APICS Deck 3 OO Flashcards

Question 1

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APICS Deck 3

Term

Answer

A

Definition

Question 2

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APICS Deck 3

population

Answer

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

Question 3

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APICS Deck 3

time and attendance

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A

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

Question 4

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APICS Deck 3

bill of activities

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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

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APICS Deck 3

MBNQA

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Abbreviation for the Malcolm Baldrige National Quality Award.M

Question 6

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APICS Deck 3

material requisition

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

Question 7

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APICS Deck 3

confidence limit

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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

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APICS Deck 3

equivalent unit cost

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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

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APICS Deck 3

channel integration

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

Question 10

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APICS Deck 3

special-purpose machinery

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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

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APICS Deck 3

blocked operation

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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

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APICS Deck 3

black box design

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

Question 13

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APICS Deck 3

denied party list

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

Question 14

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APICS Deck 3

bleeding edge

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

Question 15

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APICS Deck 3

materials system

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Connecting material flows contained in a production system.M

Question 16

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APICS Deck 3

storage costs

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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

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APICS Deck 3

focus strategy

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Targeting a narrow market with specialized goods or services.F

Question 18

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APICS Deck 3

SPT

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Abbreviation for shortest processing time rule.S

Question 19

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APICS Deck 3

lot number control

Answer

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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

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APICS Deck 3

number of affected units chart

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Syn: np chart.N

Question 21

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APICS Deck 3

replacement cost systems

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

Question 22

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APICS Deck 3

parallel conversion

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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

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APICS Deck 3

manufacturing process development

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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

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APICS Deck 3

poka-yoke (mistake-proof)

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A

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

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APICS Deck 3

fixed-position layout

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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

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APICS Deck 3

fiduciary

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

Question 27

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APICS Deck 3

overlapped production

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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

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APICS Deck 3

depreciation

Answer

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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

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APICS Deck 3

certified supplier

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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

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APICS Deck 3

point of sale (POS)

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A

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

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APICS Deck 3

seasonal adjustment

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Syn: seasonal index.S

Question 32

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APICS Deck 3

production validation

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

Question 33

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APICS Deck 3

timetables

Answer

A

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

Question 34

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APICS Deck 3

smallest processing time rule

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A

Syn: shortest processing time rule.S

Question 35

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APICS Deck 3

seasonal variation

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See: seasonality.S

Question 36

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APICS Deck 3

production material

Answer

A

Any material used in the manufacturing process.P

Question 37

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APICS Deck 3

process design

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The design of the manufacturing method.P

Question 38

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APICS Deck 3

AQL

Answer

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Abbreviation for acceptable quality level.A

Question 39

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APICS Deck 3

order quantity

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Syn: lot size.O

Question 40

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APICS Deck 3

sustaining activity

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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

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APICS Deck 3

time standard

Answer

A

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

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APICS Deck 3

return goods handling

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A

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

Question 43

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APICS Deck 3

forecast accuracy

Answer

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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

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APICS Deck 3

webpage

Answer

A

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

Question 45

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APICS Deck 3

internet operations

Answer

A

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

Question 46

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APICS Deck 3

average chart

Answer

A

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

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APICS Deck 3

A3 method

Answer

A

A means of compactly describing a business process.A

Question 48

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APICS Deck 3

cybernetics

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A

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

Question 49

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APICS Deck 3

end user

Answer

A

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

Question 50

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APICS Deck 3

CTP

Answer

A

Abbreviation for capable-to-promise.C

Question 51

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APICS Deck 3

production time

Answer

A

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

Question 52

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APICS Deck 3

abandonment

Answer

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

Question 53

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APICS Deck 3

linear regression

Answer

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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

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APICS Deck 3

active inventory

Answer

A

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

Question 55

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APICS Deck 3

flexible budget

Answer

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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

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APICS Deck 3

NOPAT

Answer

A

Acronym for net operating profit after taxes.N

Question 57

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APICS Deck 3

implementation

Answer

A

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

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APICS Deck 3

capable-to-promise (CTP)

