APICS Deck 2 OO Flashcards

Question

# APICS Deck 2 attribute data

Answer 1

Go/no-go information. The control charts based on attribute data include percent chart, number of affected units chart, count chart, count-per-unit chart, quality score chart, and demerit chart. See: attribute, attribute inspection.A

Answer 2

Syn: cumulative lead time.C

Answer 3

An order quantity modifier, applied after the lot size has been calculated, that increases the order quantity to a pre-established minimum.M

Answer 4

Syn: marketing research.M

Answer 5

A payment to stockholders either in cash or stock.D

Answer 6

To effectively participate as a supplier under just in time (JIT), a company must supply components and subassemblies in exact quantities, delivery time, and quality. Shipments are made within narrow time windows that are rigidly enforced. Virtually every component must be delivered on time and be within specifications.J

Answer 7

A source of variation in a process that can be isolated, especially when it’s significantly larger magnitude or different origin readily distinguishes it from random causes of variation. Syn: special cause. See: common causes, assignable variation.A

Answer 8

Abbreviation for drum-buffer-rope.D

Answer 9

Costs that are not directly incurred by a particular job or operation. Certain utility costs, such as plant heating, are often indirect. An indirect cost is typically distributed to the product through the overhead rates.I

Answer 10

In marketing, an organizational structure giving managers responsibility for planning and implementing marketing systems for certain product lines.C

Answer 11

The software aspect of electronic commerce. It performs activities, such as encryption, that are required to support business transactions.B

Answer 12

Labor rate variance is the sum of the actual wage rate minus the standard wage rate multiplied by the actual number of labor hours. The variance is unfavorable if the actual rate is greater than the standard rate.L

Answer 13

Syn: hybrid production method. See: chase production method, level production method.M

Answer 14

Waiting for a container or pallet to be filled before the material is moved.U

Answer 15

Services that result in few or no tangible products to the customer (e.g., education).P

Answer 16

1) A form that must be completed that describes the product returned and why it was returned. 2) A number given to authorize the acceptance of returned items. 3) Should require signatory authorization to return the goods.R

Answer 17

Syn: standard batch quantity.R

Answer 18

The function of adjusting limits or levels of capacity within relatively short periods of time, such as parts of a day, a day, or a week.S

Answer 19

A software system loosely based on how the brain works. It tries to simulate the multiple layers of elements called neurons. Each neuron is tied to several neighbors with a value that signifies the strength of the connections. Learning is accomplished by changing the values to cause the network to report appropriate results. Neural networks have been used for market forecasts and other applications.N

Answer 20

To combine a number of packages into one unit by attaching them together.U

Answer 21

The process of comparing actual to planned progress.M

Answer 22

Any unique manufactured or purchased part, material, intermediate, subassembly, or product.I

Answer 23

The total lead time required to obtain a purchased item. Included here are order preparation and release time; supplier lead time; transportation time; and receiving, inspection, and put-away time. See: lead time, supplier lead time, time-to-product.P

Answer 24

The number of working days normally required for goods to move between a shipping and receiving point, plus acceptance time in days at the receiving point.S

Answer 25

One item on an order, regardless of quantity.L

Answer 26

A bar graph that displays the results of a Pareto analysis. It may or may not display the 80-20 varPareto P iation, but it does show a distinct variation from the few compared to the many.P

Answer 27

The concept of a continuously rotating wheel of plan-do-check-action (PDCA) used to show the need for interaction among market research, design, production, and sales to improve quality. See: plan-docheck- action.D

Answer 28

Abbreviation for quality, cost, delivery.Q

Answer 29

A prescribed set of well-defined rules or processes for solving a problem in a finite number of steps (e.g., the full statement of the arithmetic procedure for calculating the reorder point).A

Answer 30

A system of predetermined motion-time standards, a procedure that analyzes and classifies the movements of any operation into certain human motions and assigns to each motion a predetermined time standard selected by the nature of the motion and the conditions under which it will be made.M

Answer 31

A technique that schedules materials before processors (equipment or capacity). This technique facilitates the efficient use of materials. MDS can be used to schedule each stage in a process flow scheduling system. MRP systems use material-dominated scheduling logic. See: processordominated scheduling.M

Answer 32

A concept developed by Vilfredo Pareto, an Italian economist, that states that a small percentage of a group accounts for the largest fraction of the impact, value, and so on. In an ABC classification, for example, 20 percent of the inventory items may constitute 80 percent of the inventory value. See: ABC classification, 80-20.P

Answer 33

Acronym for last in, first out.L

Answer 34

A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting.C

Answer 35

A customer organization with which a company has formed a customer-supplier partnership. See: outpartnering.C

Answer 36

Vehicles powered by hand, electricity, or propane for material handling activities in a warehouse. More flexible but slower and less constant than conveyors, they are not in a fixed position. Industrial trucks are the most-common form of materials handling equipment.I

Answer 37

A curve reflecting the rate of improvement in time per piece as more units of an item are made. A planning technique, the learning curve is particularly useful in project-oriented industries in which new products are frequently phased in. The basis for the learning curve calculation is that workers will be able to produce the product more quickly after they get used to making it. Syn: experience curve, manufacturing progress curve.L

Answer 38

An analysis designed to establish the practicality and cost justification of a given project and, if it appears to be advisable to do so, to determine the direction of subsequent project efforts.F

Answer 39

Variability of an action. Often measured by the range or standard deviation of a particular dimension.S

Answer 40

A schedule that includes either past due quantities or quantities that are greater than the ability to produce, given current capacity and material availability. An overstated MPS should be made feasible before MRP is run.O

Answer 41

Automation that provides short setup times and the ability to switch quickly from one product to another.F

Answer 42

Syn: transit time.T

Answer 43

Latin for “in good faith.”B

Answer 44

The system of transportation that receives, moves, and delivers materials during the production or distribution process.M

Answer 45

A method of sharing information among suppliers, buyers, and transporters to add value to the service.C

Answer 46

Abbreviation for mean time to repair.M

Answer 47

Cooperating with export rules regarding packaging and documentation.E

Answer 48

Syn: overlap quantity.O

Answer 49

Measure of a production component’s ability to work as designed to meet a level of performance.F

Answer 50

A copy of the manufacturing order that actually moves with the work through the shop. Syn: shop traveler.T

Answer 51

All manufacturing costs, other than direct labor and direct materials, that vary directly with production volume. Variable overhead is necessary to produce the product, but cannot be directly assigned to a specific product.V

Answer 52

Syn: assemble-to-order.F

Answer 53

Waste, such as chemicals or nuclear material, that is hazardous to humans or animals and requires special handling.H

Answer 54

The ability to draw conclusions based on data.S

Answer 55

A term used to contrast two types of quality activities. Prevention refers to those activities designed to prevent nonconformances in goods and services. Detection refers to those activities designed to detect nonconformances already in goods and services. Syn: designing in quality vs. inspecting in quality.P

Answer 56

The procedure of making backup copies of computer files or disks and, in case of loss of or damage to the original, using the backups to restore the files or disks. In such a case, the only work lost is that done since the backup was made.B

Answer 57

A company that introduces foreign buyers and sellers and arranges all product export/import details, documentation, and transportation.T

Answer 58

A dimension of service quality referring to caring, individualized attention from a service firm.E

Answer 59

The rate at which one currency converts to another.E

Answer 60

The speed with which inventory passes through an organization or supply chain at a given point in time as measured by inventory turnover. See: inventory turnover.I

Answer 61

A characteristic in which the focus is on the interrelated processes in a business environment. It includes the activities to transform inputs into outputs that have value.P

Answer 62

Components or assemblies that are refurbished or rebuilt to perform the original function. Syn: refurbished goods, refurbished parts.R

Answer 63

The process of identifying and purchasing the support items and determining the quantity of each support item necessary to operate and maintain a system.P

Answer 64

A specialized form of containerization in which rail, motor, and sea transport coordinate.C

