APICS Deck 4 OO Flashcards
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Term
Definition
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cost control
Applying procedures that monitor the progress of operations against authorized budgets, and taking action to achieve minimal costs.C
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impulse response
How quickly an estimate or forecast changes when the underlying data of the estimate have changed.I
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teardown bill of material
Syn: disassembly bill of material.T
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AGVS
Abbreviation for automated guided vehicle system.A
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mapping
Drawing the organization’s processes or relationships that form a business process.M M
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production schedule
A plan that authorizes the factory to manufacture a certain quantity of a specific item. It is usually initiated by the production planning department.P
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third-party logistics company
A company that manages all or part of another company’s product delivery operations.T
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allowable cost
A reasonable cost specifically permitted under Federal Acquisition Regulation (FAR) requirements.A
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mathematical programming
The general problem of optimizing a function of several variables subject to a number of constraints. If the function and constraints are linear in the variables and a subset of the constraints restricts the variables to be nonnegative, a linear programming problem exists.M
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flow process chart
A graphic, symbolic representation of the work performed, or to be performed, on a product as it passes through some or all of the stages of a process. Typically, the information included in the chart is quantity, distance moved, type of work done (by symbol with explanation), and equipment used. Work times may also be included. The flow process chart symbols (ASME Standard Symbols) generally used are as follows: O operation: A subdivision of a process that changes or modifies a part, material, or product and is done essentially at one workplace location → transportation (move): Change in location of a person, part, material, or product from one workplace to another ■ inspection: Comparison of observed quality or quantity of a product with a quality or quantity standard ▼ storage: Keeping a product, material, or part protected against unauthorized removal D delay: An event that occurs when an object or person waits for the next planned action O combined activity: Adjustment during testing (e.g., combination of the separate operation and inspection symbols) Syn: process flowchart, process flow diagram. See: flowchart, process flow.F
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master budget
The document that consolidates all other budgets of an organization into an overall plan, including the projection of a cash flow statement and an operating statement for the budget period as well as a balance sheet for the end of the budget period. Syn: static budget.M
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shipping point
The location from which material is sent. Ant: receiving point.S
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outbound stockpoint
The designated locations near the point of use on a plant floor to which material produced is taken until it is pulled to the next operation.O
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discussion list
A group of people who have all signed up on a listserver to participate via email in the discussion of a given topic.D
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batch processing
1) A manufacturing technique in which parts are accumulated and processed together in a lot. 2) A computer technique in which transactions are accumulated and processed together or in a lot. Syn: batch production.B
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pull signal
Any signal that indicates when to produce or transport items in a pull replenishment system. For example, in just-in-time production control systems, a kanban card is used as the pull signal to replenish parts to the using operation. See: pull system.P
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center-of-gravity models
Syn: gravity models.C
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functional benchmarking
Benchmarking a single function within an organization rather than the entire organization. See: benchmarking.F
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SIPOC
An acronym for supplier, input, process, output, customer (pronounced “sye-pahk”).S
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bill of material (BOM)
1) A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly. It is used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released. A variety of display formats exist for bills of material, including the single-level bill of material, indented bill of material, modular (planning) bill of material, transient bill of material, matrix bill of material, and costed bill of material. 2) A list of all the materials needed to make one production run of a product, by a contract manufacturer, of piece parts/components for its customers. The bill of material may also be called the formula, recipe, or ingredients list in certain process industries.B
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SBT
Abbreviation for scan-based trading.S
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AOA
Abbreviation for activity-on-arrow network.A
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tool order
A document authorizing issue of specific tools from the tool crib or other storage. Syn: tool issue order.T
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program manager
A person assigned program management responsibilities for the implementation activities associated with a new or ongoing product or service offering to customers. See: program management.P
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grades
The sublabeling of items to identify their particular makeup and to separate one lot from other production lots of the same item.G
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sale-and-leaseback
An agreement by which a firm first sells its assets to a financial institution and then leases these same assets from the financial institution.S
