APICS Deck 3 OO

Question 1

APICS Deck 3

Term

Answer 1

Definition

Question 2

APICS Deck 3

population

Answer 2

The entire set of items from which a sample is drawn.P

Question 3

APICS Deck 3

time and attendance

Answer 3

A collection of data relating to an employee’s record of absences and hours worked.T

Question 4

APICS Deck 3

bill of activities

Answer 4

In activity-based cost accounting, a summary of activities needed by a product or other cost object. The bill of activities includes volume and cost of each activity.B

Question 5

APICS Deck 3

MBNQA

Answer 5

Abbreviation for the Malcolm Baldrige National Quality Award.M

Question 6

APICS Deck 3

material requisition

Answer 6

This is the first step to placing a replenishment order; initiated by the material user.M

Question 7

APICS Deck 3

confidence limit

Answer 7

The bounds of an interval. A probability can be given for the likelihood that the true value will lie between the confidence limits.C

Question 8

APICS Deck 3

equivalent unit cost

Answer 8

A method of costing that uses the total cost incurred for all like units for a period of time divided by the equivalent units completed during the same time period.E E

Question 9

APICS Deck 3

channel integration

Answer 9

Strengthening relationships up and down the supply chain from suppliers’ suppliers to customers’ customers.C

Question 10

APICS Deck 3

special-purpose machinery

Answer 10

Machines that are designed to perform a small number of activities. They are not as flexible as general purpose machinery but they may be faster and more accurate.S

Question 11

APICS Deck 3

blocked operation

Answer 11

An upstream work center that is not permitted to produce because of a full queue at a downstream work center or because no kanban authorizes production.B

Question 12

APICS Deck 3

black box design

Answer 12

When suppliers or company functions are given general design guidelines and are requested to complete the technical details.B

Question 13

APICS Deck 3

denied party list

Answer 13

A list of organizations that are unauthorized to submit a bid for an activity.D

Question 14

APICS Deck 3

bleeding edge

Answer 14

An innovative process that may be unusual enough to pose a risk to the customer or client.B

Question 15

APICS Deck 3

materials system

Answer 15

Connecting material flows contained in a production system.M

Question 16

APICS Deck 3

storage costs

Answer 16

A subset of inventory carrying costs, including the cost of warehouse utilities, material handling personnel, equipment maintenance, building maintenance, and security personnel.S

Question 17

APICS Deck 3

focus strategy

Answer 17

Targeting a narrow market with specialized goods or services.F

Question 18

APICS Deck 3

SPT

Answer 18

Abbreviation for shortest processing time rule.S

Question 19

APICS Deck 3

lot number control

Answer 19

Assignment of unique numbers to each instance of receipt and carrying forth that number into subsequent manufacturing processes so that, in review of an end item, each lot consumed from raw materials through end item can be identified as having been used for the manufacture of this specific end item lot.L

Question 20

APICS Deck 3

number of affected units chart

Answer 20

Syn: np chart.N

Question 21

APICS Deck 3

replacement cost systems

Answer 21

A method of inventory valuation that assigns an item cost based on the next item price incurred.R

Question 22

APICS Deck 3

parallel conversion

Answer 22

A method of system implementation in which the operation of the new system overlaps with the operation of the system being replaced. The old system is discontinued only when the new system is shown to be working properly, thus minimizing the risk and negative consequences of a poor system implementation.P

Question 23

APICS Deck 3

manufacturing process development

Answer 23

The definition and implementation of an execution system for making a part, good, or service that is consistent with the objectives of the firm.M

Question 24

APICS Deck 3

poka-yoke (mistake-proof)

Answer 24

Mistake-proofing techniques, such as manufacturing or setup activity designed in a way to prevent an error from resulting in a product defect. For example, in an assembly operation, if each correct part is not used, a sensing device detects that a part was unused and shuts down the operation, thereby preventing the assembler from moving the incomplete part to the next station or beginning another operation. Sometimes spelled poke-yoke. Syn: failsafe techniques, failsafe work methods, mistake-proofing.P

Question 25

# APICS Deck 3 fixed-position layout

Answer 25

A factory layout that plans for the product to be in a set place; the people, machines, and tools are brought to and from the product.F

Question 26

# APICS Deck 3 fiduciary

Answer 26

One having the duty to act on another’s behalf in a trustworthy and confidential fashion.F

Question 27

# APICS Deck 3 overlapped production

Answer 27

A method of production in which completed pieces of a production lot are processed at one or more succeeding stations while remaining pieces continue to be processed at the original workstation. See: overlapped schedule.O

Question 28

# APICS Deck 3 depreciation

Answer 28

An allocation of the original value of an asset against current income to represent the declining value of the asset as a cost of that time period. Depreciation does not involve a cash payment. It acts as a tax shield and thereby reduces the tax payment. See: capital recovery, depletion, double-decliningbalance depreciation, straight line depreciation, unitsof- production depreciation.D

Question 29

# APICS Deck 3 certified supplier

Answer 29

A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.C

Question 30

# APICS Deck 3 point of sale (POS)

Answer 30

The relief of inventory and computation of sales data at the time and place of sale, generally through the use of bar coding or magnetic media and equipment.P

Question 31

# APICS Deck 3 seasonal adjustment

Answer 31

Syn: seasonal index.S

Question 32

# APICS Deck 3 production validation

Answer 32

Demonstrating that a production process will consistently lead to the expected results.P

Question 33

# APICS Deck 3 timetables

Answer 33

Schedules that are organized by starting location/destination and show the times for departures and arrivals.T

Question 34

# APICS Deck 3 smallest processing time rule

Answer 34

Syn: shortest processing time rule.S

Question 35

# APICS Deck 3 seasonal variation

Answer 35

See: seasonality.S

Question 36

# APICS Deck 3 production material

Answer 36

Any material used in the manufacturing process.P

Question 37

# APICS Deck 3 process design

Answer 37

The design of the manufacturing method.P

Question 38

# APICS Deck 3 AQL

Answer 38

Abbreviation for acceptable quality level.A

Question 39

# APICS Deck 3 order quantity

Answer 39

Syn: lot size.O

Question 40

# APICS Deck 3 sustaining activity

Answer 40

In activity-based cost accounting, an activity that is not directly beneficial to any specific cost object but does benefit the organization as a whole.S

Question 41

# APICS Deck 3 time standard

Answer 41

The predetermined times allowed for the performance of a specific job. The standard will often consist of two parts, that for machine setup and that for actual running. The standard can be developed through observation of the actual work (time study), summation of standard micromotion times (predetermined or synthetic time standards), or approximation (historical job times).T

Question 42

# APICS Deck 3 return goods handling

Answer 42

The work a company puts into accepting returned goods from their customers.R

Question 43

# APICS Deck 3 forecast accuracy

Answer 43

A measurement of forecast usefulness, often defined as the average difference between the forecast value to the actual value. Syn: sales forecast. See: forecast error.F

Question 44

# APICS Deck 3 webpage

Answer 44

A document containing hypertext links to certain other documents including multimedia documents.W

Question 45

# APICS Deck 3 internet operations

Answer 45

Operations performed over the internet encompassing such things as email, telnet, newsgroups, file transfer protocol, and the World Wide Web.I

Question 46

# APICS Deck 3 average chart

Answer 46

A control chart in which the subgroup average, X-bar, is used to evaluate the stability of the process level. Syn: X-bar chart.A

Question 47

# APICS Deck 3 A3 method

Answer 47

A means of compactly describing a business process.A

Question 48

# APICS Deck 3 cybernetics

Answer 48

The study of control processes in mechanical, biological, electrical, and information systems.C

Question 49

# APICS Deck 3 end user

Answer 49

1) The final consumer of a product. 2) The recipient of an output from a computer system.E

Question 50

# APICS Deck 3 CTP

Answer 50

Abbreviation for capable-to-promise.C

Question 51

# APICS Deck 3 production time

Answer 51

Setup time plus total processing time, where total processing time is processing time per piece multiplied by the number of pieces.P

Question 52

# APICS Deck 3 abandonment

Answer 52

Giving up a route by a carrier. For example, a railroad.A

Question 53

# APICS Deck 3 linear regression

Answer 53

A statistical data technique that expresses a variable as a linear function of an independent variable. Linear regression can be used to develop forecasting models.L

Question 54

# APICS Deck 3 active inventory

Answer 54

The raw materials, work in process, and finished goods that will be used or sold within a given period.A

Question 55

# APICS Deck 3 flexible budget

Answer 55

A budget showing the costs and revenues expected to be incurred or realized over a period of time at different levels of activity, measured in terms of some activity base such as direct labor hours, direct labor costs, or machine hours. A flexible manufacturing overhead budget gives the product costs of various manufacturing overhead items at different levels of activity. See: step budget.F

Question 56

# APICS Deck 3 NOPAT

Answer 56

Acronym for net operating profit after taxes.N

Question 57

# APICS Deck 3 implementation

Answer 57

The act of installing a system into operation. It concludes the system project with the exception of appropriate follow-up or post-installation review.I

Question 58

# APICS Deck 3 capable-to-promise (CTP)

Answer 58

The process of committing orders against available capacity as well as inventory. This process may involve multiple manufacturing or distribution sites. Capable-to-promise is used to determine when a new or unscheduled customer order can be delivered. Capable-to-promise employs a finite-scheduling model of the manufacturing system to determine when an item can be delivered. It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, the current manufacturing environment, and future order commitments. The objective is to reduce the time spent by production planners in expediting orders and adjusting plans because of inaccurate delivery-date promises.C

Question 59

# APICS Deck 3 personal discrimination

Answer 59

In transportation, charging different companies with similar deliveries different rates for shipping. This is a policy decision, probably based on importance of the customer.P personal fatigue and unavoidable delay allowance Factor by which the motion study term “normal time” is increased to allow for personal needs and unavoidable delays.P

Question 60

# APICS Deck 3 location grid

Answer 60

A layout of a warehouse used to improve inventory management and cycle counting.L

Question 61

# APICS Deck 3 balance of trade

Answer 61

A plus or minus amount found by comparing a country’s exports of merchandise to its imports.B

Question 62

# APICS Deck 3 export license

Answer 62

A document received from a governmental agency authorizing a certain quantity of an export to be sent to a given country.E

Question 63

# APICS Deck 3 model number

Answer 63

An item number for a finished good. This number may encompass other parts, such as a user’s manual.M

Question 64

# APICS Deck 3 UDE

Answer 64

Abbreviation for undesirable effect. Pronounced“oodee.”U

Question 65

# APICS Deck 3 marketing

Answer 65

The design, pricing, promotion, and distribution of goods to create transactions with businesses and consumers.M

Question 66

# APICS Deck 3 project management team

Answer 66

In project management, the personnel assigned to a project who are directly involved in management activities.P

Question 67

# APICS Deck 3 private label

Answer 67

Also known as store or dealer brands, these are products that are designed and produced by one company, but carry the name of the store that sells them. Oftentimes called generic to the purchaser.P

Question 68

# APICS Deck 3 cause-and-effect diagram

Answer 68

A tool for analyzing process dispersion. It is also referred to as the Ishikawa diagram (because Kaoru Ishikawa developed it) and the fishbone diagram (because the complete diagram resembles a fish skeleton). The diagram illustrates the main causes and subcauses leading to an effect (symptom). The cause-and-effect diagram is one of the seven tools of quality. Syn: fishbone chart, Ishikawa diagram.C