Answer 65

The variables that will be changed to find the optimal solution in an optimization problem.D

Answer 66

Abbreviation for computer numerical control.C

Answer 67

A measure of project efficiency. Earned value over actual costs.C

Answer 68

In remanufacturing, a bill of material used as a guide for the inspection in the teardown and inspection process. On the basis of inspection, this bill is modified to a bill of repair defining the actual repair materials and work required. Syn: teardown bill of material. See: repair bill of material.D

Answer 69

Syn: second-order smoothing.D

Answer 70

Abbreviation for business process management.B

Answer 71

The process of determining the where-used relationship for a given component. Implosion can be single-level (showing only the parents on the next higher level) or multilevel (showing the ultimate top-level parent). See: where-used list. Ant: explosion.I

Answer 72

A Japanese word meaning “big room," a command center.O

Answer 73

A branch of accounting that uses techniques such as break-even analysis, costvolume- profit analysis, make-buy analysis, and others to provide information used in day-to-day decision making.M

Answer 74

Slang abbreviation for regeneration MRP. Pronounced “ree-jen.”R

Answer 75

A fiduciary relationship in which the trustee holds ownership for the benefit of another party (benefactor).T

Answer 76

Acronym for program evaluation and review technique.P

Answer 77

A plant that imports or acquires locally all components and then exports the finished product.O

Answer 78

Syn: chase production method.C

Answer 79

Costs such as scrap costs, calibration costs, downtime costs, and lost sales associated with preparing the resource for the next product. Syn: changeover costs, turnaround costs.S

Answer 80

Resiliency in the supply chain is the ability to return to a position of equilibrium after experiencing an event that causes operational results to deviate from expectations. Resiliency is increased by strategically increasing the number of response options and/or decreasing the time to execute those options. Resiliency is improved by risk monitoring and control.R

Answer 81

Syn: load profile.L

Answer 82

A corporate strategy that emphasizes time as the vehicle for achieving and maintaining a sustainable competitive edge. Its characteristics are (1) it deals only with those lead times that are important to the customers; (2) the leadtime reductions must involve decreases in both the mean and the variance; and (3) the lead-time reductions must be achieved through system/process analysis (the processes must be changed to reduce lead times). TBC is a broad-based strategy. Reductions in lead times are achieved by changing the processes and the decision structures used to design, produce, and deliver products to the customers. TBC involves design, manufacturing, and logistical processes.T

Answer 83

A rate pertaining to two points served by a single carrier.L

Answer 84

Classification codes that are used to categorize companies into industry groupings.S

Answer 85

A protocol that tells computers how to communicate with each other. Most internet addresses begin with http://.H

Answer 86

A procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service, and speed. Any BPR activity is distinguished by its emphasis on (1) process rather than functions and products and (2) the customers for the process.B

Answer 87

Syn: cycle time (second definition).T

Answer 88

A manufacturing step normally performed as part of a manufacturing part’s routing. Ant: alternate operation.P

Answer 89

In the total quality management philosophy, participation of the highest-level official in the organization’s quality improvement efforts. Participation includes establishing and serving on a quality committee, establishing quality policies and goals, deploying those goals to lower levels of the organization, providing the resources and training that the lower levels need to achieve the goals, participating in quality improvement teams, reviewing organization-wide progress, recognizing those who have performed well, and revising the current reward system to reflect the importance of achieving the quality goals.T

Answer 90

The establishment of a working relationship with a supplier organization whereby two organizations act as one. Syn: collaborative supply relationship.S

Answer 91

In project management, a change to a project’s scope, usually requiring an adjustment to the project’s budget and schedule.S S

Answer 92

The present (discounted) value of future earnings (operating expenses have been deducted from net operating revenues) for a given number of time periods.N

Answer 93

A refund of customs duties paid on material imported and later exported.D

Answer 94

A major study of an industry; its major competitors, customers, and suppliers; and the focus and driving forces within that industry.I

Answer 95

Abbreviation for material safety data sheet.M

Answer 96

Syn: cumulative manufacturing lead time.C

Answer 97

Abbreviation for product life cycle management.P

Answer 98

A project management technique that uses three cost or duration estimates to stand for the optimistic (O), most likely (M), and pessimistic (P) situation. The mean value (MV) is often found using MV=(O+4M+P)/6. This technique can improve the accuracy of cost or duration estimates when underlying assumptions are uncertain.T

Answer 99

In this last phase of product development, either the product is fed into the supply chain or the service is made available to consumers.L

Answer 100

In e-commerce, a web server that protects users’ messages from interception while being transmitted over the internet.S

Answer 101

If a job is finished before its due date, the difference between its completion date and the due date. See: lateness, tardiness.E

Answer 102

Use of the Pareto principle in prioritizing or ranking a range of items to separate the vital few from the trivial many.P

Answer 103

A complaint by an employee concerning alleged contract violations handled formally through contractually fixed procedures. If unsettled, a grievance may lead to arbitration.G

Answer 104

The arithmetic average of a group of values. Syn: arithmetic mean.M

Answer 105

A portion of a universe of data chosen to estimate some characteristics about the whole universe. The universe of data could consist of sizes of customer orders, number of units of inventory, number of lines on a purchase order, and so forth.S

Answer 106

One of the six sigma phases of quality. Process performance is observed, often with control charts, for steady results.C

Answer 107

Syn: learning curve.E

Answer 108

Planned shutdown of equipment or plant to perform maintenance or to adjust to softening demand.S

Answer 109

Two or more agencies of one business competing for the same customer. For example, retail, catalog, or web sales.C

Answer 110

A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item. It represents sales and marketing management’s commitment to take all reasonable steps necessary to achieve this level of actual customer orders. The sales plan is a necessary input to the production planning process (or sales and operations planning process). It is expressed in units identical to those used for the production plan (as well as in sales dollars). See: aggregate planning, production plan, production planning, sales and operations planning.S

Answer 111

A rule under which a defendant may escape liability if it can be shown that the plaintiff was negligent to some extent.C

Answer 112

In information systems, an encryption key that is known only by the sender and receiver of the message. See: public key.P P

Answer 113

Syn: past due order.L

Answer 114

The practice of using the four Ps (product, pricing, placement, and promotion) and other market variables to influence the demand of a product or service so that the demand better matches the available supply. See: four Ps.D

Answer 115

Abbreviation for schedule performance index.S

Answer 116

The concept that marketing strategy selects product, price, promotion, and channel targets in selected markets.M

Answer 117

A type of manufacturing process used for large, often unique, items or structures that require a custom design capability (engineer-to-order). This type of process is highly flexible and can cope with a broad range of product designs and design changes. Product manufacturing usually uses a fixed-position type layout. See: batch (fourth definition), continuous production, job shop (second definition), process manufacturing, project, repetitive manufacturing.P

Answer 118

Comparing the physical inventory figures with the perpetual inventory record and making any necessary corrections.R

Answer 119

A set of equations intended to be used simultaneously to capture the way in which dependent and independent variables are interrelated.E

Answer 120

A variation of the economic order quantity model in which the assumption of a single price is relaxed and there is a schedule of prices based on specific volumes. Syn: price-break model.Q

Answer 121

Syn: lot-size code.O

Answer 122

The receipt of an item as being complete and sound.A

Answer 123

Syn: return material authorization.R

Answer 124

A method of computer processing in which data are processed immediately on entry into the computer.O

Answer 125

Common stock that has been repurchased by the issuing company.T

Answer 126

Materials used in manufacturing that are not normally charged to finished production, such as cutting and lubricating oils, machine repair parts, glue, or tape. Syn: general stores, indirect materials.S

Answer 127

Syn: end item.E

Answer 128

Standards established by international standards-setting organizations to promote interoperability among operating environments.I

Answer 129

A variable, such as number of defects, that can take on only certain values (such as integers). See: continuous variable.D