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less-than-truckload (LTL)
Either a small shipment that does not fill the truck or a shipment of not enough weight to qualify for a truckload quantity (usually set at about 10,000 lbs.) rate discount, offered to a general commodity trucker.L
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floating order point
An order point that is responsive to changes in demand or to changes in lead time.F
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suboptimization
A solution to a problem that is best from a narrow point of view but not from a higher or overall company point of view. For example, a department manager who would not have employees work overtime to minimize the department’s operating expense may cause lost sales and a reduction in overall company profitability.S
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start date
In project management, the time an activity begins; this may be defined as an actual start date or a planned start date.S
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offline
Computer work completed either when disconnected from the internet or from an intranet. This term describes anytime when someone cannot be contacted via their computer.O
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going concern value
The value of the firm as a whole, rather than the sum of the values of the separate parts.G
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point-of-sale information
Information about customers collected at the time of sale.P
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Mercosur
Southern Common Market.M
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customer service life cycle
In information systems, a model that describes the relationship with a customer as having four phases: requirements, acquisition, ownership, and retirement.C
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design cycle
The interval of time between the start of the design process of one model and the completion of the design process for the model.D
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cost driver analysis
In activity-based cost accounting, the examination of the impact of cost drivers. The results of this analysis are useful in the continuous improvement of cost, quality, and delivery times.C
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pull system
1) In production, the production of items only as demanded for use or to replace those taken for use. See: pull signal. 2) In material control, the withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user. 3) In distribution, a system for replenishing field warehouse inventories where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant.P
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retailer
A business that takes title to products and resells them to final consumers.R
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crew size
The number of people required to perform an operation. The associated standard time should represent the total time for all crew members to perform the operation, not the net start to finish time for the crew.C C
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tracking capacity strategy
Adding capacity in small amounts to attempt to respond to changing demand in real time in the marketplace. This approach may satisfy total demand and help minimize unit costs, but it can be difficult in some situations to add incremental amounts of capacity, especially if the facility has no more space available.T
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distribution warehouse
A facility where goods are received in large-volume uniform lots, stored briefly, and then broken down into smaller orders of different items required by the customer. Emphasis is on expeditious movement and handling.D
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scope
In project management, the totality of products to be created by a project.S
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manufacturing
A series of interrelated activities and operations involving the design, material selection, planning, production, quality assurance, management, and marketing of discrete consumer and durable goods.M
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performance rating
Observation of worker performance to rate the productivity of the workers as a percentage in terms of the standard or normal worker performance.P
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profitability analysis
In activity-based cost accounting, the examination of profit received from cost objects to attempt to optimize profitability. A variety of views may be examined including customer, distribution channel, product, and regions.P
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required capacity
Syn: capacity required.R
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cross-shipment
Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.C
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concentration
The percentage of an active ingredient within the whole. For example, a 40 percent solution of hydrochloric acid.C
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capacity utilization
Goods produced, or customers served, divided by total output capacity.C
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skills inventories
An organized file of information on each employee’s skills, abilities, knowledge, and experience, usually maintained by a personnel office. See: labor grade.S
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process layout
Syn: functional layout.P
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composite part
A part that represents operations common to a family or group of parts controlled by group technology. Tools, jigs, and dies are used for the composite part; therefore, any parts of that family can be processed with the same operations and tooling. The goal here is to reduce setup costs.C
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leverage-capital structure ratio
An indicator of whether or not a company has the ability to retire its long-term debts.L
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growth trajectory
Syn: ramp rate.G
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floor-ready merchandise
Products shipped by a supplier having all needed tags, prices, security devices, and so on already in place.F F
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bonded warehouse
Buildings or parts of buildings designated by the U.S. Secretary of the Treasury for storing imported merchandise, operated under U.S. Customs supervision.B