Question 69

# APICS Deck 3 dynamic programming

Answer 69

A method of sequential decision making in which the result of the decision at each stage affords the best possible means to exploit the expected range of likely (yet unpredictable) outcomes in the following decision-making stages.D E

Question 70

# APICS Deck 3 data date

Answer 70

The date through which a report has provided actual accomplishment. Syn: time-now date.D D

Question 71

# APICS Deck 3 EBT

Answer 71

Abbreviation for earnings before taxes.E

Question 72

# APICS Deck 3 dynamic kanban

Answer 72

An electronic signal using kanban to create an automatic purchase order to a supplier or a manufacturing order to a shop. Dynamic kanban is one of the elements of a manufacturing execution system that enables just-in-time deliveries to production. See: kanban.D

Question 73

# APICS Deck 3 intelligent agent

Answer 73

A program that regularly gathers information without the owner being present.I

Question 74

# APICS Deck 3 flag of convenience

Answer 74

A ship registered in a nation with low taxes and lax safety regulations. Liberia and Panama are two favorite flags of convenience.F

Question 75

# APICS Deck 3 demand planning

Answer 75

The process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services (both high and low volume; lumpy and continuous) across the supply chain from the suppliers' raw materials to the consumer's needs. Items can be aggregated by product family, geographical location, product life cycle, and so forth, to determine an estimate of consumer demand for finished products, service parts, and services. Numerous forecasting models are tested and combined with judgment from marketing, sales, distributors, warehousing, service parts, and other functions. Actual sales are compared with forecasts provided by various models and judgments to determine the best integration of techniques and judgment to minimize forecast error. See: demand management.D

Question 76

# APICS Deck 3 depletion

Answer 76

The reduction in the value of a capital asset (usually a natural resource) in the balance sheet and charging this amount as an expense against income for the period. See: capital recovery.D

Question 77

# APICS Deck 3 capacity required

Answer 77

The capacity of a system or resource needed to produce a desired output in a particular time period. Syn: required capacity. See: capacity.C

Question 78

# APICS Deck 3 aggregate unit of capacity

Answer 78

Combined capacity unit of measure when a variety of outputs exist.A

Question 79

# APICS Deck 3 fixed reorder quantity inventory model

Answer 79

A form of independent demand item management model in expected demand during the replenishment lead time. Fixed reorder quantity models assume the existence of some form of a perpetual inventory record or some form of physical tracking (e.g., a two-bin system that is able to determine when the reorder point is reached). These reorder systems are sometimes called fixed order quantity systems, lot-size systems, or order point-order quantity systems. Syn: fixed order quantity system, lot-size system, order point-order quantity system, quantitybased order system. See: fixed reorder cycle inventory model, hybrid inventory system, independent demand item management models, optional replenishment model, order point, order point system, statistical inventory control, time-phased order point.F

Question 80

# APICS Deck 3 speed of design process

Answer 80

The time frame that a product or service is designed to satisfy customer needs and regulations and be field-tested before entering a market.S

Question 81

# APICS Deck 3 build-up forecasts

Answer 81

A qualitative forecasting technique in which individuals who are familiar with specific market segments estimate the demand within these segments. The overall forecast then is obtained by calculating the sum of the forecasts for these segments.B

Question 82

# APICS Deck 3 spot stock warehousing

Answer 82

Positioning seasonal items in proximity to the market. When the season ends, these items are either disposed or relocated to a more centralized location.S

Question 83

# APICS Deck 3 pure oligopoly

Answer 83

A market in which a few companies produce essentially the same product or service and market it within a given area. A company is forced to price its product at the going rate unless it can differentiate its product. See: industry structure types.P

Question 84

# APICS Deck 3 central point scheduling

Answer 84

A variant of scheduling that employs both forward and backward scheduling, starting from the scheduled start date of a particular operation.C

Question 85

# APICS Deck 3 critical failure

Answer 85

The malfunction of those parts that are essential for continual operation or the safety of the user.C

Question 86

# APICS Deck 3 product liability

Answer 86

The responsibility a producer bears when someone is injured during the use of his or her product.P

Question 87

# APICS Deck 3 delivery lead time

Answer 87

The time from the receipt of a customer order to the delivery of the product. Syn: delivery cycle.D

Question 88

# APICS Deck 3 risk avoidance

Answer 88

Changing a plan to eliminate a risk or to protect plan objectives from its impact.R

Question 89

# APICS Deck 3 business planning

Answer 89

The process of constructing the business plan. See: business plan.B

Question 90

# APICS Deck 3 parent item

Answer 90

The item produced from one or more components. Syn: parent.P

Question 91

# APICS Deck 3 forward buying

Answer 91

The practice of buying materials in a quantity exceeding current requirements but not beyond the point that the long-term need exists.F

Question 92

# APICS Deck 3 brand loyalty

Answer 92

The tendency of some consumers to stay with a preferred product in spite of a competitor’s advantages.B

Question 93

# APICS Deck 3 activity attributes

Answer 93

Multiple features associated with each activity to be performed. These include predecessor activities, successor activities, and resource requirements.A

Question 94

# APICS Deck 3 corrective maintenance

Answer 94

The maintenance required to restore an item to a satisfactory condition.C

Question 95

# APICS Deck 3 prime rate

Answer 95

The interest rate charged by banks to their most preferred customers.P

Question 96

# APICS Deck 3 post-release

Answer 96

The period after the product design has been released to manufacturing when the product has ongoing support and product enhancement.P

Question 97

# APICS Deck 3 Institute for Supply Management (ISM)

Answer 97

A nonprofit society for purchasing managers and others, formerly the National Association of Purchasing Management (NAPM).I

Question 98

# APICS Deck 3 output

Answer 98

The product being completed by a process or facility.O

Question 99

# APICS Deck 3 protective packaging

Answer 99

Wrapping or covering of material that provides containment, protection, and identification of inventory in a warehouse. The material must be contained in such a way that will support movement and storage and will fit into the dimension of storage space and transportation vehicles.P

Question 100

# APICS Deck 3 one-touch exchange of die (OTED)

Answer 100

The ideal of reducing or eliminating the setup effort required between operations on the same equipment.O

Question 101

# APICS Deck 3 zero-based budgeting

Answer 101

A budget procedure used primarily by governmental agencies, in which managers are required to justify each budgetary expenditure anew, as if the budget were being initiated for the first time rather than being based on an adjustment of prior-year data.Z

Question 102

# APICS Deck 3 grouping

Answer 102

Matching like operations and running them together sequentially, thereby taking advantage of a common setup.G

Question 103

# APICS Deck 3 implode

Answer 103

1) Compression of detailed data in a summary-level record or report. 2) Tracing a usage and/or cost impact from the bottom to the top (end product) of a bill of material using where-used logic.I

Question 104

# APICS Deck 3 split lot

Answer 104

A manufacturing order quantity that has been divided into two or more smaller quantities, usually after the order has been released. The quantities of a split lot may be worked on in parallel, or a portion of the original quantity may be sent ahead to a subsequent operation to be worked on while work on the remainder of the quantity is being completed at the current operation. The purpose of splitting a lot is to reduce the lead time of the order.S

Question 105

# APICS Deck 3 environmentally responsible business

Answer 105

A firm that operates in such a way as to minimize deleterious impacts to society. See: green manufacturing, green supply chain.E

Question 106

# APICS Deck 3 proprietary data

Answer 106

Any financial, technical, or other information developed at the expense of the person or other entity submitting it, deemed to be of strategic or tactical importance to the company. It may be offered to customers on a restricted-use basis.P

Question 107

# APICS Deck 3 bad-debt loan ratio

Answer 107

In financial management, the fraction of accounts receivable that is never recovered.B

Question 108

# APICS Deck 3 generic processing

Answer 108

A means of developing routings or processes for the manufacture of products through a family relationship, usually accomplished by means of tabular data to establish interrelationships. It is especially prevalent in the manufacture of raw material such as steel, aluminum, or chemicals.G

Question 109

# APICS Deck 3 middleware

Answer 109

Software that interconnects incompatible applications software and databases from various trading partners into decision-support tools such as ERP.M

Question 110

# APICS Deck 3 VMI

Answer 110

Abbreviation for vendor-managed inventory.V

Question 111

# APICS Deck 3 flow time

Answer 111

The time between the release of a job to a work center or shop until the job is finished.F

Question 112

# APICS Deck 3 receivables conversion period

Answer 112

The length of time required to collect sales receipts. Syn: average collection period.R

Question 113

# APICS Deck 3 call center

Answer 113

A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in-house or outsourced.C

Question 114

# APICS Deck 3 reverse logistics

Answer 114

A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling.R

Question 115

# APICS Deck 3 racking

Answer 115

A function performed by a rack-jobber, a fullfunction intermediary who performs all regular warehousing functions and some retail functions, typically stocking a display rack.R

Question 116

# APICS Deck 3 interrelationship digraph

Answer 116

A technique used to define how factors relate to one another. Complex multivariable problems or desired outcomes can be displayed with their interrelated factors. The logical and often causal relationships between the factors can be illustrated.I I

Question 117

# APICS Deck 3 part period balancing (PPB)

Answer 117

A dynamic lot-sizing technique that uses the same logic as the least total cost method, but adds a routine called look ahead/look back. When the look ahead/look back feature is used, a lot quantity is calculated, and before it is firmed up, the next or the previous period’s demands are evaluated to determine whether it would be economical to include them in the current lot. See: discrete order quantity, dynamic lot sizing.P

Question 118

# APICS Deck 3 decentralized computer network

Answer 118

A network where there is no central computer or computers linked to all other computers in the group.D

Question 119

# APICS Deck 3 FMAPE

Answer 119

Abbreviation for forecast mean absolute percentage of error.F

Question 120

# APICS Deck 3 acclimatization

Answer 120

The physiological, emotional, and behavioral adjustment to changes in the environment. Proper performance depends on adequate acclimatization to the workplace, including significant mechanical features such as seat height and lighting. Heat, cold, humidity, and light are important physiologically.A

Question 121

# APICS Deck 3 dark factory

Answer 121

A completely automated production facility with no labor. Syn: lightless plant.D

Question 122

# APICS Deck 3 reference capacity model

Answer 122

A simulation model with accurate operational details and demand forecasts that can provide practical capacity utilization predictions. Various alternatives for system operation can be evaluated effectively.R

Question 123

# APICS Deck 3 queuing analysis

Answer 123

The study of waiting lines. See: queuing theory.Q

Question 124

# APICS Deck 3 conversion efficiency

Answer 124

In e-commerce, a measure of how well an organization transforms visits to its website into customer orders. See: attractability efficiency.C

Question 125

# APICS Deck 3 bracketed recall

Answer 125

Recall from customers of suspect lot numbers plus a specified number of lots produced before and after the suspect ones.B

Question 126

# APICS Deck 3 MSE

Answer 126

Abbreviation for mean squared error.M M

Question 127

# APICS Deck 3 fixed-price contract

Answer 127

Syn: firm fixed-price contract.F

Question 128

# APICS Deck 3 labor standard

Answer 128

Under normal conditions, the quantity of worker minutes necessary to finish a product or process.L

Question 129

# APICS Deck 3 cost-volume-profit analysis

Answer 129

The study of how profits change with various levels of output and selling price.C