Answer 130

Syn: material planner (first definition).I

Answer 131

Computer services are provided by a third party that keeps all of the software and hardware in its place of business and the company using the services accesses them via the internet. A very common technique used to outsource technological state-of-theart costs that can be avoided.S

Answer 132

A sequence of specific units to be assembled and completed at a given rate. This sequence is communicated to supply and assembly activities to perform operations and position material so that it merges with the correct assembled unit.B

Answer 133

The process of layering materials to make products and components using computer data. Syn: additive manufacturing. See: rapid prototyping.3

Answer 134

The determination of the location of a failure through the use of accessory support and diagnostic equipment.I

Answer 135

A software application used by top managers, without assistance, to access information on the current organizational status.E E

Answer 136

In a JIT system, work in process materials used to build finished goods are relieved from inventory by multiplying the number of units completed by the number of parts in the bill of material. Effective only if the bill of material is accurate and manufacturing lead times are short. See: backflushing.P

Answer 137

The amount of time, in hours, that a machine is actually running. Machine hours, rather than labor hours, may be used for planning capacity for scheduling, and for allocating costs.M

Answer 138

Syn: production rate.P

Answer 139

The value created by changing a good’s form through a production process.F

Answer 140

A type of methods study focused on therbligs, basic hand and body movements. See: therblig.M

Answer 141

The rate of compound interest at which the company’s outstanding investment is repaid by proceeds from the project.I

Answer 142

Actual demand is composed of customer orders (and often allocations of items, ingredients, or raw materials to production or distribution). Actual demand nets against or “consumes” the forecast, depending upon the rules chosen over a time horizon. For example, actual demand will totally replace forecast inside the sold-out customer order backlog horizon (often called the demand time fence) but will net against the forecast outside this horizon based on the chosen forecast consumption rule.A

Answer 143

A measure that uses the performance and importance scores for various dimensions of performance for an item or service to calculate a score that indicates the overall value of an item or service to a customer.V

Answer 144

A theorem that states that a distribution consisting of sample means can be assumed to be normally distributed, even if the population from C which the samples are drawn is not normally distributed.C

Answer 145

Syn: rework order.S

Answer 146

Syn: experimental order.E

Answer 147

The use of computer and telecommunication technologies to conduct business via electronic transfer of data and documents.E

Answer 148

A type of artificial intelligence computer system that mimics human experts by using rules and heuristics rather than deterministic algorithms.E

Answer 149

The ability to shorten machine setups between different machine operation requirements to increase process flexibility. Most concentration is on reducing external setup time first, then on internal setup issues. This reduces economic order quantity, queue and manufacturing lead times, and work in process inventory; it improves quality, process, and material flows.Q

Answer 150

Analytical methods to determine the core problem(s) of an organization, process, product, market, and so forth. See: current reality tree, five whys, stratification analysis.R

Answer 151

One of the two main conceptual components of any item inventory, the cycle stock is the most active component; the cycle stock depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. The other conceptual component of the item inventory is the safety stock, which is a cushion of protection against uncertainty in the demand or in the replenishment lead time. Syn: cycle inventory.C

Answer 152

One who appeals a court decision to higher authority.A

Answer 153

A type of accelerated depreciation. See: depreciation.D

Answer 154

A technique for evaluating a proposed design to ensure that the design (1) is supported by adequate materials and materials that are available on a timely basis, (2) will perform successfully during use, (3) can be manufactured at low cost, and (4) is suitable for prompt field maintenance.D

Answer 155

In marketing, the rate at which new customers are switching to an organization’s brand.C

Answer 156

Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, and so forth.S

Answer 157

A set of United Nations rules for electronic data interchange. These are international guidelines and standards for the electronic exchange of data regarding trade.E

Answer 158

Syn: economic order quantity.E

Answer 159

A manufacturing methodology developed at Toyota that has evolved into the concepts of just in time and lean manufacturing.T

Answer 160

Business planning that addresses the strategic needs of the organization. See: business plan, resource planning.L

Answer 161

The process of making a delivery commitment (i.e., answering the question “When can you ship?”). For make-to-order products, this usually involves a check of uncommitted material and availability of capacity, often as represented by the master schedule available-to-promise. Syn: customer order promising, order dating. See: available-to-promise, order service.O

Answer 162

A measurement of the variability of statistics such as the sample mean. See: estimate of error.S

Answer 163

A person who purchases a good or service for his or her own use (not for resale). See: customer.C

Answer 164

A procedure for building process train schedules that starts with the first stage and proceeds sequentially through the process structure until the last stage is scheduled.F

Answer 165

The process of recovering (via expensing) a capital investment over a period of time. See: capital recovery.A

Answer 166

The pricing of goods or services transferred from one segment of a business to another. See: interplant transfer.T

Answer 167

Syn: accumulation bin.A

Answer 168

A procedure to estimate the parameters defining a process. The mean and standard deviation of the process are estimated and compared to the specifications, if known. This comparison is the basis for calculating capability indexes. In addition, the form of the relative frequency distribution of the characteristic of interest may be estimated. Syn: capability study. See: process capability.P

Answer 169

Those items of cost related to the activities associated with the movement and storage of finished products. Distribution costs can include invendistribution D tory costs, transportation costs, and order processing costs.D

Answer 170

An order placed before an item has been made available for delivery.A

Answer 171

Process of buying or owning elements of the production cycle and the channel of distribution forward toward the final customer. See: vertical integration.F

Answer 172

The business function that attempts to predict sales and use of products so they can be purchased or manufactured in appropriate quantities in advance.F

Answer 173

The amount of time a plan extends into the future. For a master schedule, this is normally set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers or of key suppliers. For longer term plans the planning horizon must be long enough to permit any needed additions to capacity. See: cumulative lead time, planning time fence.P

Answer 174

The difference between total revenue and the cost of goods sold. Syn: gross profit margin.G

Answer 175

Not losing as many customers to the competition.C

Answer 176

Simple kanban structure that focuses on cycling three bins of material continually and provides a visible method to align replenishment with consumption. One bin is ready to ship from the supplier at all times, while two are back to back in manufacturing/production at or near point of use. As the front bin empties, a signal is sent to the supplier to send a full bin and the back bin is issued forward into production. See: kanban.T

Answer 177

A cost and managerial accounting system that accumulates costs and revenues

Answer 178

Scheduling processes (kanban in just in time and drum-buffer-rope in theory of constraints environments) that focus on synchronizing all operations to the constraint of the system. See: synchronized production.S

Answer 179

A uniquely identifiable subset of a material lot containing quantity and location. A sublot may be a single item.M

Answer 180

The standard hours of work required by the planned production orders.P

Answer 181

A term denoting that transportation charges have been or are to be paid at the point of shipment by the sender.P

Answer 182

A delivery scoring system that sets a target goal, usually in percent, and the deliverer tries to meet that goal of full deliveries and by the delivery date.O

Answer 183

A measure of statistical variation in a forecast. Computed by dividing each absolute forecast error by the actual demand, multiplying that by 100 to get the absolute percentage error, and computing the average.M

Answer 184

In the critical path method of project planning, working from the finish node backward through the network logic to the start node to determine the various late start dates and late finish dates. See: critical path method, forward pass.B

Answer 185

When a delivery gets to a customer at exactly the right time (not early, not late).T T

Answer 186

Syn: order point.R

Answer 187

In marketing, a measurement of how well a company creates repeat customers.R

Answer 188

An authorization that identifies the item and quantity required to be withdrawn from an inventory. Syn: requisition. See: purchase requisition.P

Answer 189

The arrangement of components as specified to produce an assembly.C

Answer 190

A value used to express the relationship between two variables, whether there is a strong or weak correlation. The coefficient of correlation varies from 0 to 1 with values close to 0 indicating no relationship, or a weak relationship, and values close to 1 indicating a strong relationship. The existence of a relationship does not prove causality.C

