APICS Deck 7 OO Flashcards
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monopolistic competition
A market in which many competitors offer partially differentiated products or services within a given geographical area. Most competitors focus on market segments where they can meet customers’ needs somewhat better than their competitors. See: industry structure types.M
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related, they might not be
those who know most about the variables must make that evaluation). The scatter chart is one of the seven tools of quality. Syn: cross plot, scatter diagram, scatterplot.S
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connectivity
The ability to communicate effectively with supply chain partners to facilitate interorganization synchronization. C
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hash total
A control process used to ensure that all documents in a group are present or processed. In practice, the arithmetic sum of data not normally added together is found, the checking (audit) process adds the same data, and a comparison is made. If the sums do not agree, an error exists. Example: the last digit of every part number in an assembly is added, and the last digit of the sum becomes the last digit of the assembly. If the last digit of an assembly is not the same as the sum of the last digit of the components’ sum, the assembly must be missing a part or must have the wrong combination of parts.H
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percent completed
A comparison of work completed to the current projection of total work.P
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franchise extension
The placement of a brand name on products outside the company’s present sphere of activity.F
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organizational environment
Consists of an external environment (e.g., laws and regulations, technology, economy, competition) and an internal environment (e.g., the domain of products and services to be provided, the processes to be executed, the organizational structure). See: external environment, internal environment.O
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seasonal stock
Syn: seasonal inventory.S
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wandering bottleneck
An undesirable effect in which the bottleneck moves relatively frequently from one resource to another.W
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facilitating products
Products that support the operations of a firm but are not sold externally, such as furniture and computers.F
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return on investment (ROI)
A relative measure of financial performance that provides a means for comparing various investments by calculating the profits returned during a specified time period. In the theory of constraints, ROI is calculated as throughput minus operating expense divided by investment.R
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file structure
The manner in which records are stored within a file (e.g., sequential, random, indexsequential). F
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control levels
systems capable of providing longterm planning and short-term control capabilities for strategic and operational considerations by management. Production planning and control strategies help firms develop systems that enable them to exploit market opportunities while satisfying manufacturing process requirements.P
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profit center
An assigned responsibility center that has authority to affect both the revenues earned and the costs incurred by and allocated to the center. Operational effectiveness is evaluated in terms of the amount of profit generated.P P
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beginning available balance
Syn: available inventory.B
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catalog channel
A facility that receives orders based on a published book of offerings and ships from its warehouse to the customer.C
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receiving report
A document used by the receiving function of a company to inform others of the receipt of goods purchased.R
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supplier clustering
Deliberately sole sourcing remote suppliers within a small geographical area to facilitate joint shipments of what would otherwise be less-thantruckload quantities.S
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eurobond
An internationally marketed bond.E
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dispatcher
1) A production control person whose primary function is dispatching. 2) A transportation worker who sends out and tracks cars, buses, trucks, railcars, and other vehicles.D
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activity-based costing (ABC)
In activity-based cost accounting, a model, by time period, of resource costs created because of activities related to products or services or other items causing the activity to be carried out. Syn: activity-based cost accounting, activity-based costing model.A
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demand time fence (DTF)
1) That point in time inside of which the forecast is no longer included in total demand and projected available inventory calculations; inside this point, only customer orders are considered. Beyond this point, total demand is a combination of acdemand D tual orders and forecasts, depending on the forecast consumption technique chosen. 2) In some contexts, the demand time fence may correspond to that point in the future inside which changes to the master schedule must be approved by an authority higher than the master scheduler. Note, however, that customer orders may still be promised inside the demand time fence without higher authority approval if there are quantities available-to-promise (ATP). Beyond the demand time fence, the master scheduler may change the MPS within the limits of established rescheduling rules, without the approval of higher authority. See: option overplanning, planning time fence, time fence.D
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declared value
The value of goods declared on a bill of lading, used to determine a freight rate or limit the carrier’s liability.D
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simple regression
Regression analysis involving only one independent variable.S
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lot cost
In cost accounting, those costs associated with processing a common lot or quantity of parts having the same specifications.L
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B7
Abbreviation for the basic seven tools of quality.B
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storage
The retention of parts or products for future use or shipment.S
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jig
A device that holds a piece of work in a desired position and guides the tool or tools that perform the necessary operations. See: fixture.J
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mainframe
Large computer system, typically with a separate central processing unit. This high-level computer is designed for the most intensive computational tasks.M
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level of effort