Question 130

# APICS Deck 3 piecework

Answer 130

Work done on a piece rate.P

Question 131

# APICS Deck 3 data normalization

Answer 131

A database maintenance term used in the context of relational databases, which helps to minimize the duplication of information or safeguard the database against certain types of logical or structural data anomalies. It is often used when merging data from one or more databases.D

Question 132

# APICS Deck 3 ROI

Answer 132

Abbreviation for return on investment.R

Question 133

# APICS Deck 3 total factor productivity

Answer 133

A measure of productivity (of a department, plant, strategic business unit, firm, etc.) that combines the individual productivities of all its resources, including labor, capital, energy, material, and equipment. These individual factor productivities are often combined by weighting each according to its monetary value and then adding them. For example, if material accounts for 40 percent of the total cost of sales and labor 10 percent of the total cost of sales, etc., total factor productivity = .4 (material productivity) + .1 (labor productivity) + etc.T

Question 134

# APICS Deck 3 slot based production

Answer 134

A term used in lean manufacturing that describes a production schedule that is held level, but leaves some openings to meet unexpectedly high levels of demand. This is a part of the “extra capacity” planning process.S

Question 135

# APICS Deck 3 inventory shrinkage

Answer 135

Losses of inventory resulting from scrap, deterioration, pilferage, and so forth.I

Question 136

# APICS Deck 3 capacity bill procedure

Answer 136

A rough-cut capacity planning method that takes into account any shifts in product mix. Bill of material and routing information are required with direct labor-hour or machine-hour data available for each operation. See: bill of labor.C

Question 137

# APICS Deck 3 job progress chart

Answer 137

Syn: Gantt chart.J

Question 138

# APICS Deck 3 in-transit inventory

Answer 138

Material moving between two or more locations, usually separated geographically; for example, finished goods being shipped from a plant to a distribution center.I

Question 139

# APICS Deck 3 market planning

Answer 139

The process of developing market plans for products and services. This process is composed

Question 140

# APICS Deck 3 repetitive industries

Answer 140

The group of manufacturers that produce high-volume, low-variety products such as R spark plugs, lawn mowers, and paper clips. See: repetitive manufacturing.R

Question 141

# APICS Deck 3 procurement services provider

Answer 141

A company that has product, sourcing, and supply management knowledge and acts as an outsourced process by other companies and provides procurement help. They are most often used by companies where procurement is a significant part of business, but the company lacks the expertise to effectively manage the process. This is a third-party process.P

Question 142

# APICS Deck 3 least changeover cost

Answer 142

Determining the lowest cost of making machine changeovers between jobs by sequencing the jobs accordingly.L

Question 143

# APICS Deck 3 SBU

Answer 143

Abbreviation for strategic business unit.S

Question 144

# APICS Deck 3 inefficiency risk

Answer 144

The risk of losing customers because another firm has lower unit costs.I

Question 145

# APICS Deck 3 critical path

Answer 145

The longest sequence of activities through a network. The critical path defines the planned project duration. See: critical activity, critical path method.C

Question 146

# APICS Deck 3 ISO 9000

Answer 146

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system. The standards, initially published in 1987, are not specific to any particular industry, product, or service. The standards were developed by the International Organization for Standardization, known as ISO, a specialized international agency for standardization composed of the national standards bodies of 91 countries. The standards underwent major revision in 2008 and now include ISO 9000:2008 (definitions), ISO 9001:2008 (requirements), and ISO 9004:2008 (continuous improvement). See: ISO/TS 16949, QS 9000.I

Question 147

# APICS Deck 3 market strategy

Answer 147

The marketing plan to support the business strategy.M

Question 148

# APICS Deck 3 order processing

Answer 148

The activity required to administratively process a customer’s order and make it ready for shipment or production.O

Question 149

# APICS Deck 3 transit privilege

Answer 149

A service provided by a shipper that allows the purchasing company to stop a shipment midroute to allow changes to the delivery, but pay the nonstop rate.T

Question 150

# APICS Deck 3 TOFC

Answer 150

Abbreviation for trailer on a flatcar.T

Question 151

# APICS Deck 3 PPP

Answer 151

Abbreviation for public-private partnering.P

Question 152

# APICS Deck 3 electronic publishing

Answer 152

Representation of text and multimedia documents electronically.E

Question 153

# APICS Deck 3 order preparation lead time

Answer 153

The time needed to analyze requirements and open order status and to create the paperwork necessary to release a purchase order or a production order.O

Question 154

# APICS Deck 3 process manufacturing

Answer 154

Production that adds value by mixing, separating, forming, and/or performing chemical reactions. It may be done in either batch or continuous mode. See: project manufacturing.P

Question 155

# APICS Deck 3 lot-size code

Answer 155

A code that indicates the lot-sizing technique selected for a given item. Syn: order policy code.L

Question 156

# APICS Deck 3 14 Points

Answer 156

W. Edwards Deming’s 14 management practices to help companies increase their quality and productivity: (1) create constancy of purpose for improving products and services; (2) adopt the new philosophy; (3) cease dependence on inspection to achieve quality; (4) end the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier; (5) improve constantly and forever every process for planning, production, and service; (6) institute training on the job; (7) adopt and institute leadership; (8) drive out fear; (9) break down barriers between staff areas; (10) eliminate slogans, exhortations, and targets for the workforce; (11) eliminate numerical quotas for the workforce and numerical goals for management; (12) remove barriers that rob people of pride of workmanship and eliminate the annual rating or merit system; (13) institute a vigorous program of education and self-improvement for everyone; and (14) put everybody in the company to work to accomplish the transformation. Syn: Deming’s 14 Points.F

Question 157

# APICS Deck 3 buyer behavior

Answer 157

The way individuals or organizations behave in a purchasing situation. The customeroriented concept finds out the wants, needs, and desires of customers and adapts resources of the organization to deliver need-satisfying goods and services.B

Question 158

# APICS Deck 3 bandwidth

Answer 158

In telecommunications, a measurement of how much data can be moved along a communications channel per unit of time, usually measured in bits per second.B

Question 159

# APICS Deck 3 standardized ingredient

Answer 159

A raw ingredient that has been preprocessed to bring all its specifications within standard ranges before it is introduced to the main process. This preprocessing minimizes variability in the production process.S

Question 160

# APICS Deck 3 master route sheet

Answer 160

The authoritative route process sheet from which all other format variations and copies are derived.M

Question 161

# APICS Deck 3 sales and operations planning (S&OP)

Answer 161

A process to develop tactical plans that provide management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain. The process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financial) into one integrated set of plans. It is performed at least once a month and is reviewed by management at an aggregate (product family) level. The process must reconcile all supply, demand, and newproduct plans at both the detail and aggregate levels and tie to the business plan. It is the definitive statement of the company’s plans for the near to intermediate term, covering a horizon sufficient to plan for resources and to support the annual business planning process. Executed properly, the sales and operation planning process links the strategic plans for the business with its execution and reviews performance measurements for continuous improvement. See: aggregate planning, executive sales and operations planning, production plan, production planning, sales plan, tactical planning.S

Question 162

# APICS Deck 3 open order

Answer 162

1) A released manufacturing order or purchase order. Syn: released order. See: scheduled receipt. 2) An unfilled customer order.O

Question 163

# APICS Deck 3 mediation

Answer 163

The introduction of a neutral third party who attempts to provide alternatives to issues causing conflict that have not been put forth by either party or to M change the way the parties perceive the situation. It is often used in collective bargaining to reach an agreement.M

Question 164

# APICS Deck 3 inventory buffer

Answer 164

Inventory used to protect the throughput of an operation or the schedule against the negative effects caused by delays in delivery, quality problems, delivery of incorrect quantity, and so on. Syn: inventory cushion. See: fluctuation inventory, safety stock.I

Question 165

# APICS Deck 3 average outgoing quality (AOQ)

Answer 165

The expected average quality level of outgoing product for a given value of incoming product quality.A

Question 166

# APICS Deck 3 export broker

Answer 166

A party that introduces the buyer to the seller and eventually withdraws, getting a fee for services rendered.E

Question 167

# APICS Deck 3 conflict of interest

Answer 167

Any business activity, personal or company-related, that interferes with a company’s goals or that entails unethical or illegal actions.C

Question 168

# APICS Deck 3 purchasing agent

Answer 168

A person authorized by the company to purchase goods and services for the company.P

Question 169

# APICS Deck 3 move signal

Answer 169

Syn: move card.M

Question 170

# APICS Deck 3 acknowledgment

Answer 170

A communication by a supplier to advise a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier.A

Question 171

# APICS Deck 3 beta release

Answer 171

A version of a product sent to certain customers prior to general release in order to receive feedback on product performance.B

Question 172

# APICS Deck 3 cross-training

Answer 172

Providing training or experience in several different areas (e.g., training an employee on several machines). Cross-training provides backup workers in case the primary operator is unavailable.C

Question 173

# APICS Deck 3 distressed goods

Answer 173

Products that are damaged or close to their expiration date and cannot be sold at full price.D

Question 174

# APICS Deck 3 one-card kanban system

Answer 174

A kanban system where only a move card is employed. Typically, the work centers are adjacent, therefore no production card is required. In many cases, squares located between work centers are O used as the kanban system. An empty square signals the supplying work center to produce a standard container of the item. Syn: single-card kanban system. See: two-card kanban system.O

Question 175

# APICS Deck 3 primary location

Answer 175

The designation of a certain storage location as the standard, preferred location for an item.P

Question 176

# APICS Deck 3 bulk packing

Answer 176

Placing several small packages in a larger container to prevent damage or theft.B

Question 177

# APICS Deck 3 nesting

Answer 177

The act of combining several small processes to form one larger process.N

Question 178

# APICS Deck 3 download

Answer 178

The process of transferring data or programs from one computer to another (and usually saving to a disk).D

Question 179

# APICS Deck 3 priority planning

Answer 179

The function of determining what material is needed and when. Master production scheduling and material requirements planning are the elements used for the planning and replanning process to maintain proper due dates on required materials.

