APICS Deck 5 OO

Question 1

APICS Deck 5

order backlog

Answer 1

Syn: backlog, past due order.O

Question 2

APICS Deck 5

work package

Answer 2

In project management, a deliverable at the bottom of a work breakdown structure. This may be treated as a subproject to be assigned to a project manager to plan and execute, in which case this manager will define new activities.W

Question 3

APICS Deck 5

technology transfer

Answer 3

The transmission of technology (e.g., knowledge, skills, software, hardware) from one country, organization, business, or entity to another country, organization, business, or entity.T

Question 4

APICS Deck 5

end-user computing

Answer 4

Use of computer resources by non-information-system personnel to enter, retrieve, manipulate, or print data.E

Question 5

APICS Deck 5

SEC

Answer 5

Abbreviation for the Securities and Exchange Commission (U.S.).S

Question 6

APICS Deck 5

predictable maintenance

Answer 6

Syn: predictive maintenance.P

Question 7

APICS Deck 5

description by market grade/industry standard

Answer 7

A method to identify a product or service required when there is a high level of understanding between user and supplier.D

Question 8

APICS Deck 5

days outstanding

Answer 8

A term used to imply the amount of an asset or liability measured in days of sales. For example, accounts payable days are the typical number of days that a firm delays payments of invoices to its suppliers.D

Question 9

APICS Deck 5

risk category

Answer 9

A cluster of risk causes with a label such as external, environmental, technical, or organizational.R

Question 10

APICS Deck 5

body of knowledge

Answer 10

The knowledge in a given area that a person is expected to understand to be certified as a practitioner.B

Question 11

APICS Deck 5

indicator

Answer 11

An index of business activities.I

Question 12

APICS Deck 5

control limit

Answer 12

A statistically determined line on a control chart (upper control limit or lower control limit). If a value occurs outside of this limit, the process is deemed to be out of control.C

Question 13

APICS Deck 5

seller’s market

Answer 13

A market condition in which goods cannot easily be secured (purchased) and when the economic forces of business tend to cause goods to be priced at the supplier’s estimate of value.S

Question 14

APICS Deck 5

logistics system

Answer 14

The planning and coordination of the physical movement aspects of a firm’s operations such that a flow of raw materials, parts, and finished goods is achieved in a manner that minimizes total costs for the levels of service desired.L L

Question 15

APICS Deck 5

off-grade

Answer 15

A product whose physical or chemical properties fall outside the acceptable ranges.O

Question 16

APICS Deck 5

perceived quality

Answer 16

One of the eight dimensions of quality that refers to a subjective assessment of a product’s quality based on criteria defined by the observer.P

Question 17

APICS Deck 5

contactless

Answer 17

Using radio frequency identification or similar technologies to record data about an item electronically without physical contact with the item.C

Question 18

APICS Deck 5

process capability

Answer 18

Refers to the ability of the process to produce parts that conform to (engineering) specifications. Process capability relates to the inherent variability of a process that is in a state of statistical control. See: Cp, Cpk, process capability analysis.P

Question 19

APICS Deck 5

run-out list

Answer 19

1) A list of items to be scheduled into production in sequence by the dates at which the present available stock is expected to be exhausted. 2) A statement of ingredients required to use up an available S resource (e.g., how much “a” resource is required to consume 300 pounds of “x”).R

Question 20

APICS Deck 5

functional manager

Answer 20

A manager responsible for a specialized department, such as accounting or engineering.F

Question 21

APICS Deck 5

P:D ratio

Answer 21

A ratio where P is the manufacturing lead time and D is the customer required delivery time. If the P:D ratio exceeds 1.00, either a customer’s order will be delayed or production will start as the result of a forecast (make-to-stock) or an anticipated customer order (make-to-order).P

Question 22

APICS Deck 5

B2B

Answer 22

Abbreviation for business-to-business commerce.B

Question 23

APICS Deck 5

specification

Answer 23

A clear, complete, and accurate statement of the technical requirements of a material, an item, or a service, and of the procedure to determine if the requirements are met.S

Question 24

APICS Deck 5

RAM

Answer 24

Abbreviation for responsibility assignment matrix.R

Question 25

APICS Deck 5

accreditation

Answer 25

Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 Series Standards.A

Question 26

APICS Deck 5

just in time (JIT)

Answer 26

A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery, and includes all stages of conversion from raw material onward. The primary elements of just in time are to have only the required inventory when needed; to improve quality to zero defects; to reduce lead times by reducing setup times, queue lengths, and lot sizes; to incrementally revise the operations themselves; and to accomplish these activities at minimum cost. In the broad sense, it applies to

Question 27

APICS Deck 5

vendor-managed inventory (VMI)

Answer 27

A means of optimizing supply chain performance in which the supplier has access to the customer’s inventory data and is responsible for maintaining the inventory level required by the customer. This activity is accomplished by a process in which resupply is done by the vendor through regularly scheduled reviews of the on-site inventory. The on-site inventory is counted, damaged or outdated goods are removed, and the inventory is restocked to predefined V levels. The vendor obtains a receipt for the restocked inventory and accordingly invoices the customer. See: continuous replenishment.V

Question 28

APICS Deck 5

centralized computer network

Answer 28

A network in which there is one computer (or possibly more) linked to all others in a given enterprise.C

Question 29

APICS Deck 5

bin

Answer 29

1) A storage device designed to hold small discrete parts. 2) A shelving unit with physical dividers separating the storage locations.B

Question 30

APICS Deck 5

contribution margin pricing

Answer 30

A method of setting prices based on the contribution margin. It provides a ceiling and a floor between which the price setter operates.

Question 31

APICS Deck 5

cost, insurance, freight (CIF)

Answer 31

A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.C

Question 32

APICS Deck 5

serial number

Answer 32

A unique number assigned for identification to a single piece that will never be repeated for similar pieces. Serial numbers are usually applied by the manufacturer but can be applied at other points, including by the distributor or wholesaler.S

Question 33

APICS Deck 5

economic infrastructure

Answer 33

A nation’s networks for supporting commerce, including transportation, communications, and finance.E

Question 34

APICS Deck 5

backflush costing

Answer 34

The application of costs based on the output of a process. Backflush costing is usually associated with repetitive manufacturing environments.B

Question 35

APICS Deck 5

KPI

Answer 35

Abbreviation for key performance indicator.K L

Question 36

APICS Deck 5

units-of-production depreciation

Answer 36

A method of depreciation whereby the amount to be recovered (written off as a period expense) is calculated based on estimated life of the equipment in units to be produced over the life and the number of units produced in a given time period. See: depreciation.U

Question 37

APICS Deck 5

reverse engineering

Answer 37

The process of disassembling, evaluating, and redesigning a competitor’s product for the purpose of manufacturing a product with similar characteristics without violating any of the competitor’s proprietary manufacturing technologies.R

Question 38

APICS Deck 5

XML

Answer 38

Abbreviation for extensible markup language.X Y

Question 39

APICS Deck 5

common material

Answer 39

Readily available items used in industry that require no special handling.C

Question 40

APICS Deck 5

business unit

Answer 40

A division or segment of an organization generally treated as a separate profit-and-loss center.B

Question 41

APICS Deck 5

purchase consolidation

Answer 41

The pooling of purchasing requirements by multiple areas in a company, or even across companies.P

Question 42

APICS Deck 5

data transfer

Answer 42

The movement by electronic means of data from one location to another. The data can take the form of voice, text, image, or others. The movement is accomplished by communication links between computers and a variety of input/output devices.D

Question 43

APICS Deck 5

automatic rescheduling

Answer 43

Rescheduling done by the computer to automatically change due dates on scheduled receipts when it detects that due dates and need dates are out of phase. Ant: manual rescheduling.A

Question 44

APICS Deck 5

shop traveler

Answer 44

Syn: traveler.S

Question 45

APICS Deck 5

obligated material

Answer 45

Syn: reserved material.O

Question 46

APICS Deck 5

block stacking

Answer 46

A storage method in which pallets, cases, or cartons are stacked upwards from the floor to whatever practical height is available without the use of shelves.B

Question 47

APICS Deck 5

schedule control

Answer 47

Control of a plant floor by schedules rather than by job orders (called order control). Schedules are derived by taking requirements over a period of time and dividing by the number of workdays allowed to run the parts or assemblies. Production completed is compared with the schedule to provide control. This type of control is most frequently used in repetitive and process manufacturing.S

Question 48

APICS Deck 5

slack time rule

Answer 48

A dispatching rule that directs the sequencing of jobs based on slack time. Slack time is equal to (days left until due date × hrs/day) minus standard hours of work left on this specific job; for example, (5 × 8) – 12 = 28 hours of slack. The lower the amount of slack time, the higher the priority in sequencing of jobs.S

Question 49

APICS Deck 5

purchase requisition

Answer 49

An authorization to the purchasing department to purchase specified materials in specified quantities within a specified time. See: parts requisition.P

Question 50

APICS Deck 5

technical components

Answer 50

Parts that are difficult to make, have long lead times, and require expert knowledge to produce. They are parts that are produced by only a few suppliers because of these characteristics. Tooling to produce these products usually is owned by the customer to avoid proprietary or patent issues.T

Question 51

APICS Deck 5

probable scheduling

Answer 51

A variant of scheduling that considers slack time to increase or decrease the calculated lead time of an order. Interoperation and administrative lead time components are expanded or compressed by a uniform “stretching factor” until no difference exists between the schedule of operations obtained by forward and backward scheduling. See: lead time scheduling.P

Question 52

APICS Deck 5

integrated resource management (IRM)

Answer 52

Syn: resource management.I

Question 53

APICS Deck 5

EAC

Answer 53

Abbreviation for estimate at completion.E

Question 54

APICS Deck 5

scrap rate

Answer 54

Syn: scrap factor.S

Question 55

APICS Deck 5

lading

Answer 55

The cargo being transported by a vehicle.L

Question 56

APICS Deck 5

clicks and mortar

Answer 56

Refers to a brick and mortar company that also has succeeded in making online sales. Ant: bricks and mortar.C

Question 57

APICS Deck 5

foreign freight forwarder

Answer 57

An entity that picks up goods at the production site and coordinates transport to the foreign customer’s location.F

Question 58

APICS Deck 5

uniform product code

Answer 58

A retail product numbering and bar coding system that identifies the item and the manufacturer. U

Question 59

APICS Deck 5

requirements definitions

Answer 59

Specifying the inputs, files, processing, and outputs for a new system, but without expressing computer alternatives and technical details.R

Question 60

APICS Deck 5

point-of-use storage

Answer 60

Keeping inventory in specified locations on a plant floor near the operation where it is to be used.P

Question 61

APICS Deck 5

customer service representative (CSR)

Answer 61

Personnel assigned to customer relations who answer customer questions and who provide technical support.C

Question 62

APICS Deck 5

point-of-use inventory

Answer 62

Inventory placed in the production process near where it is used. See: dock-to-stock inventory.P P

Question 63

APICS Deck 5

cycle time

Answer 63

1) In industrial engineering, the time between completion of two discrete units of production. For example, the cycle time of motors assembled at a rate of 120 per hour would be 30 seconds. 2) In materials management, it refers to the length of time from when material enters a production facility until it exits. Syn: throughput time.C

Question 64

APICS Deck 5

deficiency

Answer 64

Failure to meet quality standards.D

Question 65

APICS Deck 5

military standards

Answer 65

Product standards and specifications for military or defense contractors, units, suppliers, and so forth. These standards sometimes become de facto standards within the civilian community.M