In project management, support activity (e.g., customer liaison) that is not easily measured by discrete accomplishment. It usually has a uniform work rate.L
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pull-through distributions
Supply chain activities that are started by the consumer. Instead of the manufacturer “pushing” products to stores, in a pull-through distribution consumers purchase items, which signals the manufacturer to produce more of that product. This is effectively the consumer “pulling” products to the store.P
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voice of the customer (VOC)
Actual customer descriptions in words for the functions and features customers desire for goods and services. In the strict definition, as relates to quality function deployment (QFD), the term customer indicates the external customer of the supplying entity.V
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substitution
The use of a nonprimary product or component, normally when the primary item is not available.S
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AIS
Abbreviation for automated information system.A
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innovation risk
The risk of losing customers because another firm creates more innovative products.I
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lot traceability
The ability to identify the lot or batch number of product in terms of one or all of the following: its composition, purchased parts, manufacturing date, or shipped items. In certain regulated industries, lot traceability may be a legislative requirement.L
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buyer/planner
A buyer who also does material planning. This term should not be confused with planner/ buyer, which is a synonym for supplier scheduler.B
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producer’s risk (α)
For a given sampling plan, the probability of not accepting a lot, the quality of which P has a designated numerical value representing a level that is generally desired to accept. Usually the designated value will be the acceptable quality level (AQL). See: type I error.P
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safety stock
1) In general, a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply. 2) In the context of master production scheduling, the additional inventory and capacity planned as protection against forecast errors and shortterm changes in the backlog. Overplanning can be used to create safety stock. Syn: buffer stock, reserve stock. See: hedge, inventory buffer.S
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early supplier involvement (ESI)
The process of involving suppliers early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and designs that are easier to manufacture with high quality. See: participative design/engineering.E
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supply rate
Production rate, or quantity of units per unit of time, sent to inventory.S
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collaboration
Joint work among people to achieve common business objectives.C
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insourcing
Using the firm’s internal resources to provide goods and services. See: make-or-buy decision.I
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resource profile
The standard hours of load placed on a resource by time period. Production lead-time data are taken into account to provide time-phased projections of the capacity requirements for individual production facilities. See: bill of resources, capacity planning using overall factors, product load profile, rough-cut capacity planning.R
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average collection period
Syn: receivables conversion period.A
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collective bargaining
A highly regulated system established to control conflict between labor and management. It defines and specifies the rules and procedures of initiating, negotiating, maintaining, changing, and terminating the labor-management relationship.C
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precedence relationship
In the critical path method of project management, a logical relationship that one node has to the succeeding node. The terms precedence relationship, logical relationship, and dependency are used somewhat interchangeably.P
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tracer
A request to a transportation line to trace a shipment to expedite its movement or to verify delivery.T
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availability
The percentage of time that a worker or machine is capable of working. The formula is availability
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robotics
Replacing activities previously performed by humans with mechanical devices or robots that can be either operated by humans or run by computer. Difficultto- do, dangerous, or monotonous tasks are likely candidates for robots to perform.R
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promissory note
An agreement to pay a stipulated amount during an agreed time period.P
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surge capacity
The ability to meet sudden, unexpected increases in demand by expanding production with existing personnel and equipment.S
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sweepstakes
A marketing promotion in which prizes are awarded, usually by chance.S
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ISDN
Abbreviation for integrated services digital network.I
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information flow profile
A graph of the performance of information flow compared to some set of performance criteria.I
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market share, low growth rate; (2) Stars
high market
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block system
A system for selecting items to be cycle counted by a group or block of numbers.B
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DSS
Abbreviation for decision support system.D
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servo system
A control mechanism linking a system’s input and output, designed to feed back data on system output to regulate the operation of the system.S S
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current ratio
Current assets divided by current liabilities.C
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cancellation charge
A fee charged by a seller to cover its costs associated with a customer’s cancellation of an order. If the seller has started engineering work, purchased raw materials, or started manufacturing operations, these charges could also be included in the cancellation charge.C
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consignment inventory
Syn: consigned stocks. See: consignment.C C
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leg
A portion of a complete trip.L
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high-level language (HLL)
Relatively sophisticated computer language that allows users to employ a notation with which they are already familiar. For example: COBOL (business), ALGOL (mathematical and scientific), FORTRAN, BASIC, Java, and Visual Basic.H H
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driver