Question 180

# APICS Deck 3 dedicated capacity

Answer 180

A work center that is designated to produce a single item or a limited number of similar items. Equipment that is dedicated may be special equipment or may be grouped general-purpose equipment committed to a composite part.D

Question 181

# APICS Deck 3 instruction sheet

Answer 181

Syn: routing.I

Question 182

# APICS Deck 3 paired-cell overlapping loops of cards (POLCA)

Answer 182

A special material control and replenishment system developed to be used with quick-response manufacturing in cellular manufacturing environments. It is a hybrid push-pull system where the push authority to proceed is generated by high-level manufacturing resources planning. See: quick-response manufacturing.P

Question 183

# APICS Deck 3 affidavit

Answer 183

A sworn written statement.A

Question 184

# APICS Deck 3 disciplinary action

Answer 184

An action taken to enforce compliance with organizational rules and policies.D

Question 185

# APICS Deck 3 scope definition

Answer 185

In project management, subdividing a project into smaller components to facilitate management.S

Question 186

# APICS Deck 3 TPOP

Answer 186

Abbreviation for time-phased order point.T

Question 187

# APICS Deck 3 computer-aided manufacturing (CAM)

Answer 187

The use of computers to program, direct, and control production equipment in the fabrication of manufactured items.C

Question 188

# APICS Deck 3 risk pooling

Answer 188

A method often associated with the management of inventory risk. Manufacturers and retailers that experience high variability in demand for their products can pool together common inventory components associated with a broad family of products to buffer the overall burden of having to deploy inventory for each discrete product.R R

Question 189

# APICS Deck 3 shrinkage rate

Answer 189

Syn: shrinkage factor.S

Question 190

# APICS Deck 3 downstream operation

Answer 190

The tasks subsequent to the task currently being planned or executed.D

Question 191

# APICS Deck 3 seasonal inventory

Answer 191

Inventory built up to smooth production in anticipation of a peak seasonal demand. Syn: seasonal stock.S

Question 192

# APICS Deck 3 material analyst

Answer 192

The person assigned responsibility for and identification of the planning requirements for specific items and responsibility for each order.M

Question 193

# APICS Deck 3 nongovernmental organization (NGO)

Answer 193

A legally constituted organization that operates independently from any government. The term is usually applied only to organizations that pursue some wider social aim with political aspects, but that are not overtly political organizations such as political parties. These types of organizations are called civil society organizations and other names in some jurisdictions.N

Question 194

# APICS Deck 3 total line-haul cost

Answer 194

Basic costs of carrier operation to move a container of freight, including driver's wages and usage depreciation, which vary with the distance shipped and the cost per mile.T

Question 195

# APICS Deck 3 critical characteristics

Answer 195

The attributes of a product that must function properly to avoid the failure of the product. Syn: functional requirements.C

Question 196

# APICS Deck 3 CAD

Answer 196

Acronym for computer-aided design.C C

Question 197

# APICS Deck 3 buffer management

Answer 197

In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, and assembly buffers). By expediting this material into the buffers, the system helps avoid idleness at the constraint and missed customer due dates. In addition, the causes of items missing from the buffer are identified, and the frequency of occurrence is used to prioritize improvement activities.B

Question 198

# APICS Deck 3 buying down

Answer 198

Given a product that historically experienced price swings, attempting to buy when the price is low or down. See: hedging, speculative buying.B

Question 199

# APICS Deck 3 flexible capability

Answer 199

Machinery’s ability to be readily adapted to processing different components on an ongoing basis.F

Question 200

# APICS Deck 3 from gross profit. 3) Net profit

Answer 200

earnings or income after adjusting for miscellaneous income and expenses (patent royalties, interest, capital gains) and tax from operating profit. Syn: income.P

Question 201

# APICS Deck 3 bid proposal

Answer 201

The response to the written request from a potential customer asking for the submission of a quotation or proposal to provide goods or services. The bid proposal is in response to a request for proposal (RFP) or request for quote (RFQ).B

Question 202

# APICS Deck 3 tariff

Answer 202

An official schedule of taxes and fees imposed by a country on imports or exports.T

Question 203

# APICS Deck 3 business plan

Answer 203

1) A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow (source and application of funds) statement. A business plan is usually stated in terms of dollars and grouped by product family. The business plan is then translated into synchronized tactical functional plans through the production planning process (or the sales and operations planning process). Although frequently C stated in different terms (dollars versus units), these tactical plans should agree with each other and with the business plan. See: long-term planning, strategic plan. 2) A document consisting of the business details (organization, strategy, and financing tactics) prepared by an entrepreneur to plan for a new business.B

Question 204

# APICS Deck 3 award audits

Answer 204

Site visits associated with award programs such as the Malcolm Baldrige National Quality Award or similar state-sponsored award programs.A

Question 205

# APICS Deck 3 traffic department

Answer 205

The area of an organization that plans and executes shipping requirements.T

Question 206

# APICS Deck 3 objective function

Answer 206

The goal or function that is to be optimized in a model. Most often it is a cost function that should be minimized subject to some restrictions or a profit function that should be maximized subject to some restrictions.O

Question 207

# APICS Deck 3 make-to-stock

Answer 207

A production environment where products can be and usually are finished before receipt of a customer order. Customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks. Syn: produce-to-stock. See: assemble-to-order, make-to-order.M

Question 208

# APICS Deck 3 bin tag

Answer 208

1) A type of perpetual inventory record, designed for storekeeping purposes, maintained at the storage area for each inventory item. 2) An identifying marking on a storage location.B

Question 209

# APICS Deck 3 service parts demand

Answer 209

The need or requirement for a component to be sold by itself, as opposed to being used in production to make a higher level product. Syn: repair parts demand, spare parts demand.S

Question 210

# APICS Deck 3 general merchandise warehouse

Answer 210

A warehouse for the storage of goods that require no special handling.G

Question 211

# APICS Deck 3 vertical marketing

Answer 211

A coordinated product marketing system, with activities undertaken by one company, for a supply chain.V

Question 212

# APICS Deck 3 operations sequence analysis

Answer 212

Method of planning a facility layout by using graphics to determine the placement of departments.O

Question 213

# APICS Deck 3 noncurrent assets

Answer 213

An accounting/financial term (balance sheet classification of accounts) representing the long-term resources owned by a company, including property, plant, and equipment.N

Question 214

# APICS Deck 3 marginal cost of capital

Answer 214

The cost of the next dollar, after taxes, that a firm expects to raise for investment.M

Question 215

# APICS Deck 3 interoperation time

Answer 215

The time between the completion of one operation and the start of the next.I

Question 216

# APICS Deck 3 active tag

Answer 216

A radio frequency identification tag that broadcasts information and contains its own power source. See: radio frequency identification (RFID).A

Question 217

# APICS Deck 3 green field

Answer 217

The initiation of a new process where no similar initiatives have previously existed.G

Question 218

# APICS Deck 3 cube utilization

Answer 218

In warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse.C

Question 219

# APICS Deck 3 inventory accounting

Answer 219

The branch of accounting dealing with valuing inventory. Inventory may be recorded or valued using either a perpetual or a periodic system. A perpetual inventory record is updated frequently or in real time, while a periodic inventory record is counted or measured at fixed time intervals (e.g., every two weeks or monthly). Inventory valuation methods of LIFO, FIFO, or average costs are used with either recording system.I

Question 220

# APICS Deck 3 protocol

Answer 220

In information systems, a set of rules for defining the format and relationships for sharing information between devices. These rules govern the transmission of data across a network and serve as the grammar of data communication languages.P

Question 221

# APICS Deck 3 OSI

Answer 221

Abbreviation for open systems interconnection.O

Question 222

# APICS Deck 3 optimal order period

Answer 222

Within a fixed order period inventory system, the time between a status check on the material that balances ordering costs with carrying costs.O

Question 223

# APICS Deck 3 statement of cash flows

Answer 223

Syn: funds flow statement.S

Question 224

# APICS Deck 3 packing and marking

Answer 224

The activities of packing for safe shipping and unitizing one or more items of an order, placing them into an appropriate container, and marking and labeling the container with customer shipping P destination data, as well as other information that may be required.P

Question 225

# APICS Deck 3 shojinka

Answer 225

Continually balancing the number of workers in a work center to meet demand with a minimum number of workers. It requires a line design, such as Ushaped, that supports varying the number of workers.S

Question 226

# APICS Deck 3 spare parts demand

Answer 226

Syn: service parts demand.S

Question 227

# APICS Deck 3 ESOP

Answer 227

Acronym for employee stock ownership plan.E

Question 228

# APICS Deck 3 LS

Answer 228

Abbreviation for late start date.L

Question 229

# APICS Deck 3 general stores

Answer 229

Syn: supplies.G

Question 230

# APICS Deck 3 Institute of Industrial Engineers (IIE)

Answer 230

A nonprofit educational organization with members interested in the field of industrial engineering.I

Question 231

# APICS Deck 3 delinquent order

Answer 231

Syn: past due order.D

Question 232

# APICS Deck 3 consigned stocks

Answer 232

Inventories, generally of finished goods, that are in the possession of customers, dealers, agents, and so on, but remain the property of the manufacturer by agreement with those in possession. Syn: consignment inventory, vendor-owned inventory. See: consignment.C

Question 233

# APICS Deck 3 advanced planning and scheduling (APS)

Answer 233

Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and longterm time periods. APS describes any computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-topromise, and capable-to-promise capabilities. APS often generates and evaluates multiple scenarios. Management then selects one scenario to use as the A “official plan.” The five main components of APS systems are (1) demand planning, (2) production planning, (3) production scheduling, (4) distribution planning, and (5) transportation planning.A

Question 234

# APICS Deck 3 responsiveness

Answer 234

A dimension of service quality referring to the promptness and helpfulness in providing a service.R

Question 235

# APICS Deck 3 voucher

Answer 235

A written document that bears witness to, or “vouches” for, something. A voucher generally is an instrument showing services performed or goods purchased and authorizing payment to the supplier.V W

Question 236

# APICS Deck 3 straight-line depreciation

Answer 236

A method of depreciation whereby the amount to be recovered (written off as an expense) is spread uniformly over the estimated life of the asset in terms of time periods. See: depreciation.S

Question 237

# APICS Deck 3 allocation costing

Answer 237

Syn: absorption costing.A

Question 238

# APICS Deck 3 design for six sigma

Answer 238

An approach to designing products and processes that attempts to ensure the firm can provide products or services that meet six sigma quality levels. These quality levels correspond to approximately 3.4 defects per million opportunities.D

Question 239

# APICS Deck 3 ANSI

Answer 239

Acronym for American National Standards Institute.A

Question 240

# APICS Deck 3 DRP

Answer 240

Abbreviation for distribution requirements planning.D

Question 241

# APICS Deck 3 transformation process

Answer 241

The process of converting inputs into finished goods or services. In a service firm, the input may be a customer. Syn: transformation system. See: manufacturing process, production process.T T

Question 242

# APICS Deck 3 forecast error

Answer 242

The difference between actual demand and forecast demand, stated as an absolute value or as a percentage. See: average forecast error, forecast accuracy, mean absolute deviation, tracking signal.F

Question 243

# APICS Deck 3 limited liability company

Answer 243

In the United States, a business organization that, as with a corporation, enjoys limited liability yet is not a taxable entity.L

Question 244

# APICS Deck 3 message distribution

Answer 244

The software component of electronic commerce that enables the sending and receiving of messages.M

Question 245

# APICS Deck 3 scorecard

Answer 245

This is a performance measurement tool used by a company that summarizes its key performance indicators. Another use of scorecard is to measure the supply chain members and ensure that their performance is meeting company standards.S

Question 246

# APICS Deck 3 critical value analysis

Answer 246

A modified ABC analysis where a subjective metric of the criticality of an item is assigned to each item.C

Question 247

# APICS Deck 3 Java

Answer 247

A general-purpose computer language created by Sun Microsystems.J

Question 248

# APICS Deck 3 Full-Baldrige approach

Answer 248

A quality award program modeled after the Malcolm Baldrige National Quality Award and using the same criteria.F

Question 249

# APICS Deck 3 operator flexibility

Answer 249

Training machine workers to perform tasks outside their immediate jobs and in problemsolving techniques to improve process flexibility. This is a necessary process in developing a fully cross-trained workforce.O

Question 250

# APICS Deck 3 logistics

Answer 250

1) In an industrial context, the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities. 2) In a military sense (where it has greater usage), its meaning can also include the movement of personnel.L

Question 251

# APICS Deck 3 proactive

Answer 251

A strategy of anticipating issues and presenting beneficial solutions to the customer.P