Question 66

APICS Deck 5

work measurement

Answer 66

Estimating how long it takes for an employee to produce one unit of output.W

Question 67

APICS Deck 5

cost-benefit ratio

Answer 67

A ratio of total measurable benefits to the initial capital cost. This might be used in deciding which projects to pursue in a continuous improvement effort.C

Question 68

APICS Deck 5

cybermarketing

Answer 68

Any type of internet-based promotion. Many marketing managers use the term to refer to any type of computer-based marketing.C D

Question 69

APICS Deck 5

green manufacturing

Answer 69

A method of producing a good or service that minimizes external cost and pollution. It includes design for reuse, design for disassembly, and design for remanufacture. See: environmentally responsible business.G

Question 70

APICS Deck 5

automated information system (AIS)

Answer 70

Computer hardware and software configured to automate calculating, computing, sequencing, storing, retrieving, displaying, communicating, or otherwise manipulating data and textual material to provide information.A

Question 71

APICS Deck 5

T&M

Answer 71

Abbreviation for time and materials.T

Question 72

APICS Deck 5

warrant of merchantability

Answer 72

An implied warranty that goods are fit for the use to which they are generally applied.W

Question 73

APICS Deck 5

acid test

Answer 73

Syn: quick asset ratio.A

Question 74

APICS Deck 5

service rate

Answer 74

In queuing theory, the rate at which arrivals are processed through the production or service system, in arrivals per unit of time. See: queuing theory.S

Question 75

APICS Deck 5

inventory pooling

Answer 75

The act of holding inventory in a single location instead of multiple locations.I

Question 76

APICS Deck 5

multiple sourcing

Answer 76

Syn: multisourcing. See: dual sourcing.M

Question 77

APICS Deck 5

CSCMP

Answer 77

Abbreviation for Council of Supply Chain Management Professionals.C

Question 78

APICS Deck 5

multiskilled

Answer 78

Individuals who are capable of carrying out a variety of tasks.M N

Question 79

APICS Deck 5

supplier base

Answer 79

The group of suppliers from which a firm acquires goods and services. Syn: supply base.S

Question 80

APICS Deck 5

inventory adjustment

Answer 80

A change made to an inventory record to correct the balance, to bring it in line with actual physical inventory balances. The adjustment either increases or decreases the item record on-hand balance.I

Question 81

APICS Deck 5

ceteris paribus

Answer 81

Latin for all other things being the same.C

Question 82

APICS Deck 5

acceptable outgoing quality level (AOQL)

Answer 82

A demarcation between the level of defects in a lot at which the lot will be accepted or rejected.A

Question 83

APICS Deck 5

operation description

Answer 83

The details or description of an activity or operation to be performed. The operation description is normally contained in the routing document and could include setup instructions, operating instructions (feeds, speeds, heats, pressure, etc.), and required product specifications or tolerances.O

Question 84

APICS Deck 5

optical scanning

Answer 84

A technique for machine recognition of characters by their images.O

Question 85

APICS Deck 5

maximum allowable cost

Answer 85

In service organizations, the limit of reimbursement allowed by an agency for the cost of a supply item.M

Question 86

APICS Deck 5

repair factor

Answer 86

The percentage of time on average that an item must be repaired for return to a serviceable condition. The repair factor is also expressed as a percentage applied to the quantity per assembly on the bill of material. It is useful for forecasting materials and capacity requirements for planning purposes. Syn: frequency of repair. See: occurrence factor, replacement factor.R

Question 87

APICS Deck 5

retrofit

Answer 87

An item that replaces components originally installed on equipment; a modification to in-service equipment.R

Question 88

APICS Deck 5

replenishment interval

Answer 88

Syn: replenishment period.R

Question 89

APICS Deck 5

analytic workplace design

Answer 89

A design based on established biomechanical and behavioral concepts, including the known operating characteristics of people. Produces a workplace situation well within the range of human capacity and does not generally require modification, improvement, or preliminary experimental “mock-up.”A

Question 90

APICS Deck 5

R&D

Answer 90

Abbreviation for research and development.R

Question 91

APICS Deck 5

plant rate

Answer 91

The total value added by a plant divided by the total direct labor hours in particular time period. This percentage allows the scheduling at the rough cut and capacity requirements level of the plan.P

Question 92

APICS Deck 5

materials requisition

Answer 92

1) An authorization that identifies the items and quantities to be withdrawn from inventory. 2) An authorization that identifies the items and quantities to be included in a purchase order. Syn: production materials requisition.M

Question 93

APICS Deck 5

base stock system

Answer 93

A method of inventory control that includes, as special cases, most of the systems in practice. In this system, when an order is received for any item, it is used as a picking ticket, and duplicate copies, called replenishment orders, are sent back to all stages of production to initiate replenishment of stocks. Positive or negative orders, called base stock orders, are also used from time to time to adjust the level of the base stock of each item. In actual practice, replenishment orders are usually accumulated when they are issued and are released at regular intervals.B

Question 94

APICS Deck 5

methods analysis

Answer 94

That part of methods engineering normally involving an examination and analysis of an operation or a work cycle broken down into its constituent parts to improve the operation, eliminate unnecessary steps, and/or establish and record in detail a proposed method of performance.M

Question 95

APICS Deck 5

direct truck shipment

Answer 95

Shipment made without any additional stops, such as for loading or changing trucks.D

Question 96

APICS Deck 5

alternate work center

Answer 96

The work center where an operation is not normally performed but can be performed. Ant: primary work center.A

Question 97

APICS Deck 5

channel partners

Answer 97

Suppliers, manufacturers, distributors, and retailers who form a supply chain to make and distribute a set of products.C

Question 98

APICS Deck 5

seven categories of waste: (1) overproduction

Answer 98

excess

Question 99

APICS Deck 5

manufacturing instruction

Answer 99

A set of detailed instructions for carrying out a manufacturing process. It is usually referenced by the routing and thus can simplify the content of the routing.M

Question 100

APICS Deck 5

licensing

Answer 100

Paying a fee for permission to manufacture and sell a product created by another.L

Question 101

APICS Deck 5

turnover

Answer 101

1) Syn: inventory turnover. 2) In the United Kingdom and certain other countries, annual sales volume.T

Question 102

APICS Deck 5

inventory turnover

Answer 102

The number of times that an inventory cycles, or “turns over,” during the year. A frequently used method to compute inventory turnover is to divide the average inventory level into the annual cost of sales. For example, an average inventory of $3 million divided into an annual cost of sales of $21 million means that inventory turned over seven times. Syn: inventory turns, turnover. See: inventory velocity.I

Question 103

APICS Deck 5

Taguchi methodology

Answer 103

A concept of off-line quality control methods conducted at the product and process design stages in the product development cycle. This concept, expressed by Genichi Taguchi, encompasses three phases of product design: system design, parameter design, and tolerance design. The goal is to reduce quality loss by reducing the variability of the product’s characteristics during the parameter phase of product development. Syn: Taguchi methods.T

Question 104

APICS Deck 5

certification audits

Answer 104

Audits occurring within registration processes (e.g., for ISO 9000:2000).C Certified Fellow in Production and Inventory

Question 105

APICS Deck 5

scheduled load

Answer 105

The standard hours of work required by scheduled receipts (i.e., open production orders).S

Question 106

APICS Deck 5

warehouse

Answer 106

A place to receive, store, and ship materials.W

Question 107

APICS Deck 5

center-of-gravity approach

Answer 107

A methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.C

Question 108

APICS Deck 5

decoupling points

Answer 108

The locations in the product structure or distribution network where inventory is placed to create independence between processes or entities. Selection of decoupling points is a strategic decision that determines customer lead times and inventory investment. See: control points.D

Question 109

APICS Deck 5

industrial buyers

Answer 109

Buyers who purchase materials mainly for conversion.I

Question 110

APICS Deck 5

logistics data interchange (LDI)

Answer 110

The electronic transmission of logistics information via computer systems.L

Question 111

APICS Deck 5

current start date

Answer 111

In project management, the present estimate of an activity’s start date.C

Question 112

APICS Deck 5

planned order

Answer 112

A suggested order quantity, release date, and due date created by the planning system’s logic when it encounters net requirements in processing MRP. In some cases, it can also be created by a master scheduling module. Planned orders are created by the computer, exist only within the computer, and may be changed or deleted by the computer during subsequent processing if conditions change. Planned orders at one level will be exploded into gross requirements for components at the next level. Planned orders, along with released orders, serve as input to capacity requirements planning to show the total capacity requirements by work center in future time periods. See: planning time fence.P

Question 113

APICS Deck 5

forecast management

Answer 113

The process of making, checking, correcting, and using forecasts. It also includes determination of the forecast horizon.F forecast mean absolute percentage of error (FMAPE) The absolute error divided by actual demand for “n” periods. Where absolute error is the variation between the actual demand and the forecast for the period expressed as a positive value (without regard for sign).F

Question 114

APICS Deck 5

backsourcing

Answer 114

Company processes that, previously handled externally, have been reassigned internally.B

Question 115

APICS Deck 5

move card

Answer 115

In a just-in-time context, a card or other signal indicating that a specific number of units of a particular item are to be taken from a source (usually an outbound stockpoint) and taken to a point of use (usually an inbound stockpoint). It authorizes the movement of one part number between a single pair of work centers. The card circulates between the outbound stockpoint of the supplying work center and the inbound stockpoint of the using work center. Syn: move signal. See: kanban.M

Question 116

APICS Deck 5

ethical standards

Answer 116

A set of guidelines for proper conduct by business professionals. For example, the ISM (formerly NAPM) provides a set of principles and standards for the proper conduct of purchasing activities.E

Question 117

APICS Deck 5

first-mover advantage

Answer 117

The phenomenon of market leadership being gained through market innovation.F

Question 118

APICS Deck 5

control

Answer 118

Comparing actual to planned performance and taking corrective action, as needed, to align performance with plan.C

Question 119

APICS Deck 5

inventory costs

Answer 119

Costs associated with ordering and holding inventory. See: carrying costs, ordering cost.I

Question 120

APICS Deck 5

interplant transfer

Answer 120

The shipment of a part or product by one plant to another plant or division within the corporation. See: interplant demand, transfer pricing.I

Question 121

APICS Deck 5

lot splitting

Answer 121

Dividing a lot into two or more sublots and simultaneously processing each sublot on identical (or very similar) facilities as separate lots, usually to compress lead time or to expedite a small quantity. Syn: operation splitting.L M

Question 122

APICS Deck 5

retainage

Answer 122

A percentage of a contract value that is withheld pending project completion and approval.R

Question 123

APICS Deck 5

attractor

Answer 123

In information systems, a website that, over time, continues to attract a large number of visitors.A

Question 124

APICS Deck 5

price

Answer 124

One of the four Ps (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Price is the amount charged for the product offering. The price set must take into account competition, substitute products, and internal business costs to return a desirable product margin. See: four Ps.P

Question 125

APICS Deck 5

business-to-consumer sales (B2C)

Answer 125

Business being conducted between businesses and final consumers largely over the internet. It includes traditional brick and mortar businesses that also offer products online and businesses that trade exclusively electronically.B

Question 126

APICS Deck 5

direct sales

Answer 126

Sales from the manufacturer to the ultimate consumer without going through a distributor or retailer.D