Answer

A

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

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APICS Deck 3

personal discrimination

Answer

A

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

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APICS Deck 3

location grid

Answer

A

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

Question 61

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APICS Deck 3

balance of trade

Answer

A

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

Question 62

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APICS Deck 3

export license

Answer

A

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

Question 63

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APICS Deck 3

model number

Answer

A

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

Question 64

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APICS Deck 3

UDE

Answer

A

Abbreviation for undesirable effect. Pronounced“oodee.”U

Answer 65

A

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

Answer 66

A

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

Answer 67

A

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

Answer 68

A

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

Answer 69

A

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

Answer 70

A

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

Answer 71

A

Abbreviation for earnings before taxes.E

Answer 72

A

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

Answer 73

A

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

Answer 74

A

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

Answer 75

A

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

Answer 76

A

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

Answer 77

A

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

Answer 78

A

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

Answer 79

A

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

Answer 80

A

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

Answer 81

A

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

Answer 82

A

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

Answer 83

A

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

Answer 84

A

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

Answer 85

A

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

Answer 86

A

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

Answer 87

A

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

Answer 88

A

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

Answer 89

A

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

Answer 90

A

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

Answer 91

A

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

Answer 92

A

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

Answer 93

A

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

Answer 94

A

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

Answer 95

A

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

Answer 96

A

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

Answer 97

A

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

Answer 98

A

The product being completed by a process or facility.O

Answer 99

A

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

Answer 100

A

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

Answer 101

A

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

Answer 102

A

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

Answer 103

A

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

Answer 104

A

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

Answer 105

A

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

Answer 106

A

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

Answer 107

A

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

Answer 108

A

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

Answer 109

A

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

Answer 110

A

Abbreviation for vendor-managed inventory.V

Answer 111

A

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

Answer 112

A

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

Answer 113

A

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

Answer 114

A

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

Answer 115

A

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

Answer 116

A

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

Answer 117

A

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

Answer 118

A

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

Answer 119

A

Abbreviation for forecast mean absolute percentage of error.F

Answer 120

A

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

Answer 121

A

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

Answer 122

A

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

Answer 123

A

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

Answer 124

A

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

Answer 125

A

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

Answer 126

A

Abbreviation for mean squared error.M M

Answer 127

A

Syn: firm fixed-price contract.F

Answer 128

A

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

Answer 129

A

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

Answer 130

A

Work done on a piece rate.P

Answer 131

A

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

Answer 132

A

Abbreviation for return on investment.R

Answer 133

A

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

Answer 134

A

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

Answer 135

A

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

Answer 136

A

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

Answer 137

A

Syn: Gantt chart.J

Answer 138

A

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

Answer 139

A

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

Answer 140

A

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

Answer 141

A

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

Answer 142

A

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

Answer 143

A

Abbreviation for strategic business unit.S

Answer 144

A

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

Answer 145

A

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

Answer 146

A

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

Answer 147

A

The marketing plan to support the business strategy.M

Answer 148

A

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

Answer 149

A

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

Answer 150

A

Abbreviation for trailer on a flatcar.T

Answer 151

A

Abbreviation for public-private partnering.P

Answer 152

A

Representation of text and multimedia documents electronically.E

Answer 153

A

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

Answer 154

A

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

Answer 155

A

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

Answer 156

A

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

Answer 157

A

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

Answer 158

A

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

Answer 159

A

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

Answer 160

A

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

Answer 161

A

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

Answer 162

A

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

Answer 163

A

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

Answer 164

A

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

Answer 165

A

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

Answer 166

A

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

Answer 167

A

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

Answer 168

A

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

Answer 169

A

Syn: move card.M

Answer 170

A

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

Answer 171

A

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

Answer 172

A

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

Answer 173

A

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

Answer 174

A

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

Answer 175

A

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

Answer 176

A

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

Answer 177

A

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

Answer 178

A

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

Answer 179

A

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.

