer 286

Parts issued from stores to work-in-process inventory, but not based on a job order. They are issued in quantities estimated to cover requirements of individual work centers and production lines. The issue may be used to cover a period of time or to fill a fixed-size container.B

Question 287

APICS Deck 1

scatter diagram

Answer 287

Syn: scatter chart.S

Question 288

APICS Deck 1

effectivity

Answer 288

Syn: effective date.E

Question 289

APICS Deck 1

integrated change control

Answer 289

In project management, a system under which any changes are coordinated across the entire project.I

Question 290

APICS Deck 1

proof of delivery

Answer 290

Carrier’s records indicating the person signing for delivery with the date, time, and other related information.P

Question 291

APICS Deck 1

distribution by value

Answer 291

Syn: ABC classification.D

Question 292

APICS Deck 1

order service

Answer 292

The function that encompasses receiving, entering, and promising orders from customers, distribution centers, and interplant operations. Order service is also typically responsible for responding to customer inquiries and interacting with the master scheduler on availability of products. In some companies, distribution and interplant requirements are handled separately. See: order entry, order promising.O

Question 293

APICS Deck 1

statistical process control (SPC)

Answer 293

The application of statistical techniques to monitor and adjust an operation. Often the term statistical process control is used interchangeably with statistical quality control.S

Question 294

APICS Deck 1

manufacturing planning and control system (MPC)

Answer 294

A closed-loop information system that includes the planning functions of production planning (sales and operations planning), master production scheduling, material requirements planning, and capacity requirements planning. Once the plan has been accepted as realistic, execution begins. The execution functions include inputoutput control, detailed scheduling, dispatching, anticipated delay reports (department and supplier), and supplier scheduling. A closed-loop MRP system is one example of a manufacturing planning and control system.M

Question 295

APICS Deck 1

MRP II

Answer 295

Abbreviation for manufacturing resource planning.M

Question 296

APICS Deck 1

PFEP

Answer 296

Abbreviation for plan for every part.P

Question 297

APICS Deck 1

cost engineer

Answer 297

An engineer whose judgment and experience are used in the application of scientific principles and techniques to problems of cost estimation and cost control in business planning, profitability analysis, project management and production planning, scheduling, and control.C

Question 298

APICS Deck 1

ISO/TS 16949

Answer 298

A standard written by the International Automotive Task Force that applies only to automotive companies. It includes quality management system; management responsibility; resource management; product realization; and measurement, analysis, and improvement. See: QS 9000.I

Question 299

APICS Deck 1

consolidation

Answer 299

Packages and lots that move from suppliers to a carrier terminal and are sorted and then combined with similar shipments from another supplier’s container load or truckload for travel to a final destination. See: milk run.C

Question 300

APICS Deck 1

customer

Answer 300

1) A person or organization receiving a good, service, or information. See: external customer, internal customer. 2) In project management, every project has a customer who may be internal or external to the organization and who is responsible for the final project acceptance.C

Question 301

APICS Deck 1

NSN

Answer 301

Abbreviation for national stock number.N

Question 302

APICS Deck 1

zero defects

Answer 302

A performance standard developed by Philip B. Crosby to address a dual attitude in the workplace: People are willing to accept imperfection in some areas, while in other areas, they expect the number of defects to be zero. This dual attitude has developed as a result of the conditioning that people are human and humans make mistakes. However, the zerodefects methodology states that if people commit themselves to watching details and avoiding errors, they can move closer to the goal of zero defects. The performance standard that must be set is “zero defects,” not “close enough.”Z

Question 303

APICS Deck 1

measures constraint

Answer 303

A common misnomer. Bad measures are not the constraint. Rather, bad measures hinder effective constraint management by inhibiting the ability to fully exploit and/or subordinate to the constraint.M

Question 304

APICS Deck 1

move time

Answer 304

The time that a job spends in transit from one operation to another in the plant.M

Question 305

APICS Deck 1

line of balance planning

Answer 305

A project planning technique using a lead-time offset chart and a chart of required final assembly completions to graph a third bar chart showing the number of each component that should be completed to date. This bar chart forms a descending line, and aggregate component completions are then plotted against this line of balance. This is a crude form of material planning.L

Question 306

APICS Deck 1

waiver

Answer 306

Authorization to accept an item that, during production or upon inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use as is or after rework.W

Question 307

APICS Deck 1

value-driven enterprise

Answer 307

An organization that is designed and managed to add utility from the viewpoint of the customer in the transformation of raw materials into a finished good or service.V

Question 308

APICS Deck 1

performance measurement baseline

Answer 308

An approved plan used to compare against actual execution to identify variances for management control.P

Question 309

APICS Deck 1

make-or-buy decision

Answer 309

The act of deciding whether to produce an item internally or buy it from an outside supplier. Factors to consider in the decision include costs, capacity availability, proprietary and/or specialized knowledge, quality considerations, skill requirements, volume, and timing.M

Question 310

APICS Deck 1

quick-response program (QRP)

Answer 310

A system of linking final retail sales with production and shipping schedules back through the chain of supply; employs point-of-sale scanning and electronic data interchange, and may use direct shipment from a factory to a retailer.Q