Question 127

APICS Deck 5

intermodal transport

Answer 127

1) Shipments moved by different types of equipment combining the best features of each mode. 2) The use of two or more different carrier modes in the through movement of a shipment.I

Question 128

APICS Deck 5

mixed-model production

Answer 128

Making several different parts or products in varying lot sizes so that a factory produces close to the same mix of products that will be sold that day. The mixed-model schedule governs the making and the delivery of component parts, including those provided by outside suppliers. The goal is to build every model every day, according to daily demand.M

Question 129

APICS Deck 5

scientific management

Answer 129

Managing a production system using scientific principles. Usually refers to the principles established by Frederick Taylor.S

Question 130

APICS Deck 5

marginal pricing

Answer 130

Pricing products at a markup over the marginal cost of producing the next item. Marginal costs generally include the variable cost of producing and selling an additional item.M

Question 131

APICS Deck 5

green belt

Answer 131

A manager or team member who has been trained in six sigma improvement methods and will have full-time responsibilities for process and quality improvement.G

Question 132

APICS Deck 5

project duration

Answer 132

The elapsed duration from project start date through project finish date.P

Question 133

APICS Deck 5

relationship map

Answer 133

A graphic map of the relationship between the business functions. It shows the inputs and outputs flow across functions. It is useful to show how processes are currently performed, disconnections in processes, and proposed processes. Relationship maps show the products and services of a given unit, how work flows through organizational boundaries, and the relationships between functions represented by boxes in the map.R

Question 134

APICS Deck 5

days of supply

Answer 134

Inventory-on-hand metric converted from units to how long the units will last. For example, if there are 2,000 units on hand and the company is using 200 per day, than there are 10 days of supply.D

Question 135

APICS Deck 5

for loss

Answer 135

either money, property, or human life.C

Question 136

APICS Deck 5

critical chain method

Answer 136

In the theory of constraints, a network planning technique for the analysis of a project’s completion time, used for planning and controlling project activities. The critical chain, which determines project duration, is based on technological and resource constraints. Strategic buffering of paths and resources is used to increase project completion success. See: critical chain, critical path method.C

Question 137

APICS Deck 5

national stock number (NSN)

Answer 137

The individual identification number assigned to an item to permit inventory management in the U.S. supply system.N

Question 138

APICS Deck 5

strategic mission

Answer 138

A statement of the future business scope of an enterprise. The statement incorporates what is being satisfied (customer needs), who is being satisfied (customer groups), and how the company creates value for the customer (processes, technologies, and core competencies).S

Question 139

APICS Deck 5

early start date (ES)

Answer 139

In the critical path method of project management, the earliest time at which a given activity is estimated to begin. This date can change as the project is executed.E

Question 140

APICS Deck 5

matrix diagram

Answer 140

A graphical technique used to analyze the relationship between two related groups of ideas.M

Question 141

APICS Deck 5

store

Answer 141

A storage point located upstream of a work station intended to make it easier to see customer requirements.S

Question 142

APICS Deck 5

wave picking

Answer 142

A method of selecting and sequencing picking lists to minimize the waiting time of the delivered material. Shipping orders may be picked in waves combined by common carrier or destination, and manufacturing orders in waves related to work centers.W

Question 143

APICS Deck 5

fluctuation inventory

Answer 143

Inventory that is carried as a cushion to protect against forecast error. Syn: fluctuation stock. See: inventory buffer.F

Question 144

APICS Deck 5

smoothing models

Answer 144

Another name for forecasting models that utilize moving averages. The forecast is “smoothed” in the sense that averages have less variability than individual periods.S

Question 145

APICS Deck 5

MAP

Answer 145

Acronym for manufacturing automation protocol.M

Question 146

APICS Deck 5

reorder cycle

Answer 146

Syn: replenishment lead time.R

Question 147

APICS Deck 5

available capacity

Answer 147

Syn: capacity available.A

Question 148

APICS Deck 5

co-destiny

Answer 148

The evolution of a supply chain from intraorganizational management to interorganizational management.C

Question 149

APICS Deck 5

composite lead time

Answer 149

Syn: cumulative lead time.C

Question 150

APICS Deck 5

cargo

Answer 150

A product shipped in an aircraft, railroad car, ship, barge, or truck.C

Question 151

APICS Deck 5

actual duration

Answer 151

The difference between the actual start date of a project activity and the current date (if the activity is still in progress) or the difference between the actual start date of a project activity and the actual completion date (if the activity is completed).A

Question 152

APICS Deck 5

hard copy

Answer 152

A printed report, message, or special listing.H

Question 153

APICS Deck 5

goodwill

Answer 153

An intangible item that is only recorded on a company’s books as the result of a purchase. Generally, it is inseparable from the enterprise but makes the company more valuable, for example, a good reputation.G

Question 154

APICS Deck 5

first-come-first-served rule

Answer 154

A dispatching rule under which the jobs are sequenced by their arrival times. See: first-in, first-out.F

Question 155

APICS Deck 5

operation chart

Answer 155

Syn: routing.O

Question 156

APICS Deck 5

human factors engineering

Answer 156

A merging of those branches of engineering and the behavioral sciences that concern themselves principally with the human component in the design and operation of humanmachine systems. Human factors engineering is based on a fundamental knowledge and study of human physical and mental abilities and emotional characteristics.H

Question 157

APICS Deck 5

lot number

Answer 157

A unique identification assigned to a homogeneous quantity of material. Syn: batch number, mix number.L

Question 158

APICS Deck 5

predictive maintenance

Answer 158

A type of preventive maintenance based on nondestructive testing and statistical analysis, used to predict when required maintenance should be scheduled. Syn: predictable maintenance.P

Question 159

APICS Deck 5

delivery reliability

Answer 159

A performance criterion that measures how consistently goods and services are delivered on, or before, the promised time.D

Question 160

APICS Deck 5

two-level master schedule

Answer 160

A master scheduling approach in which a planning bill of material is used to master schedule an end product or family, along with selected key features (options and accessories). See: hedge, multilevel master schedule, production forecast.T

Question 161

APICS Deck 5

PPAP

Answer 161

Abbreviation for production part approval process.P

Question 162

APICS Deck 5

demographic segmentation

Answer 162

In marketing, dividing potential markets by characteristics of potential customers, such as age, sex, income, and education.D

Question 163

APICS Deck 5

touch labor

Answer 163

Syn: direct labor.T T

Question 164

APICS Deck 5

hierarchical database

Answer 164

A method of constructing a database that requires that related record types be linked in tree-like structures, where no child record can have more than one physical parent record.H

Question 165

APICS Deck 5

batch card

Answer 165

A document used in the process industries to authorize and control the production of a quantity of material. Batch cards usually contain quantities and lot B numbers of ingredients to be used, processing variables, pack-out instructions, and product disposition. See: assembly parts list, batch sheet, blend formula, fabrication order, manufacturing order, mix ticket.B

Question 166

APICS Deck 5

yield factor

Answer 166

A measurement of the yield of a process. For a specific process or operation, yield factor + scrap factor = 1. See: scrap factor, yield.Y

Question 167

APICS Deck 5

operating characteristic curve (OC curve)

Answer 167

A graph used to determine the probability of accepting lots as a function of the quality level of the lots or processes when using various sampling plans. There are three types: Type A curves, which give the probability of acceptance for an individual lot coming from finite production (will not continue in the future); Type B curves, which give the probability of acceptance for lots coming from a continuous process; and Type C curves, which, for a continuous sampling plan, give the long-run percentage of product accepted during the sampling phase.O

Question 168

APICS Deck 5

collaborative forecasting

Answer 168

The process for collecting and reconciling information from within and outside the organization to come up with a single projection of demand.C

Question 169

APICS Deck 5

continuous process improvement (CPI)

Answer 169

A never-ending effort to expose and eliminate root causes of problems: small-step improvement as opposed to big-step improvement. Syn: continuous improvement. See: kaizen.C

Question 170

APICS Deck 5

target costing

Answer 170

The process of designing a product to meet a specific cost objective. Target costing involves setting the planned selling price, subtracting the desired profit as well as marketing and distribution costs, thus leaving the required manufacturing or target cost.T

Question 171

APICS Deck 5

on-demand

Answer 171

Work is completed only when demand occurs. More specifically, it is a process in which a product or service is made only after an order is placed for that product or service.O

Question 172

APICS Deck 5

VBM

Answer 172

Abbreviation for value-based management.V

Question 173

APICS Deck 5

metered issues

Answer 173

Issues of parts or materials from stores in quantities that correspond to the rate at which materials are used.M

Question 174

APICS Deck 5

secure electronic transaction (SET)

Answer 174

In e-commerce, a system for guaranteeing the security of financial transactions conducted over the internet.S

Question 175

APICS Deck 5

(NAPM)

Answer 175

A nonprofit society for purchasing managers and others, now known as the Institute for Supply Management (ISM).N

Question 176

APICS Deck 5

systems analysis

Answer 176

1) The analyzing in detail of the information needed for an organization, the characteristics and components of the current information system, and the requirements of any proposed changes to the information system. 2) A method of problem solving that encompasses the identification, study, and evaluation of interdependent parts and their attributes that function in an ongoing process and that constitute an organic whole.S

Question 177

APICS Deck 5

automated assembly system

Answer 177

A system that produces completed products or assemblies without the contribution of direct labor.A

Question 178

APICS Deck 5

machine-limited capacity

Answer 178

A production environment where a specific machine limits throughput of the process. See: constraint, throughput.M

Question 179

APICS Deck 5

price break

Answer 179

A discount given for paying early, buying in quantity, and so forth. See: discount.P P

Question 180

APICS Deck 5

stockless production

Answer 180

Syn: just in time.S

Question 181

APICS Deck 5

analog

Answer 181

As applied to an electrical or computer system, the capability of representing data in continuously varying physical phenomena (as in a voltmeter) and converting them into numbers.A A

Question 182

APICS Deck 5

turnover ratio

Answer 182

An indicator of whether or not a company is using its assets efficiently. It is measured by dividing sales by average assets during a particular period.T

Question 183

APICS Deck 5

chain reaction

Answer 183

A chain of events proposed by W. Edwards Deming: improve quality, and costs will go down because of less scrap and rework, while revenues will go up because the company will be able to sell more product at higher prices. Thus, better quality means more profitability.C

Question 184

APICS Deck 5

activity-on-arrow network (AOA)

Answer 184

A project management network in which the passage of time, via activities, takes place on the arrows. The start of an activity is represented by the tail of the arrow, while the completion of the activity is represented by the tip of the arrow. The sequence of the arrows represents the sequence of activities. Arrows are connected by nodes, which are usually circles. Syn: activity-on-arc network, arrow diagram method, event-on-arrow network.A

Question 185

APICS Deck 5

cellular manufacturing

Answer 185

A manufacturing process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell.C

Question 186

APICS Deck 5

QRP

Answer 186

Abbreviation for quick-response program.Q

Question 187

APICS Deck 5

SET

Answer 187

Acronym for secure electronic transaction.S

Question 188

APICS Deck 5

capacity available

Answer 188

The capability of a system or resource to produce a quantity of output in a particular time period. Syn: available capacity. See: capacity, available time.C

Question 189

APICS Deck 5

operation number

Answer 189

A sequential number, usually two, three, or four digits long, such as 010, 020, 030, that indicates the sequence in which operations are to be performed within an item’s routing.O

Question 190

APICS Deck 5

infinite scheduling

Answer 190

Syn: infinite loading.I

Question 191

APICS Deck 5

job

Answer 191

1) The combination of tasks, duties, and responsibilities assigned to an individual employee and usually considered his or her work assignment. 2) The contents of a work order.J

