APICS Deck 6 OO

Question 1

APICS Deck 6

mission

Answer 1

The overall goal(s) for an organization set within the parameters of the business scope.M

Question 2

APICS Deck 6

process decision program chart

Answer 2

A technique used to show alternate paths to achieving given goals. Applications include preparing contingency plans and maintaining project schedules.P

Question 3

APICS Deck 6

have a short-term time horizon

Answer 3

such as cash, accounts

Question 4

APICS Deck 6

order management

Answer 4

The planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders. Regarding customer orders, order management includes order promising, order entry, order pick, pack and ship, billing, and reconciliation of the customer account. Regarding manufacturing orders, order management includes order release, routing, manufacture, monitoring, and receipt into stores or finished goods inventories. Regarding purchasing orders, order management includes order placement, monitoring, receiving, acceptance, and payment of supplier.O

Question 5

APICS Deck 6

fabricator

Answer 5

A manufacturer that turns the product of a converter into a larger variety of products. For example, a fabricator may turn steel rods into nuts, bolts, and twist drills, or may turn paper into bags and boxes.F

Question 6

APICS Deck 6

ERP

Answer 6

Abbreviation for enterprise resources planning.E

Question 7

APICS Deck 6

drum

Answer 7

In the theory of constraints, the constraint is viewed as a drum, and nonconstraints are like soldiers in an army who march in unison to the drumbeat; the resources in a plant should perform in unison with the drumbeat set by the constraint.D

Question 8

APICS Deck 6

manufacturer’s representative

Answer 8

One who sells goods for several firms but does not take title to them. Syn: manufacturer’s agent, manufacturing representative.M

Question 9

APICS Deck 6

acceptable quality level (AQL)

Answer 9

When a continuing series of lots is considered, a quality level that, for the purposes of sampling inspection, is the limit of a satisfactory process average.A

Question 10

APICS Deck 6

kitting

Answer 10

The process of constructing and staging kits.K

Question 11

APICS Deck 6

sales cycle time

Answer 11

Time from a product entering a floor until it is completely sold out.S

Question 12

APICS Deck 6

classification of defects

Answer 12

The delineation of possible defects on a unit, classified by seriousness: critical (A), major (B), minor (C), or incidental (D).C

Question 13

APICS Deck 6

period capacity

Answer 13

The number of standard hours of work that can be performed at a facility or work center in a given time period.P

Question 14

APICS Deck 6

procurement cycle

Answer 14

Syn: procurement lead time.P

Question 15

APICS Deck 6

delivery policy

Answer 15

The company’s goal for the time to ship the product after the receipt of a customer’s order. The policy is sometimes stated as “our quoted delivery time.”D

Question 16

APICS Deck 6

nominal capacity

Answer 16

Syn: rated capacity.N

Question 17

APICS Deck 6

tiger teams

Answer 17

Teams that attempt to achieve a specific goal within a short time period.T

Question 18

APICS Deck 6

principle of postponement

Answer 18

Syn: order penetration point.P

Question 19

APICS Deck 6

order control

Answer 19

Control of manufacturing activities by individual manufacturing, job, or shop orders, released by planning personnel and authorizing production personnel to complete a given batch or lot size of a particular manufactured item. Information needed to complete the order (components required, work centers and operations required, tooling required, etc.) may be printed on paper or tickets, often called shop orders or work orders, which are distributed to production personnel. This use of order control sometimes implies an environment where all the components for a given order are O picked and issued from a stocking location, all at one time, and then moved as a kit to manufacturing before any activity begins. It is most frequently seen in job shop manufacturing. See: shop floor control.O

Question 20

APICS Deck 6

smoothing constant

Answer 20

In exponential smoothing, the weighting factor that is applied to the most recent demand, observation, or error. In this case, the error is defined as the difference between actual demand and the forecast for the most recent period. The weighting factor is represented by the symbol α. Theoretically, the range of α is 0.0 to 1. Syn: alpha factor, smoothing factor.S

Question 21

APICS Deck 6

Taguchi methods

Answer 21

Syn: Taguchi methodology.T

Question 22

APICS Deck 6

public-private partnering

Answer 22

Cooperation between a government entity and one or more private enterprises to perform work or utilize facilities.P

Question 23

APICS Deck 6

TRT

Answer 23

Abbreviation for transition tree.T

Question 24

APICS Deck 6

therbligs

Answer 24

The 17 basic movements identified by Frank and Lillian Gilbreth. (The name of the term is essentially Gilbreth spelled backwards.) Examples of movements T include grasp, move, release, select, and position. See: predetermined time standards.T

Question 25

APICS Deck 6

buyer code

Answer 25

A code used to identify the purchasing person responsible for a given item or purchase order.B

Question 26

APICS Deck 6

honeycomb loss

Answer 26

The usable empty storage space in a stack due to storage of only a single stockkeeping unit in the stack to permit better access.H

Question 27

APICS Deck 6

information technology

Answer 27

The technology of computers, telecommunications, and other devices that integrate data, equipment, personnel, and problem-solving methods in planning and controlling business activities. Information technology provides the means for collecting, storing, encoding, processing, analyzing, transmitting, receiving, and printing text, audio, or video information.I

Question 28

APICS Deck 6

continuous manufacturing

Answer 28

A type of manufacturing process that is dedicated to the production of a very narrow range of standard products. The rate of product change and new product information is very low. Significant investment in highly specialized equipment allows for a high volume of production at the lowest manufacturing cost. Thus, unit sales volumes are very large, and price is almost always a key order-winning criterion. Examples of items produced by a continuous process include gasoline, steel, fertilizer, glass, and paper. Syn: continuous production.C

Question 29

APICS Deck 6

prevention costs

Answer 29

The costs caused by improvement activities that focus on the reduction of failure and appraisal costs. Typical costs include education, quality training, and supplier certification. Prevention costs are one of four categories of quality costs.P

Question 30

APICS Deck 6

and disposition costs

Answer 30

that will be incurred over the entire time of product ownership.L

Question 31

APICS Deck 6

overhead allocation

Answer 31

In accounting, the process of applying overhead to a product on the basis of a predetermined rate.O

Question 32

APICS Deck 6

transport stocks

Answer 32

A carrier material to move solids in solution or slurry or to dilute ingredients to safe levels for reaction.T

Question 33

APICS Deck 6

frozen zone

Answer 33

In forecasting, the periods where no changes can be made to work orders based on changes in demand. This provides stability to the master production schedule.F

Question 34

APICS Deck 6

job enlargement

Answer 34

An increase in the number of tasks that an employee performs. Job enlargement is associated with the design of jobs, particularly production jobs, and its purpose is to reduce employee dissatisfaction.J

Question 35

APICS Deck 6

make-to-order

Answer 35

A production environment where a good or service can be made after receipt of a customer’s order. The final product is usually a combination of standard items and items custom-designed to meet the special needs of the customer. Where options or accessories are stocked before customer orders arrive, the term assemble-to-order is frequently used. Syn: produce-to-order. See: assemble-to-order, make-tostock. M

Question 36

APICS Deck 6

price skimming

Answer 36

Introducing a product above its longrun price to maximize product margin before others can enter the market.P

Question 37

APICS Deck 6

consumer’s risk (ß)

Answer 37

For a given sampling plan, the probability of acceptance of a lot, the quality of which has designated numerical value representing a level that is worse than some threshold value. See: type II error.C

Question 38

APICS Deck 6

purchased part

Answer 38

An item sourced from a supplier.P

Question 39

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range chart

Answer 39

Syn: R chart.R

Question 40

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rolling wave planning

Answer 40

A form of planning where the work to be performed in the near term is planned in detail and longer term work is planned at a lesser level of detail.R

Question 41

APICS Deck 6

standard costs

Answer 41

The target costs of an operation, process, or product including direct material, direct labor, and overhead charges.S S

Question 42

APICS Deck 6

rationalization exercise

Answer 42

A process of reducing the population of figures such as stockkeeping unit counts or supplier lists.R

Question 43

APICS Deck 6

price schedule

Answer 43

The list of prices applying to varying quantities or kinds of goods.P

Question 44

APICS Deck 6

distributed numerical control

Answer 44

An approach to automated machining in which each machine tool has its own dedicated microcomputer or computer numerical control (CNC). Each machine tool’s CNC is connected via a network with a minicomputer that handles distributed processing between the host mainframe computer and the CNC. This minicomputer handles part program transfers and machine status data collection. This approach is considered more advanced than direct numerical control, in which several machine tools are tied directly to a central computer.D

Question 45

APICS Deck 6

value, (6) inventory

Answer 45

stock that is sitting is accumulating cost without necessarily providing value, (7) defective

Question 46

APICS Deck 6

cumulative system

Answer 46

A method for planning and controlling production that makes use of cumulative MRP, cumulative requirements, and cumulative counts.C

Question 47

APICS Deck 6

incentive pay system

Answer 47

A way to compensate employees based on their job performance.I I

Question 48

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GT

Answer 48

Abbreviation for group technology.G

Question 49

APICS Deck 6

primary work center

Answer 49

The work center where an operation on a manufactured part is normally scheduled to be performed. Ant: alternate work center.P

Question 50

APICS Deck 6

burn rate

Answer 50

The rate at which a company consumes cash. It can be used to determine when more cash must be raised.B

Question 51

APICS Deck 6

joint replenishment system

Answer 51

Syn: joint replenishment.J

Question 52

APICS Deck 6

min-max system

Answer 52

A type of order point replenishment system where the minimum (min) is the order point, and the maximum (max) is the “order up to” inventory level. The order quantity is variable and is the result of the max minus available and on-order inventory. An order is recommended when the sum of the available and onorder inventory is at or below the min.M

Question 53

APICS Deck 6

efficient consumer response (ECR)

Answer 53

Replenishment through a distribution network based on point-of-sale information.E

Question 54

APICS Deck 6

reneging

Answer 54

A queuing theory term for leaving a line after entering it but before receiving service. See: balking.R

Question 55

APICS Deck 6

adaptable website

Answer 55

In e-commerce, a site that a visitor can change to customize.A

Question 56

APICS Deck 6

USL

Answer 56

Abbreviation for upper specification limit.U

Question 57

APICS Deck 6

FMA

Answer 57

Abbreviation for failure mode analysis.F

Question 58

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common causes

Answer 58

Causes of variation that are inherent in a process over time. They affect every outcome of the process and everyone working in the process. Syn: random cause. See: assignable cause, assignable variation, common cause variability.C

Question 59

APICS Deck 6

group classification code

Answer 59

A part of a material classification technique that provides for designation of characteristics by successively lower order groups of code. Classification may denote function, type of material, size, shape, and so forth.G

Question 60

APICS Deck 6

inventory accuracy

Answer 60

When the on-hand quantity is within an allowed tolerance of the recorded balance. This important metric usually is measured as the percent of items with inventory levels that fall within tolerance. Target values usually are 95 percent to 99 percent, depending on the value of the item.I