1) In activity-based cost accounting, an operation that influences the quantity of work required and cost of an activity. Syn: cost driver. 2) In the theory of constraints, an underlying cause that is responsible for several observed effects.D
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FLSA
Abbreviation for Fair Labor Standards Act.F
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exempt carrier
A for-hire carrier that is free from economic regulation.E
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demand chain
1) A demand chain is composed of the enterprises that sell a business’s goods or services. 2) Supply chain as seen from the viewpoint of the customer, the entity who chooses among competing products and services and thus controls the demand.D
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strategic drivers
Factors that influence business unit and manufacturing strategies.S
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browser
Software used on the web to retrieve and display documents on-screen, connect to other sites using hypertext links, display images, and play audio files.B
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executive dashboard
A set of cross-functional metrics for measuring company performance that indicates the health of the company. It usually includes the company’s key performance indicators. See: dashboard.E
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web directory
A list of web pages that is structured hierarchically. W
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job grade
A form of job evaluation that assigns jobs to predetermined job classifications according to the job’s relative worth to the organization. Pay scales are usually set for each job grade.J
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qualifiers
Syn: order qualifiers. See: order losers, order winners.Q
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capital expenditure
Money invested in a long-term asset, one that is expected to last longer than one year. The investment is expected to generate a stream of future benefits.C
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mix control
The control of the individual items going through the plant.M
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service reliability
A dimension of service quality referring to the capability of a service provider to perform dependably and accurately.S
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turns
Syn: inventory turnover.T
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work center
A specific production area, consisting of one or more people and/or machines with similar capabilities, that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling. Syn: load center.W
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shrinkage factor
A percentage factor used to compensate for the expected loss during the manufacturing cycle of an item. This factor differs from the scrap factor in that it affects all components of the item, where the scrap factor relates to only one component’s usage. Syn: shrinkage rate.S
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open master production schedule
The part of the master production schedule that still has available capacity for assigning new orders.O
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statement of work
1) A description of products to be supplied under a contract. 2) In projection management, the first project planning document that should S be prepared. It describes the purpose, history, deliverables, and measurable success indicators for a project. It captures the support required from the customer and identifies contingency plans for events that could throw the project off course. Because the project must be sold to management, staff, and review groups, the statement of work should be a persuasive document.S
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prioritization matrix
A special type of matrix chart used to show the priorities of items by applying criteria and weighting factors to each item.P
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incremental available-to-promise
Syn: discrete available-to-promise.I
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quasi manufacturing
A type of service operation that closely resembles a manufacturing process; focus is on production process, technology, costs, and quality.Q
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machining center
A machine capable of performing a variety of metal, wood, or plastic removal operations on a part, usually operated by numerical control.M
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trend analysis
An analysis to determine whether trend (general upward or downward change) exists in data. See: trend forecasting models.T
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rough-cut capacity planning (RCCP)
The process of converting the master production schedule into requirements for key resources, often including labor; machinery; warehouse space; suppliers’ capabilities; and, in some cases, money. Comparison to available or demonstrated capacity is usually done for each key resource. This comparison assists the master scheduler in establishing a feasible master production schedule. Three approaches to performing RCCP are the bill of labor (resources, capacity) approach, the capacity planning using overall factors approach, and the resource profile approach. See: bill of resources, capacity planning, capacity planning using overall factors, product load profile, resource profile.R
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Cp
A widely used process capability index. It is calculated by dividing the difference between the upper specification limit (USL) and the lower specification limit (LSL) by 6 times the standard deviation (s) or C
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cybercash
The technology that enables online acceptance of credit cards, approving customers for payment before delivery is made.C
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bottom-up planning
Planning for resource requirements by starting at the bottom of the bill of material or services, estimating the resources required to produce each product or service, and then adding the resources up.B
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contingent project
A project that can be accepted only if one or more other projects are accepted first. See: independent project, mutually exclusive project.C
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global measurements
Measurements used to judge the performance of the system as a whole.G
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incentive contract
A contract where the buyer and seller agree to a target cost and maximum price. Cost savings below the target are shared between buyer and seller. If actual cost exceeds the target cost, the cost overrun is shared between buyer and seller up to the maximum price.I
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critical mass
Individuals who add value to the product or service. These individuals include personnel working directly on the product, personnel providing a service to the customer, and personnel who provide support for the product or service (e.g., after-sale service).C
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theoretical capacity
The maximum output capability, allowing no adjustments for preventive maintenance, unplanned downtime, shutdown, and so forth.T
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consortium