Question 252

# APICS Deck 3 SPC

Answer 252

Abbreviation for statistical process control.S

Question 253

# APICS Deck 3 significant variances

Answer 253

Those differences between planned and actual performance that exceed established thresholds and that require further review, analysis, and action.S

Question 254

# APICS Deck 3 check digit

Answer 254

A digit added to each number in a coding system that allows for detection of errors in the recording of the code numbers. Through the use of the check digit and a predetermined mathematical formula, recording errors such as digit reversal or omission can be discovered.C

Question 255

# APICS Deck 3 piece rate pay system

Answer 255

A compensation system based upon volume of output of an individual worker.P

Question 256

# APICS Deck 3 cost tradeoff

Answer 256

Considering the advantages and disadvantages of one method to another, such as different avenues of distribution or providing customer service.C

Question 257

# APICS Deck 3 job ticket

Answer 257

Syn: time ticket.J

Question 258

# APICS Deck 3 order cost

Answer 258

A direct labor cost incurred when a purchaser places an order.O

Question 259

# APICS Deck 3 shareholder wealth

Answer 259

The present value of all anticipated payments to the shareholders of a firm.S

Question 260

# APICS Deck 3 unfair labor practice

Answer 260

Activities by management or labor that violate the National Labor Relations Act. Failure to bargain in good faith is an example.U

Question 261

# APICS Deck 3 activity

Answer 261

1) In activity-based cost accounting, a task or activity, performed by or at a resource, required in producing the organization’s output of goods and services. A resource may be a person, machine, or facility. A Activities are grouped into pools by type of activity and allocated to products. 2) In project management, an element of work on a project. It usually has an anticipated duration, anticipated cost, and expected resource requirements. Sometimes “major activity” is used for larger bodies of work.A

Question 262

# APICS Deck 3 process selection

Answer 262

An economic analysis used to decide which process should be used when operations can be performed by more than one process.P

Question 263

# APICS Deck 3 BPR

Answer 263

Abbreviation for business process reengineering.B

Question 264

# APICS Deck 3 environmental scanning

Answer 264

Process used to expose an organization’s potential strengths, weaknesses, opportunities, and threats. Many experts emphasize opportunities and threats because the tool is primarily external.E

Question 265

# APICS Deck 3 actual costs

Answer 265

The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.A

Question 266

# APICS Deck 3 executing processes

Answer 266

The processes performed to complete a project plan to accomplish the objectives set forth in the project scope.E

Question 267

# APICS Deck 3 process improvement

Answer 267

The activities designed to identify and eliminate causes of poor quality, process variation, and non-value-added activities.P P

Question 268

# APICS Deck 3 simplification

Answer 268

Improving quality and cutting costs by removing complexity from a product or service.S

Question 269

# APICS Deck 3 trading bloc

Answer 269

Syn: trade bloc.T

Question 270

# APICS Deck 3 teardown time

Answer 270

The time needed to remove a setup from a machine or facility. Teardown is an element of manufacturing lead time, but it is often allowed for in setup or run time rather than separately. See: teardown.T

Question 271

# APICS Deck 3 end item

Answer 271

A product sold as a completed item or repair part; any item subject to a customer order or sales forecast. Syn: end product, finished good, finished product. See: good.E

Question 272

# APICS Deck 3 semivariable costs

Answer 272

Costs that change in increments. They remain fixed over a given range, and outside that range, the cost changes to a new level.S

Question 273

# APICS Deck 3 green marketing

Answer 273

In advertising, promoting products because of their environmental sensitivity.G

Question 274

# APICS Deck 3 jidoka

Answer 274

The Japanese term for the practice of stopping the production line when a defect occurs.J

Question 275

# APICS Deck 3 material lot

Answer 275

A uniquely identifiable amount of a material. This describes the actual quantity or amount of material available, its current state, and its specific property values.M

Question 276

# APICS Deck 3 expected receipt date

Answer 276

Syn: due date.E

Question 277

# APICS Deck 3 operations strategy

Answer 277

The total pattern of decisions that shape the long-term capabilities of an operation and O their contribution to overall strategy. Operations strategy should be consistent with overall strategy. See: strategic plan.O

Question 278

# APICS Deck 3 theory of constraints (TOC)

Answer 278

A holistic management philosophy developed by Dr. Eliyahu M. Goldratt that is based on the principle that complex systems exhibit inherent simplicity. Even a very complex system comprising thousands of people and pieces of equipment can have, at any given time, only a very, very small number

Question 279

# APICS Deck 3 multiple regression models

Answer 279

A form of regression analysis where the model involves more than one independent variable, such as developing a forecast of dishwasher sales based upon housing starts, gross national product, and disposable income.M

Question 280

# APICS Deck 3 quantitative forecasting techniques

Answer 280

An approach to forecasting where historical demand data are used to project future demand. Extrinsic and intrinsic techniques are typically used. See: extrinsic forecasting method, intrinsic forecasting method.Q

Question 281

# APICS Deck 3 throughput accounting

Answer 281

A management accounting method that is based on the belief that because every system has a constraint that limits global performance, the most effective way to evaluate the impact that any proposed action will have on the system as a whole is to look at the expected changes in the global measures of throughput, inventory, and operating expense.T

Question 282

# APICS Deck 3 unneeded movements, (4) processing

Answer 282

poor

Question 283

# APICS Deck 3 incoming business

Answer 283

The number of orders, the dollar value of orders, or the quantity of units that have been received on orders from customers. This volume is particularly important to the forecaster, who must compare incoming business against the forecast rather than against actual shipments when actual shipments do not reflect true customer demand. This situation may exist because of back-ordered items, bottlenecks in the shipping room, and so forth.I

Question 284

# APICS Deck 3 repair parts

Answer 284

Syn: service parts.R

Question 285

# APICS Deck 3 panel consensus

Answer 285

A judgmental forecasting technique by which a committee, sales force, or group of experts arrives at a sales estimate. See: Delphi method, management estimation.P

Question 286

# APICS Deck 3 Deming’s 14 Points

Answer 286

Syn: 14 Points.D

Question 287

# APICS Deck 3 demerit chart

Answer 287

Syn: D chart.D

Question 288

# APICS Deck 3 quality engineering

Answer 288

The engineering discipline concerned with improving the quality of products and processes.Q

Question 289

# APICS Deck 3 trend

Answer 289

General upward or downward movement of a variable over time (e.g., demand, process attribute).T

Question 290

# APICS Deck 3 jurisdiction

Answer 290

The authority of a governmental agency to undertake its activities.J

Question 291

# APICS Deck 3 channels of distribution

Answer 291

Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. See: distribution channel.C

Question 292

# APICS Deck 3 price erosion

Answer 292

Increased competition and efficiencies in production over time cause the price to gradually reduce.P

Question 293

# APICS Deck 3 finished goods inventory

Answer 293

Those items on which all manufacturing operations, including final test, have been completed. These products are available for shipment to the customer as either end items or repair parts. Syn: finished products inventory. See: goods.F

Question 294

# APICS Deck 3 standardized product

Answer 294

A product that can be made in large quantities, or continuously, because of very few product designs.S

Question 295

# APICS Deck 3 cranes and hoists

Answer 295

Equipment capable of moving items up and down or side to side.C

Question 296

# APICS Deck 3 need date

Answer 296

The date when an item is required for its intended use. In an MRP system, this date is calculated by a bill-of-material explosion of a schedule and the netting of available inventory against that requirement.N

Question 297

# APICS Deck 3 offshore

Answer 297

Outsourcing a business function to another company in a different country than the original company’s country.O

Question 298

# APICS Deck 3 flow line

Answer 298

Syn: flow shop.F

Question 299

# APICS Deck 3 manifest system

Answer 299

A production control system where the exact sequence of items to be assembled is required.M

Question 300

# APICS Deck 3 Juran trilogy

Answer 300

Syn: quality trilogy.J

Question 301

# APICS Deck 3 user interface

Answer 301

The portion of a computer system through which the end user interacts with the system. It may include the keyboard, mouse, touch-screen, and other devices.U

Question 302

# APICS Deck 3 projected on hand

Answer 302

Projected available balance, excluding planned orders.P

Question 303

# APICS Deck 3 workers’ compensation

Answer 303

The replacement of an employee’s loss of earnings capacity caused by an occupational injury or disease. Formerly known as workmen’s compensation.W

Question 304

# APICS Deck 3 SKU

Answer 304

Abbreviation for stockkeeping unit. Pronounced as skew.S

Question 305

# APICS Deck 3 rescheduling notice

Answer 305

A message from planning system software to change the planned start and/or finish date of an order. This often is the result of a change in plans of a parent item. See: nervousness.R

Question 306

# APICS Deck 3 inventory cushion

Answer 306

Syn: inventory buffer.I

Question 307

# APICS Deck 3 speculative buying

Answer 307

Purchasing an item not immediately needed in anticipation of future price increase. See: buying down, hedge, hedging.S

Question 308

# APICS Deck 3 crew-size standard

Answer 308

A labor estimate of the number of workers necessary to complete the required output for a given shift.C

Question 309

# APICS Deck 3 lead logistics providers (LLPs)

Answer 309

Organizations that oversee the third-party logistics operations of their clients.L

Question 310

# APICS Deck 3 total fixed costs

Answer 310

Costs that remain constant in total regardless of changes in activity.T

Question 311

# APICS Deck 3 customer facing

Answer 311

A hardware or software product, technology, or any thing or person that a business’s customer deals with directly.C

Question 312

# APICS Deck 3 repairables

Answer 312

Items that are technically feasible to repair economically.R

Question 313

# APICS Deck 3 expected value

Answer 313

The average value that would be observed in taking an action an infinite number of times. The expected value of an action is calculated by multiplying the outcome of the action by the probability of achieving the outcome.E

Question 314

# APICS Deck 3 master schedule

Answer 314

The master schedule is a format that includes time periods (dates), the forecast, customer orders, projected available balance, available-topromise, and the master production schedule. The master schedule takes into account the forecast; the production plan; and other important considerations such as backlog, availability of material, availability of capacity, and management policies and goals. See: master production schedule.M

Question 315

# APICS Deck 3 material planning

Answer 315

Syn: inventory planning.M

Question 316

# APICS Deck 3 supplier certification

Answer 316

Certification procedures verifying that a supplier operates, maintains, improves, and documents effective procedures that relate to the customer’s requirements. Such requirements can include cost, quality, delivery, flexibility, maintenance, safety, and ISO quality and environmental standards.S

Question 317

# APICS Deck 3 cyclical component

Answer 317

A component of demand, usually describing the impact of the business cycle on demand. See: decomposition, time series analysis.C

Question 318

# APICS Deck 3 procurement

Answer 318

The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.P

Question 319

# APICS Deck 3 first in, first out (FIFO)

Answer 319

A method of inventory valuation for accounting purposes. The accounting assumption is that the oldest inventory (first in) is the first to be used (first out), but there is no necessary relationship with the actual physical movement of specific items. See: first-come-first-served rule, average cost system.F

Question 320

# APICS Deck 3 valuation

Answer 320

The technique of determining worth, typically of inventory. Valuation of inventories may be expressed in standard dollars, replacement dollars, current average dollars, or last-purchase-price dollars.V