Question 61

APICS Deck 6

DDP

Answer 61

Abbreviation for distributed data processing.D

Question 62

APICS Deck 6

assignee

Answer 62

One who receives a transfer of contract rights from a party to the contract.A

Question 63

APICS Deck 6

contingency planning

Answer 63

A process for creating a document that specifies alternative plans to facilitate project success if certain risk events occur.C

Question 64

APICS Deck 6

trailer on a flatcar (TOFC)

Answer 64

A specialized form of containerization in which motor and rail transport coordinate. Syn: piggyback.T

Question 65

APICS Deck 6

blanket release

Answer 65

The authorization to ship and/or produce against a blanket agreement or contract.B

Question 66

APICS Deck 6

software

Answer 66

The programs and documentation necessary to make use of a computer.S

Question 67

APICS Deck 6

value perspective

Answer 67

A quality perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user.V

Question 68

APICS Deck 6

gross profit margin

Answer 68

Syn: gross margin.G

Question 69

APICS Deck 6

action report

Answer 69

Syn: action message.A

Question 70

APICS Deck 6

net operating profit after taxes (NOPAT)

Answer 70

Operating profit less applicable taxes.N

Question 71

APICS Deck 6

product configurator

Answer 71

A system, generally rule-based, to be used in design-to-order, engineer-to-order, or maketo- order environments where numerous product variations exist. Product configurators perform intelligent modeling of the part or product attributes and often create solid models, drawings, bills of material, and cost estimates that can be integrated into CAD/CAM and MRP II systems as well as sales order entry systems.P

Question 72

APICS Deck 6

business environment

Answer 72

Syn: operating environment.B

Question 73

APICS Deck 6

market-positioned strategy

Answer 73

A location strategy that focuses on the customer by placing warehouses closer to the customer. See: product-positioned strategy.M

Question 74

APICS Deck 6

multiple-phase queuing system

Answer 74

Queuing system that performs a service in two or more sequential steps when there are several waiting lines. Syn: multiphase system. See: channel, queuing theory.M

Question 75

APICS Deck 6

RCCP

Answer 75

Abbreviation for rough-cut capacity planning.R

Question 76

APICS Deck 6

future value

Answer 76

A present payment’s value at some point in the future valued at a given interest rate.F

Question 77

APICS Deck 6

externality

Answer 77

The costs or benefits of a firm’s activities borne or received by others.E

Question 78

APICS Deck 6

sensors

Answer 78

Devices that can monitor differences in conditions to control equipment on a dynamic basis.S

Question 79

APICS Deck 6

contribution relativities

Answer 79

An investment by one stakeholder may benefit others in the supply chain.C

Question 80

APICS Deck 6

rework order

Answer 80

A manufacturing order to rework and salvage defective parts or products. Syn: repair order, spoiled work order.R

Question 81

APICS Deck 6

TOC performance measures

Answer 81

In the theory of constraints, throughput, inventory, and operating expense are considered performance measures that link operational decisions to organizational profit.T

Question 82

APICS Deck 6

beginning inventory

Answer 82

A statement of the inventory count at the end of last period, usually from a perpetual inventory record.B

Question 83

APICS Deck 6

project schedule

Answer 83

In project management, a list of activities and their planned completion dates that collectively achieve project milestones.P

Question 84

APICS Deck 6

deshi

Answer 84

A Japanese word meaning student.D

Question 85

APICS Deck 6

use as is

Answer 85

Classification for material that has been declared to be unacceptable per the specifications, yet can be used.U

Question 86

APICS Deck 6

GPS

Answer 86

Abbreviation for global positioning system.G

Question 87

APICS Deck 6

force field analysis

Answer 87

A technique for analyzing the forces that will aid or hinder an organization in reaching an objective. An arrow pointing to an objective is drawn down the middle of a piece of paper. The factors that will aid the objective’s achievement (called the driving forces) are listed on the left side of the arrow; the factors that will hinder its achievement (called the restraining forces) are listed on the right side of the arrow.F

Question 88

APICS Deck 6

changeover costs

Answer 88

Syn: setup costs.C

Question 89

APICS Deck 6

fill rate

Answer 89

Syn: customer service ratio.F

Question 90

APICS Deck 6

UCL

Answer 90

Abbreviation for upper control limit.U

Question 91

APICS Deck 6

responsibility assignment matrix (RAM)

Answer 91

A tool to ensure that each component of work in a project is assigned to a responsible person.R

Question 92

APICS Deck 6

requirements explosion

Answer 92

The process of calculating the demand for the components of a parent item by multiplying the parent item requirements by the component usage quantity specified in the bill of material. Syn: explosion.R

Question 93

APICS Deck 6

net operating cash flow

Answer 93

In finance management, the difference between cash inflow and cash outflow for a period. It is found by taking the change in net operating profit after taxes and adding the change in depreciation then subtracting the increase in net working capital requirements. N

Question 94

APICS Deck 6

of all costs

Answer 94

including acquisition, operation,

Question 95

APICS Deck 6

total productive maintenance (TPM)

Answer 95

Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows. It is operatororiented maintenance with the involvement of all qualified employees in all maintenance activities. Syn: total preventive maintenance.T

Question 96

APICS Deck 6

on-the-job training (OJT)

Answer 96

Learning the skills and necessary related knowledge useful for the job at the place of work or possibly while at work.O

Question 97

APICS Deck 6

five-forces model of competition

Answer 97

A methodology for analyzing competitive pressures in a market and assessing the strength and importance of each of those pressures.F

Question 98

APICS Deck 6

control decision

Answer 98

A decision about the planning or controlling of daily operations.C

Question 99

APICS Deck 6

resource contention

Answer 99

Simultaneous need for a common resource. Syn: concurrency.R

Question 100

APICS Deck 6

multiple-item lot-sizing models

Answer 100

Processes or systems used to determine the total replenishment order quantity for a group of related items.M

Question 101

APICS Deck 6

planning bill of material

Answer 101

An artificial grouping of items or events in bill-of-material format used to facilitate master scheduling and material planning. It may include the historical average of demand expressed as a percentage of total demand for all options within a feature or for a specific end item within a product family and is used as the quantity per in the planning bill of material. Syn: planning bill. See: hedge, option overplanning, production forecast, pseudo bill of material.P

Question 102

APICS Deck 6

agency tariff

Answer 102

Rates for a variety of carriers published in a single document.A

Question 103

APICS Deck 6

buyer’s market

Answer 103

A market in which goods can easily be secured and in which the economic forces of business tend to cause goods to be priced at the purchaser’s estimate of value.B

Question 104

APICS Deck 6

overall equipment effectiveness (OEE)

Answer 104

Measuring the effectiveness of all of the equipment of a company based on usage, performance and production quality.O

Question 105

APICS Deck 6

and personal selling

Answer 105

that stimulate interest, trial, or purchase by final customers or others in the marketing channel.S

Question 106

APICS Deck 6

assembly lead time

Answer 106

The time that normally elapses between the issuance of a work order to the assembly floor and work completion.A

Question 107

APICS Deck 6

firm offer

Answer 107

A written offer to buy or sell goods that will be held open for a stipulated period.F

Question 108

APICS Deck 6

management science

Answer 108

Syn: operations research.M

Question 109

APICS Deck 6

fixed-interval order system

Answer 109

Syn: fixed reorder cycle inventory model.F

Question 110

APICS Deck 6

bubble chart

Answer 110

A diagram that attempts to display the interrelationships of systems, functions, or data in a sequential flow. It derives its name from the circular symbols used to enclose the statements on the chart.B

Question 111

APICS Deck 6

planning calendar

Answer 111

Syn: manufacturing calendar.P

Question 112

APICS Deck 6

hoshin planning

Answer 112

Breakthrough planning. A Japanese strategic planning process in which a company develops up to four vision statements that indicate where the company should be in the next five years. Company goals and work plans are developed based on the vision statements. Periodic audits are then conducted to monitor progress.H

Question 113

APICS Deck 6

interactive

Answer 113

A characteristic of those applications where a user communicates with a computer program via a terminal, entering data and receiving responses from the computer.I

Question 114

APICS Deck 6

sunk cost

Answer 114

1) The unrecovered balance of an investment. It is a cost, already paid, that is not relevant to the decision concerning the future that is being made. Capital already invested that for some reason cannot be retrieved. 2) A past cost that has no relevance with respect to future receipts and disbursements of a facility undergoing an economic study. This concept implies that since a past outlay is the same regardless of the alternative selected, it should not influence the choice between alternatives.S

Question 115

APICS Deck 6

mistake-proofing

Answer 115

Syn: failsafe work methods, pokayoke. M

Question 116

APICS Deck 6

Hawthorne effect

Answer 116

A study at the Hawthorne Western Electric plant from 1927 to 1932 systematically improved working conditions and productivity improved. Then, when it systematically worsened working conditions, productivity improved. From this study, it was determined that concern by management generally factors into improved productivity.H

Question 117

APICS Deck 6

value-of-service pricing

Answer 117

Allowing the market to determine the price.V

Question 118

APICS Deck 6

write-off

Answer 118

In accounting, the process of removing an asset from an organization’s books through the expensing process.W

Question 119

APICS Deck 6

customer share

Answer 119

In marketing, a measurement (usually a percentage) of how many potential customers are attracted to a brand. It is a measurement of the recognition of the brand in the marketplace and the predisposition of the customer to buy the brand when presented with a choice of competing brands.C

Question 120

APICS Deck 6

FMC

Answer 120

Abbreviation for flexible machine center.F

Question 121

APICS Deck 6

operations scheduling

Answer 121

The actual assignment of starting or completion dates to operations or groups of operations to show when these operations must be done if the manufacturing order is to be completed on time. These dates are used in the dispatching function. Syn: detailed scheduling, order scheduling, shop scheduling.O

Question 122

APICS Deck 6

line manufacturing

Answer 122

Repetitive manufacturing performed by specialized equipment in a fixed sequence.L

Question 123

APICS Deck 6

internal setup time

Answer 123

The time associated with elements of a setup procedure performed while the process or machine is not running. Ant: external setup time.I

Question 124

APICS Deck 6

visual control

Answer 124

The control of authorized levels of activities and inventories in a way that is instantly and visibly obvious. This type of activity and inventory control is used in a workplace organization where everything has an assigned place and is in its place.V

Question 125

APICS Deck 6

payback

Answer 125

A method of evaluating an investment opportunity that provides a measure of the time required to recover the initial amount invested in a project.P

Question 126

APICS Deck 6

hybrid production method

Answer 126

A production planning method that combines the aspects of both the chase and level production planning methods. Syn: hybrid manufacturing process, hybrid strategy. See: chase production method, level production method, production planning method.H

