APICS OO CSV Flashcards
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APICS
assortment warehousing
A warehousing technique that stores the goods close to the customer to ensure short customer lead times.A
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blanket order
Syn: blanket purchase order.B
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bulk packing
Placing several small packages in a larger container to prevent damage or theft.B
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bill of capacity
Syn: bill of resources.B
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block stacking
A storage method in which pallets, cases, or cartons are stacked upwards from the floor to whatever practical height is available without the use of shelves.B
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allocative efficiency
The use of resources to produce those goods and services most wanted by consumers.A
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basic seven tools of quality (B7)
Tools that help organizations understand their processes to improve them. The tools are the cause-and-effect diagram (also known as the fishbone diagram or the Ishikawa diagram), check sheet, flowchart, histogram, Pareto chart, control chart, and scatter diagram. Syn: seven tools of quality. See: seven new tools of quality.B
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bonded warehouse
Buildings or parts of buildings designated by the U.S. Secretary of the Treasury for storing imported merchandise, operated under U.S. Customs supervision.B
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banner
In e-commerce, a portion of a web page that contains advertising or the name of a website. The banner usually contains a hypertext connection to a web page of the company doing the advertising.B
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bounded
The adjustment of a shop order quantity of a parent to use the remaining units of a component, raw material, or lot.B
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batch number
Syn: lot number.B
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assignable cause
A source of variation in a process that can be isolated, especially when it’s significantly larger magnitude or different origin readily distinguishes it from random causes of variation. Syn: special cause. See: common causes, assignable variation.A
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ATP
Abbreviation for available-to-promise.A
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beginning inventory
A statement of the inventory count at the end of last period, usually from a perpetual inventory record.B
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bookings
The value of all sales after discounts and rebates have been applied.B
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business clusters
When businesses locate in close proximity for competition purposes.B
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AGVS
Abbreviation for automated guided vehicle system.A
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assembly bin
Syn: accumulation bin.A
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break-bulk warehousing
A form of cross-docking in which the incoming shipments are from a single source or manufacturer.B
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bucket
A time period, usually a week.B
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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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assembly parts list
As used in the manufacturing process, a list of all parts (and subassemblies) that make up a particular assembly. See: batch card, manufacturing order.A
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automatic identification and data capture (AIDC)
A set of technologies that collect data about objects and then send these data to a computer without human intervention. Examples include radio frequency wireless devices and terminals, bar code scanners, and smart cards.A
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average payment period
The average time between receipt of materials and payment for those materials.A
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backup/restore
The procedure of making backup copies of computer files or disks and, in case of loss of or damage to the original, using the backups to restore the files or disks. In such a case, the only work lost is that done since the backup was made.B
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bulk storage
Large-scale storage for raw materials, intermediates, or finished products. Each vessel normally contains a mixture of lots and materials that may be replenished and withdrawn for use or pack-out simultaneously.B
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activity
1) In activity-based cost accounting, a task or activity, performed by or at a resource, required in producing the organization’s output of goods and services. A resource may be a person, machine, or facility. A Activities are grouped into pools by type of activity and allocated to products. 2) In project management, an element of work on a project. It usually has an anticipated duration, anticipated cost, and expected resource requirements. Sometimes “major activity” is used for larger bodies of work.A
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aggregate inventory
The inventory for any grouping of items or products involving multiple stockkeeping units. See: base inventory level.A
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annual inventory count
Syn: physical inventory.A
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breeder bill of material
A bill of material that recognizes and plans for the availability and usage of by-products in the manufacturing process. The breeder bill allows for complete by-product MRP and product/byproduct costing.B
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attribute data
Go/no-go information. The control charts based on attribute data include percent chart, number of affected units chart, count chart, count-per-unit chart, quality score chart, and demerit chart. See: attribute, attribute inspection.A
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allocation
1) The classification of quantities of items that have been assigned to specific orders but have not yet been released from the stockroom to production. It is an “uncashed” stockroom requisition. 2) A process used to distribute material in short supply. Syn: assignment. See: reservation.A
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award audits
Site visits associated with award programs such as the Malcolm Baldrige National Quality Award or similar state-sponsored award programs.A
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block diagram
A diagram that shows the operations, interrelationships, and interdependencies of components in a system. Boxes, or blocks (hence the name), represent the components; connecting lines between the blocks represent interfaces. There are two types of block diagrams: (1) functional block diagrams, which show a system’s subsystems and lower level products, their interrelationships, and interfaces with other systems and (2) reliability block diagrams, which are similar to functional block diagrams except they are modified to emphasize those aspects influencing reliability. See: flowchart.B
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business service
The software aspect of electronic commerce. It performs activities, such as encryption, that are required to support business transactions.B