Answer 191

A list of commonly asked questions pertaining to a website (or perhaps software, hardware, and so on) along with the answers to these questions.F

Answer 192

An agreement between two or more firms to risk equity capital to attempt a specific business objective.J

Answer 193

The process of defining how to identify and minimize risk factors for a project.R

Answer 194

An organization, often from another industry, recognized for excellence in a specific process area. See: process benchmarking.B

Answer 195

A control technique used in aggregate inventory management in which authorizations to purchase are made without being committed to specific suppliers. These authorizations are often reviewed by management using such measures as commodity in dollars and by time period.O

Answer 196

The difference in price between the amount paid to the supplier and the planned or standard cost of that item.P

Answer 197

1) The arithmetic mean of the forecast errors. 2) The exponentially smoothed forecast error. See: bias, forecast error.A

Answer 198

Organizations that are the intermediary for shippers and intermodal rail carriers.I

Answer 199

The technique of coordinating data processing with external related physical events as they occur, thereby permitting prompt reporting of conditions. See: online service.R

Answer 200

The capability to determine the source of demand requirements through record linkages. It is used in analyzing requirements to make adjustments to plans for material or capacity. See: pegging.R

Answer 201

Abbreviation for electronic product code.E

Answer 202

In queuing theory, a unit that arrives for service, such as a person or part.A

Answer 203

A queuing system that has only one channel for arrivals to enter and only one phase to completely service the arrival.S

Answer 204

The recording and reporting of milestone manufacturing order occurrences, typically done at checkpoint locations rather than operations and easily controlled from a reporting standpoint.P

Answer 205

Abbreviation for database management system.D

Answer 206

A company with capital investments in more than a single country.M

Answer 207

The degree to which a firm has decided to directly produce multiple value-adding stages from raw material to the sale of the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated. See: backward integration, forward integration.V

Answer 208

A display of all the components directly or indirectly used in a parent, together with the quantity required of each component. If a component is a subassembly, blend, intermediate, etc., all its components and all their components also will be exhibited, down to purchased parts and raw materials.M

Answer 209

An electronic version of a paper form. These forms eliminate the cost of printing, storing, and distributing paper forms.E

Answer 210

A form of analysis useful for forecasting. The model is based on fitting sine waves with increasing frequencies and phase angles to a time series.F

Answer 211

Five terms beginning with “S” used to create a workplace suitable for lean production. Sort means to separate needed items from unneeded ones and remove the latter. Simplify means to neatly arrange items for use. Scrub means clean up the work area. Standardize means to sort, simplify, and scrub daily. Sustain means to always follow the first four Ss. Sometimes referred to by the Japanese equivalents: seiri, seiton, seiso, seiketsu, and shitsuke.F

Answer 212

A statement of ingredient requirements. A formula may also include processing instructions and ingredient sequencing directions. Syn: formulation, recipe.F

Answer 213

A part of the master production schedule in which changes can occur only rarely.F

Answer 214

A graphical technique to analyze the relationship between two variables. Two sets of data are plotted on a graph, with the y axis used for the variable to be predicted and the x axis used for the variable to make the prediction. The graph will show possible relationships (although two variables might appear to be

Answer 215

The originator of a shipment of freight.C

Answer 216

Waiting lines are subject to wide fluctuations when they first are created in a simulation model. A less variable (steady) state emerges after the line has existed for some time. Usually data are not collected from the simulation until after steady state is reached. See: transient state.S

Answer 217

A facility in which all hourly employees are unionized, or more formally a clause in a collective bargaining agreement under which membership in the union is required as a condition of employment. Union shops are illegal in some regions.U

Answer 218

Syn: relationship marketing.P

Answer 219

A top-management statement of the overall quality direction of an organization as required by ISO 9001.Q

Answer 220

A hierarchical structure that breaks resources into categories and types; can be useful for plan resource schedules, including human resources.R

Answer 221

A system using electronic tags to store data about items. Accessing these data is accomplished through a specific radio frequency and does not require close proximity or line-ofsight access for data retrieval. See: active tag, passive tag, semi-passive tag.R

Answer 222

1) The type of interest that is periodically added to the amount of investment (or loan) so that subsequent interest is based on the cumulative amount. 2) The interest charges under the condition that interest is charged on any previous interest earned in any time period, as well as on the principal.C

Answer 223

A positive representation, made by a seller, concerning the nature, character, use, and purpose of goods, that induces the buyer to buy and on which the seller intends the buyer to depend.E

Answer 224

In project management, an activity’s planned finish time, normally between the early finish time and the late finish time. It may reflect resource limitations. Syn: planned finish date.S

Answer 225

A manufacturing management philosophy that includes a consistent set of principles, procedures, and techniques where every action is evaluated in terms of the global goal of the system. Both kanban, which is a part of the JIT philosophy, and drum-buffer-rope, which is a part of the theory of constraints philosophy, represent synchronized production control approaches. Syn: synchronous manufacturing. See: drum-buffer-rope, kanban, synchronous scheduling.S

Answer 226

In project management, a comparison of planned activity time and cost to actual activity time and cost to see if a project is on schedule by time and by budget.E E

Answer 227

1) Production at a constant quantity. 2) Use of resources at a level rate, typically measured daily or more frequently.L

Answer 228

An allocation process where total fixed cost for a period is divided by total units produced in that given time period.F

Answer 229

In project management, the work required to create a product with given features and options.P

Answer 230

A fundamental assumption of MRP logic that existing open orders can be rescheduled in nearer time periods far more easily than new orders can be released and received. As a result, planned order receipts are not created until all scheduled receipts have been applied to cover gross requirements.R

Answer 231

A calendar of working days and nonworking days that shows when scheduled activities are idle. Typically, it includes holidays and weekends. See: resource calendar.P

Answer 232

A consistent deviation from the mean in one direction (high or low). A normal property of a good forecast is that it is not biased. See: average forecast error.B

Answer 233

Order quantities for items in a group that result in a supply that covers an equal time for all items. Syn: equal runout method. See: fair-share quantity logic.E

Answer 234

The total of setup and run time for a specific task. Syn: operation duration.O

Answer 235

1) In traditional management, performance measurements related to machine, worker, or department efficiency or utilization. These performance measurements are usually poorly correlated with organizational performance. 2) In theory of constraints, performance measurements that link causally to organizational performance measurements. Throughput, inventory, and operating expense are examples. See: global performance measurements, local performance measurements, strategic performance measurements.O

Answer 236

An agreement wherein each party makes a promise to the other party.B

Answer 237

A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. The intent is to minimize the combined costs of acquiring and carrying inventory. The basic formula is: quantity

Answer 238

A cost that is assignable to a given portion of a business.S

Answer 239

1) Quality control value that is either a yes/no value or is counted rather than being measured on a continuous scale. See: variable, attribute data. 2) A description of an item or service that specifies either a presence or an absence, such as “on-time” versus “late.”A

Answer 240

The costs related to problems found after the product reaches the customer. This usually includes such costs as warranty and returns.E

Answer 241

Abbreviation for International Organization for Standardization.I

Answer 242

The use of statistical methods to model the demands and lead times experienced by an inventory item or group of items. Demand during lead time and between reviews can be modeled, and reorder points, safety stocks, and maximum inventory levels can be defined to strive for desired customer service levels, inventory investments, manufacturing and distribution efficiency, and targeted returns on investments. Syn: scientific inventory control. See: fixed reorder quantity inventory model.S

Answer 243

To rush or chase production or purchase orders that are needed in less than the normal lead time; to take extraordinary action because of an increase in relative priority. Syn: stockchase.E

Answer 244

The process of determining component identities, quantities per assembly, and other parent/component relationship data for a parent item. Explosion may be single level, indented, or summarized.B

Answer 245

A comparison of all of the costs associated with making an item versus the cost of buying the item.M

Answer 246

The date when purchased material or production material is due to be available for use. Syn: expected receipt date. See: arrival date.D