Question 321

# APICS Deck 3 internal failure costs

Answer 321

The cost of things that go wrong before the product reaches the customer. Internal failure costs usually include rework, scrap, downgrades, reinspection, retest, and process losses.I

Question 322

# APICS Deck 3 jishuken

Answer 322

A Japanese word meaning voluntary study groups.J

Question 323

# APICS Deck 3 account manager

Answer 323

A manager who has direct responsibility for a customer’s interest.A

Question 324

# APICS Deck 3 changeover

Answer 324

Syn: setup.C

Question 325

# APICS Deck 3 ramp rate

Answer 325

The speed at which a company expands or grows. Syn: growth trajectory.R

Question 326

# APICS Deck 3 ROA

Answer 326

Abbreviation for return on assets.R

Question 327

# APICS Deck 3 production system

Answer 327

A system that accepts inputs and converts them to the desired outputs.P

Question 328

# APICS Deck 3 dock-to-stock inventory

Answer 328

A supplier-customer relationship where specified quality and packaging requirements are met before the product is released. The product is then received directly into the customer’s indock- D ventories. See: point-of-use inventory, stockless purchasing.D

Question 329

# APICS Deck 3 field service

Answer 329

The functions of installing and maintaining a product for a customer after the sale or during the lease. Field service may also include training and implementation assistance. Syn: after-sale service.F

Question 330

# APICS Deck 3 coefficient of variation

Answer 330

In statistics, the ratio of the standard deviation to the mean for a particular process.C

Question 331

# APICS Deck 3 line loading

Answer 331

The loading of a production line by multiplying the total pieces by the rate per piece for each item to come up with a finished schedule for the line.L

Question 332

# APICS Deck 3 private warehouse

Answer 332

A company-owned warehouse.P

Question 333

# APICS Deck 3 ANOVA

Answer 333

Acronym for analysis of variance.A

Question 334

# APICS Deck 3 manufacturing calendar

Answer 334

A calendar used in inventory and production planning functions that consecutively numbers only the working days so that the component and work order scheduling may be done based on the actual number of workdays available. Syn: M-day calendar, planning calendar, production calendar, shop calendar. See: resource calendar.M

Question 335

# APICS Deck 3 firm fixed-price contract

Answer 335

A contract in which the seller is paid a set price without regard to costs. Syn: fixedprice contract.F

Question 336

# APICS Deck 3 R chart

Answer 336

A control chart in which the subgroup range, R, is used to evaluate the stability of the variability within a process. Syn: range chart.R

Question 337

# APICS Deck 3 one less at a time

Answer 337

A process of gradually reducing the lot size of the number of items in the manufacturing pipeline to expose, prioritize, and eliminate waste.O

Question 338

# APICS Deck 3 tiered workforce

Answer 338

A strategy used to vary workforce levels, where additional full-time or part-time employees are hired during peak demand periods, while a smaller, permanent staff is maintained year-round. This technique is used heavily in perishable seasonal goods industries (e.g. chocolate production, nursery plants, etc.).T

Question 339

# APICS Deck 3 charge ticket

Answer 339

A document used for receiving goods and charging those goods to an operating cost center.C

Question 340

# APICS Deck 3 controllable cost

Answer 340

A cost that is under the direct control of a given level of management.C

Question 341

# APICS Deck 3 information system architecture

Answer 341

A model of how the organization operates regarding information. The model considers four factors: (1) organizational functions, (2) communication of coordination requirements, (3) data modeling needs, and (4) management and control structures. The architecture of the information system should be aligned with and match the architecture of the organization.I

Question 342

# APICS Deck 3 master schedule item

Answer 342

A part number selected to be planned by the master scheduler. The item is deemed critical in its impact on lower level components or resources such as skilled labor, key machines, or dollars. Therefore, the master scheduler, not the computer, maintains the plan for these items. A master schedule item may be an end item, a component, a pseudo number, or a planning bill of material.M

Question 343

# APICS Deck 3 maximum inventory

Answer 343

The planned maximum allowable inventory for an item based on its planned lot size and target safety stock.M

Question 344

# APICS Deck 3 inventory reserve

Answer 344

An accounting deduction from earnings to fairly and reasonably represent the value of inventoried assets on a balance sheet. The inventory reserve is used to make up for the fact that all inventory will not be sold at the cost to the firm.I

Question 345

# APICS Deck 3 business clusters

Answer 345

When businesses locate in close proximity for competition purposes.B

Question 346

# APICS Deck 3 responsible procurement

Answer 346

Assuring the use of ethical sources of goods and services to bring about a positive impact and minimize the negative impact on societies and environments, including reduce, reuse, and recycle of materials, where a firm does business. It includes processes for identifying, assessing, and managing the environmental, social, and ethical risk in the supply chain. Syn: environmentally responsible purchasing.R

Question 347

# APICS Deck 3 consolidator

Answer 347

A company that groups together various shipments or orders to facilitate movement.C

Question 348

# APICS Deck 3 priority report

Answer 348

Syn: dispatch list. private brand applied by a distributor rather than a manufacturer.P Syn: dispatch list.P

Question 349

# APICS Deck 3 floor stocks

Answer 349

Stocks of inexpensive production parts held in the factory, from which production workers can draw without requisitions. Syn: bench stocks, expensed stocks.F

Question 350

# APICS Deck 3 supplier lead time

Answer 350

The amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped. Syn: vendor lead time. See: purchasing lead time.S

Question 351

# APICS Deck 3 EDD

Answer 351

Abbreviation for earliest due date.E

Question 352

# APICS Deck 3 operation priority

Answer 352

1) The relative importance an operation is given based on its scheduled due date and/or start date, usually as determined by the backscheduling process. 2) The relative importance a job is given in a queue of jobs by a priority dispatching heuristic such as shortest processing time first or least slack remaining first.O

Question 353

# APICS Deck 3 capacity requirements planning (CRP)

Answer 353

The function of establishing, measuring, and adjusting limits or levels of capacity. The term capacity requirements planning in this context refers to the process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production. Open shop orders and planned orders in the MRP system are input to CRP, which through the use of parts routings and time standards translates these orders into hours of work by work center by time period. Even though rough-cut capacity planning may indicate that sufficient capacity exists to execute the MPS, CRP may show that capacity is insufficient during specific time periods. See: capacity planning.C

Question 354

# APICS Deck 3 mass customization

Answer 354

The creation of a high-volume product with large variety so that a customer may specify an exact model out of a large volume of possible end items while manufacturing cost is low due to large volume. An example is a personal computer order in which the customer may specify processor speed, memory size, hard disk size and speed, removable storage device characteristics, and many other options when PCs are assembled on one line and at low cost.M

Question 355

# APICS Deck 3 contract pegging

Answer 355

Syn: full pegging.C

Question 356

# APICS Deck 3 dynamic congruence

Answer 356

In simulation, the situation where a physical system and a simulation model mimic one another closely.D

Question 357

# APICS Deck 3 direct labor

Answer 357

Labor that is specifically applied to the good being manufactured or used in the performance of the service. Syn: touch labor.D

Question 358

# APICS Deck 3 decisions under uncertainty

Answer 358

Decisions for which the analyst elects to consider several possible futures, the probabilities of which cannot be estimated.D

Question 359

# APICS Deck 3 unplanned order

Answer 359

After a forecast has been developed, an unplanned order is any order outside of this forecast.U

Question 360

# APICS Deck 3 product mix

Answer 360

The proportion of individual products that make up the total production or sales volume. Changes in the product mix can mean drastic changes in the manufacturing requirements for certain types of labor and material.P P

Question 361

# APICS Deck 3 scientific inventory control

Answer 361

Syn: statistical inventory control.S

Question 362

# APICS Deck 3 move order

Answer 362

The authorization to move a particular item from one location to another.M

Question 363

# APICS Deck 3 pallet

Answer 363

A platform designed to be loaded with packages and moved by a forklift. Standard pallet size is 48 inches by 40 inches by 4 inches.P

Question 364

# APICS Deck 3 sampling plan

Answer 364

Within acceptance sampling, the determination of the sample size and the number of defectives that will trigger rejection of a lot.S

Question 365

# APICS Deck 3 channel

Answer 365

1) In queuing theory, a line for waiting. 2) In distribution, a route from raw materials through consumption. See: distribution channel, marketing channel.C

Question 366

# APICS Deck 3 logistics strategy

Answer 366

A plan for the logistics elements of a

Question 367

# APICS Deck 3 correlated demands

Answer 367

Demands that consistently vary in the same direction because of the relationship between the items demanded.C

Question 368

# APICS Deck 3 order selection

Answer 368

Syn: order picking.O

Question 369

# APICS Deck 3 liquidity

Answer 369

The ability of a firm to pay debts as they come due.L

Question 370

# APICS Deck 3 bid evaluation

Answer 370

A comparison of supplier quotes for a product based on price, quality, lead time, delivery performance, and other criteria and, based on that comparison, selecting a supplier.B

Question 371

# APICS Deck 3 fixed-price-incentive-fee contract

Answer 371

A contract in which the seller is paid a set price and can earn an additional profit if certain stipulations are met.F

Question 372

# APICS Deck 3 project team

Answer 372

An inclusive term incorporating the workers assigned to the project, the project managers, and sometimes the project sponsor.P

Question 373

# APICS Deck 3 electronic market

Answer 373

An internet-based market where most sales occur electronically.E

Question 374

# APICS Deck 3 direct marketing

Answer 374

Communicating directly with consumers in an effort to elicit a response or a transaction.D

Question 375

# APICS Deck 3 total preventive maintenance

Answer 375

Syn: total productive maintenance.T

Question 376

# APICS Deck 3 business judgment rule

Answer 376

Under common law, an absence of liability for corporate directors and officers if they have used rational business judgment and have no conflict of interest.B

Question 377

# APICS Deck 3 SWOT analysis

Answer 377

An analysis of the strengths, weaknesses, opportunities, and threats of and to an organization. SWOT analysis is useful in developing strategy.S

Question 378

# APICS Deck 3 quality loss function

Answer 378

A parabolic approximation of the quality loss that occurs when a quality characteristic deviates from its target value. The quality loss function is expressed in monetary units: The cost of deviating from the target increases quadratically as the quality characteristic moves farther from the target. The formula used to compute the quality loss function depends on the type of quality characteristic being used. The quality loss function was first introduced in this form by Genichi Taguchi.Q

Question 379

# APICS Deck 3 process requirement criteria

Answer 379

consistency between process type (job shop, repetitive, continuous, etc.) and the production planning and control system, (3) organization

Question 380

# APICS Deck 3 cwt

Answer 380

Abbreviation for hundredweight.C

Question 381

# APICS Deck 3 seiri

Answer 381

A term that refers to organizing or throwing away things that are not needed. See: five Ss.S S

Question 382

# APICS Deck 3 lead management tool

Answer 382

A tool used by sales personnel that helps them follow a specified sales process to close deals.L

Question 383

# APICS Deck 3 forward pass

Answer 383

In the critical path method of project management, working from the first node to the last node calculating early start times and early finish times as well as the project’s duration. See: forward scheduling, backward pass, critical path method.F

Question 384

# APICS Deck 3 description by specification

Answer 384

A method to identify a product or service required by communicating its characteristics in detail.D