Question 127

APICS Deck 6

decentralized purchasing

Answer 127

When purchasing decisions are made locally and not at a central location.D

Question 128

APICS Deck 6

pre-transaction elements

Answer 128

Customer service elements that pertain to the period before a product or service is sold, including flexibility, customer policies, and mission statement.P

Question 129

APICS Deck 6

material release

Answer 129

The introduction of parts into a production process.M

Question 130

APICS Deck 6

summarized bill of material

Answer 130

A form of multilevel bill of material that lists all the parts and their quantities required in a given product structure. Unlike the indented bill of material, it does not list the levels of manufacture and lists a component only once for the total quantity used.S S

Question 131

APICS Deck 6

freight forwarder

Answer 131

The “middle man” between the carrier and the organization shipping the product. Often combines smaller shipments to take advantage of lower bulk costs.F

Question 132

APICS Deck 6

reverse flow scheduling

Answer 132

A scheduling procedure used in some process industries for building process train schedules that starts with the last stage and proceeds backward (countercurrent to the process flow) through the process structure.R

Question 133

APICS Deck 6

decisions under certainty

Answer 133

Simple decisions that assume complete information and no uncertainty connected with the analysis of decisions.D

Question 134

APICS Deck 6

management by objectives (MBO)

Answer 134

A participative goalsetting process that enables the manager or supervisor to construct and communicate the goals of the department to each subordinate. At the same time, the subordinate is able to formulate personal goals and influence the department’s goals.M

Question 135

APICS Deck 6

expense

Answer 135

Expenditures of short-term value, including depreciation, as opposed to land and other fixed capital. See: overhead.E

Question 136

APICS Deck 6

peak demand

Answer 136

A specific time when the quantity demanded is greater than all other times.P

Question 137

APICS Deck 6

competitive intelligence

Answer 137

The information required to conduct a competitive analysis about external events and trends that can affect a company’s plans.C

Question 138

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ABC analysis

Answer 138

Syn: ABC classification.A

Question 139

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certificated carrier

Answer 139

A regulated for-hire air carrier that provides service under an operating certificate.C

Question 140

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dedicated contract carrier

Answer 140

A third-party hauler that works exclusively for a single customer.D

Question 141

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engineering standard

Answer 141

Design or test guidelines intended to promote the design, production, and test of a part, component, or product in a manner that promotes standardization, ease of maintenance, consistency, adequacy of test procedures, versatility of design, ease of production and field service, and minimization of the number of different tools and special tools required.E

Question 142

APICS Deck 6

efficiency

Answer 142

A measurement (usually expressed as a percentage) of the actual output to the standard output E expected. Efficiency measures how well something is performing relative to existing standards; in contrast, productivity measures output relative to a specific input (e.g., tons/labor hour). Efficiency is the ratio of (1) actual units produced to the standard rate of production expected in a time period or (2) standard hours produced to actual hours worked (taking longer means less efficiency) or (3) actual dollar volume of output to a standard dollar volume in a time period. Illustrations of these calculations follow. (1) There is a standard of 100 pieces per hour and 780 units are produced in one eight-hour shift; the efficiency is 780/800 converted to a percentage, or 97.5 percent. (2) The work is measured in hours and took 8.21 hours to produce 8 standard hours; the efficiency is 8/8.21 converted to a percentage or 97.5 percent. (3) The work is measured in dollars and produces $780 with a standard of $800; the efficiency is $780/$800 converted to a percentage, or 97.5 percent.E

Question 143

APICS Deck 6

supply chain integration

Answer 143

When supply chain partners interact at all levels to maximize mutual benefit.S

Question 144

APICS Deck 6

flexible path equipment

Answer 144

Materials handling equipment such as forklifts that do not have to follow fixed paths.F

Question 145

APICS Deck 6

activity-based budgeting (ABB)

Answer 145

In activity-based cost accounting, a budgeting process employing knowledge of activities and driver relationships to predict workload and resource requirements in developing a business plan. Budgets show the predicted consumption and cost of resources using forecast workload as a basis. The company can use performance to budget in evaluating success in setting and pursuing strategic goals; this activity is part of the activity-based planning process.A

Question 146

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TN

Answer 146

Abbreviation for telnet.T

Question 147

APICS Deck 6

earliest due date (EDD)

Answer 147

A priority rule that sequences the jobs in a queue according to their (operation or job) due dates. See: earliest operation due date.E

Question 148

APICS Deck 6

marketing research

Answer 148

The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services. Such research may be undertaken by impartial agencies or by business firms or their agents. Marketing research includes several types: (1) market analysis (product potential is a type) is the study of the size, location, nature, and characteristics of markets, (2) sales analysis (or research) is the systematic study and comparison of sales (or consumption) data, (3) consumer research (motivation research is a type) is concerned with the discovery and analysis of consumer attitudes, reactions, and preferences. Syn: market research.M

Question 149

APICS Deck 6

differentiated marketing

Answer 149

Marketing to different market segments with a different marketing strategy for each segment.D

Question 150

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machine productivity

Answer 150

A partial productivity measure. The rate of output of a machine per unit of time compared with an established standard or rate of output. Machine productivity can be expressed as output per unit of time or output per machine hour. See: labor productivity, productivity.M

Question 151

APICS Deck 6

model

Answer 151

A representation of a process or system that attempts to relate the most important variables in the system in such a way that analysis of the model leads to insights into the system. Frequently, the model is used to anticipate the result of a particular strategy in the real system.M

Question 152

APICS Deck 6

U-lines

Answer 152

Production lines shaped like the letter “U.” The shape allows workers to easily perform several nonsequential tasks without much walk time. The number of workstations in a U-line is usually determined by line balancing. U-lines promote communication.U

Question 153

APICS Deck 6

return on owner’s equity (ROE)

Answer 153

A financial measurement of how successful a company is in creating income for the owners of the organization. A comparison of the ROE with the ROA indicates the effectiveness of financial leverage employed by the firm. The measurement is calculated by dividing the net income by average owner’s equity. See: return on assets (ROA).R

Question 154

APICS Deck 6

flextime

Answer 154

An arrangement in which employees are allowed to choose work hours as long as the standard number of work hours is worked.F

Question 155

APICS Deck 6

chase production method

Answer 155

A production planning method that maintains a stable inventory level while varying production to meet demand. Companies may combine chase and level production schedule methods. Syn: chase strategy, chase-demand strategy.C

Question 156

APICS Deck 6

commercial-off-the-shelf (COTS)

Answer 156

A term describing computer software made available for sale by commercial developers.C

Question 157

APICS Deck 6

release-to-start manufacturing

Answer 157

The time it takes from when an order is released until the beginning of the manufacturing process. This delay occurs because of the movement of materials and the changing of lines. It is non-productive time that increases lead time.R

Question 158

APICS Deck 6

release

Answer 158

The authorization to produce or ship material that has already been ordered.R

Question 159

APICS Deck 6

stock status

Answer 159

A report showing the inventory on hand and usually showing the inventory on order and some sales or usage history for the products that are covered in the stock status report.S

Question 160

APICS Deck 6

transportation mode

Answer 160

The way an item is transported.T

Question 161

APICS Deck 6

discount rate

Answer 161

The rate of interest charged to commercial banks by a central banking authority.D

Question 162

APICS Deck 6

systems

Answer 162

Logistics information systems that initiate and control the movement of materials between supply chain partners.W

Question 163

APICS Deck 6

EBIT

Answer 163

Acronym for earnings before interest and taxesE

Question 164

APICS Deck 6

four-wall inventory

Answer 164

Syn: wall-to-wall inventory.F

Question 165

APICS Deck 6

cost of goods sold

Answer 165

An accounting classification useful for determining the amount of direct materials, direct labor, and allocated overhead associated with the products sold during a given period of time. See: cost of sales.C

Question 166

APICS Deck 6

focus-group research

Answer 166

A form of research (frequently used in marketing research) where data are gathered by interviewing consumers in groups of 6 to 10 at a time (the focus group). See: marketing research.F

Question 167

APICS Deck 6

indented tracking

Answer 167

The following of all lot numbers of intermediates and ingredients consumed in the manufacture of a given batch of product down through all levels of the formula.I

Question 168

APICS Deck 6

resource calendar

Answer 168

A calendar of working days and nonworking days that shows when resources are idle. Typically, the calendar includes holidays and weekends. See: manufacturing calendar.R

Question 169

APICS Deck 6

common variation

Answer 169

Syn: common cause variability.C

Question 170

APICS Deck 6

virtual factory

Answer 170

A changed transformation process most frequently found under the virtual corporation. It is a transformation process that involves merging the capabilities and capacities of the firm with those of its suppliers. Typically, the components provided by the suppliers are those that are not related to a core competency of the firm, while the components managed by the firm are related to core competencies. One ability found in the virtual factory is that it can be restructured quickly in response to changing customer demands and needs.V

Question 171

APICS Deck 6

mass marketing

Answer 171

The strategy of sending the same message to all potential customers.M

Question 172

APICS Deck 6

Pareto diagram

Answer 172

Syn: Pareto chart.P

Question 173

APICS Deck 6

RFM

Answer 173

Abbreviation for recency, frequency, monetary.R

Question 174

APICS Deck 6

cost-plus-incentive-fee contract

Answer 174

A contract in which the seller is paid for costs specified as allowable in the contract plus a profit provided certain provisions are met.C C

Question 175

APICS Deck 6

planning bill

Answer 175

Syn: planning bill of material.P

Question 176

APICS Deck 6

order scheduling

Answer 176

Syn: operations scheduling.O

Question 177

APICS Deck 6

experience curve pricing

Answer 177

The average cost pricing method, but using an estimate of future average costs, based on an experience (learning) curve.E

Question 178

APICS Deck 6

potency

Answer 178

The measurement of active material in a specific lot, normally expressed in terms of an active unit. Typically used for such materials as solutions.P

Question 179

APICS Deck 6

kit

Answer 179

1) The components of a parent item that have been pulled from stock and readied for movement to a production area. 2) A group of repair parts to be shipped with an order. Syn: kitted material, staged material.K

Question 180

APICS Deck 6

portal

Answer 180

A multiservice website that provides access to data that may be secured by each user’s role. Users can aggregate data and perform basic analysis. Portal ownership can be independent, private, or consortiumbased. Yahoo! is an example of a consumer portal. Business portals are often connected with a customer relationship management or supplier relationship management system. Portals can include structured data, such as ERP information, pictures, and documents. Unlike exchanges or marketplaces, portals generally can display and aggregate data without integration between application software.P

Question 181

APICS Deck 6

inbound logistics

Answer 181

The group in charge of moving materials from suppliers or vendors into production processes or storage facilities; or, the actual movement of such material.I

Question 182

APICS Deck 6

schedule variance (SV)

Answer 182

Earned value (EV) minus planned value (PV), which measures a project’s schedule performance.S