Answer 180

A

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

Answer 181

A

Syn: routing.I

Answer 182

A

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

Answer 183

A

A sworn written statement.A

Answer 184

A

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

Answer 185

A

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

Answer 186

A

Abbreviation for time-phased order point.T

Answer 187

A

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

Answer 188

A

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

Answer 189

A

Syn: shrinkage factor.S

Answer 190

A

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

Answer 191

A

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

Answer 192

A

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

Answer 193

A

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

Answer 194

A

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

Answer 195

A

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

Answer 196

A

Acronym for computer-aided design.C C

Answer 197

A

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

Answer 198

A

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

Answer 199

A

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

Answer 200

A

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

Answer 201

A

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

Answer 202

A

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

Answer 203

A

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

Answer 204

A

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

Answer 205

A

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

Answer 206

A

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

Answer 207

A

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

Answer 208

A

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

Answer 209

A

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

Answer 210

A

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

Answer 211

A

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

Answer 212

A

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

Answer 213

A

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

Answer 214

A

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

Answer 215

A

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

Answer 216

A

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

Answer 217

A

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

Answer 218

A

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

Answer 219

A

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

Answer 220

A

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

Answer 221

A

Abbreviation for open systems interconnection.O

Answer 222

A

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

Answer 223

A

Syn: funds flow statement.S

Answer 224

A

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

Answer 225

A

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

Answer 226

A

Syn: service parts demand.S

Answer 227

A

Acronym for employee stock ownership plan.E

Answer 228

A

Abbreviation for late start date.L

Answer 229

A

Syn: supplies.G

Answer 230

A

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

Answer 231

A

Syn: past due order.D

Answer 232

A

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

Answer 233

A

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

Answer 234

A

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

Answer 235

A

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

Answer 236

A

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

Answer 237

A

Syn: absorption costing.A

Answer 238

A

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

Answer 239

A

Acronym for American National Standards Institute.A

Answer 240

A

Abbreviation for distribution requirements planning.D

Answer 241

A

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

Answer 242

A

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

Answer 243

A

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

Answer 244

A

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

Answer 245

A

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

Answer 246

A

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

Answer 247

A

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

Answer 248

A

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

Answer 249

A

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

Answer 250

A

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

Answer 251

A

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

Answer 252

A

Abbreviation for statistical process control.S

Answer 253

A

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

Answer 254

A

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

Answer 255

A

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

Answer 256

A

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

Answer 257

A

Syn: time ticket.J

Answer 258

A

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

Answer 259

A

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

Answer 260

A

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

Answer 261

A

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

Answer 262

A

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

Answer 263

A

Abbreviation for business process reengineering.B

Answer 264

A

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

Answer 265

A

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

Answer 266

A

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

Answer 267

A

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

Answer 268

A

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

Answer 269

A

Syn: trade bloc.T

Answer 270

A

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

Answer 271

A

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

Answer 272

A

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

Answer 273

A

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

Answer 274

A

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

Answer 275

A

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

Answer 276

A

Syn: due date.E

Answer 277

A

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

Answer 278

A

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

Answer 279

A

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

Answer 280

A

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

Answer 281

A

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

Answer 282

A

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

Answer 283

A

Syn: service parts.R

Answer 284

A

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

Answer 285

A

Syn: 14 Points.D

Answer 286

A

Syn: D chart.D

Answer 287

A

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

Answer 288

A

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

Answer 289

A

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

Answer 290

A

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

Answer 291

A

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

Answer 292

A

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

Answer 293

A

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

Answer 294

A

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

Answer 295

A

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

Answer 296

A

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

Answer 297

A

Syn: flow shop.F

Answer 298

A

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

Answer 299

A

Syn: quality trilogy.J

Answer 300

A

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

Answer 301

A

Projected available balance, excluding planned orders.P

Answer 302

A

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

Answer 303

A

Abbreviation for stockkeeping unit. Pronounced as skew.S

Answer 304

A

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

Answer 305

A

Syn: inventory buffer.I

Answer 306

A

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

Answer 307

A

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

Answer 308

A

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

Answer 309

A

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

Answer 310

A

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

Answer 311

A

Items that are technically feasible to repair economically.R

Answer 312

A

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

Answer 313

A

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

Answer 314

A

Syn: inventory planning.M

Answer 315

A

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

Answer 316

A

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

Answer 317

A

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

Answer 318

A

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

Answer 319

A

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

Answer 320

A

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

Answer 321

A

A Japanese word meaning voluntary study groups.J

Answer 322

A

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

Answer 323

A

Syn: setup.C

Answer 324

A

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

Answer 325

A

Abbreviation for return on assets.R

Answer 326

A

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

Answer 327

A

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

Answer 328

A

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

Answer 329

A

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

Answer 330

A

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

Answer 331

A

A company-owned warehouse.P

Answer 332

A

Acronym for analysis of variance.A

Answer 333

A

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

Answer 334

A

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

Answer 335

A

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

Answer 336

A

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

Answer 337

A

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

Answer 338

A

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

Answer 339

A

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

Answer 340

A

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

Answer 341

A

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