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variance
1) The difference between the expected (budgeted or planned) value and the actual. 2) In statistics, a measurement of dispersion of data. See: estimate of error.V
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transportation brokers
Firms that find shipments for carriers for a fee.T
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legacy systems
A computer application program that is old and interfaces poorly with other applications but is too expensive to replace. It often runs on antiquated hardware.L
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contract administration
Managing all aspects of a contract to guarantee that the contractor fulfills his obligations.C
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multilevel master schedule
A master scheduling technique that allows any level in an end item’s bill of material to be master scheduled. To accomplish this, MPS items must receive requirements from independent and dependent demand sources. See: two-level master schedule.M
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capital structure
The combination of permanent shortterm debt, long-term debt, preferred stock, and common equity used to finance a firm.C
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backhauling
The process of a transportation vehicle returning from the original destination point to the point of origin. The 1980 Motor Carrier Act deregulated interstate commercial trucking and thereby allowed carriers to contract for the return trip. The backhaul can be with a full, partial, or empty load. An empty backhaul is called deadheading. See: deadhead.B
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tool
Any instrument, such as a saw blade, that is the working part of a machine.T
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bricks and mortar
A company that sells through a physical location. Ant: clicks and mortar (selling over the internet).B
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ordering cost
Used in calculating order quantities, the costs that increase as the number of orders placed increases. It includes costs related to the clerical work of preparing, releasing, monitoring, and receiving orders, the physical handling of goods, inspections, and setup costs, as applicable. See: acquisition cost, inventory costs.O
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FTZ
Abbreviation for foreign trade zone.F
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cumulative trauma disorder
An occupational injury believed to be caused by repetitive motions such as typing or twisting.C
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infrastructural elements
Elements of a strategy including decision rules, policies, personnel guidelines, and organizational structure.I
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inventory record
A history of the inventory transactions of a specific material.I
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strategic partnerships
Alliances with top supplier and buyer performers to enhance a firm’s performance.S
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direct material
Material that becomes a part of the final product in measurable quantities.D
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eurocurrency
Money that is deposited outside of the country that issued it (outside of the issuing country’s control).E
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RFID
Abbreviation for radio frequency identification.R
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fishbone analysis
A technique to organize the elements of a problem or situation to aid in the determination of the causes of the problem or situation. The analysis relates the effect of the environment to the several possible sources of the problem.F
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acceptance plan
How an organization determines which product lots to accept or reject based on samples. See: acceptance sampling.A
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schedule
A timetable for planned occurrences (e.g., shipping schedule, master production schedule, maintenance schedule, supplier schedule). Some schedules include the starting and ending time for activities (e.g., project schedule).S
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reactive maintenance
Syn: breakdown maintenance.R
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client
In information systems, a software program that is used to contact and obtain data from a server program on another computer. Each client program is designed to work with one or more specific kinds of server programs, and each server requires a specific kind of client. A browser is one type of client.C
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industrial engineering
The engineering discipline concerned with facilities layout, methods measurement and improvement, statistical quality control, job design and evaluation, and the use of management sciences to solve business problems.I
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physical distribution
Syn: distribution.P
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percent of fill
Syn: customer service ratio.P
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average cost per unit
The estimated total cost, including allocated overhead, to produce a batch of goods divided by the total number of units produced.A
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triple bottom line (TBL)
An approach that measures the economic, social, and environmental impact of an organization’s activities with the intent of bringing value for both its shareholders and society.T
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sequential development process
A process in which the product or services idea must clear specific hurdles before it can go on the next development phase.S
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strategic plan
The plan for how to marshal and determine actions to support the mission, goals, and objectives of an organization. Generally includes an organization’s explicit mission, goals, and objectives and the specific actions needed to achieve those goals and objectives. See: business plan, operational plan, strategic planning, strategy, tactical plan.S
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calculated capacity
Syn: rated capacity.C
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microeconomics