Question 192

APICS Deck 5

layoff

Answer 192

The process by which employees that are not needed for some extended amount of time are given notice that their services are not needed. Benefits may or may not continue in a layoff.L

Question 193

APICS Deck 5

deposition

Answer 193

The sworn questioning, outside of court, of a potential witness by the other side’s attorney.D

Question 194

APICS Deck 5

exit interview

Answer 194

An interview given to an employee who is leaving the company. The purpose is to find out why a person is leaving, what was liked and disliked about the job and the company, and what changes would make the department and the company a better place to work.E

Question 195

APICS Deck 5

moving average forecast

Answer 195

A forecasting technique that uses a simple moving average or a weighted moving average projected forward as a forecast.M

Question 196

APICS Deck 5

planned order release

Answer 196

A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time. See: order release.P

Question 197

APICS Deck 5

random component

Answer 197

A component of demand usually describing the impact of uncontrollable variation on demand. See: decomposition, time series analysis.R

Question 198

APICS Deck 5

(CPIM)

Answer 198

The APICS designation that is a recognition of a high level of professional knowledge in production and inventory management.C

Question 199

APICS Deck 5

total quality control (TQC)

Answer 199

The process of creating and producing the total composite good and service characteristics (by marketing, engineering, manufacturing, purchasing, etc.) through which the good and service will meet the expectations of customers.T

Question 200

APICS Deck 5

American customer satisfaction index

Answer 200

A metric cosponsored by the University of Michigan and the American Society for Quality that measures the satisfaction of U.S. customers with the goods and services available to them from both domestic and foreign origins.A

Question 201

APICS Deck 5

absentee rate

Answer 201

A ratio comparing the number of employee-days lost with the total number of available employee-days of employment during some base period, usually one month.A

Question 202

APICS Deck 5

baud

Answer 202

The number of bits transmitted per second.B

Question 203

APICS Deck 5

terminal delivery allowance

Answer 203

A discount provided if freight is delivered to or picked up from the carrier’s terminal.T

Question 204

APICS Deck 5

mura

Answer 204

A Japanese word meaning unevenness or variability.M

Question 205

APICS Deck 5

harmonized system classification codes

Answer 205

An internationally standardized description of goods that uses a system of numbers to provide increasingly detailed classification and descriptions.H

Question 206

APICS Deck 5

affinity diagram

Answer 206

A total quality management tool whereby employees working in silence generate ideas and later categorize these ideas.A

Question 207

APICS Deck 5

fixed-asset turnover

Answer 207

Sales divided by net fixed assets. Fixed assets reflect asset acquisition price less depreciation.F

Question 208

APICS Deck 5

just-in-time purchasing

Answer 208

This type of purchasing uses few suppliers who have long-term commitments with the organization. Long-term contracts are used, which enable the purchaser to develop and certify the quality process at the supplier.J K

Question 209

APICS Deck 5

local area network (LAN)

Answer 209

A high-speed data communication system for linking computer terminals, programs, storage, and graphic devices at multiple workstations distributed over a relatively small geographic area such as a building or campus.L

Question 210

APICS Deck 5

undesirable effects (UDE)

Answer 210

In theory of constraints: Those negative aspects of an environment that are noted so that a current reality tree may be constructed.U

Question 211

APICS Deck 5

email

Answer 211

Acronym for electronic mail.E

Question 212

APICS Deck 5

profitability

Answer 212

A measure of the excess income over expenditure during a given period of time.P

Question 213

APICS Deck 5

product group

Answer 213

Syn: product line.P

Question 214

APICS Deck 5

change agent

Answer 214

A person who facilitates change within an organization. This person may or may not be within the organization and may or may not be the initiator of the change.C

Question 215

APICS Deck 5

bottleneck operation

Answer 215

Syn: bottleneck.B

Question 216

APICS Deck 5

capacity

Answer 216

traditionally in only factory products and processes (little q).B

Question 217

APICS Deck 5

demand management

Answer 217

1) The function of recognizing all demands for goods and services to support the marketplace. It involves prioritizing demand when supply is lacking. Proper demand management facilitates the planning and use of resources for profitable business results. 2) In marketing, the process of planning, executing, controlling, and monitoring the design, pricing, promotion, and distribution of products and services to bring about transactions that meet organizational and individual needs. Syn: marketing management. See: demand planning.D

Question 218

APICS Deck 5

virtual organization

Answer 218

Short-term alliances between independent organizations in a potentially long-term relationship to design, produce, and distribute a product. Organizations cooperate based on mutual values and act as a single entity to third parties.V W

Question 219

APICS Deck 5

M-day calendar

Answer 219

Syn: manufacturing calendar.M

Question 220

APICS Deck 5

queue

Answer 220

A waiting line. In manufacturing, the jobs at a given work center waiting to be processed. As queues increase, so do average queue time and work-inprocess inventory.Q

Question 221

APICS Deck 5

replanning frequency

Answer 221

In an MRP system, the amount of time between successive runs of the MRP model. If the planner does not run MRP frequently enough, the material plan becomes inaccurate as material requirements and inventory status change with the passage of time.R

Question 222

APICS Deck 5

layout

Answer 222

Physical arrangement of resources or centers of economic activity (machines, groups of people, workstations, storage areas, aisles, etc.) within a facility. Layouts include product (linear or line), functional (job shop or process), cellular, and fixed position.L

Question 223

APICS Deck 5

limited partnership

Answer 223

A partnership having two types of partners: (1) limited partners contribute assets to the company without participating in management and (2) general partners manage the company and are responsible for all debts.L

Question 224

APICS Deck 5

total costs

Answer 224

Considering all cost impacts, rather than just one cost impact, on customer service improvement.T

Question 225

APICS Deck 5

project

Answer 225

An endeavor with a specific objective to be met within predetermined time and dollar limitations and that has been assigned for definition or execution. See: project manufacturing, project management.P

Question 226

APICS Deck 5

front room

Answer 226

The place where the customer comes into contact with the service operation. Many service operations contain front room and back room operations. See: back room.F

Question 227

APICS Deck 5

count-per-unit chart

Answer 227

Syn: U chart.C

Question 228

APICS Deck 5

product diversification

Answer 228

A marketing strategy that seeks to develop new products to supply current markets.P

Question 229

APICS Deck 5

outbound consolidation

Answer 229

The gathering of a number of small shipments to a variety of customers into a larger load, which is then shipped to a point near the customers where it is broken down for delivery.O

Question 230

APICS Deck 5

optical character

Answer 230

A printed character frequently used in utilities billing and credit applications that can be read by a machine without the aid of magnetic ink.O

Question 231

APICS Deck 5

quotation

Answer 231

A statement of price, terms of sale, and description of goods or services offered by a supplier to a prospective purchaser; a bid. When given in response to an inquiry, it is usually considered an offer to sell. See: bid.Q

Question 232

APICS Deck 5

statistical order point system

Answer 232

Syn: order point system.S

Question 233

APICS Deck 5

order point system

Answer 233

The inventory method that places an order for a lot whenever the quantity on hand is reduced to a predetermined level known as the order point. Syn: statistical order point system. See: fixed reorder quantity inventory model, hybrid system.O

Question 234

APICS Deck 5

histogram

Answer 234

A graph of contiguous vertical bars representing a frequency distribution in which the groups or classes of items are marked on the x axis and the number of items in each class is indicated on the y axis. The pictorial nature of the histogram lets people see patterns that are difficult to see in a simple table of numbers. The histogram is one of the seven tools of quality.H

Question 235

APICS Deck 5

current assets

Answer 235

An accounting/financial term (balance sheet classification of accounts) representing the shortterm resources owned by a company, including cash, accounts receivable, and inventories. See: assets, balance sheet.C

Question 236

APICS Deck 5

operation sheet

Answer 236

Syn: routing.O

Question 237

APICS Deck 5

FMEA

Answer 237

Abbreviation for failure mode effects analysis.F F

Question 238

APICS Deck 5

sales promotion

Answer 238

1) Sales activities that supplement both personal selling and marketing, coordinate the two, and help to make them effective (e.g., displays). 2) More loosely, the combination of personal selling, advertising, and all supplementary selling activities. 3)

Question 239

APICS Deck 5

pick on receipt

Answer 239

Similar to cross-docking, a product is unloaded from an inbound vehicle and loaded directly on an outbound vehicle. Product is received and picked simultaneously, never becoming set in the warehouse.P

Question 240

APICS Deck 5

percent chart

Answer 240

Syn: P chart.P

Question 241

APICS Deck 5

jobbing

Answer 241

Syn: job shop.J

Question 242

APICS Deck 5

business-to-business commerce (B2B)

Answer 242

Business conducted over the internet between businesses. The implication is that this connectivity will cause businesses to transform themselves via supply chain management

Question 243

APICS Deck 5

under-capacity scheduling

Answer 243

Allowing more time than should be necessary to complete a day’s work. As a result, a daily quota is met more often and workers have time to cross-train or perform maintenance on their tools and machines.U

Question 244

APICS Deck 5

order point/order quantity system

Answer 244

Syn: fixed reorder quantity inventory model.O

Question 245

APICS Deck 5

customer-as-product

Answer 245

A service system designed to actually perform the service on the customer, such as in health care or hair salons.C

Question 246

APICS Deck 5

baseline measures

Answer 246

A set of measurements (or metrics) that seeks to establish the current or starting level of performance of a process, function, product, firm, and so on. Baseline measures are usually established before implementing improvement activities and programs.B

Question 247

APICS Deck 5

risk response plan

Answer 247

A document defining known risks including description, cause, likelihood, costs, and proposed responses. It also identifies current status on each risk.R

Question 248

APICS Deck 5

nonconforming material

Answer 248

Any raw material, part, component, or product with one or more characteristics that depart from the specifications, drawing, or other approved product description.N

Question 249

APICS Deck 5

business process outsourcing

Answer 249

Contracting with third parties to perform non-core activities within a business. Functions often outsourced include human resources, accounts receivable, accounts payable, and payroll.B

Question 250

APICS Deck 5

OCR

Answer 250

Abbreviation for optical character recognition.O

Question 251

APICS Deck 5

modular architecture

Answer 251

A type of product architecture where the functional pieces correspond to physical pieces. The different physical pieces have their own function, and there is little interaction between them.M

Question 252

APICS Deck 5

manufacturer’s agent

Answer 252

Syn: manufacturer’s representative.M

Question 253

APICS Deck 5

activity level

Answer 253

A description of how reactive one activity is to changes in the level of another activity or cost object.A

Question 254

APICS Deck 5

multifactor productivity

Answer 254

A productivity score that measures output levels relative to more than one input, such as labor or capital.M

Question 255

APICS Deck 5

drum-buffer-rope (DBR)

Answer 255

The theory of constraints method for scheduling and managing operations that have an internal constraint or capacity-constrained resource.D

Question 256

APICS Deck 5

operations research

Answer 256

1) The development and application of quantitative techniques to the solution of problems. More specifically, theory and methodology in mathematics, statistics, and computing are adapted and applied to the identification, formulation, solution, validation, implementation, and control of decisionmaking problems. 2) An academic field of study concerned with the development and application of quantitative analysis to the solution of problems faced by management in public and private organizations. Syn: management science.O