Question 311

APICS Deck 1

inventory diversion

Answer 311

The shipment of parts against a project or contract other than the original project or contract for which the items were purchased.I

Question 312

APICS Deck 1

to its cause. In the second phase

Answer 312

the remedial journey the team journeys from the cause to its remedy.D

Question 313

APICS Deck 1

TWM

Answer 313

Abbreviation for total waste management.T

Question 314

APICS Deck 1

demand deposits

Answer 314

Deposits that can be withdrawn on demand or paid to a third party by check.D

Question 315

APICS Deck 1

pallet rack

Answer 315

A single- or multiple-level structure for storage used to support high stacking of palletized loads.P

Question 316

APICS Deck 1

order-to-delivery cycle

Answer 316

The period of time that starts when the customer places an order and ends when the customer receives the order.O

Question 317

APICS Deck 1

replacement cost

Answer 317

A method of setting the value of inventories based upon the cost of the next purchase.R

Question 318

APICS Deck 1

duty

Answer 318

A tax levied by a government on the importation, exportation, or use and consumption of goods.D

Question 319

APICS Deck 1

process focused

Answer 319

A type of manufacturing organization in which both plant and staff management responsibilities are delineated by production process. A highly centralized staff coordinates plant activities and intracompany material movements. This type of organization is best suited to companies whose dominant orientation is to a technology or a material and whose manufacturing processes tend to be complex and capital intensive. See: product focused, process-focused organization.P

Question 320

APICS Deck 1

assemble-to-order

Answer 320

A production environment where a good or service can be assembled after receipt of a customer’s order. The key components (bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components. Syn: finish-to-order. See: make-to-order, make-to-stock.A

Question 321

APICS Deck 1

marginal analysis

Answer 321

A decision rule that optimality occurs where incremental revenue equals incremental cost.M

Question 322

APICS Deck 1

exempt positions

Answer 322

Positions that do not require the payment of overtime because they meet the tests of executive, supervisory, or administrative activity, as defined under the Fair Labor Standards Act.E

Question 323

APICS Deck 1

total cost of ownership (TCO)

Answer 323

In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership.T T

Question 324

APICS Deck 1

base demand

Answer 324

The percentage of a company’s demand that derives from continuing contracts and/or existing customers. Because this demand is well known and recurring, it becomes the basis of management’s plans. Syn: baseload demand.B

Question 325

APICS Deck 1

nonevident failure

Answer 325

Failure occurring in either a product or a production process that is not immediately evident. This may be indicative of a faulty design.N

Question 326

APICS Deck 1

family contracts

Answer 326

A purchase order that groups families of similar parts together to obtain pricing advantages and a continuous supply of material.F

Question 327

APICS Deck 1

Fair Labor Standards Act (FLSA)

Answer 327

Federal law that governs the definitions of management and labor and establishes wage payment and hours worked and other employment practices.F

Question 328

APICS Deck 1

OTED

Answer 328

Abbreviation for one-touch exchange of die.O

Question 329

APICS Deck 1

inventory returns

Answer 329

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.I

Question 330

APICS Deck 1

produce-to-order

Answer 330

Syn: make-to-order.P

Question 331

APICS Deck 1

turnkey system

Answer 331

1) Computer packages that are already prepared by a hardware manufacturer or software house and are ready to run. 2) Any system of machines that is ready for immediate use.T

Question 332

APICS Deck 1

manufacturing strategy

Answer 332

A collective pattern of decisions that acts upon the formulation and deployment of manufacturing resources. To be most effective, the manufacturing strategy should act in support of the overall strategic direction of the business and provide for competitive advantages (edges).M

Question 333

APICS Deck 1

trend component

Answer 333

A component of demand, usually describing the impact of increasing or decreasing growth on demand. See: time series analysis.T

Question 334

APICS Deck 1

master file

Answer 334

A main reference file of information, such as the item master file or work center file. See: detail file, item master file.M

Question 335

APICS Deck 1

supply chain planning

Answer 335

The determination of a set of policies and procedures that govern the operation of a supply chain. Planning includes the determination of marketing channels, promotions, respective quantities and timing, inventory and replenishment policies, and production policies. Planning establishes the parameters within which the supply chain will operate.S

Question 336

APICS Deck 1

drop-dead date

Answer 336

The last possible date to apply influence to a future activity.D

Question 337

APICS Deck 1

phantom bill of material

Answer 337

A bill-of-material coding and structuring technique used primarily for transient (nonstocked) subassemblies. For the transient item, lead time is set to zero and the order quantity to lot-for-lot. A phantom bill of material represents an item that is physically built, but rarely stocked, before being used in the next step or level of manufacturing. This permits MRP logic to drive requirements straight through the phantom item to its components, but the MRP system usually retains its ability to net against any occasional inventories of the item. This technique also facilitates the use of common bills of material for engineering and manufacturing. Syn: blowthrough, transient bill of material. See: pseudo bill of material.P

Question 338

APICS Deck 1

relevant costs

Answer 338

Those costs incurred because of a decision. The costs would not have resulted unless the decision was made and implemented. They are relevant to the decision.R