Answer 247

In project management, a coordinated set of related projects usually including ongoing work.P

Answer 248

A term, used more frequently in nonmanufacturing organizations, to refer to the equipment, apparatus, and supplies used by an organization.M

Answer 249

A quality check on the first component run after a new setup has been completed. Syn: first-piece inspection.F

Answer 250

The transportation method used in a logistics system to connect the nodes of the system.L

Answer 251

The ratio of value-added time to manufacturing lead time or cycle time. Manufacturing cycle time can be improved by the reduction of manufacturing lead time by eliminating nonvalue- added activities such as inspecting, moving, and queuing.M

Answer 252

An organizational structure in which a central marketing group manages functionally divided areas, such as advertising, sales, and marketing research.C

Answer 253

An organizational technique for involving employees in continuous improvement activities. See: quality circle.S

Answer 254

A business strategy that focuses on setting a product or service apart from the competition focusing on making a product or service unique.D

Answer 255

In layout analysis, a method of choosing a facility layout based on selecting the layout with the shortest product or material travel per time period.L

Answer 256

Syn: market plan.B

Answer 257

Scheduling or holding an inventory quantity greater than the expected demand because of expected inaccuracy or volatility in the forecasted demand. See: hedge.M

Answer 258

A set of individuals from various departments assigned a specific task such as implementing new computer software. See: core team.C

Answer 259

Syn: demand lead time.C

Answer 260

The value or the number of units of an inventory item consumed over a period of time.I

Answer 261

A guarantee of satisfactory work completion that is executed in connection with a contract and that secures the performance and fulfillment of all the undertakings, covenants, terms, conditions, and agreements contained in the contract.B

Answer 262

In project management, a point connected by arrows in a network.N

Answer 263

The use of visual information to predict sales patterns, it typically involves plotting information in a graphical form. It is relatively easy to convert a spreadsheet into a graph that conveys the information visually. Trends and patterns of data are easier to spot, and extrapolation of previous demand can be used to predict future demands.G

Answer 264

A repetitive pattern of demand from year to year (or other repeating time interval) with some periods considerably higher than others. Syn: seasonal variation. See: base series.S

Answer 265

A layout of various machines in one straight line. This type of layout makes it difficult to reallocate operations among workers and machinery.L

Answer 266

The use of transducers (sensors) to monitor a process and make automatic changes in operations through the design of appropriate feedback control loops. Although such devices have historically been mechanical or electromechanical, there is now widespread use of microcomputers and centralized control.C

Answer 267

1) Abbreviation for final assembly schedule. 2) Abbreviation for free alongside ship.F

Answer 268

Syn: floor stocks.B

Answer 269

Syn: order promising.O

Answer 270

According to Genichi Taguchi, a loss to society occurs whenever a dimension of a product differs from its target value. This loss increases with the square of the deviation from the target. According to this concept, a loss to society occurs even though a dimension

Answer 271

A promotional device offering special savings when a product is purchased.C

Answer 272

In engineering, a line drawing showing the physical characteristics of a part.B

Answer 273

Centers that combine phone centers and web contact services to enable customers to contact the center 24 hours a day via phone, web, or email.C

Answer 274

That set of organizations through which a good or service passes in going from a raw state to the final consumer. See: channels of distribution, distribution channel.M

Answer 275

The process of involving the supplier in a close partnership with the firm and its operations management system. Outpartnering is characterized by close working relationships between buyers and suppliers, high levels of trust, mutual respect, and emphasis on joint problem solving and cooperation. With outpartnering, the supplier is viewed not as an alternative source of goods and services (as observed under outsourcing) but rather as a source of knowledge, expertise, and complementary core competencies. Outpartnering is typically found during the early stages of the product life cycle when dealing with products that are viewed as critical to the strategic survival of the firm. See: customer-supplier partnership, supplier partner, and customer partner.O

Answer 276

The time of completion of a project or activity. It may be planned, actual, early, late, baseline, or target.F

Answer 277

The demand for a category of products rather than for a specific brand.P

Answer 278

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

Answer 279

A Japanese word meaning hall.D

Answer 280

The process of studying data to search for previously unknown relationships. This knowledge is then applied to achieving specific business goals.D

Answer 281

An order quantity modifier, applied after the lot size has been calculated, that limits the order quantity to a pre-established maximum.M

Answer 282

A technique that teams use to generate ideas on a particular subject. Each person on the team is asked to think creatively and write down as many ideas as possible. The ideas are not discussed or reviewed until after the brainstorming session.B

Answer 283

the replacement of internal capacity and production by that of the supplier. See: subcontracting.O

Answer 284

An informal system of holding some stock in a production department. This action is taken as a protection from stockouts in the stockroom or for convenience; however, it results in increased inventory investment and possible degradation of the accuracy of the inventory records.D

Answer 285

A document attesting to a shipment’s country of origin.C

Answer 286

Introducing a product below its long-run price to secure entry into a market.P

Answer 287

The rate of production usually expressed in units, cases, or some other broad measure, expressed by a period of time (e.g., per hour, shift, day, or week). Syn: production level.P

Answer 288

Carrier charges dependent on the number of times a shipment must be loaded, handled and unloaded. Cost can be reduced by consolidating shipments into fewer parcels or by shipping in truckload quantities.T

Answer 289

A term used to indicate that a good or service fits the customer’s defined purpose for that good or service.F

Answer 290

Transformation of encrypted text into a readable format.D

Answer 291

All of the costs associated with handling returned inventory.R R

Answer 292

Syn: inventory turnover.I

Answer 293

Reducing the exposure to risk, either by its likelihood or its impact.R

Answer 294

The part of supply chain management that oversees the planning and execution of forward and reverse flow of goods and related information between points in the supply chain to meet customer requirements.L

Answer 295

Systems that record and measure the performance of key supply chain processes. With these data, employees can deperformance P termine when the key processes have changed and why they have changed. These data then are utilized to adjust the existent data.P

Answer 296

The output of the market planning process. The market plan includes the current market position, opportunity and issue analysis, marketing objectives and strategies, action plans, programs, projects, budgets, and pro forma profit and loss statement and management controls. Syn: brand plan, product plan.M

Answer 297

1) A catalog of requirements and specifications for an information system. 2) A file that stores facts about the files and databases for all systems that are currently being used or for the software involved.D

Answer 298

The location where data is transferred from a worker to a computer, or vice-versa.H

Answer 299

A specific business activity index that indicates future trends. For example, housing starts is a leading indicator for the industry that supplies builders’ hardware.L

Answer 300

Using international sources for supplies.G

Answer 301

Abbreviation for Equal Employment Opportunity Commission.E

Answer 302

A person or organization that receives a good, a service, or information but is not part of the organization supplying it. See: customer, internal customer.E

Answer 303

The interval in days between tooling calibrations.C

Answer 304

Payments arranged in connection with purchase transactions requiring periodic payments in advance of delivery for certain amounts or for certain percentages of the purchase price.P

Answer 305

Syn: work order.W

Answer 306

A collection of related data records organized in a specific manner (e.g., one record for each inventory item showing product code, unit of measure, production costs, transactions, selling price, and production lead time).D

Answer 307

Paths over which a carrier operates, including right-of-way, roadbed, tracks, and other physical facilities. May be owned by the government or privately held by the carrier or provided by nature.W

Answer 308

In project management, a set of serially related activities in a network diagram.P

Answer 309

Any lot-sizing technique that creates an order quantity subject to continuous recomputation. See: least total cost, least unit cost, part period balancing, period order quantity, Wagner-Whitin algorithm.D