Question 385

# APICS Deck 3 Deming Prize

Answer 385

An award given annually to organizations that, according to the award guidelines, have successfully applied companywide quality control based on statistical quality control and will keep up with it in the future. Although the award is named in honor of W. Edwards Deming, its criteria are not specifically related to Deming’s teachings. There are three separate divisions for the award: the Deming Application Prize, the Deming Prize for Individuals, and the Deming Prize for Overseas Companies. The award process is overseen by the Deming Prize Committee of the Union of Japanese Scientists and Engineers in Tokyo.D

Question 386

# APICS Deck 3 standard containers

Answer 386

Predetermined, specifically sized containers used for storing and moving components. These containers protect the components from damage and simplify the task of counting components.S

Question 387

# APICS Deck 3 integrated logistics

Answer 387

Syn: service response logistics.I

Question 388

# APICS Deck 3 import/export license

Answer 388

Official authorization issued by a government allowing the shipping or delivery of a product across national boundaries.I

Question 389

# APICS Deck 3 customer driven

Answer 389

A company’s consideration of customer wants and desires in deciding what is produced and its quality.C

Question 390

# APICS Deck 3 sensei

Answer 390

A Japanese word meaning teacher or one with experience.S

Question 391

# APICS Deck 3 input/output control (I/O)

Answer 391

A technique for capacity control where planned and actual inputs and planned and actual outputs of a work center are monitored. Planned inputs and outputs for each work center are developed by capacity requirements planning and approved by manufacturing management. Actual input is compared to planned input to identify when work center output might vary from the plan because work is not available at the work center. Actual output is also compared to planned output to identify problems within the work center. Syn: input/output analysis. See: capacity control.I

Question 392

# APICS Deck 3 performance standard

Answer 392

In a performance measurement system, the accepted, targeted, or expected value for the criterion. See: performance criterion, performance measure, performance measurement system.P

Question 393

# APICS Deck 3 forecast interval

Answer 393

The time unit for which forecasts are prepared, such as week, month, or quarter. Syn: forecast period.F

Question 394

# APICS Deck 3 avoidable cost

Answer 394

A cost associated with an activity that would not be incurred if the activity was not performed (e.g., telephone cost associated with vendor support).A

Question 395

# APICS Deck 3 transportation requirements planning (TRP)

Answer 395

Using existing MRP, DRP, or ERP databases to plan transportation requirements based on actual demand.T

Question 396

# APICS Deck 3 agent

Answer 396

One who acts on behalf of another (the principal) in dealing with a third party. Examples include a sales agent and a purchasing agent.A

Question 397

# APICS Deck 3 change request

Answer 397

An application to change scopes of work, budgets, and/or schedules.C

Question 398

# APICS Deck 3 project life cycle

Answer 398

In project management, a set of project phases (objectives definition, requirements deproject P finition, external and internal design, construction, system test, and implementation and maintenance), whose definition is determined by the needs of those controlling the project.P

Question 399

# APICS Deck 3 failure mode effects and criticality analysis (FMECA)

Answer 399

A procedure that is performed after a failure mode effects analysis to classify each potential failure effect according to its severity and probability of occurrence.F

Question 400

# APICS Deck 3 virtual inventory systems

Answer 400

A virtual system that enables supply chain partners to share data in a central database.V

Question 401

# APICS Deck 3 queue management

Answer 401

Tactics to deal with an excess number of items, such as products or customers, waiting in line for service.Q

Question 402

# APICS Deck 3 activity-based cost accounting

Answer 402

A cost accounting system that accumulates costs based on activities performed and then uses cost drivers to allocate these costs to products or other bases, such as customers, markets, or projects. It is an attempt to allocate overhead costs on a more realistic basis than direct labor or machine hours. Syn: activity-based costing, activitybased cost accounting. See: absorption costing.A

Question 403

# APICS Deck 3 what you see is what you get (WYSIWYG)

Answer 403

Computer speak that means what the file appears to the editor appears the exact same way to the end user.W

Question 404

# APICS Deck 3 gateway operation

Answer 404

Syn: gateway work center.G

Question 405

# APICS Deck 3 nominal group technique

Answer 405

A technique, similar to brainstorming, used by teams to generate ideas on a particular subject. Team members are asked to silently come up with as many ideas as possible, writing them down. Each member is then asked to share one idea, which is recorded. After all the ideas are recorded, they are discussed and prioritized by the group.N

Question 406

# APICS Deck 3 machine flexibility

Answer 406

In work-cell design, choosing between general-purpose machinery versus specialpurpose machinery, so that the lowest cost and most adaptability is achieved.M

Question 407

# APICS Deck 3 qualitative forecasting techniques

Answer 407

An approach to forecasting that is based on intuitive or judgmental evaluation. It is used generally when data are scarce, not available, or no longer relevant. Common types of qualitative techniques include: personal insight, sales force estimates, panel consensus, market research, visionary forecasting, and the Delphi method. Examples include developing long-range projections and new product introduction. Q

Question 408

# APICS Deck 3 PE ratio

Answer 408

Abbreviation for price to earnings ratio.P

Question 409

# APICS Deck 3 organizational design

Answer 409

The creation of an organizational structure to support the strategic business plans and goals of an enterprise; (e.g., for-profit and not-for-profit companies). Given the mission and business strategy, the organizational structure design provides the framework within which the business operational and management activities will be performed.O

Question 410

# APICS Deck 3 interactive computer system

Answer 410

A computer system that supports real-time interaction with a user. The response time to the user is similar to the actual timing of the business or physical process. See: interactive system.I

Question 411

# APICS Deck 3 blending department

Answer 411

In process industries, the name of the department where the ingredients are mixed. See: final assembly department.B

Question 412

# APICS Deck 3 process flow diagram

Answer 412

A graphical and progressive representation of the various steps, events, and tasks that make up an operations process. This diagram provides the viewer with a picture of what actually occurs when a product is manufactured or a service is performed.P

Question 413

# APICS Deck 3 U chart

Answer 413

A control chart for evaluating the stability of a process in terms of the average count of events of a given classification per unit occurring in a sample. Syn: count-per-unit chart.U

Question 414

# APICS Deck 3 extensible markup language (XML)

Answer 414

This language facilitates direct communication among computers on the internet. Unlike the older hypertext markup language (HTML), which provides HTML tags giving instructions to a web browser about how to display information, XML tags give instructions to a web browser about the category of information.E

Question 415

# APICS Deck 3 AOQ

Answer 415

Abbreviation for average outgoing quality.A

Question 416

# APICS Deck 3 hybrid EDI

Answer 416

A situation in which only one trading partner is EDI-enabled, while the other continues to use paper and fax. Usually the EDI-enabled partner would have electronic documents converted to fax.H

Question 417

# APICS Deck 3 quick-response manufacturing (QRM)

Answer 417

A manufacturing technique based on time-based competition to drive continuous improvement. With its roots in the strategies adopted by the Japanese in the 1980s and developed further by the University of Wisconsin, quick-response manufacturing focuses on the relentless pursuit of lead time reduction. Using manufacturing resources planning for higher-level planning, it often uses a replenishment technique called paired-cell overlapping loops of cards, which combines the best of push and pull strategies. See: paired-cell overlapping loops of cards.Q

Question 418

# APICS Deck 3 corrective action

Answer 418

The implementation of solutions resulting in the reduction or elimination of an identified problem.C

Question 419

# APICS Deck 3 scanner

Answer 419

An electronic device that optically converts coded information into electrical control signals for data collection or system transaction input.S

Question 420

# APICS Deck 3 value of transfers

Answer 420

The amount transferred, in a fiscal year, from one stage of the manufacturing process to another. For example, it is the amount of raw materials that are transformed into work in process.V

Question 421

# APICS Deck 3 balance delay

Answer 421

1) The idle time of one hand in an operation caused by uneven workload balancing. 2) The idle time of one or more operations in a series caused by uneven workload balancing. See: balance, lost time factor.B

Question 422

# APICS Deck 3 activity code

Answer 422

In project management, a value that allows filtering or ordering of activities in reports.A

Question 423

# APICS Deck 3 short-haul discrimination

Answer 423

A pricing strategy in which more is charged for a shorter haul than for a longer haul, when the route and the delivery are the same. Used to push the long-haul process.S

Question 424

# APICS Deck 3 two-bin inventory system

Answer 424

A type of fixed-order system in which inventory is carried in two bins. A replenishment quantity is ordered when the first bin (working) is empty. During the replenishment lead time, material is used from the second bin. When the material is received, the second bin (which contains a quantity to cover demand during lead time plus some safety stock) is refilled and the excess is put into the working bin. At this time, stock is drawn from the first bin until it is again exhausted. This term is also used loosely to describe any fixed-order system even when physical “bins” do not exist. Syn: bin reserve system. See: visual review system.T

Question 425

# APICS Deck 3 endogenous variable

Answer 425

A variable whose value is determined by relationships included within the model.E

Question 426

# APICS Deck 3 material receipt inspection

Answer 426

The receiving department compares the incoming material to the purchase order to verify that the correct material and quantity have been received. The material is then inspected for quality and general condition. A material receipt report is prematerial M pared and copies are distributed to the appropriate departments such as purchasing and accounting.M

Question 427

# APICS Deck 3 decentralized inventory control

Answer 427

Inventory decision making exercised at each stocking location for SKUs at that location.D

Question 428

# APICS Deck 3 exemplar

Answer 428

A particularly strong practice that should be imitated.E

Question 429

# APICS Deck 3 value-adding/non-value-adding

Answer 429

The assessment of each of the company’s activities to determine if that activity adds value to the organization or its customers. If an activity is considered non-value-adding it should be eliminated to increase an organization’s efficiency.V

Question 430

# APICS Deck 3 field service parts

Answer 430

Service parts kept in distribution centers or warehouses.F

Question 431

# APICS Deck 3 engineering change notice

Answer 431

Syn: engineering change.E

Question 432

# APICS Deck 3 working stock

Answer 432

Stock located in a facility which is used to fulfill demand.W

Question 433

# APICS Deck 3 process-focused production

Answer 433

This type of factory operation requires frequent machine changeover and produces small batches of unique products that flow along different paths.P

Question 434

# APICS Deck 3 ODD

Answer 434

Abbreviation for earliest operation due date.O

Question 435

# APICS Deck 3 business

Answer 435

including warehousing, information systems,

Question 436

# APICS Deck 3 n

Answer 436

Sample size (the number of units in a sample).N

Question 437

# APICS Deck 3 performance measurement units

Answer 437

Time, error rates, accuracy rates, cost, and other measures of system performance.P

Question 438

# APICS Deck 3 component availability

Answer 438

The availability of component inventory for the manufacture of a specific parent order or group of orders or schedules.C

Question 439

# APICS Deck 3 time card

Answer 439

A document recording attendance time, often used for indicating the number of hours for which wages are to be paid. Syn: clock card.T

Question 440

# APICS Deck 3 effective date

Answer 440

The date on which a component or an operation is to be added or removed from a bill of material or an assembly process. The effective dates are used in the explosion process to create demands for the correct items. Normally, bills of material and routing systems provide for an effectivity start date and stop date, signifying the start or stop of a particular relationship. Effectivity control also may be by serial number rather than date. Syn: effectivity, effectivity date.E

Question 441

# APICS Deck 3 global strategy

Answer 441

A strategy that focuses on improving worldwide performance through the sales and marketing of common goods and services with minimum product variation by country. Its competitive advantage grows through selecting the best locations for operations in other countries. See: multinational strategy.G