Question 339

APICS Deck 1

hybrid purchasing organization

Answer 339

A mix of the centralized

Question 340

APICS Deck 1

innovative products

Answer 340

Products that tend to have a high profit margin, be unique, have less competition, and have dynamic demand.I

Question 341

APICS Deck 1

compensation laws

Answer 341

Laws designed to pay employees for injuries sustained on the job.C

Question 342

APICS Deck 1

in-transit lead time

Answer 342

The time between the date of shipment (at the shipping point) and the date of receipt (at the receiver’s dock). Orders normally specify the date by which goods should be at the dock. Consequently, this date should be offset by in-transit lead time for establishing a ship date for the supplier.I

Question 343

APICS Deck 1

wand

Answer 343

A device connected to a bar-code reader to identify a bar code.W

Question 344

APICS Deck 1

arrival rate

Answer 344

In queuing theory, the value or distribution describing how often a person or thing arrives for service.A

Question 345

APICS Deck 1

pegging

Answer 345

In MRP and MPS, the capability to identify for a given item the sources of its gross requirements and/or allocations. Pegging can be thought of as active where-used information. See: requirements traceability.P

Question 346

APICS Deck 1

cycle

Answer 346

1) The interval of time during which a system or process, such as seasonal demand or a manufacturing operation, periodically returns to similar initial conditions. 2) The interval of time during which an event or set of events is completed.C

Question 347

APICS Deck 1

process benchmarking

Answer 347

Benchmarking focused on the target firm’s business processes, including process flows, operating systems, and process technologies. See: benchmarking.P

Question 348

APICS Deck 1

CRM

Answer 348

Abbreviation for customer relationship management and customer relations management.C

Question 349

APICS Deck 1

demand uncertainty

Answer 349

The uncertainty or variability in demand as measured by the standard deviation, mean absolute deviation (MAD), or variance of forecast errors.D

Question 350

APICS Deck 1

continuous flow (production)

Answer 350

Syn: continuous production.C

Question 351

APICS Deck 1

vendor scheduling

Answer 351

Syn: supplier scheduling.V

Question 352

APICS Deck 1

dispatch list

Answer 352

A listing of manufacturing orders in priority sequence. The dispatch list, which is usually communicated to the manufacturing floor via paper or electronic media, contains detailed information on priority, location, quantity, and the capacity requirements of the manufacturing order by operation. Dispatch lists are normally generated daily and oriented by work center. Syn: work center schedule, priority report.D

Question 353

APICS Deck 1

dispersion

Answer 353

The scattering of the observations of a frequency distribution around its average.D

Question 354

APICS Deck 1

operations

Answer 354

The group that produces the goods and/or services that a company sells.O

Question 355

APICS Deck 1

gravity models

Answer 355

An approach used for locating facilities at the “center of gravity.” Gravity is determined by the product of the masses of two bodies divided by the square of the distance between them. In gravity models, the population of each neighborhood in the region is used as the mass, and driving time is used as the distance.G

Question 356

APICS Deck 1

consideration

Answer 356

In contract law, an obligation that is to the detriment of one party (promisee) or to the benefit of the other party (promisor).C

Question 357

APICS Deck 1

final assembly department

Answer 357

The name for the manufacturing department where the product is assembled. See: blending department, pack-out department.F F

Question 358

APICS Deck 1

operation costing

Answer 358

A method of costing used in batch manufacturing environments when products produced have common, as well as distinguishing, characteristics; for example, suits. The products are identified and costed by batches or by production runs, based on the variations.O

Question 359

APICS Deck 1

differentiate its product; (3) Differentiated oligopoly

Answer 359

A few companies produce partially differentiated products or services that are marketed within a given area. Differentiation may be based on quality, features, styling, or services offered along with the product; (4)

Question 360

APICS Deck 1

electronic mail (email)

Answer 360

A technology for handling mail electronically.E

Question 361

APICS Deck 1

process chart

Answer 361

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. Syn: operations process chart. See: flow process chart, process flow.P

Question 362

APICS Deck 1

hybrid manufacturing process

Answer 362

Syn: hybrid production method.H

Question 363

APICS Deck 1

flexibility

Answer 363

1) The ability of the manufacturing system to respond quickly, in terms of range and time, to external or internal changes. Six different categories of flexibility can be considered: mix flexibility, design changeover flexibility, modification flexibility, volume flexibility, rerouting flexibility, and material flexibility (see each term for a more detailed discussion). In addition, flexibility involves concerns of product flexibility. Flexibility can be useful in coping with various types of uncertainty (regarding mix, volume, and so on). 2) The ability of a supply chain to mitigate, or neutralize, the risks of demand forecast variability, supply continuity variability, cycle time plus lead-time uncertainty, and transit time plus customs-clearance time uncertainty during periods of increasing or diminishing volume.F

Question 364

APICS Deck 1

product segments

Answer 364

The shared information between a plan-of-resources and a production rule for a specific product. It is a logical grouping of personnel resources, equipment resources, and material specifications required to carry out the production step.P