Question 183

APICS Deck 6

replenishment order quantity

Answer 183

Syn: reorder quantity.R

Question 184

APICS Deck 6

upstream

Answer 184

Used as a relative reference within a firm or supply chain to indicate moving in the direction of the raw material supplier.U

Question 185

APICS Deck 6

single-level bill of material

Answer 185

A display of components that are directly used in a parent item. It shows only the relationships one level down.S

Question 186

APICS Deck 6

standing capacity

Answer 186

Syn: rated capacity.S

Question 187

APICS Deck 6

manufacturing progress curve

Answer 187

Syn: learning curve.M

Question 188

APICS Deck 6

product structure record

Answer 188

A computer record defining the relationship of one component to its immediate parent and containing fields for quantity required, engineering effectivity, scrap factor, application selection switches, and so forth.P

Question 189

APICS Deck 6

systems audit

Answer 189

The audit of any activity that can affect final product quality.S

Question 190

APICS Deck 6

spend management

Answer 190

Managing the outflow of funds in order to buy goods and services. The term is intended to S encompass such processes as outsourcing, procurement, e-procurement, and supply chain management.S

Question 191

APICS Deck 6

less-than-carload (LCL)

Answer 191

Either a small shipment that does not fill the railcar or a shipment of not enough weight to qualify for a carload quantity rate discount.L

Question 192

APICS Deck 6

operational availability

Answer 192

The portion of time a system is available to sustain operations in full.O

Question 193

APICS Deck 6

backward scheduling

Answer 193

Syn: back scheduling.B

Question 194

APICS Deck 6

OOP

Answer 194

Abbreviation for object-oriented programming.O

Question 195

APICS Deck 6

manufacturing lead time

Answer 195

The total time required to manufacture an item, exclusive of lower level purchasing lead time. For make-to-order products, it is the length of time between the release of an order to the production process and shipment to the final customer. For make-to-stock products, it is the length of time between the release of an order to the production process and receipt into inventory. Included here are order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time. Syn: manufacturing cycle, production cycle, production lead time. See: lead time.M

Question 196

APICS Deck 6

single-sampling plan

Answer 196

A quality control method of taking only one sample and then making a decision to accept or reject a batch of items.S

Question 197

APICS Deck 6

demonstrated capacity

Answer 197

Proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by the standard hours per item. See: maximum demonstrated capacity.D

Question 198

APICS Deck 6

FRT

Answer 198

Abbreviation for future reality tree.F

Question 199

APICS Deck 6

certification

Answer 199

Documentation of competency by a supplier or by an organization, such as ISO 9000 certification. See: supplier certification, ISO 9000.C

Question 200

APICS Deck 6

regularized schedule

Answer 200

A schedule having certain items produced at regular intervals.R

Question 201

APICS Deck 6

skew

Answer 201

The degree of nonsymmetry shown by a frequency or probability distribution.S

Question 202

APICS Deck 6

exchange unit

Answer 202

The number of units to be produced before changing the bit, tool, or die. See: process batch.E

Question 203

APICS Deck 6

assays

Answer 203

Tests of the physical and chemical properties of a sample.A

Question 204

APICS Deck 6

cash discount

Answer 204

A price break offered for the early payment of an invoice.C

Question 205

APICS Deck 6

smart label

Answer 205

A label with an embedded radio frequency identification tag.S

Question 206

APICS Deck 6

what-if simulation

Answer 206

An approach to conducting a what-if analysis usually found in MRP II and ERP systems.W

Question 207

APICS Deck 6

marginal product

Answer 207

In economics, the additional quantity of total output following from a one-unit increase in variable input. See: law of diminishing marginal returns.M

Question 208

APICS Deck 6

order-oriented finite loading

Answer 208

A set of finite loading techniques to schedule orders according to order-level priority rules. The techniques aim to either (1) maximize capacity utilization or (2) deliver a high proportion of ontime orders with low work in process. See: constraintoriented finite loading, drum-buffer-rope.O

Question 209

APICS Deck 6

assigned material

Answer 209

Syn: reserved material.A

Question 210

APICS Deck 6

input

Answer 210

Work arriving at a work center or production facility.I

Question 211

APICS Deck 6

simplex method

Answer 211

An approach to solving linear programming models.S

Question 212

APICS Deck 6

annual percentage rate

Answer 212

In finance, the rate of interest paid for a loan after compounding is considered. Syn: effective interest rate.A

Question 213

APICS Deck 6

random access

Answer 213

A manner of storing records in a computer file so that an individual record may be accessed without reading other records.R

Question 214

APICS Deck 6

cache

Answer 214

A high-speed device used within a computer to store frequently retrieved data.C

Question 215

APICS Deck 6

risk acceptance

Answer 215

A decision to take no action to deal with a risk or an inability to format a plan to deal with the risk.R

Question 216

APICS Deck 6

material control

Answer 216

Syn: inventory control.M

Question 217

APICS Deck 6

job order

Answer 217

Syn: manufacturing order.J

Question 218

APICS Deck 6

control center

Answer 218

In a centralized dispatching operation, the place at which the dispatching is done.C

Question 219

APICS Deck 6

MIS

Answer 219

Abbreviation for management information system.M M

Question 220

APICS Deck 6

run sheet

Answer 220

A log-type document used in continuous processes to record raw materials used, quantity produced, in-process testing results, and so on. It may serve as an input document for inventory records.R

Question 221

APICS Deck 6

lot sizing

Answer 221

The process of, or techniques used in, determining lot size. See: order policy.L

Question 222

APICS Deck 6

imposed date

Answer 222

A fixed date given to an activity usually “start no earlier than” or “finish no later than.”I

Question 223

APICS Deck 6

flow plant

Answer 223

Syn: flow shop.F

Question 224

APICS Deck 6

affirmative action

Answer 224

A hiring policy that requires employers to analyze the workforce for underrepresentation of protected classes. It involves recruiting minorities and members of protected classes, changing management attitudes or prejudices toward them, removing discriminatory employment practices, and giving preferential treatment to protected classes.A

Question 225

APICS Deck 6

proprietary assembly

Answer 225

An assembly designed by a manufacturer that may be serviced only with component parts supplied by the manufacturer and whose design is owned or licensed by its manufacturer.P

Question 226

APICS Deck 6

batch manufacturing

Answer 226

A type of manufacturing process in which sets of items are moved through the different manufacturing steps in a group or batch.B

Question 227

APICS Deck 6

Occupational Safety and Health Act (OSHA)

Answer 227

A U.S. law that applies to all employers in the United States who are engaged in interstate commerce. Its purpose is to ensure safe and healthful working conditions by authorizing enforcement of the standards provided under the act.O

Question 228

APICS Deck 6

facility planning

Answer 228

Long range plan of what capacity is needed, when it will be needed, and what facilities will meet these requirements; also, a plan for the layout of these facilities.F

Question 229

APICS Deck 6

offal material

Answer 229

The by-product or waste of production processes (e.g., chips, shavings, turnings).O

Question 230

APICS Deck 6

funds flow management

Answer 230

The planning, execution, and control of cash receipts and disbursements with the objective of maintaining the cash balance at a preset positive value. Syn: cash flow management.F

Question 231

APICS Deck 6

branch and bound

Answer 231

Operations research models for determining optimal solutions based on the enumeration of subsets of possible solutions, which implicitly enumerate all possible solutions.B

Question 232

APICS Deck 6

handling cost

Answer 232

The cost involved in the movement of material. In some cases, the handling cost depends on the size of the inventory.H

Question 233

APICS Deck 6

normalize

Answer 233

To adjust observed data to a standard base.N

Question 234

APICS Deck 6

raw material

Answer 234

Purchased items or extracted materials that are converted via the manufacturing process into components and products.R

Question 235

APICS Deck 6

continuous variable

Answer 235

A variable, such as height, temperature, or weight, that can be measured along a continuous scale. See: discrete variable.C

Question 236

APICS Deck 6

workload

Answer 236

Syn: load.W

Question 237

APICS Deck 6

PRT

Answer 237

Abbreviation for prerequisite tree.P

Question 238

APICS Deck 6

mode

Answer 238

The most common or frequent value in a group of values.M

Question 239

APICS Deck 6

bill of resources

Answer 239

A listing of the required capacity and key resources needed to manufacture one unit of a selected item or family. Rough-cut capacity planning uses these bills to calculate the approximate capacity requirements of the master production schedule. Resource planning may use a form of this bill. Syn: bill of capacity. See: bill of labor, capacity planning using overall factors, product load profile, resource profile, rough-cut capacity planning, routing.B

Question 240

APICS Deck 6

what-if analysis

Answer 240

The process of evaluating alternate strategies by answering the consequences of changes to forecasts, manufacturing plans, inventory levels, and so forth. See: simulation.W

Question 241

APICS Deck 6

wholesaler

Answer 241

Syn: distributor.W

Question 242

APICS Deck 6

reserved material

Answer 242

Material on hand or on order that is assigned to specific future production or customer orders. Syn: allocated material, assigned material, obligated material.R

Question 243

APICS Deck 6

run time

Answer 243

The time required to process a piece or lot at a specific operation. Run time does not include setup time. Syn: run standards.R

Question 244

APICS Deck 6

uncertainty

Answer 244

Unknown future events that cannot be predicted quantitatively within useful limits; for example, an accident that destroys facilities, a major strike, or an innovation that makes existing products obsolete.U

Question 245

APICS Deck 6

bill-of-material processor

Answer 245

A computer program for maintaining and retrieving bill-of-material information.B

Question 246

APICS Deck 6

carrying cost

Answer 246

The cost of holding inventory, usually defined as a percentage of the dollar value of inventory per unit of time (generally one year). Carrying cost depends mainly on the cost of capital invested as well as such costs of maintaining the inventory as taxes and insurance, obsolescence, spoilage, and space occupied. Such costs vary from 10 percent to 35 percent annually, depending on type of industry. Carrying cost is ultimately a policy variable reflecting the opportunity cost of alternative uses for funds invested in inventory. Syn: holding costs.C

Question 247

APICS Deck 6

tolerance

Answer 247

Allowable departure from a nominal value established by design engineers that is deemed acceptable for the functioning of the good or service over its life cycle.T

Question 248

APICS Deck 6

material list

Answer 248

Syn: picking list.M

Question 249

APICS Deck 6

locator system

Answer 249

A system for maintaining a record of the storage locations of items in inventory. See: locator file.L

Question 250

APICS Deck 6

detention

Answer 250

Carrier charges and fees applied when truck trailers are retained beyond a specified loading or unloading time. See: demurrage, express.D

Question 251

APICS Deck 6

finished product

Answer 251

Syn: end item.F

Question 252

APICS Deck 6

lot-size inventory

Answer 252

Inventory that results whenever quantity price discounts, shipping costs, setup costs, or similar considerations make it more economical to purchase or produce in larger lots than are needed for immediate purposes.L lot-size inventory management interpolation technique