A group of companies that work together to jointly produce a product, service, or project.C
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production and inventory management
General term referring to the body of knowledge and activities concerned with planning and controlling rates of purchasing, production, distribution, and related capacity resources to achieve target levels of customer service, backlogs, operating costs, inventory investment, manufacturing efficiency, and ultimately, profit and return on investment.P production and operations management (POM) Managing an organization’s production of goods or services; managing the process of taking inputs and creating outputs.P
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mix number
Syn: lot number.M
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incentive rate
In transportation, a discounted rate designed to convince a shipper to ship a higher volume in a particular load.I
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nonproduction material
Items (indirect materials and supplies) in the manufacturing process or in the maintenance or operation of a facility that do not generally become part of the final product.N
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delivery appointment
The time for goods to arrive at a selected location.D
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computer numerical control (CNC)
A technique in which a machine tool controller uses a computer or microprocessor to store and execute numerical instructions.C
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time stamping
Tracking with each transaction the time of occurrence. It is used in period closings and to tie end items to samples for certification of item properties.T
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carbon footprint
A measure of carbon emissions from a person, organization, building, or operation.C
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delay report
Syn: anticipated delay report.D
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measure of service
Syn: level of service.M
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internal controls
The policies and procedures, the documentation, and the plan for an organization that authorize transactions, safeguard assets, and maintain the accuracy of financial records.I
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stockout costs
The costs associated with a stockout. Those costs may include lost sales, backorder costs, expediting, and additional manufacturing and purchasing costs.S
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schedule harmony
In supply chains, the arrival of goods at a transfer point with a small buffer time in front of their departure via a different transportation mode.S
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material class
A means to describe a grouping of materials with similar characteristics for planning and scheduling purposes.M
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demand filter
A standard that is set to monitor sales data for individual items in forecasting models. It is usually set to be tripped when the demand for a period differs from the forecast by more than some number of mean absolute deviations.D
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request for information (RFI)
An inquiry to a potential supplier about that supplier’s product or service for potential use in the business. The inquiry can provide certain business requirements or be of a more general exploratory nature. See: request for proposal (RFP).R
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product flexibility
The ease with which current designs can be modified in response to changing market demands.P
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SDS
Abbreviation for single-digit setup.S
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pallet jack
A type of materials handling equipment that combines pallets horizontally but has no lifting capability.P
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ISO 31000
A standard adopted by the International Standards Organization that outlines principles and a set of guidelines to manage risk in any endeavor. The standard includes guidelines for understanding risk, developing a risk management policy, integrating risk management into organizational processes (including accountability and responsibility), and establishing internal and external risk communication processes. ISO 31000 is not a management system standard and is not intended or appropriate for certification purposes or regulatory or contractual use.I
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gateway
The connection that allows data and other information to flow between two networks.G
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echelon
A level of supply chain nodes. For example, a supply chain with two independent factory warehouses and nine wholesale warehouses delivering product to 350 retail stores is a supply chain with three echelons between the factory and the end customer. One echelon consists of the two independent factory warehouses, one echelon consists of the nine wholesale warehouses, and one echelon consists of the 350 retail stores. Each echelon adds operating expense, holds inventory, adds to the cycle time, and expects to make a profit. See: disintermediation.E
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run
A quantity of production being processed.R
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interrupt
A break in the normal flow of a computer routine such that the flow can be resumed from that point at a later time. An interrupt is usually caused by a signal from an external source.I
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standard deviation
A measurement of dispersion of data or of a variable. The standard deviation is computed by finding the differences between the average and actual observations, squaring each difference, adding the squared differences, dividing by n – 1 (for a sample), and taking the square root of the result. See: estimate of error.S
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BAC
Acronym for budget at completion.B
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scrap
Material outside of specifications and possessing characteristics that make rework impractical.S
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order shipment
Activity that extends from the time the order is placed upon the vehicle for movement until the order is received, verified, and unloaded at the buyer’s destination.O
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service capacity
The number of daily customers a firm is designed to serve; actual throughput may be larger or smaller.S
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supplier relationship management (SRM)
A comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services the enterprise uses. The goal of SRM is to streamline and make more effective the processes between an enterprise and its suppliers. SRM is often associated with automating procure-to-pay business processes, evaluating supplier performance, and exchanging information with suppliers. An e-procurement system often comes under the umbrella of a supplier relationship management family of applications.S
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common carrier duties