Question 365

APICS Deck 1

hoshin kanri

Answer 365

See hoshin planning.H

Question 366

APICS Deck 1

page

Answer 366

In information systems, an internet document containing both text and hypertext links to other pages that are stored on the server.P

Question 367

APICS Deck 1

task interleaving

Answer 367

An attempt at reducing/eliminating “deadheading,” or driving an empty material handling vehicle. A warehouse management system directs a material carrying vehicle to put away materials as it goes to pick up other materials.T

Question 368

APICS Deck 1

strategic performance measurements

Answer 368

Measurements that relate to the long-term goals of a business. Examples include profitability, market share, growth, and productivity. See: global performance measurements, operational performance measurements.S S

Question 369

APICS Deck 1

balance

Answer 369

1) The act of evenly distributing the work elements between the two hands performing an operation. 2) The state of having approximately equal working times among the various operations in a process, or the stations on an assembly line. See: balance delay.B

Question 370

APICS Deck 1

TMS

Answer 370

Abbreviation for transportation management system.T

Question 371

APICS Deck 1

manufacturing release

Answer 371

The issuance of a manufacturing order into the factory.M

Question 372

APICS Deck 1

mean absolute deviation (MAD)

Answer 372

The average of the absolute values of the deviations of observed values from some expected value. MAD can be calculated based on observations and the arithmetic mean of those observations. An alternative is to calculate absolute deviations of actual sales data minus forecast data. These data can be averaged in the usual arithmetic way or with exponential smoothing. See: forecast error, tracking signal.M

Question 373

APICS Deck 1

format

Answer 373

The predetermined arrangement of the characters of data for computer input, storage, or output.F

Question 374

APICS Deck 1

sequencing

Answer 374

Determining the order in which a manufacturing facility is to process a number of different jobs in order to achieve certain objectives.S

Question 375

APICS Deck 1

audit

Answer 375

An objective comparison of actions to policies and plans.A

Question 376

APICS Deck 1

market surveys

Answer 376

Questionnaires designed to get feedback from potential customers about demand for a product or service.M

Question 377

APICS Deck 1

process costing

Answer 377

A cost accounting system in which the costs are collected by time period and averaged over all the units produced during the period. This system can be used with either actual or standard costs in the manufacture of a large number of identical units.P

Question 378

APICS Deck 1

planning time fence

Answer 378

A point in time denoted in the planning horizon of the master scheduling process that marks a boundary inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries, and cost. Outside the planning time fence, customer orders may be booked and changes to the master schedule can be made within the constraints of the production plan. Changes inside the planning time fence must be made manually by the master scheduler. Syn: planning fence. See: cumulative lead time, demand time fence, firm planned order, planned order, planning horizon, time fence.P

Question 379

APICS Deck 1

incremental utilization heuristic

Answer 379

Using a worker’s full capacity by adding one task at a time (in priority order) up to the maximum capacity, or waiting for the utilization to fall and then adding more tasks.I

Question 380

APICS Deck 1

intermittent production

Answer 380

A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing. See: job shop.I I

Question 381

APICS Deck 1

custom product

Answer 381

A product that is made to meet the requirements of specific customers.C

Question 382

APICS Deck 1

fixed reorder cycle inventory model

Answer 382

A form of independent demand management model in which an order is placed every n time units. The order quantity is variable and essentially replaces the items consumed during the current time period. Let M be the maximum inventory desired at any time, and let x be the quantity on hand at the time the order is placed. Then, in the simplest model, the order quantity will be M – x. The quantity M must be large enough to cover the maximum expected demand during the lead time plus a review interval. The order quantity model becomes more complicated whenever the replenishment lead time exceeds the review interval, because outstanding orders then have to be factored into the equation. These reorder systems are sometimes called fixed-interval order systems, order level systems, or periodic review systems. Syn: fixedinterval order system, fixed order quantity system, order level system, periodic review system, time-based order system. See: fixed reorder quantity inventory model, hybrid inventory system, independent demand item management models, optional replenishment model.F

Question 383

APICS Deck 1

to become virtual organizations

Answer 383

reducing costs, improving quality, reducing delivery lead time, and improving due-date performance.B

Question 384

APICS Deck 1

standard output

Answer 384

An estimate of what should be produced, given a certain level of resources. Can be stated in units per hour or units per period (day, shift, etc.).S

Question 385

APICS Deck 1

YMS

Answer 385

Abbreviation for yard management system.Y

Question 386

APICS Deck 1

Southern Common Market (Mercosur)

Answer 386

A market/ customs alliance between Argentina, Brazil, Paraguay, and Uruguay created by the Treaty of Ascuncion (1991).S

Question 387

APICS Deck 1

gain sharing plans

Answer 387

Syn: gain sharing.G

Question 388

APICS Deck 1

master black belt

Answer 388

In six sigma, quality expert capable of implementing strategic quality efforts including teaching other facilitators (black belts) the quality applications within all levels of the organization.M

Question 389

APICS Deck 1

count frequency

Answer 389

The number of times an item in inventory is counted during a period of time. Generally, highvalue inventories are counted more frequently than lowvalue items, although properties other than value can influence the frequency.C

Question 390

APICS Deck 1

contract line items number (CLIN)