Question 253

APICS Deck 6

workman’s compensation

Answer 253

This is a state-administered program whereby employees are guaranteed medical coverage in case they are injured on the job and companies are limited as to their liability for such job-related injuries.W

Question 254

APICS Deck 6

audit trail

Answer 254

Tracing the transactions affecting the contents or origin of a record.A

Question 255

APICS Deck 6

average variable cost

Answer 255

The ratio of total variable costs over units produced.A

Question 256

APICS Deck 6

fault isolation

Answer 256

A technique used to identify the cause of a defect.F

Question 257

APICS Deck 6

due date rule

Answer 257

A dispatching rule that directs the sequencing of jobs by the earliest due date.D

Question 258

APICS Deck 6

tampering

Answer 258

Action taken to compensate for variation within the control limits of a stable system. Tampering increases rather than decreases variation, as evidenced in the funnel experiment. See: funnel experiment.T

Question 259

APICS Deck 6

information distribution

Answer 259

Making needed data available to stakeholders in a timely manner.I

Question 260

APICS Deck 6

resource

Answer 260

Anything that adds value to a good or service in its creation, production, or delivery.R

Question 261

APICS Deck 6

type II error

Answer 261

An incorrect decision to accept something when it is unacceptable. See: consumer’s risk.T U U

Question 262

APICS Deck 6

default

Answer 262

The action that will be taken by a computer program when the user does not specify a variable parameter.D

Question 263

APICS Deck 6

(CPFR)

Answer 263

1) A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods. 2) A process philosophy for facilitating collaborative communications. CPFR is considered a standard, endorsed by the Voluntary Interindustry Commerce Standards. Syn: collaborative planning.C

Question 264

APICS Deck 6

data communications

Answer 264

Transmission of data in computer-readable form using various transmission vehicles and paths.D

Question 265

APICS Deck 6

budget at completion (BAC)

Answer 265

The total planned budget for a project.B

Question 266

APICS Deck 6

activity-on-node network (AON)

Answer 266

A project management network in which the passage of time, via activities, takes place on circles called nodes. Each node contains A a number representing the estimated duration of the activity it represents. Nodes are connected by arrows that give precedence relationships. Syn: event-on-node network, precedence diagram method.A

Question 267

APICS Deck 6

level loading

Answer 267

Syn: load leveling.L

Question 268

APICS Deck 6

network

Answer 268

1) The interconnection of computers, terminals, and communications channels to facilitate file and peripheral device sharing as well as effective data communication. 2) A graph consisting of nodes connected by arcs.N

Question 269

APICS Deck 6

gauge

Answer 269

An instrument for measuring or testing.G

Question 270

APICS Deck 6

policy constraint

Answer 270

A common misnomer. Bad policies are not the constraint, rather they hinder effective constraint management by inhibiting the ability to fully exploit and/or subordinate to the constraint.P

Question 271

APICS Deck 6

market boundary

Answer 271

The boundary where the laid-down cost for two companies is equal. Laid-down cost is product cost plus unit transportation cost.M

Question 272

APICS Deck 6

ISO 26000

Answer 272

An international standard adopted by the International Standards Organization to assist organizations in contributing to sustainable development beyond legal compliance through a common understanding of social responsibility. ISO 26000 is not a management system standard and is not intended or appropriate for certification purposes or regulatory or contractual use.I

Question 273

APICS Deck 6

start-to-start

Answer 273

In project management, a network requirement that activity A must start before subsequent activity B can start. See: logical relationship.S

Question 274

APICS Deck 6

TEI

Answer 274

Abbreviation for total employee involvement.T

Question 275

APICS Deck 6

shop scheduling

Answer 275

Syn: operations scheduling.S

Question 276

APICS Deck 6

operation reporting

Answer 276

The recording and reporting of every manufacturing (shop order) operation occurrence on an operation-to-operation basis.O

Question 277

APICS Deck 6

sampling

Answer 277

1) A statistical process where generalizations regarding an entire body of phenomena are drawn from a relatively small number of observations. 2) In marketing, the delivery of free trial goods to consumers.S

Question 278

APICS Deck 6

downstream

Answer 278

Used as a relative reference within a firm or supply chain to indicate moving in the direction of the end customer.D

Question 279

APICS Deck 6

boilerplate

Answer 279

The standard terms and conditions on a purchase order or other document.B

Question 280

APICS Deck 6

inventory cycle

Answer 280

The length of time between two consecutive replenishment shipments.I

Question 281

APICS Deck 6

decision-support data

Answer 281

Syn: data warehouse.D

Question 282

APICS Deck 6

effective interest rate

Answer 282

Syn: annual percentage rate.E

Question 283

APICS Deck 6

project model

Answer 283

A time-phased project planning and control tool that itemizes major milestones and points of user approval.P

Question 284

APICS Deck 6

replacement factor

Answer 284

The percentage of time on average that an item will require replacement. The replacement 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. See: occurrence factor, repair factor.R

Question 285

APICS Deck 6

work center schedule

Answer 285

Syn: dispatch list.W

Question 286

APICS Deck 6

hundredweight (cwt)

Answer 286

One hundred pounds.H

Question 287

APICS Deck 6

plan source

Answer 287

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

Question 288

APICS Deck 6

M-days

Answer 288

Available manufacturing days excluding holidays and weekends.M

Question 289

APICS Deck 6

active load

Answer 289

Work scheduled that may not be on hand.A

Question 290

APICS Deck 6

design of experiments (DOE)

Answer 290

1) A process for structuring statistically valid studies in any science. 2) A quality management technique used to evaluate the effect of carefully planned and controlled changes to input process variables on the output variable. The objective is to improve production processes.D

Question 291

APICS Deck 6

operation due date

Answer 291

1) The date when an operation should be completed so that its order due date can be met. It can be calculated based on scheduled quantities and lead times. 2) A job sequencing algorithm (disoperation O patching rule) giving earlier operation due dates higher priority.O

Question 292

APICS Deck 6

current cost

Answer 292

1) The current or replacement cost of labor, material, or overhead. Its computation is based on current performance or measurements, and it is used to address today’s costs before production as a revision of annual standard costs. 2) An asset’s value based on the cost of an identical asset purchased today.C

Question 293

APICS Deck 6

branding

Answer 293

The use of a name, term, symbol, or design, or a combination of these, to identify a product.B

Question 294

APICS Deck 6

receipt

Answer 294

1) The physical acceptance of an item into a stocking location. 2) Often, the transaction reporting of this activity.R

Question 295

APICS Deck 6

defects per unit

Answer 295

The average number of blemishes on a particular product (e.g., a television cabinet).D

Question 296

APICS Deck 6

one-to-one marketing

Answer 296

A marketing strategy for sending a particular message to a single customer, often assisted by a marketing database.O

Question 297

APICS Deck 6

cost variance

Answer 297

In cost accounting, the difference between what has been budgeted for an activity and what it actually costs.C

Question 298

APICS Deck 6

maverick spending

Answer 298

A term used when employees or managers purchase from nonqualified suppliers, bypassing established purchasing procedures.M

Question 299

APICS Deck 6

design for manufacture and assembly (DFMA)

Answer 299

A product development approach that involves the manufacturing function in the initial stages of product design to ensure ease of manufacturing and assembly. See: early manufacturing involvement.D

Question 300

APICS Deck 6

design for remanufacture

Answer 300

Products developed in a manner that allows components to be used in other products. This process is associated with green manufacturing. D

Question 301

APICS Deck 6

balanced scorecard

Answer 301

A list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions of the balanced scorecard might include customer perspective, business process perspective, financial perspective, and innovation and learning perspectives. It formally connects overall objectives, strategies, and measurements. Each dimension has goals and measurements.B

Question 302

APICS Deck 6

multisourcing

Answer 302

Procurement of a good or service from more than one independent supplier. Syn: multiple sourcing. Ant: single sourcing. See: dual sourcing.M

Question 303

APICS Deck 6

order quantity modifiers

Answer 303

Adjustments made to a calculated order quantity. Order quantities are calculated based upon a given lot-sizing rule, but it may be necessary to adjust the calculated lot size because of special considerations (scrap, testing, etc.).O

Question 304

APICS Deck 6

all forms of manufacturing

Answer 304

job shop, process, and repetitive and to many service industries as well. Syn: short-cycle manufacturing, stockless production, zero inventories.J

Question 305

APICS Deck 6

transportation method

Answer 305

A linear programming model concerned with minimizing the costs involved in supplying requirements to several locations from several sources with different costs related to the various combinations of source and requirement locations.T

Question 306

APICS Deck 6

tool calibration frequency

Answer 306

The recommended length of time between tool calibrations. It is normally expressed in days.T

Question 307

APICS Deck 6

discrete order quantity

Answer 307

An order quantity that represents an integer number of periods of demand. Most MRP systems employ discrete order quantities. See: fixed-period requirements, least total cost, least unit cost, lot-for-lot, part period balancing, period order quantity, Wagner-Whitin algorithm.D D

Question 308

APICS Deck 6

unit load

Answer 308

A shipping unit made up of a number of items, or bulky material, arranged or constrained so the mass can be picked up or moved as a single unit. Reduces material handling costs. Often shrink-packed on a pallet before shipment.U U

Question 309

APICS Deck 6

cumulative sum control chart

Answer 309

A control chart on which the plotted value is the cumulative sum of deviations of successive samples from a target value. The ordinate of each plotted point represents the algebraic sum of the previous ordinate and the most recent deviations from the target.C C

Question 310

APICS Deck 6

start-to-finish

Answer 310

In project management, a network requirement that activity A must start before subsequent activity B can finish. See: logical relationship.S

Question 311

APICS Deck 6

subcontracting

Answer 311

Sending production work outside to another manufacturer. See: outsourcing.S

Question 312

APICS Deck 6

DNC

Answer 312

Abbreviation for direct numerical control.D

Question 313

APICS Deck 6

parameter design

Answer 313

Specifying the product characteristics and production process that will create the expected product performance.P

Question 314

APICS Deck 6

fixed-period quantity

Answer 314

An MRP lot-sizing technique that sets the lot size equal to the net requirements for a given number of periods.F

Question 315

APICS Deck 6

product genealogy

Answer 315

A record, usually on a computer file, of the history of a product from its introduction into the production process through its termination. The record includes lot or batch sizes used, operations performed, inspection history, options, and where-used information.P P

Question 316

APICS Deck 6

cost-plus-fixed-fee contract

Answer 316

A contract in which the seller is paid for costs specified as allowable in the contract plus a stipulated fixed fee.C

Question 317

APICS Deck 6

die

Answer 317

A special form used in general-purpose equipment to make specific parts.D

Question 318

APICS Deck 6

life cycle analysis

Answer 318

A quantitative forecasting technique based on applying past patterns of demand data covering introduction, growth, maturity, saturation, and decline of similar products to a new product family.L