The analysis of the behavior of individual economic decision makers (individuals and firms).M
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warehouse management system (WMS)
A computer application system designed to manage and optimize workflows and the storage of goods within a warehouse. These systems often interface with automated data capture and enterprise resources planning systems.W
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load center
Syn: work center.L
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standard cost accounting system
A cost accounting system that uses cost units determined before production for estimating the cost of an order or product. For management control purposes, the standards are compared to actual costs, and variances are computed.S
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vendor-owned inventory (VOI)
Syn: consigned stocks.V
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periodic review system
Syn: fixed reorder cycle inventory model.P
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participative design/engineering
A concept that refers to the simultaneous participation of all the functional areas of the firm in the product design activity. Suppliers and customers are often also included. The intent is to enhance the design with the inputs of all the key stakeholders. Such a process should ensure that the final design meets all the needs of the stakeholders and should ensure a product that can be quickly brought to the marketplace while maximizing quality and minimizing costs. Syn: co-design, concurrent design, concurrent engineering, new product development team, parallel engineering, simultaneous design/engineering, simultaneous engineering, team design/ engineering. See: early manufacturing involvement.P
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product life cycle management (PLM)
The process of facilitating the development, use, and support of products that customers want and need. PLM helps professionals envision the creation and preservation of product information, both to the customer and along the reverse-logistics portion of the supply chain.P
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computer-aided design (CAD)
The use of computers in interactive engineering drawing and storage of designs. Programs complete the layout, geometric transformations, projections, rotations, magnifications, and interval (cross-section) views of a part and its relationship with other parts.C
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capacity requirements plan
A time-phased display of present and future load (capacity required) on all resources based on the planned and released supply authorizations (i.e., orders) and the planned capacity (capacity available) of these resources over a span of time. See: load profile.C
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supply chain event management (SCEM)
A term associated with supply chain management software applications, where users have the ability to flag the occurrence of certain supply chain events to trigger some form of alert or action within another supply chain application. SCEM can be deployed to monitor supply S chain business processes such as planning, transportation, logistics, or procurement. SCEM can also be applied to supply chain business intelligence applications to alert users to any unplanned or unexpected event.S
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benchmarking
Comparing a company’s costs, products, and services to that of a company thought to have superior performance. The benchmark target is often a competitor but is not always a firm in the same industry. Seven types of benchmarking have been cited: (1) competitive benchmarking, (2) financial benchmarking, (3) functional benchmarking, (4) performance benchmarking, (5) process benchmarking, (6) product benchmarking, and (7) strategic benchmarking. See: competitive benchmarking, financial benchmarking, functional benchmarking, performance benchmarking, process benchmarking, product benchmarking, strategic benchmarking.B
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pack-out department
The department that performs the final steps (often including packaging and labeling) before shipment to the customer. See: final assembly department.P
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gross profit margin rate
Sales minus cost of goods sold then divided by sales.G
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forecast horizon
The period of time into the future for which a forecast is prepared.F
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service blueprint
A service analysis method that allows service designers to identify processes involved in the service delivery system, isolate potential failure points in the system, establish time frames for the service delivery, and set standards for each step that can be quantified for measurement.S
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product manager concept
A marketing method in which a manager is given complete responsibility for managing the introduction, stocking policy, marketing, and sales of a specific product.P
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item master record
Syn: item record.I
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tier one
The group of suppliers that are directly responsible for not only product supply but product development.T
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postponement
A product design strategy that shifts product differentiation closer to the consumer by postponing identity changes, such as assembly or packaging, to the last possible supply chain location.P
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closed-loop feedback system
A planning and control system that monitors system progress toward the plan and has an internal control and replanning capability.C
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drop ship
To take the title of the product but not actually handle, stock, or deliver it (i.e., to have one supplier ship directly to another or to have a supplier ship directly to the buyer’s customer).D
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kitted material
Syn: kit.K
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eurodollar
A U.S. dollar held in a foreign bank.E
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portfolio
In project management, a collection of projects that are grouped to facilitate management. They are not necessarily interdependent.P
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webcasting