Answer 390

Specific items that are priced separately on a contract.C

Question 391

APICS Deck 1

honeycombing

Answer 391

The practice of removing a pallet of merchandise where the space is not exhausted in an orderly fashion, resulting in a vacant space not usable for storage of other items. This is one of the hidden costs of warehousing.H

Question 392

APICS Deck 1

variable

Answer 392

A quantity that can assume any of a given set of values. Ant: constant.V

Question 393

APICS Deck 1

debt

Answer 393

An amount owed to creditors. It is generally equal to the total assets in a company less the equity. See: liabilities.D

Question 394

APICS Deck 1

zone

Answer 394

1) A warehouse location methodology that includes some of the characteristics of fixed and random location methods. Zone locations hold certain kinds of items, depending on physical characteristics or frequency of use. 2) The specific warehouse location assigned to an order picker. In picking items for an order, the stock picker gets only the items for each order that are within his/her zone. The picker then fills the next order for items from his/her zone.Z

Question 395

APICS Deck 1

unit of measure

Answer 395

The unit in which the quantity of an item is managed (e.g., pounds, each, box of 12, package of 20, case of 144).U

Question 396

APICS Deck 1

project plan

Answer 396

In project management, a document that has been approved by upper management that is to be used in executing and controlling a project. It documents assumptions, facilitates communication, and documents the approved budget and schedule. It may exist at a summary or a detailed level.P

Question 397

APICS Deck 1

multimedia

Answer 397

An interactive combination of two or more of the following: text, graphics, video, audio, and animation all controlled by a personal computer.M

Question 398

APICS Deck 1

expeditor

Answer 398

A production control person whose primary duty is expediting.E

Question 399

APICS Deck 1

where-used list

Answer 399

A listing of every parent item that calls for a given component, and the respective quantity required, from a bill-of-material file. See: implosion.W

Question 400

APICS Deck 1

batch number

Answer 400

Syn: lot number.B

Question 401

APICS Deck 1

rerouting flexibility

Answer 401

Accommodating unavailability of equipment by quickly and easily using alternate machines in the processing sequence.R R

Question 402

APICS Deck 1

redundancy

Answer 402

1) A backup capability, coming either from extra machines or from extra components within a machine, to reduce the effects of breakdowns. 2) The use of one or more extra or duplicating components in a system or equipment (often to increase reliability).R

Question 403

APICS Deck 1

P chart

Answer 403

A control chart for evaluating the stability of a process in terms of the percentage of the total number of units in a sample in which an event of a given classification occurs over time. P charts are used where it is difficult or costly to make numerical measurements or where it is desired to combine multiple types of defects into one measurement. Syn: percent chart.P

Question 404

APICS Deck 1

time, all items in the order

Answer 404

in the correct quantity and

Question 405

APICS Deck 1

performance variance

Answer 405

The difference between a performance standard and actual performance.P

Question 406

APICS Deck 1

longest-task-time (LTT) heuristic

Answer 406

The method of attaching additional jobs to a workstation based on priority order, with the longest task scheduled first.L

Question 407

APICS Deck 1

trend control chart

Answer 407

A control chart in which the deviation of the subgroup average, X-bar, from an expected trend in the process level is used to evaluate the stability of a process.T

Question 408

APICS Deck 1

ubiquity

Answer 408

In inventory control, a raw material that is found at all locations.U

Question 409

APICS Deck 1

Shewhart cycle

Answer 409

Syn: plan-do-check-action.S

Question 410

APICS Deck 1

and decentralized purchasing format

Answer 410

usually decentralized at the corporate level and centralized at the business unit level.H

Question 411

APICS Deck 1

sub-tier supplier

Answer 411

A supplier who delivers a product to a direct supplier to the customer.S

Question 412

APICS Deck 1

optimization models

Answer 412

A class of mathematical models used when the modeler wishes to find the ideal (maximum or minimum) value of some objective function subject to a set of constraints.O

Question 413

APICS Deck 1

analysis of variance (ANOVA)

Answer 413

A statistical analysis system that estimates what portion of variation in a dependent variable is caused by variation in one or more independent variables. It also produces a number used to infer whether any or all of the independentdependent variable relationships have statistical significance (i.e., have not been caused by randomness in the data).A

Question 414

APICS Deck 1

product-market-focused organization

Answer 414

A firm in which individual plants are dedicated to manufacturing a specific product or product group.P

Question 415

APICS Deck 1

human relations movement

Answer 415

A movement started in the early 1900s among managers who believed that employees are humans who should be treated with respect in the workplace.H

Question 416

APICS Deck 1

remanufacturing

Answer 416

1) 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 are badly worn are replaced or serviced. 2) The manufacturing environment where worn-out products are restored to likenew condition.R

Question 417

APICS Deck 1

time and materials (T&M) contract

Answer 417

A type of contract that is a hybrid between cost-reimbursable and fixedtime contracts.T

Question 418

APICS Deck 1

foreign trade zone (FTZ)

Answer 418

Areas supervised by U.S. Customs and Border Protection that are considered to be outside U.S. territory. Material in the zone is not subject to duty taxes, which are payable when the material is moved outside the zone for consumption. There is no limit on the time material may remain in the zone. Internationally, similar areas are called free trade zones.F F