Question 257

APICS Deck 5

passive data gathering

Answer 257

Data gathered when a customer initiates the process by filling out a card or sending an email. The firm develops the feedback form but the customer initiates the use of it.P

Question 258

APICS Deck 5

balking

Answer 258

When customers will not join a queue when they learn how long it is. See: reneging.B

Question 259

APICS Deck 5

production card

Answer 259

In a just-in-time context, a card or other signal for indicating that items should be made for use or to replace some items removed from pipeline stock. See: kanban.P

Question 260

APICS Deck 5

hi-low

Answer 260

A forklift truck with a standing operator.H

Question 261

APICS Deck 5

times interest earned

Answer 261

Ratio of profits before payment of interest and income taxes (EBIT) to interest on debt.T

Question 262

APICS Deck 5

actual start date

Answer 262

In project management, the date on which an activity in a project was actually started.A

Question 263

APICS Deck 5

nonexempt employee

Answer 263

A person filling a nonexempt position. See: nonexempt positions.N

Question 264

APICS Deck 5

customer relationship management (CRM)

Answer 264

A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support (as contrasted to enterprise resources planning information) to understand and support existing and potential customer needs. It includes account management, catalog and order entry, payment processing, credits and adjustments, and other functions. Syn: customer relations management.C

Question 265

APICS Deck 5

enforced problem solving

Answer 265

The methodology of intentionally restricting a resource (e.g., inventory, storage space, number of workers) to expose a problem that must then be resolved.E

Question 266

APICS Deck 5

upside flexibility

Answer 266

The ability of a facility to increase their output and ability to deliver, for the foreseeable future, because of a non-forecasted increase in demand. The main drivers of this flexibility are the availability of direct labor and/ or direct materials and the actual production capacity of the facility.U

Question 267

APICS Deck 5

value stream mapping

Answer 267

A lean production tool to visually understand the flow of materials from supplier to customer that includes the current process and flow as well as the value-added and non-value-added time of all the process steps. Used to lead to reduction of waste, decrease flow time, and make the process flow more efficient and effective.V

Question 268

APICS Deck 5

ABM

Answer 268

Abbreviation for activity-based management.A

Question 269

APICS Deck 5

units

Answer 269

scrap or rework.M

Question 270

APICS Deck 5

burden rate

Answer 270

A cost, usually in dollars per hour, that is normally added to the cost of every standard production hour to cover overhead expenses.B

Question 271

APICS Deck 5

consumer price index

Answer 271

A measure of the overall level of prices. It attempts to relate the cost of buying a specific set of goods and services with the cost of buying the same set of goods and services during an earlier time period.C

Question 272

APICS Deck 5

supply chain management

Answer 272

The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.S

Question 273

APICS Deck 5

arrow diagram method

Answer 273

Syn: activity-on-arrow network.A

Question 274

APICS Deck 5

data warehouse

Answer 274

A repository of data that has been specially prepared to support decision-making applications. Syn: decision-support data. See: information data warehouse.D

Question 275

APICS Deck 5

second-order smoothing

Answer 275

A method of exponential smoothing for trend situations that employs two previously computed averages, the singly and doubly smoothed values, to extrapolate into the future. Syn: double smoothing.S

Question 276

APICS Deck 5

WTO

Answer 276

Abbreviation for World Trade Organization.W

Question 277

APICS Deck 5

ABB

Answer 277

Abbreviation for activity-based budgeting.A

Question 278

APICS Deck 5

direct materials purchasing

Answer 278

Purchasing from suppliers on a contractual basis for a fixed period of time or amount of product. For job shops, the purchasing contract can be only for one job. For repetitive manufacturing, the materials are usually purchased on contracts that last for a model run or at least a year.D

Question 279

APICS Deck 5

type I error

Answer 279

An incorrect decision to reject something (such as a statistical hypothesis or a lot of products) when it is acceptable. See: producer’s risk.T

Question 280

APICS Deck 5

heuristics

Answer 280

A form of problem solving in which the results or rules have been determined by experience or intuition instead of by optimization. Heuristics can be used in such areas as forecasting; lot sizing; or determining production, staff, or inventory levels.H

Question 281

APICS Deck 5

level strategy

Answer 281

Syn: level production method.L

Question 282

APICS Deck 5

network chain

Answer 282

A route through a chain involving multiple network paths, with switching of paths due to resource conflicts.N

Question 283

APICS Deck 5

ASCII

Answer 283

Acronym for American Standard Code for Information Interchange.A

Question 284

APICS Deck 5

CAIT

Answer 284

Abbreviation for computer-aided inspection and test.C

Question 285

APICS Deck 5

service level agreement (SLA)

Answer 285

A document that represents the terms of performance for organic support.S

Question 286

APICS Deck 5

variation

Answer 286

A change in data, a characteristic, or a function that is caused by one of four factors: special causes, common causes, tampering, or structural variation.V

Question 287

APICS Deck 5

control points

Answer 287

In the theory of constraints, strategic locations in the logical product structure for a product or family that simplify the planning, scheduling, and control functions. Control points include gating operations, convergent points, divergent points, constraints, and shipping points. Detailed scheduling instructions are planned, implemented, and monitored at these locations. Other work centers are instructed to “work if they have work; otherwise, be prepared for work.” In this manner, materials flow rapidly through the facility without detailed work center scheduling and control.C

Question 288

APICS Deck 5

blocked operations

Answer 288

A group of operations identified separately for instructions and documentation but reported as one.B

Question 289

APICS Deck 5

quality costs

Answer 289

The overall costs associated with prevention activities and the improvement of quality throughout the firm before, during, and after production of a product. These costs fall into four recognized categories: internal failure costs, external failure costs, appraisal costs, and prevention costs. Internal failure costs relate to problems before the product reaches the customer. These usually include rework, scrap, downgrades, reinspection, retest, and process losses. External failure costs relate to problems found after the product reaches the customer. These usually include such costs as warranty and returns. Appraisal costs are associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time. Prevention costs are those caused by improvement activities that focus on reducing failure and appraisal costs. Typical costs include education, quality training, and supplier certification.Q

Question 290

APICS Deck 5

out-of-control process

Answer 290

A process in which the statistical measure being evaluated is not in a state of statistical control (i.e., the variations among the observed sampling results can be attributed to a constant system of chance causes). Ant: in-control process.O

Question 291

APICS Deck 5

Poisson distribution

Answer 291

A type of statistical distribution frequently used to model the arrival of customers or entities into a queuing system.P

Question 292

APICS Deck 5

ISP

Answer 292

An abbreviation for internet service provider.I

Question 293

APICS Deck 5

data element

Answer 293

A group of characters that defines an item at a basic level. Syn: data field.D

Question 294

APICS Deck 5

batch formula

Answer 294

Syn: batch bill of materials.B

Question 295

APICS Deck 5

historical labor standard

Answer 295

Determined by studying actual past labor data for the operation of interest.H

Question 296

APICS Deck 5

modem

Answer 296

A device that converts digital signals to analog signals (and vice versa) so they can be sent over phone lines.M

Question 297

APICS Deck 5

path float

Answer 297

Syn: float.P

Question 298

APICS Deck 5

acceptance criteria

Answer 298

Those performance requirements and conditions that must be reached before projects or products are accepted.A

Question 299

APICS Deck 5

critical-to-quality characteristics (CTQs)

Answer 299

Critical-toquality characteristics (CTQs) are the important and measurable traits of a product or process whose performance targets must be met to satisfy the customer. They adjust improvement efforts to meet consumer requirements. CTQs represent customer expectations for a product.C

Question 300

APICS Deck 5

operations plan

Answer 300

Syn: production plan.O

Question 301

APICS Deck 5

PDM

Answer 301

Abbreviation for product data management.P

Question 302

APICS Deck 5

blanket purchase order

Answer 302

A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. Often blanket orders cover only one item with predetermined delivery dates. Syn: blanket order, standing order.B

Question 303

APICS Deck 5

financial leverage management ratios

Answer 303

A set of measurements of the degree to which a firm is financing assets with fixed-charge instruments such as debt or preferred stock.F

Question 304

APICS Deck 5

convergent point

Answer 304

An operation in a production process where multiple materials/parts/components are combined into a single component. An assembly operation is an example of a convergent point.C

Question 305

APICS Deck 5

periodic inventory

Answer 305

A physical inventory taken at some recurring interval (e.g., monthly, quarterly, or annual physical inventory). See: physical inventory.P

Question 306

APICS Deck 5

basic stock

Answer 306

Syn: base inventory level.B

Question 307

APICS Deck 5

planning

Answer 307

The process of setting goals for the organization and choosing various ways to use the organization’s resources to achieve the goals.P

Question 308

APICS Deck 5

capacity-related costs

Answer 308

Costs generally related to increasing (or decreasing) capacity in the medium-to longrange time horizon. Personnel costs include hiring and training of direct laborers, supervisors, and support personnel in the areas related to the capacity increase. Equipment purchases to increase capacity are also considered. In contrast, costs related to decreasing capacity include layoffs, the fixed overhead spread over fewer units, the impact of low morale, and the inefficiencies of lower production levels.C

Question 309

APICS Deck 5

accelerated depreciation

Answer 309

A depreciation method involving high write-offs in the early years of an asset’s life and lower write-offs later. This method lowers the value of an asset faster than straight-line depreciation.A

Question 310

APICS Deck 5

critical activity

Answer 310

Any activity on the critical path of a project; an activity with no slack time (i.e., any delay in the activity will delay project completion). See: critical path, critical path method.C

Question 311

APICS Deck 5

bill-back

Answer 311

A penalty given to the supplier because a late delivery or poor quality resulted in extra costs.B

Question 312

APICS Deck 5

operations process chart

Answer 312

Syn: process chart.O

Question 313

APICS Deck 5

bulk storage

Answer 313

Large-scale storage for raw materials, intermediates, or finished products. Each vessel normally contains a mixture of lots and materials that may be replenished and withdrawn for use or pack-out simultaneously.B

Question 314

APICS Deck 5

communication management plan

Answer 314

A document that describes the communications needs and expectations within a project, including format, dates, locations, and responsibilities.C C

Question 315

APICS Deck 5

process control chart

Answer 315

Syn: control chart.P

Question 316

APICS Deck 5

world-class company

Answer 316

An organization that has reached a level of excellence due to superior products or services and customer satisfaction; best of the best.W

Question 317

APICS Deck 5

flexible benefits/cafeteria plans

Answer 317

Plans designed to give employees a core of minimum basic coverage with the option to choose additional coverage or, sometimes, cash. Employees can customize their benefits packages to suit their personal needs.F

Question 318

APICS Deck 5

reserve stock

Answer 318

Syn: safety stock.R

Question 319

APICS Deck 5

serial shipping container code

Answer 319

An 18-character designation identifying boxes or pallets that are part of a shipment covered by an automated shipment notice.S

Question 320

APICS Deck 5

unplanned receipt

Answer 320

A receipt transaction that updates the quantity on hand but for which no order exists.U

Question 321

APICS Deck 5

price discrimination

Answer 321

Selling the same products to different buyers at different prices.P

Question 322

APICS Deck 5

dock-to-stock time

Answer 322

Syn: put-away time.D

Question 323

APICS Deck 5

market penetration

Answer 323

The degree to which a product has been accepted by the marketplace. Syn: market reach.M

Question 324

APICS Deck 5

complete and on-time delivery (COTD)