The requirements of common carriers to offer reasonable services and rates and to avoid discrimination.C
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contact efficiency
A measure of how well an organization transforms website hits into visits.C
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DFMA
Abbreviation for design for manufacture and assembly.D
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TBC
Abbreviation for time-based competition.T
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VAN
Acronym for value-added network.V
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estimate to complete (ETC)
Expected cost to complete all remaining work for an activity or project.E
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corporate purchasing cards
Syn: procurement credit card.C
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goodness of fit
The degree to which a model complies with observed data.G
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last in, first out (LIFO)
A method of inventory valuation for accounting purposes. The accounting assumption is that the most recently received (last in) is the first to be used or sold (first out) for costing purposes, but there is no necessary relationship with the actual physical L movement of specific items. See: average cost systems.L
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GDSS
Abbreviation for group decision support system.G
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product-mix flexibility
The ability to change over quickly to other products produced in a facility, as required by demand shifts in mix.P
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stock dividend
A dividend paid to shareholders in stock rather than cash.S
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automated guided vehicle system (AGVS)
A transportation network that automatically routes one or more material handling devices, such as carts or pallet trucks, and positions them at predetermined destinations without operator intervention.A
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staged material
Syn: kit.S
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fixed cost
An expenditure that does not vary with the production volume; for example, rent, property tax, and salaries of certain personnel.F
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independent trading exchange
A business-to-business marketplace ownership model. These are public sites often used for indirect materials and commodity purchases where the price is the primary factor and where any buyers and sellers for a particular market meet to gain access to a wider market to find the best deals. See: public marketplaces.I I
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stock number
Syn: item number.S
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locational determinants
Information or factors considered in determining where to put a facility.L
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stores requisition
Syn: picking list.S
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delivery speed
A performance criterion that measures how quickly a product or service can be delivered once the demand is identified.D
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sourcing
The process of identifying a company that provides a needed good or service.S
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manufacturing volume strategy
An element of manufacturing strategy that includes a series of assumptions and predictions about long-term market, technology, and competitive behavior in the following areas: (1) the predicted growth and variability of demand, (2) the costs of building and operating different sized plants, (3) the rate and direction of technological improvement, (4) the likely behavior of competitors, and (5) the anticipated impact of international competitors, markets, and sources of supply. It is the sequence of specific volume decisions over time that determines an organization’s long-term manufacturing volume strategy.M
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performance benchmarking
Syn: competitive benchmarking. See: benchmarking, process benchmarking.P
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rated capacity
The expected output capability of a resource or system. Capacity is traditionally calculated from such data as planned hours, efficiency, and utilization. The rated capacity is equal to hours available × efficiency × utilization. Syn: calculated capacity, effective capacity, nominal capacity, standing capacity.R
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sample average
A key measure that represents the central tendency of a sample.S
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offer
A contractual communication that proposes definite terms. A contract is created if the other party accepts those terms.O
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public relations
The function that oversees a program to earn public understanding and acceptance.P
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data collection
The act of compiling data for recording, analysis, or distribution.D
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pace rating
Estimating the level of effort of a subject of methods study, where 100 percent would be the sustainable pace of an average skilled worker.P
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mean time for failures (MTFF)
Average time for failure of a nonrepairable product (expected life) or average time to first failure of a repairable product. See: reliability.M
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mystery shoppers
People who pose as customers but who are really studying an organization’s service quality to provide feedback to the organization for improvement purposes.M N
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quality control
The process of measuring quality conformance by comparing the actual with a standard for the characteristic and acting on the difference. See: quality assurance/control.Q
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organization chart
A graphical depiction of relationships between people who work together.O
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least-squares method
A method of curve fitting that selects a line of best fit through a plot of data to minimize the sum of squares of the deviations of the given points from the line. See: regression analysis.L
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go/no-go
The state of a unit or product. Two parameters are possible: go (conforms to specification) and no-go (does not conform to specification).G
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vendor
Any seller of an item in the marketplace. See: supplier.V
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operations planning
The planning of activities that transform inputs into finished goods and services.O
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automated process controls system
A system that can measure the performance of a process, compare the result to predetermined standards, and then make adjustments to the process.A
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acid test ratio
Syn: quick asset ratio.A
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stock order
An order to replenish stock, as opposed to a production order to make a particular product for a specific customer.S