Question 419

APICS Deck 1

balancing the line

Answer 419

In repetitive manufacturing, regulating the assignments given to each workstation in order to ensure that all tasks at each workstation on the line are done in as close to the same time as possible.B

Question 420

APICS Deck 1

possession utility

Answer 420

Product desirability created by marketing efforts.P

Question 421

APICS Deck 1

WYSIWYG

Answer 421

Acronym for what you see is what you get.W X

Question 422

APICS Deck 1

marginal revenue

Answer 422

The incremental sales dollars received when the level of output of some operation is increased by one unit.M

Question 423

APICS Deck 1

loose standard

Answer 423

A standard time greater than that required by a qualified worker with normal skill and effort.L

Question 424

APICS Deck 1

MRB

Answer 424

Abbreviation for material review board.M

Question 425

APICS Deck 1

domestic corporation

Answer 425

A company incorporated in a particular state or country.D

Question 426

APICS Deck 1

IIE

Answer 426

Abbreviation for Institute of Industrial Engineers.I

Question 427

APICS Deck 1

recency, frequency, monetary (RFM)

Answer 427

Giving customers the highest rating who have bought recently, bought many times, and bought in large amounts.R

Question 428

APICS Deck 1

receiving

Answer 428

The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.R

Question 429

APICS Deck 1

service-oriented architecture (SOA)

Answer 429

A style of information technology (IT) design that guides all aspects of creating and using business services throughout their life cycles, as well as defining and provisioning the IT infrastructure that enables different computer applications to exchange data and participate in business processes, regardless of the operating systems or programming languages underlying those applications.S

Question 430

APICS Deck 1

depreciation of a currency

Answer 430

A decrease in the buying power of a country’s currency in terms of other countries’ goods and services.D

Question 431

APICS Deck 1

efficiency variance

Answer 431

In cost accounting, the difference between the actual volume of a resource used and the budgeted volume, multiplied by the budgeted or standard price.E

Question 432

APICS Deck 1

scan-based trading (SBT)

Answer 432

As an item is sold, scanned information is sent to the manufacturer and creates a replacement order of that item. Used often in large retail store chains as well as large volume product producers.S

Question 433

APICS Deck 1

master pack

Answer 433

A large, protective box used to contain smaller boxes. This reduces materials handling activities.M

Question 434

APICS Deck 1

mix ticket

Answer 434

A listing of all the raw materials, ingredients, components, and such that are required to perform a mixing, blending, or similar operation. This listing is often printed on a paper ticket, which also may be used as a turnaround document to report component quantities actually used, final quantity actually produced, etc. This term is often used in batch process or chemical industries. See: assembly parts list, batch card, blend formula, manufacturing order.M

Question 435

APICS Deck 1

automatic relief

Answer 435

A set of inventory bookkeeping methods that automatically adjusts computerized inventory records based on a production transaction. Examples of automatic relief methods are backflushing, directdeduct, and pre-deduct processing.A

Question 436

APICS Deck 1

network analysis

Answer 436

In project management, the calculation of early and late start and finish times for those activities not yet completed. See: critical path method, graphical evaluation and review technique, and program evaluation and review technique (PERT).N

Question 437

APICS Deck 1

quick asset ratio

Answer 437

A measure of a firm’s financial stability. It is defined as (current assets – inventory)/current liabilities. A value greater than one is desirable. Syn: quick ratio, acid test, acid test ratio.Q

Question 438

APICS Deck 1

rework lead time

Answer 438

The time required to rework material in-house or at a supplier’s location.R

Question 439

APICS Deck 1

lease

Answer 439

A rental agreement lasting an extended period.L

Question 440

APICS Deck 1

reactor

Answer 440

A special vessel to contain a chemical reaction.R

Question 441

APICS Deck 1

support functions

Answer 441

Activities such as accounting and information systems that do not directly participate in production but that are nevertheless essential.S

Question 442

APICS Deck 1

lot tolerance percent defective (LTPD)

Answer 442

Expressed in percent defective, the poorest quality in an individual lot that should be accepted. Note: The LTPD is used as a basis for some inspection systems and is commonly associated with a value for a small consumer’s risk.L

Question 443

APICS Deck 1

reorder quantity

Answer 443

1) In a fixed-reorder quantity system of inventory control, the fixed quantity that should be ordered each time the available stock (on-hand plus onorder) falls to or below the reorder point. 2) In a variable reorder quantity system, the amount ordered from time period to time period will vary. Syn: replenishment order quantity.R

Question 444

APICS Deck 1

project production

Answer 444

Production in which each unit or small group of units is managed by a project team created especially for that purpose.P

Question 445

APICS Deck 1

out-of-pocket costs

Answer 445

Costs that involve direct payments such as labor, freight, or insurance, as opposed to depreciation, which does not.O

Question 446

APICS Deck 1

estimate at completion (EAC)

Answer 446

Estimated cost of an activity or project when the defined scope of work will be finished. It is the actual cost-to-date plus estimate-tocomplete for uncompleted activities.E