Answer 310

Employer-granted compensations that are not directly tied to salary.F

Answer 311

throughput, inventory, and operating expense. It does not create incentives (through allocation of overhead) to build up inventory. The system is considered to provide a truer reflection of actual revenues and costs than traditional cost accounting. It is closer to a cash flow concept of income than is traditional accounting. The theory of constraints (TOC) accounting provides a simplified and more accurate form of direct costing that subtracts true variable costs (those costs that vary with throughput quantity). Unlike traditional cost accounting systems in which the focus is generally placed on reducing costs in all the various accounts, the primary focus of TOC accounting is on aggressively exploiting the constraint(s) to make more money for the firm. Syn: constraint accounting, throughput accounting.T

Answer 312

The time between successive replenishment orders. Syn: replenishment interval. See: review period.R

Answer 313

In an MRP system, an item for which a picking order has been released to the stockroom but not yet sent from the stockroom.A

Answer 314

Benchmarking a product or service against competitors. Syn: performance benchmarking. See: benchmarking.C

Answer 315

An assembly that is used at the next level of the bill of material to build another assembly.S

Answer 316

A multimodal transportation solution that moves goods over water and then land, with the final destination inland. See: mini-land-bridge traffic.M

Answer 317

Syn: order point.T

Answer 318

1) The function of maintaining a process within a given range of capability by feedback, correction, and so forth. 2) The monitoring of instrumentation attached to equipment (valves, meters, mixers, liquid, temperature, time, etc.) from a control room to ensure that a high-quality product is being produced to specification.P

Answer 319

In a performance measurement system, the actual value measured for the criterion. Syn: performance measurement. See: performance criterion, performance measurement system, performance standard.P

Answer 320

In numeric sequence, normally in ascending order.S

Answer 321

A card on which records of the items on hand and on order are maintained.S

Answer 322

Abbreviation for capacity planning using overall factors.C

Answer 323

A producer’s responsibility to provide 100 percent acceptable quality material to the consumer of the material. The objective is to reduce or eliminate shipping or receiving quality inspections and line stoppages as a result of supplier defects.Q

Answer 324

A method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer what-if questions. It is made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems for capacity and material. Output from these systems is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars. Manufacturing resource planning is a direct outgrowth and extension of closed-loop MRP.M

Answer 325

Syn: repair factor.F

Answer 326

The value of sales of replacement parts to external and internal customers, net of discounts and coupons.S

Answer 327

The situation wherein a principal, failing to repudiate an agent’s unauthorized conduct, is bound by the conduct.R

Answer 328

An engineering and manufacturing philosophy that identifies the physical similarity of parts (common routing) and establishes their effective production. It provides for rapid retrieval of existing designs and facilitates a cellular layout.G

Answer 329

An item for reprocessing in the remanufacturing industry.M

Answer 330

A particular statistical distribution where most of the observations fall fairly close to one mean, and a deviation from the mean is as likely to be plus as it is to be minus. When graphed, the normal distribution takes the form of a bell-shaped curve.N

Answer 331

Abbreviation for electronic commerce.E

Answer 332

The conversion of a need or innovation into a product, process, or service that meets both the enterprise and customer expectations. The design process consists of translating a set of functional requirements into an operational product, process, or service.D

Answer 333

Abbreviation for activity-on-node network.A

Answer 334

An asset (stock or bond) that may be changed for another asset at the owner’s request.C

Answer 335

In waiting line models, early behavior of a characteristic of the model, such as line length, is more erratic than eventual performance of the line. Data are usually not collected from the model until less erratic behavior emerges. See: steady state.T

Answer 336

An accounting method of assigning valuations that is generally used in industries where services are performed on a project basis. Each assignment is unique and costed without regard to other assignments. Examples are shipbuilding, construction projects, and public accounting firms. Project costing is opposed to process costing, where products to be valued are homogeneous.P

Answer 337

A company that is selected to have 100 percent of the business for a part although S alternate suppliers are available. See: sole-source supplier.S

Answer 338

In e-commerce, a measurement of how well an organization informs people who have access to the web that the organization’s website exists.A B

Answer 339

Concept of information being used by executives, managers, and employees to more effectively produce product, interface with customers, and navigate through competitive markets.K

Answer 340

A production system in which the productive equipment is organized and sequenced according to the steps involved to produce the product. This term denotes that material flow is continuous during the production process. The routing of the jobs is fixed and setups are seldom changed. Syn: continuous flow (production), continuous process, continuous manufacturing. See: mass production, project manufacturing.C

Answer 341

Parts that can be used as substitutes that differ from completely interchangeable service parts in that they require some physical modification (e.g., boring, cutting, drilling) before they can replace the original part.R

Answer 342

Delivery of goods and services where an agreement has been reached on the day and time of the delivery.T

Answer 343

Abbreviation for mean absolute percent error.M

Answer 344

(1) In quality control, sponsor of a six sigma implementation project. (2) In general, sponsor of an improvement effort.C

Answer 345

Supports the evolutionary life cycle of digital-based information and makes information dynamically updatable online; includes the ability to publish content to a repository and support access to digital-based content.C

Answer 346

A defect that prevents a thorough investigation as to the cause, or that prevents shipment of a product.B

Answer 347

The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period. Syn: forecast consumption.C

Answer 348

In project management, the total value, including overhead, of approved estimates for completed activities or portions thereof.E

Answer 349

A slang term used to refer to a low-growth, lowmarket- share product. See: growth-share matrix.D

Answer 350

The idea of performing setups in less than 10 minutes. See: single-minute exchange of die.S

Answer 351

One of the seven new tools of quality. A drawing including nodes that represent operations to be performed and arrows representing precedence relationships. This drawing represents all of the activities to be finished to complete a project. Also known as a critical path diagram or PERT chart.A

Answer 352

Syn: discontinuous demand.L M

Answer 353

A method of aggregating requirements to place deliveries of varying quantities at evenly spaced time intervals, rather than variably spaced deliveries of equal quantities.P

Answer 354

Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long-range capacity. Resource planning is normally based on the production plan but may be driven by higher level plans beyond the time horizon for the production plan (e.g., the business plan). It addresses those resources that take long periods of time to acquire. Resource planning decisions always require top management approval. Syn: resource requirements planning. See: capacity planning, long-term planning.R

Answer 355

The issuance of new shares to stockholders without requiring additional equity.S

Answer 356

1) The ratio of average strength to the worst stress expected. It is essential that the variation, in addition to the average value, be considered in design. 2) The numerical value used in the service function (based on the standard deviation or mean absolute deviation of the forecast) to provide a given level of customer service. For example, if the item MAD is 100 and a .95 customer service level (safety factor of 2.06) is desired, then a safety stock of 206 units should be carried. This safety stock must be adjusted if the forecast interval and item lead times differ. Syn: service factor. See: service function.S

Answer 357

Syn: tolerance limits.S

Answer 358

Placing manufacturer-or customer-requested stickers on the boxes of the product being sent to them. These are typically done so that the customer, typically a retailer, can more effectively track its inventory. Bar coding is commonly a part of the stickering process.S

Answer 359

A graphical display of the bill of materials and lead-time information provided by the routing for each part. The horizontal axis provides the lead time from raw materials purchase to component manufacture to assembly of the finished product.O

Answer 360

The characteristics of the product that make it transportable with ease of handling and stowability. Container concepts include packaging, monetary density, and physical density.C

Answer 361

A finite loading technique that aims to minimize possible delays to individual operations and, thus, the potential delay of each scheduled order. Eligible operations from an order or a group of orders are loaded period by period onto a work center or a group of work centers, according to operation-level priority rules. Syn: operations sequencing. See: constraint-oriented finite loading, drum-buffer-rope, order-oriented finite loading.O

Answer 362

In project management, the present estimate of an activity’s finish time.C

Answer 363

The assignment of costs that cannot be directly related to production activities via more measurable means (e.g., assigning corporate expenses to different products via direct labor costs or hours).C

Answer 364

An element of manufacturing strategy. It is the analysis of physical capacity, geography, functional needs, corporate philosophy, and product-market/process focus to systematically respond to required facility changes driven by organizational, strategic, and environmental considerations.M