Syn: push technology.W
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breeder bill of material
A bill of material that recognizes and plans for the availability and usage of by-products in the manufacturing process. The breeder bill allows for complete by-product MRP and product/byproduct costing.B
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network path
Any continuous series of project activities connected by precedence relationships in a project schedule network diagram.N
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corporate culture
The set of important assumptions that members of the company share. It is a system of shared values about what is important and beliefs about how the company works. These common assumptions influence the ways the company operates.C
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unit cost
Total labor, material, and overhead cost for one unit of production (e.g., one part, one gallon, one pound).U
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user-friendly
Characteristic of computer software or hardware that makes it easy for the user or operator to use the programs or equipment with a minimum of specialized knowledge or recourse to operating manuals.U
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counseling
The providing of basic, technical, and sometimes professional human assistance to employees to help them with personal and work-related problems.C
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quality function deployment (QFD)
A methodology designed to ensure that all the major requirements of the customer are identified and subsequently met or exceeded through the resulting product design process and the design and operation of the supporting production management system. QFD can be viewed as a set of communication and translation tools. QFD tries to eliminate the gap between what the customer wants in a new product and what the product is capable of delivering. QFD often leads to a clear identification of the major requirements of the customers. These expectations are referred to as the voice of the customer (VOC). See: house of quality.Q
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projected finish date
The current estimate of the date when an activity will be completed.P
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OTIF
Abbreviation for on-time in-full.O
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MES
Abbreviation for manufacturing execution systems.M
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confiscation
The taking of property without adequate compensation for it.C
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hold points
Stockpoints for semifinished inventory.H
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fourth-party logistics (4PL)
Fourth-party logistics differs from third-party logistics in the following ways: (1) the 4PL organization is often a separate entity formed by a joint venture or other long-term contract between a client and one or more partners; (2) the 4PL organization is an interface between the client and multiple logistics services providers; (3) ideally, all aspects of the client’s supply chain are managed by the 4PL organization; and, (4) it is possible for a major 3PL organization to form a 4PL organization within its existing structure. See: third-party logistics.F
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adaptive website
In e-commerce, a site that records a visitor’s behavior, uses artificial intelligence software to “learn” this behavior, and chooses what to present to the visitor based on this learning.A
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integrated carrier
A company that provides a variety of transportation services including ground, sea, air carriage, and freight forwarding.I
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revision level
A number or letter representing the number of times a part drawing or specification has been changed.R
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holding costs
Syn: carrying costs.H
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CEP
Abbreviation for cost equalization point.C
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direct offset
Similar to bartering, trading goods or services for related goods or services or agreeing on coproduction. D
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arrow diagram
A technique to determine the relationships and precedence of different activities and the time estimate for project completion. The technique is useful in identifying potential problems and improvement opportunities.A
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product family
A group of products with similar characteristics, often used in production planning (or sales and operations planning). Syn: product line.P
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manufacturing engineering
The engineering discipline concerned with designing and improving production processes. See: process engineering.M
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learning organization
1) Group of people who have woven a continuous, enhanced capacity to learn into the corporate culture. 2) An organization in which learning processes are analyzed, monitored, developed, and aligned with competitive goals.L
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POS
Abbreviation for point of sale.P
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assembly parts list
As used in the manufacturing process, a list of all parts (and subassemblies) that make up a particular assembly. See: batch card, manufacturing order.A
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consumables
Supplies or materials (such as paint, cleaning materials, or fuel) that are consumed or exhausted in the production or sale of a good or service. Syn: consumable tooling, supplies; expendables.C
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occurrence factor
Within the repair/remanufacturing environment, the occurrence factor is associated with how often a repair is required to bring the average part to a serviceable condition (some repair operations do not occur 100 percent of the time). The factor is expressed at the operation level in the routing. See: repair factor, replacement factor.O
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cubage
Cubic volume of space being used or available for shipping or storage.C
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multilevel where-used