Question 447

APICS Deck 1

c chart

Answer 447

A control chart for evaluating the stability of a process in terms of the count of events of a given classification occurring in a sample. Syn: count chart, number defective chart.C

Question 448

APICS Deck 1

production planning

Answer 448

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 levels of sales (sales plan or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times, and so on, as expressed in the overall business plan. The sales and production capabilities are compared, and a business strategy that includes a sales plan, a production plan, budgets, pro forma financial statements, and supporting plans for materials and workforce requirements, and so on, is developed. One of its primary purposes is to establish production rates that will achieve management’s objective of satisfying customer demand by maintaining, raising, or lowering inventories or backlogs, while usually attempting to keep the workforce relatively stable. Because this plan affects many company functions, it is normally prepared with information from marketing and coordinated with the functions of manufacturing, sales, engineering, finance, materials, and so on. See: aggregate planning, production plan, sales and operations planning, sales plan.P

Question 449

APICS Deck 1

job shop

Answer 449

1) An organization in which similar equipment is organized by function. Each job follows a distinct routing through the shop. 2) A type of manufacturing process used to produce items to each customer’s specifications. Production operations are designed to handle a wide range of product designs and are performed at fixed plant locations using general-purpose equipment. Syn: jobbing. See: intermittent production, project manufacturing.J

Question 450

APICS Deck 1

rate basis point

Answer 450

The center of shipping in a specific area; used to determine shipping rates.R

Question 451

APICS Deck 1

clean technology

Answer 451

A technical measure taken to reduce or eliminate at the source the production of any nuiscleanup ● collaborative planning C ance, pollution, or waste and to help save raw materials, natural resources, and energy.C

Question 452

APICS Deck 1

decoupling inventory

Answer 452

An amount of inventory kept between entities in a manufacturing or distribution network to create independence between processes or entities. The objective of decoupling inventory is to disconnect the rate of use from the rate of supply of the item. See: buffer.D

Question 453

APICS Deck 1

single exponential smoothing

Answer 453

Syn: first-order smoothing.S

Question 454

APICS Deck 1

sourcing decisions

Answer 454

High-level decisions regarding which products or services will be produced within a company and which will be purchased from external supply chain partners. These decisions normally are based on supplier cost and capability by comparison to producing the product in house.S

Question 455

APICS Deck 1

FMS

Answer 455

Abbreviation for flexible manufacturing system.F

Question 456

APICS Deck 1

perishability

Answer 456

The fact that an item has a limited shelf life and may be fragile and require special handling.P

Question 457

APICS Deck 1

intangible

Answer 457

One distinguishing feature of pure services. Pure services cannot be inventoried or carried in stock for long periods of time.I

Question 458

APICS Deck 1

first-piece inspection

Answer 458

Syn: first-article inspection.F

Question 459

APICS Deck 1

standard hours

Answer 459

Syn: standard time.S

Question 460

APICS Deck 1

workplace organization

Answer 460

The arrangement of tools, equipment, materials, and supplies according to their frequency of use. Those items that are never used are removed from the workplace, and those items that are used frequently are located for fast, easy access and Z replacement. This concept extends the idea of “a place for everything and everything in its place.”W

Question 461

APICS Deck 1

option overplanning

Answer 461

Typically, scheduling extra quantities of a master schedule option greater than the expected sales for that option to protect against unanticipated demand. This schedule quantity may only be planned in the period where new customer orders are currently being accepted, typically just after the demand time fence. This technique is usually used on the second level of a two-level master scheduling approach to create a situation where more of the individual options are available than of the overall family. The historical average of demand for an item is quantified in a planning bill of material. Option overplanning is accomplished by increasing this percentage to allow for demands greater than forecast. See: demand time fence, hedge, planning bill of material.O

Question 462

APICS Deck 1

private carrier

Answer 462

A group that provides transportation exclusively within an organization. Ant: common carrier.P

Question 463

APICS Deck 1

tender offer

Answer 463

An offer by an organization to buy a block of shares directly from shareholders of another organization.T

Question 464

APICS Deck 1

center

Answer 464

In statistics, values near the middle of results from a process.C

Question 465

APICS Deck 1

IMC

Answer 465

Abbreviation for intermodal marketing company.I

Question 466

APICS Deck 1

minimum weight

Answer 466

In transportation, the rate discount volume.M

Question 467

APICS Deck 1

avoidable delay

Answer 467

The delay controlled by a worker and therefore not allowed in the job standard.A

Question 468

APICS Deck 1

demand curve

Answer 468

A graphic description of the relationship between price and quantity demanded in a market, assuming that all other factors stay the same. Quantity demanded of a product is measured on the horizontal axis for an array of different prices measured on the vertical axis.D

Question 469

APICS Deck 1

interleaving

Answer 469

Assigning multiple tasks to be performed concurrently, often the assignment of multiple picking orders to a single picker to pick concurrently.I

Question 470

APICS Deck 1

co-product

Answer 470

A product that is usually manufactured together or sequentially because of product or process similarities. See: by-product.C

Question 471

APICS Deck 1

life testing

Answer 471

The simulation of a product’s life under controlled real-world conditions to see if it holds up and performs as required.L