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bill of operations
Syn: routing.B
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or too early, (2) waiting
queuing delays, (3) transportation
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product-positioned warehouse
The warehouse located close to the manufacturing plants that acts as a consolidation point for products.P
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feasible economic order quantity
When solving a quantity discount problem, the economic order quantity is feasible if the computed number can be purchased at the cost used in the EOQ problem rather than at some other discount quantity. For example, consider a product that sells for $10 for 1 to 99 units, $9 for 100 to 499 units, and $8 for 500 for more units. If the quantity discount solution calls for purchasing 800 units at the $8 value, the solution is feasible; however if the quantity discount solution calls for purchasing 250 units at this cost the solution is not feasible, because the purchase quantity is not consistent with the purchase price for that quantity.F
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production
The conversion of inputs into finished products.P
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scheduling algorithm
Syn: scheduling rules.S
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procurement lead time
The time required to design a product, modify or design equipment, conduct market research, and obtain all necessary materials. Lead time begins when a decision has been made to accept an order to produce a new product and ends when production commences. Syn: procurement cycle, total procurement lead time. See: time-to-market.P
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crashing
In project management, adding resources to critical path or near-critical path activities on a project to shorten project duration after analyzing the project to identify the most cost-effective course of action.C
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CIF
Abbreviation for cost, insurance, freight.C
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human resource utilization
Using labor to its fullest potential to maximize product or service output.H
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milestone
In project management, an important event in a project, usually the realization of a significant deliverable.M
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work order
1) An order to the machine shop for tool manufacture or equipment maintenance; not to be confused with a manufacturing order. Syn: manufacturing order, work ticket. 2) An authorization to start work on an activity (e.g., maintenance) or product.W
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predecessor activity
1) In project management, in an activity-on-arrow network, the activity that enters a node. 2) In project management, in an activity-on-node network, the node at the tail of the arrow.P
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passenger-mile
One passenger transported one mile. For example, a bus carrying forty passengers for one hundred miles would accrue 4,000 passenger miles.P
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configuration system
Syn: customer order servicing system.C
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dock-to-stock
A program by which specific quality and packaging requirements are met before the product is released. Prequalified product is shipped directly into the customer’s inventory. Dock-to-stock eliminates the costly handling of components, specifically in receiving and inspection and enables product to move directly into production.D
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carcass
A nonserviceable item obtained from a customer which is intended for use in remanufacturing.C
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business strategy
A plan for choosing how to compete. Three generic business strategies are (1) least cost, (2) differentiation, and (3) focus.B
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earmarked material
The reserved material on hand that is physically identified, rather than merely reserved in a balance-of-stores record.E
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startup audit
The technique of having an implementation team tour or visit the implementation site on a frequent basis and use the “management by walking around” technique to identify problems and solutions.S
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shop planning
The function of coordinating the availability of material handling, material, resources, setup, and tooling so that an operation or job can be done on a particular machine. Shop planning is often part of the dispatching function. The term shop planning is sometimes used interchangeably with dispatching, although dispatching does not necessarily include shop planning. For example, the selection of jobs might be handled by the centralized dispatching function, while the actual shop planning might be done by the foreman or a representative. S
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industrial revolution
A movement to the use of factories and machines and away from activities done by hand without mechanical assistance.I
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bill of capacity
Syn: bill of resources.B
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hedging
The practice of entering into contracts on a commodity exchange to protect against future fluctuations in the commodity. This practice allows a company to isolate profits to the value-added process rather than to uncontrolled pricing factors. See: speculative buying.H
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effective capacity
Syn: rated capacity.E
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EIPP
Abbreviation for electronic invoice presentment and payment.E
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GNP
Abbreviation for gross national product.G
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lightless plant
Syn: dark factory.L
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time series
A set of data that is distributed over time, such as demand data in monthly time periods. Various patterns of demand must be considered in time series analysis: seasonal, trend, cyclical, and random.T
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trade secret
Knowledge of a manufacturing process that gives the owner an advantage over competitors who do not have it. Trade secrets are legally protectable.T
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excess inventory
Any inventory in the system that exceeds the minimum amount necessary to achieve the desired throughput rate at the constraint or that exceeds the minimum amount necessary to achieve the desired due date performance. Total inventory = productive inventory + protective inventory + excess inventory.E
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control chart
A graphic comparison of process performance data with predetermined computed control limits. The process performance data usually consist of groups of measurements selected in regular sequence of production that preserve the order. The primary use of control charts is to detect assignable causes of variation in the process as opposed to random variations. The control chart is one of the seven tools of quality. Syn: process control chart.C