Question 442

# APICS Deck 3 translation software

Answer 442

Software that converts business data into an electronic data interchange standard format and vice versa.T

Question 443

# APICS Deck 3 quantity per

Answer 443

The quantity of a component to be used in the production of its parent. This value is stored in the bill of material and is used to calculate the gross requirements for components during the explosion process of MRP.Q

Question 444

# APICS Deck 3 waste

Answer 444

1) Any activity that does not add value to the good or service in the eyes of the consumer. 2) A byproduct of a process or task with unique characteristics requiring special management control. Waste production can usually be planned and somewhat controlled. Scrap is typically not planned and may result from the same production run as waste. See: hazardous waste.W

Question 445

# APICS Deck 3 specialization

Answer 445

Producing a limited product line in order to focus on a product or a process. Specialization is often intended to improve productivity and reduce costs.S

Question 446

# APICS Deck 3 decision tree

Answer 446

A method of analysis that evaluates alternative decisions in a tree-like structure to estimate values and/or probabilities. Decision trees take into account the time value of future earnings by using a rollback concept. Calculations are started at the far right-hand side, then traced back through the branches to identify the appropriate decision.D

Question 447

# APICS Deck 3 order placement

Answer 447

The commitment of a customer to buy a product and the subsequent administrative and data processing steps followed by the supplier.O

Question 448

# APICS Deck 3 shop order

Answer 448

Syn: manufacturing order.S

Question 449

# APICS Deck 3 chance variation

Answer 449

Variation in process results occurring because of numerous small factors such as workers, equipment, raw material, work methods, and environmental differences.C

Question 450

# APICS Deck 3 blank check purchase order

Answer 450

An order with a signed blank check attached that is usually only good up to a specific amount.B

Question 451

# APICS Deck 3 process flow analysis

Answer 451

A procedure to evaluate the effectiveness of a sequence of business activities. The analysis determines which elements of the flow are value-added and eliminates those that are not, determines which parts of the process can be automated, evaluates activities as to whether they contribute to the core competencies of the business or are candidates for outsourcing, and designs a structure for the activities of the process that remain to improve productivity.P

Question 452

# APICS Deck 3 functional silo

Answer 452

A view of an organization where each department is operated independently of the others. Each group is referred to as a silo. See: silo effect.F

Question 453

# APICS Deck 3 customer relations management (CRM)

Answer 453

Syn: customer relationship management.C

Question 454

# APICS Deck 3 major setup

Answer 454

The equipment setup and related activities required to manufacture a group of items in sequence, exclusive of the setup required for each item in the group.M

Question 455

# APICS Deck 3 chart of accounts

Answer 455

In accounting, a list of general ledger accounts used to track costs, revenues, assets, liabilities, and so on by category.C

Question 456

# APICS Deck 3 third-order smoothing

Answer 456

Syn: triple smoothing.T

Question 457

# APICS Deck 3 management estimation

Answer 457

A judgmental forecasting technique whereby responsible individuals predict the demand for new products or alter a quantitative forecast for existing products largely on the basis of experience and intuition. Other judgmental forecasting techniques may be used in combination with management estimation to improve the accuracy of the estimate. See: Delphi method, historical analogy, panel consensus, pyramid forecasting.M

Question 458

# APICS Deck 3 employee empowerment

Answer 458

The practice of giving nonmanagerial employees the responsibility and the power to make decisions regarding their jobs or tasks. It is associated with the practice of transfer of managerial responsibility to the employee. Empowerment allows the employee to take on responsibility for tasks normally associated with staff specialists. Examples include allowing the employee to make scheduling, quality, process design, or purchasing decisions.E

Question 459

# APICS Deck 3 value-added network (VAN)

Answer 459

A network, often supporting EDI, providing services additional to those provided by common carriers.V

Question 460

# APICS Deck 3 cubic space

Answer 460

In warehousing, a measurement of space available or required in transportation and warehousing.C

Question 461

# APICS Deck 3 signed message

Answer 461

In information systems, a message for which the sender can be authenticated.S

Question 462

# APICS Deck 3 run order

Answer 462

Syn: manufacturing order.R

Question 463

# APICS Deck 3 MRP

Answer 463

Abbreviation for material requirements planning.M

Question 464

# APICS Deck 3 social responsibility

Answer 464

Commitment by top management to behave ethically and to contribute to community development. This may also entail improving the workforce’s quality of life.S

Question 465

# APICS Deck 3 sum of deviations

Answer 465

Syn: cumulative sum.S

Question 466

# APICS Deck 3 post-deduct inventory transaction processing

Answer 466

Syn: backflush.P

Question 467

# APICS Deck 3 estimate of error

Answer 467

In statistics, a measure of dispersion. See: standard deviation, standard error, variance.E

Question 468

# APICS Deck 3 PDF

Answer 468

Abbreviation for portable document format.P

Question 469

# APICS Deck 3 TQM

Answer 469

Abbreviation for total quality management.T

Question 470

# APICS Deck 3 change control

Answer 470

The process of determining, approving, or rejecting changes to a plan baseline.C

Question 471

# APICS Deck 3 ISO 9000:2000

Answer 471

A certification process requiring a third-party audit that defines in broad terms what must be done to manage company quality and to document these quality processes. It recently was updated by ISO 9000:2008.I

Question 472

# APICS Deck 3 common parts bill of material

Answer 472

A type of planning bill that groups common components for a product or family of products into one bill of material, structured to a pseudoparent item number. Syn: common parts bill.C

Question 473

# APICS Deck 3 single sourcing

Answer 473

A method whereby a purchased part is supplied by only one supplier. Traditional manufacturers usually have at least two suppliers for each component part they purchase to ensure continuity of supply and (more so) to foster price competition between the suppliers. A JIT manufacturer will frequently have only one supplier for a purchased part so that close relationships can be established with a smaller number of suppliers. These close relationships (and mutual interdependence) foster high quality, reliability, short lead times, and cooperative action. Ant: multisourcing. See: sole source.S

Question 474

# APICS Deck 3 time ticket

Answer 474

An operator-entered labor claim. Syn: job ticket.T

Question 475

# APICS Deck 3 application package

Answer 475

A computer program or set of programs designed for a specific application (e.g., inventory control, MRP).A

Question 476

# APICS Deck 3 an employee is assigned to and is proficient in

Answer 476

for example, assembler, machinist, or welder.C

Question 477

# APICS Deck 3 labor claim

Answer 477

A factory worker’s report that lists the jobs an employee worked on (number of pieces, number of hours, etc.) and often the amount of money to which the employee is entitled. A labor claim is usually made on a labor chit or time ticket. Syn: labor ticket, labor voucher.L

Question 478

# APICS Deck 3 price analysis

Answer 478

The examination of a seller’s price proposal or bid by comparison with price benchmarks, without examination and evaluation of all of the separate elements of the cost and profit making up the price in the bid.P

Question 479

# APICS Deck 3 economic life

Answer 479

The time until a product is scrapped because it is unusable but because repairs are becoming too expensive to justify further use.E

Question 480

# APICS Deck 3 fair-share quantity logic

Answer 480

The process of equitably allocating available stock among field distribution centers. Fair-share quantity logic is normally used when stock available from a central inventory location is less than the cumulative requirements of the field stocking locations. The use of fair-share quantity logic involves procedures that “push” stock out to the field, instead of allowing the field to “pull” in what is needed. The objective is to maximize customer service from the limited available inventory. See: equal runout quantities.F

Question 481

# APICS Deck 3 seiton

Answer 481

A term that refers to neatness in the workplace that is achieved by straightening offices and work areas. See: five Ss.S

Question 482

# APICS Deck 3 input rate capacity

Answer 482

Measurement that takes rates of different inputs and transforms them into a common unit to measure the input. See: capacity utilization.I

Question 483

# APICS Deck 3 total cost of quality curve

Answer 483

A curve that suggests there is some optimal quality level, Q\*. The curve is calculated by adding costs of internal and external failures, prevention costs, and appraisal costs. The optimal quality level occurs where this curve reaches a minimum point. It is a single turning point curve that always has a minimum.T

Question 484

# APICS Deck 3 adaptive smoothing

Answer 484

A form of exponential smoothing in which the smoothing constant is automatically adjusted as a function of forecast error measurement.A

Question 485

# APICS Deck 3 value chain analysis

Answer 485

An examination of all links a company uses to produce and deliver its products and services starting from the origination point and continuing through delivery to the final customer.V

Question 486

# APICS Deck 3 Shingo’s seven wastes

Answer 486

Shigeo Shingo, a pioneer in the Japanese just-in-time philosophy, identified seven barriers to improving manufacturing. They are the waste of overproduction, waste of waiting, waste of transportation, waste of stocks, waste of motion, waste of making defects, and waste of the processing itself.S

Question 487

# APICS Deck 3 resource limited schedule

Answer 487

Project schedule with no early or late start or finish dates. The activity, and scheduled start and finish dates, show the expected availability of resources. Syn: resource-constrained schedule.R

Question 488

# APICS Deck 3 sigma

Answer 488

A Greek letter (Σ) commonly used to designate the standard deviation of a population.S

Question 489

# APICS Deck 3 GUI

Answer 489

Abbreviation for graphical user interface.G H

Question 490

# APICS Deck 3 hardware

Answer 490

1) In manufacturing, relatively standard items such as nuts, bolts, washers, or clips. 2) In data processing, the computer and its peripherals.H

Question 491

# APICS Deck 3 available-to-promise (ATP)

Answer 491

The uncommitted portion of a company’s inventory and planned production maintained in the master schedule to support customerorder promising. The ATP quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled. In the first period, ATP includes on-hand inventory less customer orders that are due and overdue. Three methods of calculation are used: discrete ATP, cumulative ATP with look-ahead, and cumulative ATP B without look-ahead. See: discrete available-to-promise, cumulative available-to-promise.A

Question 492

# APICS Deck 3 terminals

Answer 492

In transportation, locations where carriers load and unload goods to and from vehicles. Also used to make connections between local pickup and delivery service and line-haul service. Functions performed in terminals include weighing connections with other routes and carriers, vehicle routing, dispatching, maintenance, paperwork, and administration. Terminals may be owned and operated by the carrier or the public.T

Question 493

# APICS Deck 3 price-break model

Answer 493

Syn: quantity discount model.P

Question 494

# APICS Deck 3 buffer stock

Answer 494

Syn: safety stock.B

Question 495

# APICS Deck 3 demand forecast updating

Answer 495

Recomputing a forecast after deleting the oldest data and adding data that occurred since the last forecast revision.D

Question 496

# APICS Deck 3 lot

Answer 496

A quantity produced together and sharing the same production costs and specifications. See: batch.L

Question 497

# APICS Deck 3 pipeline stock

Answer 497

Inventory in the transportation network and the distribution system, including the flow through intermediate stocking points. The flow time through the pipeline has a major effect on the amount of inventory required in the pipeline. Time factors involve order transmission, order processing, scheduling, shipping, transportation, receiving, stocking, review time, and so forth. Syn: pipeline inventory. See: distribution system, transportation inventory.P

Question 498

# APICS Deck 3 real property

Answer 498

Land and associated rights improvements, utility systems, buildings, and other structures.R

Question 499

# APICS Deck 3 intrastate commerce

Answer 499

Moving people or materials between points within a single state.I