Question 472

APICS Deck 1

dispatch(ing) board

Answer 472

Syn: control board.D

Question 473

APICS Deck 1

setup

Answer 473

1) 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. 2) The refitting of equipment to neutralize the effects of the last lot produced (e.g., teardown of the just-completed production, preparation of the equipment for production of the next scheduled item). Syn: changeover, turnaround, turnaround time.S

Question 474

APICS Deck 1

future worth

Answer 474

1) The equivalent monetary value at a designated future date based on the time value of money. 2) The monetary sum, at a given future time, that is equivalent to one or more sums at given earlier times when interest is compounded at a given rate. See: time value of money.F

Question 475

APICS Deck 1

production lead time

Answer 475

Syn: manufacturing lead time.P

Question 476

APICS Deck 1

material usage variance

Answer 476

The difference between the planned or standard requirements for materials to produce a given item and the actual quantity used for a particular instance of manufacture.M

Question 477

APICS Deck 1

summarized where-used

Answer 477

A form of an indented whereused bill of material that shows all parents in which a given component is used, the required quantities, and all the next-level parents until the end item is reached. Unlike the indented where-used, it does not list the levels of manufacture.S

Question 478

APICS Deck 1

compound yield

Answer 478

The cumulative effect of yield loss at multiple operations within the manufacturing cycle.C

Question 479

APICS Deck 1

vision statement

Answer 479

An organization’s statement of its vision. See: vision.V

Question 480

APICS Deck 1

pattern recognition

Answer 480

Classifying raw data based on experience or statistical information.P

Question 481

APICS Deck 1

cash flow statement

Answer 481

Syn: funds flow statement.C C

Question 482

APICS Deck 1

process sheet

Answer 482

Detailed manufacturing instructions issued to the plant. The instructions may include specifications on speeds, feed, temperatures, tools, fixtures, and machines and sketches of setups and semifinished dimensions.P

Question 483

APICS Deck 1

requisition

Answer 483

Syn: parts requisition.R

Question 484

APICS Deck 1

market segment

Answer 484

A group of potential customers sharing some measurable characteristics based on demographics, psychographics, lifestyle, geography, benefits, and so forth.M

Question 485

APICS Deck 1

certificate of analysis

Answer 485

A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody of materials.C

Question 486

APICS Deck 1

procurement credit card

Answer 486

Credit cards with a predetermined credit limit issued to buyers. Syn: corporate purchasing cards.P

Question 487

APICS Deck 1

optional replenishment model

Answer 487

A form of independent demand item management model in which a review of inventory on hand plus on order is made at fixed intervals. If the actual quantity is lower than some predetermined threshold, a reorder is placed for a quantity M – x, where M is the maximum allowable inventory and x is the current inventory quantity. The reorder point, R, may be deterministic or stochastic, and in either instance is large enough to cover the maximum expected demand during the review interval plus the replenishment lead time. The optional replenishment model is sometimes called a hybrid system because it combines certain aspects of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model. See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, hybrid inventory system, independent demand item management models.O

Question 488

APICS Deck 1

warehouses (distribution centers)

Answer 488

Facilities used to store inventory. Decisions driving warehouse management include site selection, number of facilities in the system, layout, and methods of receiving, storing, and retrieving goods.W

Question 489

APICS Deck 1

order interval

Answer 489

The time period between the placement of orders.O

Question 490

APICS Deck 1

service factor

Answer 490

Syn: safety factor.S

Question 491

APICS Deck 1

production leveling

Answer 491

Syn: level production method.P

Question 492

APICS Deck 1

integrated enterprise

Answer 492

A business or organization made up of individuals who have acquired the knowledge and skills to work with others to make the organization a greater success than the sum of each individual’s output. Integration includes increased communication and coordination between individuals and within and across teams, functions, processes, and organizations over time. See: cross-functional integration.I

Question 493

APICS Deck 1

staging

Answer 493

Pulling material for an order from inventory before the material is required. This action is often taken to identify shortages, but it can lead to increased problems in availability and inventory accuracy.S

Question 494

APICS Deck 1

order qualifiers

Answer 494

Those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace. For example, a firm may seek to compete on characteristics other than price, but in order to “qualify” to compete, its costs and the related price must be within a certain range to be considered by its customers. Syn: qualifiers. See: order losers, order winners.O

Question 495

APICS Deck 1

activity-based costing system

Answer 495

A set of activity-based cost accounting models that collectively define data on an organization’s resources, activities, drivers, objects, and measurements.A

Question 496

APICS Deck 1

indirect retail locations

Answer 496

A retailer who sells products to the public but who buys products indirectly through a third-party distributor, rather than directly from the seller.I

Question 497

APICS Deck 1

synthetic time standard

Answer 497

Syn: predetermined motion time.S

Question 498

APICS Deck 1

business cycle

Answer 498

A period of time marked by long-term fluctuations in the total level of economic activity. Measures of business cycle activity include the rate of unemployment and the level of gross domestic product.B

Question 499

APICS Deck 1

takt time

Answer 499

Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It is computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The takt time = 420 minutes per day/ 500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes. Syn: tact time.T