Answer 365

In project management, the total value (including overhead) of approved estimates for planned activities.P

Answer 366

An educational process in which students alternate formal studies with actual on-the-job experience. Successful completion of the off-campus experience may be a prerequisite for graduation from the program of study.C

Answer 367

A receipt recorded for a shipment received or delivered at a pier or dock.D

Answer 368

A facility, function, department, or resource whose capacity is less than the demand placed upon it. For example, a bottleneck machine or work center exists where jobs are processed at a slower rate than they are demanded. Syn: bottleneck operation.B

Answer 369

The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product.M

Answer 370

The logical extension of outpartnering. With the virtual corporation, the capabilities and systems of the firm are merged with those of the suppliers, resulting in a new type of corporation where the boundaries between the suppliers’ systems and those of the firm seem to disappear. The virtual corporation is dynamic in that the relationships and structures formed change according to the changing needs of the customer.V

Answer 371

Acronym for generally accepted manufacturing practices.G

Answer 372

An organizational structure that embodies multiple organizational forms (functional, product, or geographical) simultaneously. For example, some functions may be centralized (such as finance and accounting), whereas others may be duplicated geographically (such as sales).H

Answer 373

The income before interest and taxes are subtracted. Syn: earnings before interest and taxes.N

Answer 374

A listing of the required capacity and key resources needed to manufacture one unit of a selected item or family. The resource requirements are further defined by a lead-time offset to predict the impact of the product on the load of the key resources by specific time period. The product load profile can be used for rough-cut capacity planning to calculate the approximate capacity requirements of the master production schedule. See: bill of resources, resource profile, rough-cut capacity planning.P

Answer 375

A set of companies providing a product or service where each company’s offering is a close substitute for its competitors’ offerings.I

Answer 376

The process of scheduling (and rescheduling) the start and finish dates of operations (or activities) to achieve a consistent rate of resource usage so that resource requirements do not exceed resource availability for a given time period. Syn: leveling.R

Answer 377

Syn: work in process.I

Answer 378

1) The person normally responsible for managing the inventory levels, schedules, and availability of selected items, either manufactured or purchased. Syn: inventory planner. 2) In an MRP system, the person responsible for reviewing and acting on order release, action, and exception messages from the system. Syn: parts planner, planner.M

Answer 379

Establishing price at some markup over the full cost (absorption costing). Full costing includes direct manufacturing as well as applied overhead.F

Answer 380

In activity-based cost accounting, a continuing definition of activity and resource requirements (for both financial and operational systems) based on future demand for products or services by specific customer needs. Demand for resources is related to resource availability; capacity overages and shortfalls are corrected. Activity-based budgeting derives from the outputs of ABP.A

Answer 381

The value of the tolerance specified for the characteristic divided by the process capability. There are several types of process capability indices, including the widely used Cpk and Cp.P P

Answer 382

The termination of a debt obligation by appropriate settlement with the lender. Understood to be in full amount unless partial settlement is specified.R

Answer 383

Syn: procurement lead time.T

Answer 384

A term that states that a productive workplace is found through cleanliness. See: five Ss.S

Answer 385

A need for a particular product or component. The demand could come from any number of sources (e.g., a customer order or forecast, an interplant requirement, a branch warehouse request for a service part or the manufacturing of another product). At the finished goods level, demand data are usually different from sales data because demand does not necessarily result in sales (i.e., if there is no stock, there will be no sale). There are generally up to four components of demand: cyclical component, random component, seasonal component, and trend component. See: booked orders.D

Answer 386

A term of sale indicating the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used F by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship’s receipt of goods.F

Answer 387

Syn: manufacturer’s representative. M

Answer 388

A charge made against a company because of loss or damage.C

Answer 389

A defined location next to the place of use on a production floor. Materials are brought to the stockpoint as needed and taken from it for immediate use. Inbound stockpoints are used with a pull system of material control.I

Answer 390

The determination of usage of components or ingredients in a manufacturing process by multiplying the receipt quantity of a parent by the quantity per of each component or ingredient in the bill or recipe, accommodating standard yields.C

Answer 391

The common practice in total quality management is to ask “why” five times when confronted with a problem. By the time the answer to the fifth “why” is found, the ultimate cause of the problem is identified. Syn: five Ws. See: root cause analysis.F

Answer 392

The costs incurred in the operation of a business that cannot be directly related to the individual goods or services produced. These costs, such as light, heat, supervision, and maintenance, are grouped in several pools (e.g., department overhead, factory overhead, general overhead) and distributed to units of goods or services by some standard allocation method such as direct labor hours, direct labor dollars, or direct materials dollars. Syn: burden. See: expense.O

Answer 393

A manufacturer that buys and incorporates another supplier’s products into its own products. Also, products supplied to the original equipment manufacturer or sold as part of an assembly. For example, an engine may be sold to an OEM for use as that company’s power source for its generator units.O

Answer 394

Syn: lot splitting.O

Answer 395

The performance of a contract good enough for the contractor to be paid full price less the other party’s losses.S

Answer 396

The time allowed a customer to receive a cash discount for timely payment of an invoice.D

Answer 397

A form of cross-docking in which the incoming shipments are from a single source or manufacturer.B

Answer 398

Syn: queuing theory.W

Answer 399

A production planning method that maintains a stable production rate while varying inventory levels to meet demand. Syn: level strategy, production leveling. See: level schedule.L

Answer 400

Finished goods inventory held in plant rather than being shipped to a customer.P

Answer 401

A structured listing of all labor requirements for the fabrication, assembly, and testing of a parent item. See: bill of resources, capacity bill procedure, routing.B

Answer 402

Capacity, such as labor or tools, that can be changed in the short term.A

Answer 403

In purchasing, a process by which a firm seeks to identify and quantify all of the major costs associated with various sourcing options.T

Answer 404

Obtaining data from a source, such as a database, and communicating that data to another database or a data warehouse.D

Answer 405

1) Syn: worker efficiency. 2) The average of worker efficiency for all direct workers in a department or facility.L

Answer 406

A graphical technique that illustrates how a process is performing over time. By statistically analyzing a run chart, a process can be determined to be under or out of control. The most common types of data used to construct the charts are ranges, averages, percentages/counts, and individual process attributes (e.g., temperature). Syn. run diagram. See: C chart, P chart, R chart, U chart, X-bar chart.R

Answer 407

The characteristic to be measured (e.g., parts per million defective, business profit). See: performance measure, performance measurement system, performance standard.P

Answer 408

A device following a fixed route that has the capability of moving material between points in a facility. This device commonly is used when there is a high volume of flow along the route.C

Answer 409

A system that can use various means, including bar code scanning and radio frequencies, to sense and load data in a computer.A

Answer 410

In process systems development, work flows from one workstation to another at a nearly constant rate and with no delays. When producing discrete (geometric) units, the process is called repetitive manufacturing; when producing non-geometric units over time, the process is called continuous manufacturing. A physical-chemical reaction takes place in the continuous flow process.F

Answer 411

A system implementation technique whereby the current system and the new system are both executed for some period of time. The results of the two systems are compared to ensure that the new system is executing properly. When a level of confidence is built that the new system is executing properly, the old system is turned off and the new system becomes the designated business system.P

Answer 412

A continuous probability distribution where the logarithms of the variable are normally distributed.L

Answer 413

Within manufacturing, a plan for inventory, product design, and production process.P

Answer 414

In transportation, the publication of a freight rate that differs from that of the rate bureau to which the publisher is a member. This is a permitted action.I

Answer 415

Syn: safety lead time.P P

Answer 416

A standard succession of values of demand-over-time data used in forecasting seasonal items. This series of factors is usually based on the relative level of demand during the corresponding period of previous years. The average value of the base series over a seasonal cycle will be 1.0. A figure higher than 1.0 indicates that the demand for that period is more than the average; a figure less than 1.0 indicates less than the average. For forecasting purposes, the base series is superimposed upon the average demand and trend in demand for the item in question. Syn: base index. See: seasonal index, seasonality.B