Answer 342

A

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

Answer 343

A

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

Answer 344

A

When businesses locate in close proximity for competition purposes.B

Answer 345

A

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

Answer 346

A

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

Answer 347

A

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

Answer 348

A

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

Answer 349

A

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

Answer 350

A

Abbreviation for earliest due date.E

Answer 351

A

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

Answer 352

A

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

Answer 353

A

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

Answer 354

A

Syn: full pegging.C

Answer 355

A

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

Answer 356

A

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

Answer 357

A

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

Answer 358

A

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

Answer 359

A

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

Answer 360

A

Syn: statistical inventory control.S

Answer 361

A

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

Answer 362

A

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

Answer 363

A

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

Answer 364

A

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

Answer 365

A

A plan for the logistics elements of a

Answer 366

A

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

Answer 367

A

Syn: order picking.O

Answer 368

A

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

Answer 369

A

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

Answer 370

A

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

Answer 371

A

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

Answer 372

A

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

Answer 373

A

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

Answer 374

A

Syn: total productive maintenance.T

Answer 375

A

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

Answer 376

A

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

Answer 377

A

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

Answer 378

A

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

Answer 379

A

Abbreviation for hundredweight.C

Answer 380

A

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

Answer 381

A

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

Answer 382

A

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

Answer 383

A

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

Answer 384

A

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

Answer 385

A

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

Answer 386

A

Syn: service response logistics.I

Answer 387

A

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

Answer 388

A

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

Answer 389

A

A Japanese word meaning teacher or one with experience.S

Answer 390

A

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

Answer 391

A

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

Answer 392

A

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

Answer 393

A

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

Answer 394

A

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

Answer 395

A

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

Answer 396

A

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

Answer 397

A

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

Answer 398

A

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

Answer 399

A

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

Answer 400

A

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

Answer 401

A

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

Answer 402

A

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

Answer 403

A

Syn: gateway work center.G

Answer 404

A

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

Answer 405

A

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

Answer 406

A

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

Answer 407

A

Abbreviation for price to earnings ratio.P

Answer 408

A

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

Answer 409

A

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

Answer 410

A

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

Answer 411

A

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

Answer 412

A

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

Answer 413

A

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

Answer 414

A

Abbreviation for average outgoing quality.A

Answer 415

A

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

Answer 416

A

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

Answer 417

A

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

Answer 418

A

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

Answer 419

A

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

Answer 420

A

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

Answer 421

A

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

Answer 422

A

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

Answer 423

A

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

Answer 424

A

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

Answer 425

A

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

Answer 426

A

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

Answer 427

A

A particularly strong practice that should be imitated.E

Answer 428

A

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

Answer 429

A

Service parts kept in distribution centers or warehouses.F

Answer 430

A

Syn: engineering change.E

Answer 431

A

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

Answer 432

A

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

Answer 433

A

Abbreviation for earliest operation due date.O

Answer 434

A

including warehousing, information systems,

Answer 435

A

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

Answer 436

A

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

Answer 437

A

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

Answer 438

A

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

Answer 439

A

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

Answer 440

A

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

Answer 441

A

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

Answer 442

A

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

Answer 443

A

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

Answer 444

A

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

Answer 445

A

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

Answer 446

A

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

Answer 447

A

Syn: manufacturing order.S

Answer 448

A

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

Answer 449

A

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

Answer 450

A

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

Answer 451

A

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

Answer 452

A

Syn: customer relationship management.C

Answer 453

A

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

Answer 454

A

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

Answer 455

A

Syn: triple smoothing.T

Answer 456

A

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

Answer 457

A

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

Answer 458

A

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

Answer 459

A

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

Answer 460

A

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

Answer 461

A

Syn: manufacturing order.R

Answer 462

A

Abbreviation for material requirements planning.M

Answer 463

A

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

Answer 464

A

Syn: cumulative sum.S

Answer 465

A

Syn: backflush.P

Answer 466

A

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

Answer 467

A

Abbreviation for portable document format.P

Answer 468

A

Abbreviation for total quality management.T

Answer 469

A

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

Answer 470

A

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

Answer 471

A

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

Answer 472

A

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

Answer 473

A

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

Answer 474

A

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

Answer 475

A

for example, assembler, machinist, or welder.C

Answer 476

A

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

Answer 477

A

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

Answer 478

A

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

Answer 479

A

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

Answer 480

A

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

Answer 481

A

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

Answer 482

A

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

Answer 483

A

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

Answer 484

A

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

Answer 485

A

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

Answer 486

A

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

Answer 487

A

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

Answer 488

A

Abbreviation for graphical user interface.G H

Answer 489

A

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

Answer 490

A

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

Answer 491

A

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

Answer 492

A

Syn: quantity discount model.P

Answer 493

A

Syn: safety stock.B

Answer 494

A

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

Answer 495

A

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

Answer 496

A

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

Answer 497

A

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

Answer 498

A

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

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