Question 319

APICS Deck 6

feedstock

Answer 319

The primary raw material in a chemical or refining process normally received by pipeline or largescale bulk shipments. Feedstock availability is frequently the controlling factor in setting the production schedule and rate for a process.F

Question 320

APICS Deck 6

pick-to-light

Answer 320

A pick system that uses software to light up displays at each pick location and determines how much needs to be picked. The picker uses this as their requirement to pull for that particular order to set of orders.P

Question 321

APICS Deck 6

arrow

Answer 321

1) In activity-on-arrow networks, the graphic presentation of an activity. The tail of the arrow represents the start of the activity. The head of the arrow represents the finish. Unless a timescale is used, the length of the arrow stem has no relation to the duration of the activity. Length and direction of the arrow are usually a matter of convenience and clarity. 2) In activity-on-node networks, an arrow represents a precedence requirement.A

Question 322

APICS Deck 6

value-added productivity per employee

Answer 322

A measure that is determined by three things: total output of a company, materials purchased, and total employment. To come up with this number, one must subtract materials purchased from total output and then divide that number by total employment. It allows a company to understand easily how much production the typical employee is producing.V

Question 323

APICS Deck 6

telnet (TN)

Answer 323

Software that enables a user to log on to remote computers.T

Question 324

APICS Deck 6

CPM

Answer 324

Abbreviation for critical path method.C

Question 325

APICS Deck 6

cross-sourcing

Answer 325

A method of sourcing that uses one supplier in one area of business for a product or service and uses a different supplier in a different area of business for similar products or services. The suppliers can then compete for future business.C

Question 326

APICS Deck 6

mixed manufacturing

Answer 326

Make-to-stock and make-to-order manufacturing using a single plant and set of equipment.M

Question 327

APICS Deck 6

tolerance limits

Answer 327

1) The upper and lower extreme values permitted by the tolerance. 2) In work measurement, the limits between which a specified operation time value or other work unit will be expected to vary. See: lower specification limit, upper specification limit. Syn: specification limits.T

Question 328

APICS Deck 6

process train

Answer 328

A representation of the flow of materials through a process industry manufacturing system that shows equipment and inventories. Equipment that performs a basic manufacturing step, such as mixing or packaging, is called a process unit. Process units are combined into stages, and stages are combined into process trains. Inventories decouple the scheduling of sequential stages within a process train.P

Question 329

APICS Deck 6

pyramid forecasting

Answer 329

A forecasting technique that enables management to review and adjust forecasts made at an aggregate level and to keep lower level forecasts in balance. The procedure begins with the roll up (aggregation) of item forecasts into forecasts by product group. The management team establishes a (new) forecast for the product group. The value is then forced down (disaggregation) to individual item foreQCD ● quality, cost, delivery (QCD) Q casts so that they are consistent with the aggregate plan. The approach combines the stability of aggregate forecasts and the application of management judgment with the need to forecast many end items within the constraints of an aggregate forecast or sales plan. See: management estimation, planning bill of material, product group forecast.P Q

Question 330

APICS Deck 6

psychographics

Answer 330

The grouping of consumers according to their behavior patterns and lifestyles.P

Question 331

APICS Deck 6

tool issue order

Answer 331

Syn: tool order.T

Question 332

APICS Deck 6

planning and control process

Answer 332

A process consisting of the following steps: plan, execute, measure, and control.P

Question 333

APICS Deck 6

MDS

Answer 333

Abbreviation for material-dominated scheduling.M

Question 334

APICS Deck 6

GTS

Answer 334

Grasps the situation.G

Question 335

APICS Deck 6

advertising

Answer 335

Sponsored promotions that are nonpersonal in nature.A

Question 336

APICS Deck 6

independent project

Answer 336

A project which, whether or not it is accepted, does not eliminate other projects from eligibility. See: contingent project, mutually exclusive project.I

Question 337

APICS Deck 6

present value

Answer 337

The value today of future cash flows. For example, the promise of $10 a year from now is worth something less than $10 in hand today.P

Question 338

APICS Deck 6

CPU

Answer 338

Abbreviation for central processing unit.C

Question 339

APICS Deck 6

buyer cycle

Answer 339

The purchasing sequence that generally follows the buyer’s product and budget cycles.B

Question 340

APICS Deck 6

probability and impact matrix

Answer 340

A matrix combining two dimensions of risk: (1) likelihood of occurrence and (2) impact if it happens.P

Question 341

APICS Deck 6

approved vendor list (AVL)

Answer 341

A list of parties that have been approved by a company as its suppliers. This list usually is based on product quality and financial stability of the firm.A

Question 342

APICS Deck 6

autonomous work group

Answer 342

A production team that operates a highly focused segment of the production process to an externally imposed schedule but with little external reporting, supervision, interference, or help.A

Question 343

APICS Deck 6

traffic

Answer 343

A department or function charged with the responsibility for arranging the most economic classification and method of shipment for both incoming and outgoing materials and products.T

Question 344

APICS Deck 6

e-learning

Answer 344

Training or schooling done online.E

Question 345

APICS Deck 6

reproducibility

Answer 345

A production program’s ability to regularly produce products of the correct quantity and quality.R

Question 346

APICS Deck 6

derived demand

Answer 346

Demand for component products that arises from the demand for final design products. For example, the demand for steel is derived from the demand for automobiles.D D

Question 347

APICS Deck 6

budgeted cost of work scheduled

Answer 347

In project management, this term has been replaced with the term planned value.B

Question 348

APICS Deck 6

may be regulated or unregulated; (2) Pure oligopoly

Answer 348

A few companies produce essentially the same product or service and market it within a given area. A company is forced to price its product at the going rate unless it can

Question 349

APICS Deck 6

100 percent inspection

Answer 349

The act of inspecting or testing every item in an incoming or outgoing lot.1

Question 350

APICS Deck 6

part coding and classification

Answer 350

A method used in group technology to identify the physical similarity of parts.P

Question 351

APICS Deck 6

job shop layout

Answer 351

Syn: functional layout.J

Question 352

APICS Deck 6

autonomation

Answer 352

Automated shutdown of a line, process, or machine upon detection of an abnormality or defect.A

Question 353

APICS Deck 6

share, high growth rate; (3) Dogs

Answer 353

low market share, low

Question 354

APICS Deck 6

World Trade Organization (WTO)

Answer 354

The successor to the General Agreement on Tariffs and Trade (GATT); the international agency overseeing trade between nations.W

Question 355

APICS Deck 6

sales forecast

Answer 355

Syn: forecast accuracy, forecast.S

Question 356

APICS Deck 6

Operating profit

Answer 356

earnings or income after all expenses (selling, administrative, depreciation) have been deducted

Question 357

APICS Deck 6

synchronous control

Answer 357

A pull-type production control system that is based on setting production rates and feeding work into production to meet the planned rates, then monitoring and controlling production.S

Question 358

APICS Deck 6

automated quality control inspection system

Answer 358

A system that employs machines to help inspect products for quality control.A

Question 359

APICS Deck 6

fuzzy logic

Answer 359

A field of logic based on “fuzzy sets,” that is, sets in which membership is probabilistic rather than deterministic.F G

Question 360

APICS Deck 6

forecast consumption

Answer 360

Syn: consuming the forecast.F

Question 361

APICS Deck 6

detail file

Answer 361

A file that contains manufacturing, routing, or specification details. See: master file.D

Question 362

APICS Deck 6

training aid

Answer 362

An item to enhance training, usually minor in nature. Training aids may include charts, graphs, slides, and schematics.T

Question 363

APICS Deck 6

question mark

Answer 363

In marketing, a slang term for a low market share but high growth rate product. See: growthshare matrix.Q

Question 364

APICS Deck 6

explode

Answer 364

To perform a bill-of-material explosion.E

Question 365

APICS Deck 6

grid technique

Answer 365

A quantitative model used for locating plants and warehouses by finding the least cost point, given the positions of raw materials and markets.G

Question 366

APICS Deck 6

pup

Answer 366

A 28-foot trailer, usually used in trucking enterprises.P P

Question 367

APICS Deck 6

40/30/30 rule

Answer 367

A rule that identifies the sources of scrap, rework, and waste as 40 percent product design, 30 percent manufacturing processing, and 30 percent from suppliers.4

Question 368

APICS Deck 6

work center where-used

Answer 368

A listing (constructed from a routing file) of every manufactured item that is routed (primary or secondary) to a given work center.W

Question 369

APICS Deck 6

worker efficiency

Answer 369

A measure (usually computed as a percentage) of worker performance that compares the standard time allowed to complete a task to the actual worker time to complete it. Syn: labor efficiency.W

Question 370

APICS Deck 6

service response logistics

Answer 370

Obtaining, producing, and distributing material for wholesaling and retailing; supply chain management is focused on location, service, and capacity issues. Syn: integrated logistics.S

Question 371

APICS Deck 6

indented bill of material

Answer 371

A form of multilevel bill of material. It exhibits the highest-level parents closest to the left margin, and all the components going into these parents are shown indented toward the right. All subsequent levels of components are indented farther to the right. If a component is used in more than one parent within a given product structure, it will appear more than once, under every subassembly in which it is used.I

Question 372

APICS Deck 6

current reality tree (CRT)

Answer 372

A logic-based tool for using cause-and-effect relationships to determine root problems that cause the observed undesirable effects of the system. See: root cause analysis.C

Question 373

APICS Deck 6

product layout

Answer 373

Another name for flow process layout. The system is set up for a limited range of similar products. Focused-factory production would also be considered in this category. See: flow processing, focused factory.P

Question 374

APICS Deck 6

hypertext links

Answer 374

Links contained within text connecting to other websites or other pages on the current site.H

Question 375

APICS Deck 6

customer partnership

Answer 375

Syn: customer-supplier partnership.C

Question 376

APICS Deck 6

simulation

Answer 376

1) The technique of using representative or artificial data to reproduce in a model various conditions that are likely to occur in the actual performance of a system. It is frequently used to test the behavior of a system under different operating policies. 2) Within MRP II, using the operational data to perform what-if evaluations of alternative plans to answer the question, “Can we do it?” If yes, the simulation can then be run in the financial mode to help answer the question, “Do we really want to?” See: what-if analysis.S

Question 377

APICS Deck 6

number defective chart

Answer 377

Syn: c chart.N

Question 378

APICS Deck 6

service phases

Answer 378

The number of phases necessary to service a new arrival in the system.S

Question 379

APICS Deck 6

discrete issue

Answer 379

Syn: direct-deduct inventory transaction processing.D

Question 380

APICS Deck 6

critical process parameters

Answer 380

A variable or a set of variables that dominates the other variables. Focusing on these variables will yield the greatest return in investment in quality control and improvement.C

Question 381

APICS Deck 6

distribution planning

Answer 381

The planning activities associated with transportation, warehousing, inventory levels, materials handling, order administration, site and location planning, industrial packaging, data processing, and communications networks to support distribution.D