A display for a component listing all the parents in which that component is directly used and the next higher level parents into which each of those parents is used, until ultimately all top-level (level 0) parents are listed.M
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feedback loop
The part of a closed-loop system that allows the comparison of response with command.F
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banner
In e-commerce, a portion of a web page that contains advertising or the name of a website. The banner usually contains a hypertext connection to a web page of the company doing the advertising.B
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concurrent design
Syn: participative design/ engineering.C
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RORO
Acronym for roll-on/roll-off container ship.R
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fixed order quantity system
An inventory system, such as economic order quantity, in which the same order quantity is used from order to order. The time between orders (order period) then varies from order to order. Syn: fixed reorder quantity inventory model. See: fixed order period system.F
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freight charge
The rate established for the transportation of freight.F
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salable goods
A part or assembly authorized for sale to final customers through the marketing function.S
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capacity requirements
The resources needed to produce the projected level of work required from a facility over a time horizon. Capacity requirements are usually expressed in terms of hours of work or, when units consume similar resources at the same rate, units of production.C
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operation list
Syn: routing.O
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lean enterprise
A group of individuals, functions, and sometimes legally separate but operationally synchronized organizations. The value stream defines the lean enterprise. The objectives of the lean enterprise are to correctly specify value to the ultimate customer, and to analyze and focus the value stream so that it does everything from product development and production to sales and service in a way that actions that do not create value are removed and actions that do create value proceed in a continuous flow as pulled by the customer. Lean enterprise differs from a “virtual corporation” in which the organizational membership and structure keeps changing.L
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batch sheet
In many process industries, a document that combines product and process definition. See: batch card.B
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inventory ordering system
Inventory models for the replenishment of inventory. Independent demand inventory ordering models include but are not limited to fixed reorder cycle, fixed reorder quantity, optional replenishment, and hybrid models. Dependent demand inventory ordering models include material requirements planning, kanban, and drum-buffer-rope.I
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cumulative lead time
The longest planned length of time to accomplish the activity in question. It is found by reviewing the lead time for each bill of material path below the item; whichever path adds up to the greatest number defines cumulative lead time. Syn: aggregate lead time, combined lead time, composite lead time, critical path lead time, stacked lead time. See: planning horizon, planning time fence.C
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review period
The time between successive evaluations of inventory status to determine whether to reorder. See: replenishment period.R
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demand lead time
The amount of time potential customers are willing to wait for the delivery of a good or a service. Syn: customer tolerance time.D
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exogenous variable
A variable whose values are determined by considerations outside the model in question.E
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free slack
The amount of time by which the completion of an activity in a project network can increase without delaying the start of the next activity.F
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buyer
An individual whose functions may include supplier selection, negotiation, order placement, supplier follow-up, measurement and control of supplier performance, value analysis, and evaluation of new materials and processes. In some companies, the functions of order placement and supplier follow-up are handled by the supplier scheduler.B
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supply uncertainty
The risk of interruptions in the flow of components from upstream suppliers.S
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explode-to-deduct
Syn: backflush.E E
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control board
A visual means of showing machine loading or project planning, usually a variation of the basic Gantt chart. Syn: dispatch(ing) board, planning board, schedule board. See: schedule chart.C
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host computer
Any computer on a network that is a repository for services available to other computers on the network. It is common to have one host machine provide several services such as the World Wide Web.H
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competitive analysis
An analysis of a competitor that includes its strategies, capabilities, prices, and costs.C
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schedule board
Syn: control board.S
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acceptance sampling
1) The process of sampling a portion of goods for inspection rather than examining the entire lot. The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample. There are two types: attributes sampling and variables sampling. In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind. 2) A method of measuring random samples of lots or batches of products against predetermined standards.A A
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first pass yield
The ratio of products that conform to specifications without rework or modification to total input.F
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order batching
The process of gathering a group of orders or data before sending them out to the next stage.O order complete manufacture to customer receipt of