Answer 324

A metric defining customer service. To be considered as complete and on

Question 325

APICS Deck 5

capacity buying

Answer 325

A purchasing practice whereby a company commits to a supplier for a given amount of its capacity per unit of time. Subsequently, schedules for individual items are given to the supplier in quantities to match the committed level of capacity. Syn: buying capacity.C C

Question 326

APICS Deck 5

place utility

Answer 326

Usefulness to the customer created by having the product delivered to a desired location.P

Question 327

APICS Deck 5

learning management system

Answer 327

A software system for delivering and managing education and training within an organization.L

Question 328

APICS Deck 5

transparency

Answer 328

A company allows outsiders, typically customers, to see some internal information, typically regarding an order, without giving any more than the outsider requires.T

Question 329

APICS Deck 5

gain sharing

Answer 329

A method of incentive compensation where employees share collectively in savings from productivity improvements. Syn: gain sharing plans.G

Question 330

APICS Deck 5

legal environment

Answer 330

The governmental restrictions placed on an organization regarding the goods and services provided by the business, for example, environmental regulations, export/import restrictions, safety regulations, and mandated deregulations.L

Question 331

APICS Deck 5

demand during lead time

Answer 331

The quantity of a product expected to be withdrawn from stock or to be consumed during its replenishment lead time when usage is at the forecasted rate. See: expected demand.D

Question 332

APICS Deck 5

free trade zone (FTZ)

Answer 332

The international term for what is known in the United States as a foreign trade zone. See: foreign trade zone.F

Question 333

APICS Deck 5

allowance

Answer 333

1) In work measurement, a time value or percentage of time by which the normal time is increased, or the amount of nonproductive time applied, to compensate for justifiable causes or policy requirements that necessitate performance time not directly measured for each element or task. Usually includes irregular elements, incentive opportunity on machinecontrolled time, minor unavoidable delays, rest time to overcome fatigue, and time for personal needs. 2) In assembly, the minimum clearance or maximum interference distance between two adjacent objects.A

Question 334

APICS Deck 5

department overhead rate

Answer 334

The overhead rate applied to jobs passing through a department.D

Question 335

APICS Deck 5

statistical safety stock calculations

Answer 335

The mathematical determination of safety stock quantities considering forecast errors, lot sizes, desired customer service levels, and the ratio of lead time to the length of the forecast period. Safety stock is frequently the product of the appropriate safety factor and the standard deviation or mean absolute deviation of the distribution of demand forecast errors.S

Question 336

APICS Deck 5

shelf life

Answer 336

The amount of time an item may be held in inventory before it becomes unusable.S

Question 337

APICS Deck 5

total waste management (TWM)

Answer 337

A methodology that enables finding solutions to waste issues while keeping in mind financial elements and the business case.T

Question 338

APICS Deck 5

rate-based scheduling

Answer 338

A method for scheduling and producing based on a periodic rate (e.g., daily, weekly, monthly). This method has traditionally been applied to high-volume and process industries. The concept has also been applied within job shops using cellular layouts and mixed-model level schedules where the production rate is matched to the selling rate.R

Question 339

APICS Deck 5

productivity

Answer 339

1) An overall measure of the ability to produce a good or a service. It is the actual output of production compared to the actual input of resources. Productivity is a relative measure across time or against common entities (labor, capital, etc.). In the production literature, attempts have been made to define total productivity where the effects of labor and capital are combined and divided into the output. One example is a ratio that is calculated by adding the dollar value of labor, capital equipment, energy, and material, and so forth and dividing it into the dollar value of output in a given time period. This is one measure of total factor productivity. See: efficiency, labor productivity, machine productivity, utilization. 2) In economics, the ratio of output in terms of dollars of sales to an input such as direct labor in terms of the total wages. This is called single factor productivity or partial factor productivity.P

Question 340

APICS Deck 5

tracing

Answer 340

In activity-based cost accounting, connecting resources to activities to cost objects using underlying causal drivers to understand how costs occur during normal business activities.T

Question 341

APICS Deck 5

lessee

Answer 341

An entity to which a lease is given.L

Question 342

APICS Deck 5

materials efficiency

Answer 342

A concept that addresses the efficiency with which materials are obtained, converted, and shipped in the overall purchasing, production, and distribution process. It can be considered as a companion concept to labor efficiency, and it is potentially more significant as the materials portion of cost of goods sold continues to grow.M

Question 343

APICS Deck 5

consumer surplus

Answer 343

The difference between the highest price a consumer is willing to pay for a good or service and the price actually paid.C

Question 344

APICS Deck 5

keiretsu

Answer 344

A form of cooperative relationship among companies in Japan where the companies largely remain legally and economically independent, even though they work closely in various ways such as financial backing. A member of a keiretsu generally owns a limited amount of stock in other member companies. A keiretsu generally forms around a bank and a trading company, but “distribution” (supply chain) keiretsu alliances have been formed of companies ranging from raw material suppliers to retailers.K

Question 345

APICS Deck 5

matrix bill of material

Answer 345

A chart made up from the bills of material for a number of products in the same or similar families. It is arranged in a matrix with components in M columns and parents in rows (or vice versa) so that requirements for common components can be summarized conveniently.M

Question 346

APICS Deck 5

obsolete inventory

Answer 346

Inventory items that have met the obsolescence criteria established by the organization. For example, inventory that has been superseded by a new model or otherwise made obsolescent. Obsolete inventory will never be used or sold at full value. Disposing of the inventory may reduce a company’s profit.O

Question 347

APICS Deck 5

incentive arrangements

Answer 347

The incentive contract allows for the sharing of the cost responsibility between the buyer and seller. Incentives are incorporated into the contracts to motivate the supplier to improve its performance in areas such as quality, on-time delivery, and customer satisfaction. There are three elements of an incentive agreement: target cost, target profit, and the sharing agreement.I

Question 348

APICS Deck 5

TPS

Answer 348

Abbreviation for Toyota Production System.T

Question 349

APICS Deck 5

city driver

Answer 349

A delivery person who drives a local route, as opposed to long-haul route.C

Question 350

APICS Deck 5

third-party warehousing

Answer 350

The outsourcing of the warehousing function by the seller of the goods.T

Question 351

APICS Deck 5

direct costs

Answer 351

1) In traditional cost accounting, variable costs that can be directly attributed to a particular job or operation. Direct material and direct labor are traditionally considered direct costs. 2) In activity-based cost (ABC) accounting, a cost that can specifically be traced and is economically feasible to track to a particular cost object (e.g., the units produced, a production line, a department, a manufacturing plant). In contrast, if the cost must be allocated across various cost objects, it is an indirect cost. Based on the cost object under consideration, the classification of direct and indirect can change. ABC accounting assumes that more costs traditionally viewed as fixed costs are variable and can be traced to cost objects.D

Question 352

APICS Deck 5

web services

Answer 352

A common internet or intranet framework that enables the movement of data from one application to another, without the requirement for a direct connection between two supply chain applications and without regard to the underlying operating system for those applications.W

Question 353

APICS Deck 5

commonality

Answer 353

A condition where given raw materials or ingredients are used in multiple parents.C

Question 354

APICS Deck 5

AIDC

Answer 354

Abbreviation for automatic identification and data capture.A

Question 355

APICS Deck 5

operating assets

Answer 355

An accounting/financial term representing the resources owned by a company for productive purposes (to generate a profit) including cash, accounts receivable, inventories, equipment, and facilities.O O

Question 356

APICS Deck 5

land bridge

Answer 356

Moving goods over water, then land, and then water again to the final point.L

Question 357

APICS Deck 5

sole-source supplier

Answer 357

The only supplier capable of meeting (usually technical) requirements for an item. See: single-source supplier.S

Question 358

APICS Deck 5

indirect labor cost

Answer 358

The compensation paid to workers whose activities are not related to a specific product.I

Question 359

APICS Deck 5

threshold costs

Answer 359

A company’s variable costs, which must be covered for a company to continue to stay in business.T

Question 360

APICS Deck 5

application system

Answer 360

A set of programs of specific instructions for processing activities needed to compute specific tasks for computer users, as opposed to operating systems that control the computer’s internal operations. Examples are payroll, spreadsheets, and word processing programs. See: application software.A

Question 361

APICS Deck 5

after-sale service

Answer 361

Syn: field service.A

Question 362

APICS Deck 5

service

Answer 362

Sometimes used to describe those activities that support the production or distribution functions in any organization, such as customer service and field service.S

Question 363

APICS Deck 5

performing organization

Answer 363

The enterprise directly involved in the execution of work.P

Question 364

APICS Deck 5

competitive bid

Answer 364

A price offering by one company that a buyer will consider along with price offerings from other companies.C

Question 365

APICS Deck 5

manufacturing cycle

Answer 365

Syn: manufacturing lead time.M

Question 366

APICS Deck 5

decoupling

Answer 366

Creating independence between supply and use of material. Commonly denotes providing inventory between operations so that fluctuations in the production rate of the supplying operation do not constrain production or use rates of the next operation.D

Question 367

APICS Deck 5

waybill

Answer 367

A document containing a list of goods with shipping instructions related to a shipment.W

Question 368

APICS Deck 5

five Ms

Answer 368

The branches of a cause and effect (fishbone) diagram: manpower, methods, materials, machines, and measurements.F

Question 369

APICS Deck 5

focus group

Answer 369

A set of people who are interviewed together for the purpose of collecting marketing data.F

Question 370

APICS Deck 5

work cell

Answer 370

Dissimilar machines grouped together into a production unit to produce a family of parts having similar routings.W

Question 371

APICS Deck 5

computer-integrated manufacturing (CIM)

Answer 371

The integration of the total manufacturing organization through the use of computer systems and managerial philosophies that improve the organization’s effectiveness; the application of a computer to bridge various computerized systems and connect them into a coherent, integrated whole. For example, budgets, CAD/CAM, process controls, group technology systems, MRP II, and financial reporting systems are linked and interfaced.C

Question 372

APICS Deck 5

cost management

Answer 372

Control of activities to eliminate waste, improve cost drivers, and plan operations. This process should affect the organization’s setting of strategy. Factors such as product pricing, introduction of new products, and distribution of existing products are examples of strategic decisions that are affected by cost management.C

Question 373

APICS Deck 5

flexible specialization

Answer 373

A strategy based on multi-use equipment, skilled workers, and innovative senior managers to accommodate the continuous change that occurs in the marketplace.F

Question 374

APICS Deck 5

inventory receipt

Answer 374

An inventory record transaction that records the receipt or arrival of inventory into physical stores by increasing the inventory on-hand balance by the received quantity. Often associated with receipt of a purchase or production order quantity.I

Question 375

APICS Deck 5

customer-as-participant

Answer 375

A service system that contains a high level of customer involvement in part of the service delivery.C

Question 376

APICS Deck 5

Certified Purchasing Manager

Answer 376

1) Certification from The Institute for Supply Management (ISM), formerly NAPM. This is no longer being tested (C.P.M.). 2) Certification from the American Purchasing Society (CPM).C

Question 377

APICS Deck 5

pick and place

Answer 377

Equipment that picks up parts from one station on an assembly line and places them on the next.P

Question 378

APICS Deck 5

(CSCMP)

Answer 378

A not-for-profit worldwide organization of logistics and supply chain managers. It provides educational opportunities through a variety of activities.C

Question 379

APICS Deck 5

resource driver

Answer 379

The objects that are linked to an activity that consumes resources at a specified rate. For example, a resource driver is a purchase order (the object) that when placed (the activity) consumes hours (the rate) of purchasing (the resource).R