Question 382

APICS Deck 6

en route

Answer 382

A term describing goods in transit.E

Question 383

APICS Deck 6

integrated internet marketing (I2M)

Answer 383

The use of internet facilities to sell products, influence stakeholder attitudes, and improve the company’s image.I

Question 384

APICS Deck 6

3PL

Answer 384

Abbreviation for third-party logistics.3

Question 385

APICS Deck 6

arbitrage

Answer 385

Risk-free buying of an asset in one market and simultaneous selling of an identical asset at a profit in another market.A

Question 386

APICS Deck 6

experimental research

Answer 386

A form of research (sometimes used in marketing research) where matched sets of people are controlled for certain variables (such as income, age, and so on) while other variables (such as products offered) are varied to test research questions. See: marketing research.E

Question 387

APICS Deck 6

network loop

Answer 387

A network path that crosses the same activity or node twice. A network loop cannot be analyzed by the critical path method, critical chain, or other traditional network schedule analysis techniques.N

Question 388

APICS Deck 6

free on board (FOB)

Answer 388

The terms of sale that identify where title passes to the buyer.F

Question 389

APICS Deck 6

environmentally responsible manufacturing

Answer 389

A collection of manufacturing activities that includes design of the product, facility, manufacturing processes, logistics, and supplier relationships that reduce or eliminate environmental waste through innovation and improvements.E

Question 390

APICS Deck 6

service time

Answer 390

The time taken to serve a customer (e.g., the time required to fill a sales order or the time required to fill a request at a tool crib).S

Question 391

APICS Deck 6

commodity buying

Answer 391

Grouping like parts or materials under one buyer’s control for the procurement of all requirements to support production.C

Question 392

APICS Deck 6

feature

Answer 392

A distinctive characteristic of a good or service. The characteristic is provided by an option, accessory, or attachment. For example, in ordering a new car, the customer must specify an engine type and size (option), but need not necessarily select an air conditioner (attachment). See: accessory, attachment, option.F

Question 393

APICS Deck 6

agile manufacturing

Answer 393

The ability to respond quickly to unpredictable changes in customer needs by reconfiguring operations.A

Question 394

APICS Deck 6

interplant demand

Answer 394

One plant’s need for a part or product that is produced by another plant or division within the same organization. Although it is not a customer order, it is usually handled by the master production scheduling system in a similar manner. See: interplant transfer.I

Question 395

APICS Deck 6

level schedule

Answer 395

1) In traditional management, a production schedule or master production schedule that generates material and labor requirements that are as evenly spread over time as possible. Finished goods inventories buffer the production system against seasonal demand. See: level production method. 2) In JIT, a level schedule (usually constructed monthly) in which each day’s customer demand is scheduled to be built on the day it will be shipped. A level schedule is the output of the load-leveling process. Syn: JIT master schedule, level production schedule. See: load leveling.L

Question 396

APICS Deck 6

trading partner

Answer 396

Any organization external to the firm that plays an integral role within the supply chain community and whose business fortune depends on the success of the supply chain community.T

Question 397

APICS Deck 6

cost of capital

Answer 397

The cost of maintaining a dollar of capital invested for a certain period, normally one year. This cost is normally expressed as a percentage and may be based on factors such as the average expected return on alternative investments and current bank interest rate for borrowing.C

Question 398

APICS Deck 6

branch warehouse

Answer 398

Syn: distribution center.B

Question 399

APICS Deck 6

APS

Answer 399

1) Abbreviation for advanced planning and scheduling. 2) Abbreviation for advanced planning system.A

Question 400

APICS Deck 6

stockless purchasing

Answer 400

Buying material, parts, supplies, and so on, for direct use by the departments involved, as opposed to receiving them into stores and subsequently issuing them to the departments. The intent is to reduce inventory investment, increase cash flow, restock S duce material handling and storage, and provide better service. See: dock-to-stock inventory.S

Question 401

APICS Deck 6

product profiling

Answer 401

1) A graphical device used to ascertain the level of fit between a manufacturing process and the order-winning criteria of its products. Product profiling can be used at the process or company level to compare the manufacturing capabilities with the market requirements to determine areas of mismatch and identify steps needed for realignment. 2) Removing material around a predetermined boundary by means of numerically controlled machining. The numerically controlled tool path is automatically generated on the system.P

Question 402

APICS Deck 6

dual-card kanban system

Answer 402

Syn: two-card kanban system.D

Question 403

APICS Deck 6

delivery schedule

Answer 403

The required or agreed time or rate of delivery of goods or services purchased for a future period.D

Question 404

APICS Deck 6

time-to-product

Answer 404

The total time required to receive, fill, and deliver an order for an existing product to a customer, timed from the moment that the customer places the order until the customer receives the product. See: purchasing lead time.T

Question 405

APICS Deck 6

configurator

Answer 405

Software system that creates, uses, and maintains product models that allow complete definition of all possible product options and variations with a minimum of data entries.C

Question 406

APICS Deck 6

actual finish date

Answer 406

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

Question 407

APICS Deck 6

systems thinking

Answer 407

A school of thought that focuses on recognizing the interconnections between the parts of a system and synthesizing them into a unified view of the whole.S

Question 408

APICS Deck 6

returns processing cost

Answer 408

All of the costs associated with dealing with returned items after they have been received. These costs occur when returned items are repaired, discarded, or replaced.R

Question 409

APICS Deck 6

scheduled receipt

Answer 409

An open order that has an assigned due date. See: open order.S

Question 410

APICS Deck 6

teardown

Answer 410

All work items required between the end of one operation or job and the start of setup for the next operation or job, both jobs requiring the same machinery or facilities. See: teardown time.T

Question 411

APICS Deck 6

overhead base

Answer 411

The denominator used to calculate the predetermined overhead rate used in applying overhead (e.g., estimated direct labor hours, estimated direct labor dollars).O

Question 412

APICS Deck 6

failure mode analysis (FMA)

Answer 412

A procedure to determine which malfunction symptoms appear immediately before or after a failure of a critical parameter in a system. After all the possible causes are listed for each symptom, the product is designed to eliminate the problems.F

Question 413

APICS Deck 6

record accuracy

Answer 413

A measure of the conformity of recorded values in a bookkeeping system to the actual values; for example, the on-hand balance of an item maintained in a computer record relative to the actual on-hand balance of the items in the stockroom.R

Question 414

APICS Deck 6

ETC

Answer 414

Abbreviation for estimate to complete.E

Question 415

APICS Deck 6

time fence

Answer 415

A policy or guideline established to note where various restrictions or changes in operating procedures take place. For example, changes to the master production schedule can be accomplished easily beyond the cumulative lead time, while changes inside the cumulative lead time become increasingly more difficult to a point where changes should be resisted. Time fences can be used to define these points. See: demand time fence, hedge, planning time fence.T

Question 416

APICS Deck 6

marks and numbers

Answer 416

Identifying agents placed on products or containers used to identify a shipment or its parts.M

Question 417

APICS Deck 6

break-even chart

Answer 417

A graphical tool showing the total variable cost and fixed cost curve along with the total revenue curve. The point of intersection is defined as the break-even point (i.e., the point at which total revenues exactly equal total costs). See: total cost curve.B

Question 418

APICS Deck 6

matrix

Answer 418

A mathematical array having one, two, and sometimes more dimensions, into which collections of data may be stored and processed.M

Question 419

APICS Deck 6

purchase order

Answer 419

The purchaser’s authorization used to formalize a purchase transaction with a supplier. A purchase order, when given to a supplier, should contain statements of the name, part number, quantity, description, and price of the goods or services ordered; agreedto terms as to payment, discounts, date of performance, and transportation; and all other agreements pertinent to the purchase and its execution by the supplier.P

Question 420

APICS Deck 6

information data warehouse

Answer 420

A repository (typically large) of corporate data that can be accessed using specialized query tools. This technique separates the analysis of data from the recording of data and is often used to combine data from different computing systems I to make information access more convenient and coherent. See: data warehouse.I

Question 421

APICS Deck 6

hypertext

Answer 421

A system of relating information without using menus or hierarchies.H

Question 422

APICS Deck 6

key performance indicator (KPI)

Answer 422

A financial or nonfinancial measure that is used to define and assess progress toward specific organizational goals and typically is tied to an organization’s strategy and business stakeholders. A KPI should not be contradictory to other departmental or strategic business unit performance measures.K

Question 423

APICS Deck 6

shape

Answer 423

An element of variability results that measures the output of a process. If a process results in product dimensions falling within a bell-shaped curve, then the process is running normally.S

Question 424

APICS Deck 6

expected demand during lead time

Answer 424

Syn: demand during lead time.E

Question 425

APICS Deck 6

seven zeros

Answer 425

The seven zeros are an essential part of the Toyota Production System. They are zero defects, zero excess lot size, zero setups, zero breakdowns, zero excess handling, zero lead time, and zero surging.S

Question 426

APICS Deck 6

order level system

Answer 426

Syn: fixed reorder cycle inventory model.O

Question 427

APICS Deck 6

gross requirement

Answer 427

The total of independent and dependent demand for a component before the netting of on-hand inventory and scheduled receipts.G

Question 428

APICS Deck 6

regeneration MRP

Answer 428

An MRP processing approach where the master production schedule is totally reexploded down through all bills of material, to maintain valid priorities. New requirements and planned orders are completely recalculated or “regenerated” at that time. Ant: net change MRP.R

Question 429

APICS Deck 6

fair return

Answer 429

Within transportation, a profit level accomplishing a rate of return on investment that regulatory agencies deem acceptable given the level of risk.F

Question 430

APICS Deck 6

labor-intensive

Answer 430

When an operation has more expenditures on labor than capital. See: capital-intensive.L

Question 431

APICS Deck 6

discounted cash flow

Answer 431

A method of investment analysis in which future cash flows are converted, or discounted, to their value at the present time. The net present value of an item is estimated to be the sum of all discounted future cash flows.D

Question 432

APICS Deck 6

attrition factor

Answer 432

The budget fraction apportioned for replacement personnel training because of projected personnel losses (retirements, promotions, and terminations).A

Question 433

APICS Deck 6

natural variations

Answer 433

These variations in measurements are caused by environmental elements and cannot be removed. See: common cause variability.N

Question 434

APICS Deck 6

business market

Answer 434

Syn: industrial market.B

Question 435

APICS Deck 6

initial public offering (IPO)

Answer 435

A firm’s first sale of common stock.I

Question 436

APICS Deck 6

value chain initiative

Answer 436

This initiative combines software, hardware, and supply chain companies to develop an integrated system to support software sharing among diverse applications.V

Question 437

APICS Deck 6

price point

Answer 437

The relative price position at which the product will enter the market compared to direct and indirect competitors’ prices. It is considered within the context of the price-range options available: high, medium, or low.P