Answer 417

The process of organizing bills of material to perform specific functions.B

Answer 418

1) In the narrow sense, an accumulation of inventory between operations that serves to keep a subsequent operation running although there are interruptions in the preceding operations. See: buffer. 2) In the larger sense, a stockroom or warehouse. The implication is that the contents of these areas should be controlled like the contents of a bank.P

Answer 419

The manufacturing activity of identifying and maintaining an orderly environment for preventing errors and contamination in the manufacturing process.H

Answer 420

1) Compensation rules concerning such issues as overtime, vacation, and shift premiums. 2) Employee and employer job rights and obligation rules, such as performance standards, promotion procedures, job descriptions, and layoff rules. Work rules are usually a part of a union contract and may include a code of conduct for workers and language to ensure decent conditions and health standards.W

Answer 421

The weight of a substance, obtained by deducting the weight of the empty container from the gross weight of the full container.T

Answer 422

In statistical process control, charting the line that defines the minimum acceptable level of random output. See: tolerance limits.L

Answer 423

A common name encompassing both the internet and other forms of electronic communication.C

Answer 424

A generic term for a variety of services provided over the internet. These services include customer service and technical support.I

Answer 425

Abbreviation for return on owner’s equity.R

Answer 426

Syn: production reporting and status control.M

Answer 427

A generalized method for planning equipment usage and material requirements that uses the process structure to guide scheduling calculations. It is used in flow environments common in process industries.P

Answer 428

The act of lowering the cost of goods or services by securing a lower price, reducing labor costs, and so forth. In cost reduction, the item usually is not changed, but the circumstances around which the item

Answer 429

In the theory of constraints, a process to continuously improve organizational profit by evaluating the production system and market mix to determine how to make the most profit using the system constraint. The steps consist of (1) identifying the constraint to the system, (2) deciding how to exploit the constraint to the system, (3) subordinating all nonconstraints to the constraint, (4) elevating the constraint to the system, (5) returning to step 1 if the constraint is broken in any previous step, while not allowing inertia to set in.F

Answer 430

A multiplier that is used for the rounding rules in determining the number of batches required to produce a given amount of product.B

Answer 431

The ratio of dividends per share over stock price.D

Answer 432

Syn: routing.M

Answer 433

An output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem. Examples of action messages in an MRP system include release order, reschedule in, reschedule out, and cancel. Syn: exception message, action report.A

Answer 434

A good or goods in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory. Many accounting systems also include the value of semifinished stock and components in this category. Syn: in-process inventory.W

Answer 435

An equipment scheduling technique that builds a schedule by proceeding sequentially from the initial period to the final period while observing capacity limits. A Gantt chart may be used with this technique. See: finite loading.F

Answer 436

Abbreviation for Certified Supply Chain Professional.C

Answer 437

1) A span of time required to perform a process (or series of operations). 2) In a logistics context, the time between recognition of the need for an order and the receipt of goods. Individual components of lead time can include order preparation time, queue time, processing time, move or transportation time, and receiving and inspection time. Syn: total lead time. See: manufacturing lead time, purchasing lead time.L

Answer 438

Abbreviation for quality function deployment.Q

Answer 439

In warehousing, the consolidation of several units into larger units for fewer handlings.U

Answer 440

A Japanese word meaning getting a group to agree on a strategy before beginning to implement it.N

Answer 441

A way to measure the transportation of freight. It is the multiplication of weight being transported (in tons) by the distance it is being transported (in miles). Heavily used in rail and ship transportation mode.T

Answer 442

The money awarded a plaintiff, not as payment for the plaintiff ’s losses, but as punishment for the defendant’s conduct.P

Answer 443

The ability to successfully manufacture and market a broad range of low-cost, high-quality products and services with short lead times and varying volumes that provide enhanced value to customers through cusAGVS ● analog A tomization. Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility.A

Answer 444

Abbreviation for annual percentage rate.A

Answer 445

Abbreviation for accredited standards committee.A

Answer 446

Abbreviation for accidental death and disability.A

Answer 447

Syn: labor claim.L

Answer 448

An office, with moveable partitions and furniture, that deemphasizes the compartmentalization of people.O

Answer 449

A layout in which machine groups are arranged to process families of parts with similar characteristics. G

Answer 450

A computerized system that processes financial transactions and information about these transactions or performs the exchange of value between two parties.E electronic invoice presentment and payment (EIPP) Accepting and sending invoices and payments over the internet.E

Answer 451

An inventory valuation method in which only variable production costs are applied to the product; fixed factory overhead is not assigned to the product. Traditionally, variable production costs are direct labor, direct material, and variable overhead costs. Variable costing can be helpful for internal management analysis but is not widely accepted for external financial reporting. For inventory order quantity purposes, however, the unit costs must include both the variable and allocated fixed costs to be compatible with the other terms in the order quantity formula. For make-orbuy decisions, variable costing should be used rather than full absorption costing. Syn: direct costing.V

Answer 452

Use of specialized machines to manufacture and assemble products. Each machine is normally dedicated to one function, such as milling.H H

Answer 453

Syn: transformation process.T

Answer 454

A term coined to describe Japanese-style management approaches to quality improvement. Since then, total quality management (TQM) has taken on many meanings. Simply put, TQM is a management approach to long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work. The methods for implementing this approach are found in teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, J.M. Juran, and Genichi Taguchi.T

Answer 455

A mechanized method of collecting data involving the reading of handprinted material or special character fonts. If handwritten, the information must adhere to predefined rules of size, format, and locations on the form.O

Answer 456

Syn: master budget.S

Answer 457

Using an outside party (rather than the buyer) to determine the adequacy of a seller’s product quality. If several buyers use the same third party system, such as ISO9000, the seller avoids having multiple audits.T

Answer 458

Law flowing from judicial decisions over the years rather than from legislative action.C

Answer 459

The visible segment of the organizational culture, such as policies and procedures, mission statement, and dress codes. See: informal culture.F

Answer 460

A method of encoding data using bar code for fast and accurate readability.B

Answer 461

Syn: input/output control.I

Answer 462

Information about the correct sample size and maximum defective quantity in a sample to satisfy lot acceptance; a quality control measurement.D

Answer 463

Goods whose serviceability is generally limited to a period of less than three years (such as perishable goods and semidurable goods).N

Answer 464

The physical issuance and reporting of the movement of raw material, components, or other items from a stores room or warehouse. Taking a part out of inventory. See: issue.D

Answer 465

A type of layout where the good or product is stationary and the workers come to the site to work on it.P

Answer 466

A large manufacturer or retailer doing business with many trading partners.H

Answer 467

Replacement for a normal step in the manufacturing process. Ant: primary operation.A

Answer 468

A two-phase investigation used by teams to solve chronic quality

Answer 469

Abbreviation for return material authorization.R

Answer 470

The total amount charged to all customers during the accounting time period.G

Answer 471

Combining shipments from several vendors at an intermediate point of shipment and delivering the combined load to the customer.M

Answer 472

A technique for calculating operation start dates and due dates. The schedule is computed starting with the due date for the order and working backward to determine the required start date and/or due dates for each operation. Syn: backward scheduling. Ant: forward scheduling.B

Answer 473

An individual who is assigned to do cycle counting.C

Answer 474

An allowance or deduction granted by the seller to the buyer, usually when the buyer meets certain stipulated conditions that reduce the price of the products purchased. A quantity discount is an allowance determined by the quantity or value of the purchase. A cash discount is an allowance extended to encourage payment of an invoice on or before a stated date. A trade discount is a deduction from an established price for goods or services made by the seller to those engaged in certain businesses. See: price break.D

Answer 475

A device to hold and locate a work piece during inspection or production operations. See: jig.F F

APICS Deck 2 OO Flashcards

Learning - APICS Terms