Question 380

APICS Deck 5

cumulative available-to-promise

Answer 380

A calculation based on the available-to-promise (ATP) figure in the master schedule. Two methods of computing the cumulative available-to-promise are used, with and without lookahead calculation. The cumulative with look-ahead ATP equals the ATP from the previous period plus the MPS of the period minus the backlog of the period minus the sum of the differences between the backlogs and MPSs of all future periods until, but not to include, the period where point production exceeds the backlogs. The cumulative without look-ahead procedure equals the ATP in the previous period plus the MPS, minus the backlog in the period being considered. See: available-topromise. C

Question 381

APICS Deck 5

object-oriented programming (OOP)

Answer 381

Within computer programming, the use of coding techniques and tools that reflect the concept of viewing the business environment as a set of elements (or objects) with associated properties (e.g., data, data manipulation/actions, inheritance). The objects encapsulate, through data and functions, the properties of the business that are of interest.O

Question 382

APICS Deck 5

cost pool

Answer 382

In activity-based cost accounting, an aggregation of resources assigned to activities or activities assigned to cost objects. Items may be aggregated or disaggregated depending on how the data are to be used.C

Question 383

APICS Deck 5

relationship marketing

Answer 383

A form of target marketing in which the type and time of communications are determined by the customer. Syn: permission marketing.R

Question 384

APICS Deck 5

maintainability

Answer 384

The characteristic of equipment design and installation that provides the ability for the equipment to be repaired easily and efficiently. See: serviceability.M M maintenance, repair, and operating (MRO) supplies Items used in support of general operations and maintenance such as maintenance supplies, spare parts, and consumables used in the manufacturing process and supporting operations.M

Question 385

APICS Deck 5

available work

Answer 385

Work that is actually in a department ready to be worked on as opposed to scheduled work that may not yet be physically on hand. Syn: live load.A

Question 386

APICS Deck 5

information

Answer 386

Data that have been interpreted and that meet the need of one or more managers.I

Question 387

APICS Deck 5

lead-time scheduling

Answer 387

Development of a schedule of start and completion times of planned operations for a manufacturing order by calculation of the lead time. The calculation includes the duration of all operations, interoperation times, and order administration times. See: back scheduling, central point scheduling, forward scheduling, probable scheduling.L

Question 388

APICS Deck 5

list server

Answer 388

Software running on a web-accessed computer that facilitates electronic discussions by emailing submissions from one member to all other members of the discussion group. Syn: listserv.L

Question 389

APICS Deck 5

mixed-flow scheduling

Answer 389

A procedure used in some process industries for building process train schedules that start at an initial stage and work toward the terminal process stages. This procedure is effective for scheduling where several bottleneck stages may exist. Detailed scheduling is done at each bottleneck stage.M

Question 390

APICS Deck 5

standard allowance

Answer 390

The established or accepted amount by which the normal time for an operation is increased within an area, plant, or industry to compensate for the usual amount of personal, fatigue, and unavoidable delay times.S

Question 391

APICS Deck 5

staging and consolidation

Answer 391

Physically moving material from the packing area to a staging area, based on a prescribed set of instructions related to a particular outbound vehicle or delivery route, often for shipment consolidation purposes.S

Question 392

APICS Deck 5

batch production

Answer 392

Syn: batch processing.B

Question 393

APICS Deck 5

part

Answer 393

Generally, a material item that is used as a component and is not an assembly, subassembly, blend, intermediate, etc.P

Question 394

APICS Deck 5

application-to-application

Answer 394

The exchange of data between computers without reentry of data.A A

Question 395

APICS Deck 5

Q chart

Answer 395

A control chart for evaluating the stability of a process in terms of a quality score. The quality score is the weighted sum of the count of events of various classifications, where each classification is assigned a weight. Syn: quality chart, quality score chart.Q

Question 396

APICS Deck 5

income statement

Answer 396

A financial statement showing the net income for a business over a given period of time. See: balance sheet, funds flow statement.I

Question 397

APICS Deck 5

perfect order

Answer 397

An order in which the “seven Rs” are satisfied: the right product, the right quantity, the right condition, the right place, the right time, the right customer, the right cost.P

Question 398

APICS Deck 5

waterspider

Answer 398

An expert worker who makes the rounds of workstations and provides assistance, as needed. The waterspider knows all processes well enough to take over if needed. At Toyota, this position is a prerequisite to supervision and management positions.W

Question 399

APICS Deck 5

hypermedia

Answer 399

An addition to hypertext to include sound, pictures, or music.H

Question 400

APICS Deck 5

aggregate production plan (APP)

Answer 400

A long-range plan that is used to determine timing and quantity of total future production for a family of products. Syn: long-term production plan.A

Question 401

APICS Deck 5

muda (waste)

Answer 401

In lean manufacturing, costs are reduced by reducing waste within a system. There are

Question 402

APICS Deck 5

performance

Answer 402

1) The degree to which an employee or group applies skill and effort to an operation or task as measured against an established standard. 2) One of the eight dimensions of quality that refers to product attributes pertaining to the functioning of a product (e.g., horsepower, signal-to-noise ratio, decibel output).P

Question 403

APICS Deck 5

internal customer

Answer 403

The recipient (person or department) of another person’s or department’s output (good, service, or information) within an organization. See: customer, external customer.I

Question 404

APICS Deck 5

consumer durable goods

Answer 404

A division of durable goods for items intended for consumer use, such as refrigerators, as opposed to industrial goods, such as fork lifts. See: durable goods.C

Question 405

APICS Deck 5

service bureau model

Answer 405

A business strategy in which a company outsources certain products and services from another company. The company prefers to concentrate on its core business rather than expending resources on the outsourced item.S

Question 406

APICS Deck 5

capacity simulation

Answer 406

The ability to do rough-cut capacity planning using a simulated master production schedule or material plan rather than live data.C

Question 407

APICS Deck 5

government market

Answer 407

A market in which most or all buyers consist of agencies of federal, state, or local governments. See: consumer market, industrial market, institutional market.G

Question 408

APICS Deck 5

projected available inventory

Answer 408

Syn: projected available balance.P

Question 409

APICS Deck 5

constraint

Answer 409

1) Any element or factor that prevents a system from achieving a higher level of performance with respect to its goal. Constraints can be physical, such as a machine center or lack of material, but they can also be managerial, such as a policy or procedure. 2) One of a set of equations that cannot be violated in an optimization procedure.C

Question 410

APICS Deck 5

cell

Answer 410

A manufacturing or service unit consisting of a number of workstations and the materials transport mechanisms and storage buffers that interconnect them.C

Question 411

APICS Deck 5

process engineering

Answer 411

The discipline of designing and improving the manufacturing equipment and production process to support the manufacture of a product line. See: manufacturing engineering.P

Question 412

APICS Deck 5

blending

Answer 412

The process of physically mixing two or more lots or types of material to produce a homogeneous lot. Blends normally receive new identification and require testing.B

Question 413

APICS Deck 5

executive sales and operations planning

Answer 413

The portion of sales and operations planning that defines executive decision-making processes to balance supply and demand at the volume level in families, fully integrates financial planning and operational planning, and that provides a forum for establishing and linking high-level strategic plans with day-to-day operations. See: sales and operations planning.E

Question 414

APICS Deck 5

linear decision rules

Answer 414

A modeling technique using simultaneous equations (e.g., the establishment of aggregate workforce levels) based upon minimizing the total cost of hiring, firing, holding inventory, backorders, payroll, overtime, and undertime.L

Question 415

APICS Deck 5

target inventory level

Answer 415

In a min-max inventory system, the equivalent of the maximum. The target inventory is equal to the order point plus a variable order quantity. It is often called an order-up-to inventory level and is used in a periodic review system. Syn: order-up-to level.T

Question 416

APICS Deck 5

option

Answer 416

A choice that must be made by the customer or company when customizing the end product. In many companies, the term option means a mandatory choice from a limited selection. See: feature.O

Question 417

APICS Deck 5

hazmat

Answer 417

Hazardous material defined by environmental laws and legal precedents. A product has been defined as hazardous by regulations that impose stiff fines if the regulations are ignored.H

Question 418

APICS Deck 5

loading port

Answer 418

The port where cargo is loaded onto an exporting vessel.L

Question 419

APICS Deck 5

planner intervention

Answer 419

Syn: manual rescheduling.P P

Question 420

APICS Deck 5

blemish

Answer 420

An imperfection that is severe enough to be noticed but should not cause any real impairment with respect to intended normal or reasonably foreseeable use. See: defect, imperfection, nonconformity.B

Question 421

APICS Deck 5

IPO

Answer 421

1) Abbreviation for initial public offering. 2) Abbreviation for international procurement office.I

Question 422

APICS Deck 5

judgment items

Answer 422

Those inventory items that cannot be effectively controlled by algorithms because of age (new or obsolete product) or management decision (promotional product).J

Question 423

APICS Deck 5

value-based management (VBM)

Answer 423

The concept of satisfying customers to create shareholder wealth.V

Question 424

APICS Deck 5

gemba

Answer 424

A Japanese word meaning shop floor.G

Question 425

APICS Deck 5

basic seven tools of quality (B7)

Answer 425

Tools that help organizations understand their processes to improve them. The tools are the cause-and-effect diagram (also known as the fishbone diagram or the Ishikawa diagram), check sheet, flowchart, histogram, Pareto chart, control chart, and scatter diagram. Syn: seven tools of quality. See: seven new tools of quality.B

Question 426

APICS Deck 5

ABC frequency of access

Answer 426

A warehouse location that is determined by both a product’s ABC classification and by the frequency with which it is removed or replaced.A

Question 427

APICS Deck 5

actual cost of work performed

Answer 427

The direct costs actually incurred in, and the indirect costs applied to, accomplishing work performed within a given time period. These costs should reconcile with the contractor’s incurred-cost ledgers, which are regularly audited by the client.A

Question 428

APICS Deck 5

minimum cost order quantity

Answer 428

Syn: economic order quantity.M

Question 429

APICS Deck 5

total cost consideration

Answer 429

Considering all cost impacts, rather than just one cost impact, on customer service improvement.T

Question 430

APICS Deck 5

vertical marketplace

Answer 430

An online marketplace connecting buyers and sellers within the same industry. It enables lower prices by lowering transaction costs.V

Question 431

APICS Deck 5

third-party transportation services

Answer 431

Outside firms providing transportation of goods.T

Question 432

APICS Deck 5

LDI

Answer 432

Abbreviation for logistics data interchange.L

Question 433

APICS Deck 5

freight consolidation

Answer 433

The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third-party pooling services such as public warehouses and freight forwarders.F

Question 434

APICS Deck 5

rapid replenishment

Answer 434

A replenishment strategy in which the supplier prepares shipments at predetermined intervals and varies the quantity based on recent sales data. Sales data may be supplied via a point-of-sale system. See: continuous replenishment.R

Question 435

APICS Deck 5

econometric modeling

Answer 435

The process of developing econometric models. See: econometric model.E

Question 436

APICS Deck 5

inventory issue

Answer 436

1) Items released from an inventory location for use or sale. 2) The inventory record transaction reducing the inventory balance by the amount released.I

Question 437

APICS Deck 5

input control

Answer 437

Management of the release of work to a work center or production facility.I

Question 438

APICS Deck 5

prima facie

Answer 438

Latin for at first sight or on the face of it. Something is presumed to be true.P