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cost-budgeting
In project management, accumulating the estimated costs of individual activities to arrive at a cost baseline.C C
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co-location
Placing project team members in physical proximity to facilitate communication and working relationships. C
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bounded
The adjustment of a shop order quantity of a parent to use the remaining units of a component, raw material, or lot.B
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shop order reporting
Syn: production reporting and status control.S
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HLL
Abbreviation for high-level language.H
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financial benchmarking
Comparing one company’s financial results with that of another company. This type of benchmarking need not involve direct contact between the initiator company and the target company, as many financial records are publicly available. See: benchmarking. F
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CFPIM
Abbreviation for Certified Fellow in Production and Inventory Management.C
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constraint-oriented finite loading
A finite loading technique that plans orders around bottleneck work centers. The objective is to maximize total production throughput. Orders in small lot sizes aggregate into large lot sizes at the constraint and then load forward. Prior operations are then backward-scheduled, and downstream operations are forward-scheduled. See: drumbuffer- rope, order-oriented finite loading.C
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expected life
The average length of time a product remains in service or in a serviceable condition.E
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capacity
1) The capability of a system to perform its expected function. 2) The capability of a worker, machine, work center, plant, or organization to produce output per time period. Capacity required represents the system capability needed to make a given product mix (assuming technology, product specification, etc.). As a planning function, both capacity available and capacity required can be measured in the short term (capacity requirements plan), intermediate term (roughcut capacity plan), and long term (resource requirements plan). Capacity control is the execution through the I/O control report of the short-term plan. Capacity can be classified as budgeted, dedicated, demonstrated, productive, protective, rated, safety, standing, or theoretical. See: capacity available, capacity required. 3) Required mental ability to enter into a contract.C
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serpentine picking
A picking technique aimed at reducing travel time by 50 percent and improving the flow of pickers down each aisle. This technique involves picking from both sides of each aisle as the picker goes down it. This is in contrast to picking from one side of the aisle and then crossing to the other side.S
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exempt employee
A person filling an exempt position. See: exempt positions.E
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traceability
1) The attribute allowing the ongoing location of a shipment to be determined. 2) The registering and tracking of parts, processes, and materials used in production, by lot or serial number.T
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purchasing unit of measure
Syn: unit of measure (purchasing). P
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inventory
1) Those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts). Demand for inventory may be dependent or independent. Inventory functions are anticipation, hedge, cycle (lot size), fluctuation (safety, buffer, or reserve), transportation (pipeline), and service parts. 2) All the money currently tied up in the system. As used in theory of constraints, inventory refers to the equipment, fixtures, buildings, and so forth that the system owns as well as inventory in the forms of raw materials, workin- process, and finished goods.I
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file transfer protocol (FTP)
A protocol used to transfer files over the internet.F
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locator file
A file used in a stockroom (or anywhere) providing information on where each item is located. See: locator system.L
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performance appraisal
Supervisory or peer analysis of work performance. May be made in connection with wage and salary review, promotion, transfer, or employee training.P
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minimum inventory
The planned lowest amount or level of inventory for an item.M
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cut-off control
A procedure for synchronizing cycle counting and transaction processing.C
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on-time schedule performance
A measure (percentage) of meeting the customer’s originally negotiated delivery request date. Performance can be expressed as a percentage based on the number of orders, line items, or dollar value shipped on time.O
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curve fitting
An approach to forecasting based on a straight line, polynomial, or other curve that describes some historical time series data.C
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LTPD
Abbreviation for lot tolerance percent defective.L
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predatory pricing
Lowering prices below cost to drive out competition and then raising prices again. In the United States, this is a violation of Article 2 of the Sherman Act.P P
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end-of-life-inventory
Inventory kept on hand to satisfy demand for products that are no longer being manufactured.E
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cumulative manufacturing lead time
The cumulative planned lead time when all purchased items are assumed to be in stock. Syn: composite manufacturing lead time.C
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robust design
Type of design for a product or service that plans for intended performance even in the face of a harsh environment.R
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rescheduling
The process of changing order or operation due dates, usually as a result of their being out of phase with when they are needed.R