Question 438

APICS Deck 6

measure phase

Answer 438

A phase in the six sigma designmeasure- analyze-improve-control process during which current performance is evaluated. See: design-measureanalyze- improve-control process.M

Question 439

APICS Deck 6

idle time

Answer 439

The time when operators or resources (e.g., machines) are not producing product because of setup, maintenance, lack of material, lack of tooling, or lack of scheduling.I

Question 440

APICS Deck 6

low-level code

Answer 440

A number that identifies the lowest level in any bill of material at which a particular component appears. Net requirements for a given component are not calculated until all the gross requirements have been calculated down to that level. Low-level codes are normally calculated and maintained automatically by the computer software. Syn: explosion level.L

Question 441

APICS Deck 6

containerization

Answer 441

A shipment method in which commodities are placed in containers, and after initial loading, C the commodities per se are not rehandled in shipment until they are unloaded at the destination.C

Question 442

APICS Deck 6

ABC

Answer 442

Abbreviation for activity-based cost accounting.A

Question 443

APICS Deck 6

specific identification

Answer 443

This method keeps track of the units of the beginning inventory and the units purchased that is, specific identification of the purchase cost of each item. This may be done through a coding method or serial number identification.S

Question 444

APICS Deck 6

gate review

Answer 444

The formal review process between the major phases of a new product introduction effort. The determination to continue or to stop the project is formally made at each review point or gate.G

Question 445

APICS Deck 6

net profit

Answer 445

An absolute measure of financial performance that is calculated as the difference between revenues and expenses. In throughput accounting, net N profit is calculated as throughput minus operating expense.N

Question 446

APICS Deck 6

producibility

Answer 446

The characteristics of a design that enable the item to be produced and inspected in the quantity required at least cost and minimum time.P

Question 447

APICS Deck 6

market-related criteria

Answer 447

the required level of delivery speed and reliability in a given market segment, (2)

Question 448

APICS Deck 6

pick-to-trailer

Answer 448

An order picking system that allows the picker to transfer materials to the trailer from the pick source without any confirmation/checking stages.P

Question 449

APICS Deck 6

CRT

Answer 449

Abbreviation for current reality tree.C

Question 450

APICS Deck 6

strategic quality planning

Answer 450

Weaving quality considerations into strategic business plans.S

Question 451

APICS Deck 6

electronic bill presentment and payment (eBPP)

Answer 451

A system that connects the bill issuer, bill payer, and the payer’s bank to facilitate electronic payment. Payment is usually by credit card.E

Question 452

APICS Deck 6

process planning

Answer 452

Determining the technological steps and sequence required to produce a product or service at the required quality level and cost.P

Question 453

APICS Deck 6

and technical principles

Answer 453

including education and training for the detection, analysis, and minimization of hazards, with the objective of avoiding accidents.A

Question 454

APICS Deck 6

product cost

Answer 454

Cost allocated by some method to the products being produced. Initially recorded in asset (inventory) accounts, product costs become an expense (cost of sales) when the product is sold.P

Question 455

APICS Deck 6

freight collect

Answer 455

The freight and charges to be paid by the consignee.F

Question 456

APICS Deck 6

startup

Answer 456

That period starting with the date of initial operation during which the unit is brought up to acceptable production capacity and quality within estimated production costs. Startup is the activity that commences on the date of initial activity and has significant duration on most projects, but is often confused (used interchangeably) with date of initial operation.S

Question 457

APICS Deck 6

overload

Answer 457

A condition when the total hours of work outstanding at a work center exceed that work center’s capacity.O

Question 458

APICS Deck 6

queue length

Answer 458

The quantity of items in a queue that are awaiting service.Q R

Question 459

APICS Deck 6

kaizen blitz®

Answer 459

A rapid improvement of a limited process area, for example, a production cell. Part of the improvement team consists of workers in that area. The objectives are to use innovative thinking to eliminate non-value-added work and to immediately implement the changes within a week or less. Ownership of the improvement by the area work team and the development of the team’s problem-solving skills are additional benefits. See: kaizen event.K

Question 460

APICS Deck 6

direct materials cost

Answer 460

The acquisition cost of all materials used directly in the finished product.D

Question 461

APICS Deck 6

arbitration

Answer 461

The process by which an independent third party is brought in to settle a dispute or to preserve the interest of two conflicting parties.A

Question 462

APICS Deck 6

dedicated equipment

Answer 462

Equipment whose use is restricted to specific operations on a limited set of components.D

Question 463

APICS Deck 6

operational planning

Answer 463

The process of setting goals and targets and establishing measures constrained by and targeted for achieving the strategic and tactical plans. See: operational plan, strategic planning, tactical planning.O

Question 464

APICS Deck 6

sponsor

Answer 464

A person who provides financial support, in cash or in kind.S

Question 465

APICS Deck 6

walkthrough

Answer 465

Syn: pilot test.W

Question 466

APICS Deck 6

vertical dependency

Answer 466

The relationship between a parent item and a component in its bill of material that defines the need for the component based on producing the parent, without regard to the availability of other components at the same level in the bill of material. See: horizontal dependency.V

Question 467

APICS Deck 6

assembly line

Answer 467

An assembly process in which equipment and work centers are laid out to follow the sequence in which raw materials and parts are assembled. See: line, production line.A

Question 468

APICS Deck 6

homogeneous product

Answer 468

A product that is effectively identical from producer to producer.H

Question 469

APICS Deck 6

big Q, little q

Answer 469

A term used to contrast the difference between managing for quality in all business processes and products (big Q) and managing for quality in a limited

Question 470

APICS Deck 6

unit of measure (purchasing)

Answer 470

The unit used to purchase an item. This may or may not be the same unit of measure used in the internal systems. For example, purchasing buys steel by the ton, but it may be issued and used in square inches. Syn: purchasing unit of measure.U

Question 471

APICS Deck 6

time phasing

Answer 471

The technique of expressing future demand, supply, and inventories by time period. Time phasing is one of the key elements of material requirements planning.T

Question 472

APICS Deck 6

capacity strategy

Answer 472

One of the strategic choices that a firm must make as part of its manufacturing strategy. There are three commonly recognized capacity strategies: lead, lag, and tracking. A lead capacity strategy adds capacity in anticipation of increasing demand. A lag strategy does not add capacity until the firm is operating at or beyond full capacity. A tracking strategy adds C capacity in small amounts to attempt to respond to changing demand in the marketplace.C

Question 473

APICS Deck 6

analyze phase

Answer 473

One of the six sigma phases of quality. It consists of the following steps: (a) define performance objective, (b) identify independent variables, and (c) analyze sources of variability. See: design-measureanalyze- improve-control process.A

Question 474

APICS Deck 6

industry structure types

Answer 474

Economists have developed models of the types of competition faced by various

Question 475

APICS Deck 6

HOQ

Answer 475

Abbreviation for house of quality.H

Question 476

APICS Deck 6

lot number traceability

Answer 476

Tracking parts by lot numbers to a group of items. This tracking can assist in tracing quality problems to their source. A lot number identifies a designated group of related items manufactured in a single run or received from a vendor in a single shipment.L

Question 477

APICS Deck 6

safety time

Answer 477

Syn: safety lead time.S

Question 478

APICS Deck 6

management information system (MIS)

Answer 478

Integrated approach for providing interpreted and relevant data that can help managers make decisions. This information can reflect the progress or lack of progress made in achieving major objectives.M

Question 479

APICS Deck 6

telescoping

Answer 479

Syn: overlapped schedule.T

Question 480

APICS Deck 6

SOA

Answer 480

Abbreviation for service-oriented architecture.S

Question 481

APICS Deck 6

orthogonal arrays

Answer 481

Tools that help maintain independence between different iterations of a product design experiment; introduced to quality analysis by Genichi Taguchi.O

Question 482

APICS Deck 6

expensed stocks

Answer 482

Syn: floor stocks.E

Question 483

APICS Deck 6

production planning and control strategies

Answer 483

An element of manufacturing strategy that includes the design and development of manufacturing planning and control systems in relation to the following considerations: (1)

Question 484

APICS Deck 6

assignment

Answer 484

Syn: allocation.A

Question 485

APICS Deck 6

expendables

Answer 485

Syn: consumables.E

Question 486

APICS Deck 6

milestone chart

Answer 486

Syn: Gantt chart.M

Question 487

APICS Deck 6

smoothing

Answer 487

The process of averaging data by a mathematical process or by curve fitting, such as the leastsquares method or exponential smoothing.S

Question 488

APICS Deck 6

weighted moving average

Answer 488

An averaging technique in which the data to be averaged are not uniformly weighted but are given values according to their importance. See: moving average, simple moving average.W

Question 489

APICS Deck 6

manufacturing environment

Answer 489

The framework in which manufacturing strategy is developed and implemented. Elements of the manufacturing environment include external environmental forces; corporate strategy; business unit strategy; other functional strategies (marketing, engineering, finance, etc.); product selection; product/process design; product/process technology; and management competencies. Often refers to whether a company, plant, product, or service is make-to-stock, make-to-order, or assemble-to-order. Syn: production environment.M

Question 490

APICS Deck 6

stores issue order

Answer 490

Syn: picking list.S

Question 491

APICS Deck 6

least unit cost

Answer 491

A dynamic lot-sizing technique that adds ordering cost and inventory carrying cost for each trial lot size and divides by the number of units in the lot size, picking the lot size with the lowest unit cost. See: discrete order quantity, dynamic lot sizing.L

Question 492

APICS Deck 6

functional layout

Answer 492

A facility configuration in which operations of a similar nature or function are grouped together; an organizational structure based on departmental specialty (e.g., saw, lathe, mill, heat treat, press). Syn: job shop layout, process layout.F

Question 493

APICS Deck 6

critical point backflush

Answer 493

Backflush performed at a specific point in the manufacturing process, at a critical operation, or at an operation where key components are consumed.C

Question 494

APICS Deck 6

operation overlapping

Answer 494

Syn: overlapped schedule.O

Question 495

APICS Deck 6

marketing cost analysis

Answer 495

The study and evaluation of the relative profitability or costs of different marketing operations in terms of customers, marketing units, commodities, territories, or marketing activities. Cost accounting is typically used.M

Question 496

APICS Deck 6

failure analysis

Answer 496

The collection, examination, review, and classification of failures to determine trends and to identify poorly performing parts or components.F

Question 497

APICS Deck 6

remote diagnostics

Answer 497

The capability of determining the cause of a problem from an off-site location.R

Question 498

APICS Deck 6

direct store delivery (DSD)

Answer 498

A shipment that bypasses the customer’s warehouse and goes directly from the manufacturer’s plant to the retail store.D

Question 499

APICS Deck 6

parking lot

Answer 499

A meeting device whereby off-agenda items are noted for possible inclusion in future agendas. Often a flip chart or whiteboard is used.P