Question 439

APICS Deck 5

lag capacity strategy

Answer 439

Not adding capacity until the firm is operating at or beyond full capacity. This keeps unit costs minimized by working at full capacity, but does not satisfy total demand.L

Question 440

APICS Deck 5

value stream map

Answer 440

A graph displaying the sequence of operations needed to produce and deliver a product or service.V

Question 441

APICS Deck 5

centralized inventory control

Answer 441

Inventory decision making for all stockkeeping units exercised from one office or department for an entire company.C

Question 442

APICS Deck 5

byte

Answer 442

A string of 8 bits used to represent a single character in a computer code.B C

Question 443

APICS Deck 5

lean metric

Answer 443

A metric that permits a balanced evaluation

Question 444

APICS Deck 5

clickstream

Answer 444

The way a customer moves through a website.C

Question 445

APICS Deck 5

supply base

Answer 445

Syn: supplier base.S

Question 446

APICS Deck 5

capital rationing

Answer 446

In financial management, the process of apportioning capital expenditures among prospective projects to conserve limited investment funds.C

Question 447

APICS Deck 5

demand-side analysis

Answer 447

Techniques such as market research, surveys, focus groups, and performance/cost modeling used to identify emerging technologies.D

Question 448

APICS Deck 5

on-hand balance

Answer 448

The quantity shown in the inventory records as being physically in stock.O

Question 449

APICS Deck 5

hoshin

Answer 449

A Japanese word meaning statement of objectives.H

Question 450

APICS Deck 5

company culture

Answer 450

A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.C

Question 451

APICS Deck 5

union free

Answer 451

A designation that indicates that a company or operation does not have a union contract.U

Question 452

APICS Deck 5

protective inventory

Answer 452

In the theory of constraints, the amount of inventory required relative to the protective capacity in the system to achieve a specific throughput rate at the constraint. See: limiting operation.P

Question 453

APICS Deck 5

controller

Answer 453

The person responsible for financial and managerial accounting within a company. Syn: comptroller.C

Question 454

APICS Deck 5

centralized purchasing

Answer 454

A system in which all purchasing decisions are made from a corporate purchasing office.C

Question 455

APICS Deck 5

pure competition

Answer 455

A market in which many competitors offer undifferentiated products or services within a given geographical area. Competitors are forced to accept the market price for their product. See: industry structure types.P

Question 456

APICS Deck 5

budgeted capacity

Answer 456

The volume/mix of throughput on which financial budgets were set and overhead/burden absorption rates established.B

Question 457

APICS Deck 5

vertical display

Answer 457

A method of displaying or printing output from an MRP system where requirements, scheduled receipts, projected balance, and so forth are displayed vertically. Vertical displays are often used in conjunction with bucketless systems. Ant: horizontal display.V

Question 458

APICS Deck 5

traveling purchase requisition

Answer 458

A purchase requisition designed for repetitive use. After a purchase order has been prepared for the goods requisitioned, the form is returned to the originator, who holds it until a repurchase of the goods is required. The name is derived from the repetitive travel between the originating and purchasing departments. Syn: traveling requisition.T

Question 459

APICS Deck 5

confidence level

Answer 459

The probability that a particular value

Question 460

APICS Deck 5

job lot

Answer 460

A specific quantity of a part or product that is produced at one time.J

Question 461

APICS Deck 5

self-directed work team

Answer 461

Generally, a small, independent, self-organized, and self-controlling group in which members flexibly plan, organize, determine, and manage their duties and actions, as well as perform many other supportive functions. It may work without immediate supervision and can often have authority to select, hire, promote, or discharge its members.S

Question 462

APICS Deck 5

lessor

Answer 462

An entity which gives a lease.L

Question 463

APICS Deck 5

compensation

Answer 463

The pay and benefits given for services rendered to an organization.C

Question 464

APICS Deck 5

bucket

Answer 464

A time period, usually a week.B

Question 465

APICS Deck 5

cross-functional organization

Answer 465

Organization where groups of directors, executives, and managers with a C diversity of skills and backgrounds work on problems outside the bounds of their functional responsibilities. See: integrated enterprise.C

Question 466

APICS Deck 5

forecast bias

Answer 466

Tendency of a forecast to systematically miss the actual demand (consistently either high or low).F

Question 467

APICS Deck 5

materials handling time

Answer 467

The time necessary to move materials from one work center to the next work center. This time includes waiting for the materials handling equipment and actual movement time.M

Question 468

APICS Deck 5

demand forecasting

Answer 468

Forecasting the demand for a particular good, component, or service.D

Question 469

APICS Deck 5

X-bar chart

Answer 469

Syn: average chart.X

Question 470

APICS Deck 5

utilization

Answer 470

1) A measure (usually expressed as a percentage) of how intensively a resource is being used to produce a good or service. Utilization compares actual time used to available time. Traditionally, utilization is the ratio of direct time charged (run time plus setup time) to the clock time available. Utilization is a percentage between 0 percent and 100 percent that is equal to 100 percent minus the percentage of time lost due to the unavailability of machines, tools, workers, and so forth. See: efficiency, lost time factor, productivity. 2) In V the theory of constraints, activation of a resource that productively contributes to reaching the goal. Overactivation of a resource does not productively utilize a resource. See: available time.U V

Question 471

APICS Deck 5

master planning

Answer 471

A group of business processes that includes the following activities: demand management (which includes forecasting and order servicing); production and resource planning; and master scheduling (which includes the master schedule and the rough-cut capacity plan).M

Question 472

APICS Deck 5

value engineering and/or analysis

Answer 472

A disciplined approach to the elimination of waste from products or processes through an investigative process that focuses on the functions to be performed and whether such functions add value to the good or service.V

Question 473

APICS Deck 5

vestibule training

Answer 473

A variant of job rotation in which a separate work area is set up for a trainee so that the actual work situation does not pressure the trainee. Examples are cockpit simulators and other machine simulators. V

Question 474

APICS Deck 5

overlap quantity

Answer 474

The number of items that need to be run and sent ahead to the following operation before the following “overlap” operation can begin. Syn: offset quantity. See: process batch, transfer batch.O

Question 475

APICS Deck 5

pure monopoly

Answer 475

A market in which only one firm provides a particular product or service within a given area. The monopoly may be regulated or unregulated. See: industry structure types.P

Question 476

APICS Deck 5

tapering rate

Answer 476

A rate structure in which a shipping rate increases as the distance shipped increases, but the increases are not directly correlated to the increase in the distance shipped.T

Question 477

APICS Deck 5

decision support system (DSS)

Answer 477

A computer system designed to assist managers in selecting and evaluating courses of action by providing a logical, usually quantitative, analysis of the relevant factors.D

Question 478

APICS Deck 5

measurement ton

Answer 478

A measurement equivalent to 40 cubic feet. It is a factor in water transportation ratesetting. M

Question 479

APICS Deck 5

quality assurance/control

Answer 479

Two terms that have many interpretations because of the multiple definitions for the words “assurance” and “control.” For example, “assurance” can mean the act of giving confidence, the state of being certain, or the act of making certain; “control” can mean an evaluation to indicate needed corrective responses, the act of guiding, or the state of a process in which the variability is attributable to a constant system of chance causes. One definition of quality assurance is all the planned and systematic activities implemented within the quality system that can be demonstrated to provide confidence that a good or service will fulfill requirements for quality. One definition for quality control is the operational techniques and activities used to fulfill requirements for quality. Often, however, quality assurance and quality control are used interchangeably, referring to the actions performed to ensure the quality of a good, service, or process. See: quality control.Q

Question 480

APICS Deck 5

preferred stock

Answer 480

A type of stock entitling the owner to dividends before common stockholders are entitled to them.P

Question 481

APICS Deck 5

variable cost

Answer 481

An operating cost that varies directly with a change of one unit in the production volume (e.g., direct materials consumed, sales commissions).V

Question 482

APICS Deck 5

joint replenishment

Answer 482

Coordinating the lot sizing and order release decision for related items and treating them K as a family of items. The objective is to achieve lower costs because of ordering, setup, shipping, and quantity discount economies. This term applies equally to joint ordering (family contracts) and to composite part (group technology) fabrication scheduling. Syn: joint replenishment system.J

Question 483

APICS Deck 5

residual inventory

Answer 483

Inventory created by the canceling or rescheduling of an order or left over because of lot sizing.R

Question 484

APICS Deck 5

unattainable capability

Answer 484

The portion of the production capability that cannot be attained. This is typically caused by factors such as equipment unavailability, suboptimal scheduling, or resource limitations.U

Question 485

APICS Deck 5

flow order

Answer 485

An order filled, not by moving material through production as an integral lot, but by production made over time and checked by a cumulative count until the flow order quantity is complete.F

Question 486

APICS Deck 5

lies between an upper and a lower bound

Answer 486

the confidence limits.C

Question 487

APICS Deck 5

production planning methods

Answer 487

The approach taken in setting the overall manufacturing output to meet customer demand by setting production levels, inventory levels, and backlog. Companies can use a chase, level, or hybrid production planning method. See: chase production method, hybrid production method, level production method.P

Question 488

APICS Deck 5

transition tree (TRT)

Answer 488

In the theory of constraints, a logic-based tool for identifying and sequencing actions in accomplishing an objective. The transitions represent the states or stages in moving from the present situation to the desired objective.T

Question 489

APICS Deck 5

ending inventory

Answer 489

A statement of on-hand quantities or the dollar value of a SKU at the end of a period, often determined by a physical inventory.E

Question 490

APICS Deck 5

salvage

Answer 490

Property that, because of its worn, damaged, deteriorated, or incomplete condition or specialized nature has no reasonable prospect of sale or use as serviceable property without major repairs or alterations, but that has some value in excess of its scrap value.S

Question 491

APICS Deck 5

open-to-receive

Answer 491

Authorization to receive goods, such as a blanket release, firm purchase order item, or supplier schedule. Open-to-receive represents near-term impact on inventory, and is often monitored as a control technique in aggregate inventory management. The total of open-to-receive, other longer term purchase commitments, and open-to-buy represents the material and services cash exposure of the company.O

Question 492

APICS Deck 5

perpetual inventory record

Answer 492

A computer record or manual document on which each inventory transaction is posted so that a current record of the inventory is maintained.P P

Question 493

APICS Deck 5

JIT

Answer 493

Acronym for just in time.J

Question 494

APICS Deck 5

shipper-carriers

Answer 494

Companies that ship goods in their own vehicles. Many large retailers are shipper-carriers as they own their own fleets.S

Question 495

APICS Deck 5

islands of automation

Answer 495

Stand-alone pockets of automation (e.g., robots, CAD/CAM systems, numerical control machines) that are not connected into a cohesive system.I

Question 496

APICS Deck 5

N7

Answer 496

Abbreviation for seven new tools of quality.N

Question 497

APICS Deck 5

decomposition

Answer 497

A method of forecasting where time series data are separated into up to three components: trend, seasonal, and cyclical; where trend includes the general horizontal upward or downward movement over time; seasonal includes a recurring demand pattern such as day of the week, weekly, monthly, or quarterly; and cyclical includes any repeating, nonseasonal pattern. A fourth component is random, that is, data with no pattern. The new forecast is made by projecting the patterns individually determined and then combining them. See: cyclical component, random component, seasonal component, trend component.D

Question 498

APICS Deck 5

customer order promising

Answer 498

Syn: order promising.C

Question 499

APICS Deck 5

operating profit margin ratio

Answer 499

Earnings before interest and taxes divided by sales.O