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alternate part
When a buyer can purchase similar products from different suppliers. This increases the buyer’s power as the buyer does not have to rely on just one supplier.A
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business-to-business commerce (B2B)
Business conducted over the internet between businesses. The implication is that this connectivity will cause businesses to transform themselves via supply chain management
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baud
The number of bits transmitted per second.B
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AI
Abbreviation for artificial intelligence.A
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analysis of variance (ANOVA)
A statistical analysis system that estimates what portion of variation in a dependent variable is caused by variation in one or more independent variables. It also produces a number used to infer whether any or all of the independentdependent variable relationships have statistical significance (i.e., have not been caused by randomness in the data).A
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blend formula
An ingredient list for a product in process industries. See: batch card, manufacturing order, mix ticket.B
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blending
The process of physically mixing two or more lots or types of material to produce a homogeneous lot. Blends normally receive new identification and require testing.B
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acceptance sampling
1) The process of sampling a portion of goods for inspection rather than examining the entire lot. The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample. There are two types: attributes sampling and variables sampling. In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind. 2) A method of measuring random samples of lots or batches of products against predetermined standards.A A
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arrow diagram method
Syn: activity-on-arrow network.A
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assembly
A group of subassemblies and/or parts that are put together and that constitute a major subdivision for the final product. An assembly may be an end item or a component of a higher level assembly.A
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blemish
An imperfection that is severe enough to be noticed but should not cause any real impairment with respect to intended normal or reasonably foreseeable use. See: defect, imperfection, nonconformity.B
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anticipation order
An order placed before an item has been made available for delivery.A
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applications software
A computer program or set of programs designed to assist in the performance of a specific task, such as word processing, accounting, or inventory management. See: application system.A
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alternate feedstock
A backup supply of an item that either acts as a substitute or is used with alternate equipment.A
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automated storage/retrieval system (AS/RS)
A highdensity, rack inventory storage system with vehicles automatically loading and unloading the racks.A
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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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availability
The percentage of time that a worker or machine is capable of working. The formula is availability
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black box design
When suppliers or company functions are given general design guidelines and are requested to complete the technical details.B
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B2B
Abbreviation for business-to-business commerce.B
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approved vendor list (AVL)
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
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allocated material
Syn: reserved material.A
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assigned material
Syn: reserved material.A
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assumed receipt
A receiving technique based on the assumption that a shipment is as expected. Receiving personnel do not verify the delivery quantity. This technique is used to eliminate invoices.A
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BPR
Abbreviation for business process reengineering.B
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accounts receivable
The value of goods shipped or services rendered to a customer on which payment has not yet been received. Usually includes an allowance for bad debts.A
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annual percentage rate
In finance, the rate of interest paid for a loan after compounding is considered. Syn: effective interest rate.A
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bricks and mortar
A company that sells through a physical location. Ant: clicks and mortar (selling over the internet).B
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AOA
Abbreviation for activity-on-arrow network.A
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affinity diagram
A total quality management tool whereby employees working in silence generate ideas and later categorize these ideas.A
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have a short-term time horizon
such as cash, accounts
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allocation costing
Syn: absorption costing.A
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available-to-promise (ATP)
The uncommitted portion of a company’s inventory and planned production maintained in the master schedule to support customerorder promising. The ATP quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled. In the first period, ATP includes on-hand inventory less customer orders that are due and overdue. Three methods of calculation are used: discrete ATP, cumulative ATP with look-ahead, and cumulative ATP B without look-ahead. See: discrete available-to-promise, cumulative available-to-promise.A
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brand manager
The person in charge of the marketing program for a given brand. Syn: product manager.B
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actual cost of work performed
The direct costs actually incurred in, and the indirect costs applied to, accomplishing work performed within a given time period. These costs should reconcile with the contractor’s incurred-cost ledgers, which are regularly audited by the client.A
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actual cost system
A cost system that collects costs historically as they are applied to production and allocates indirect costs to products based on the specific costs and achieved volume of the products.A
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ASQ
Abbreviation for American Society for Quality.A
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burden
Syn: overhead.B
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accessory
A choice or feature added to the good or service offered to the customer for customizing the end product. An accessory enhances the capabilities of the product but is not necessary for the basic function of the product. In many companies, an accessory means that the choice does not have to be specified before shipment but can be added at a later date. In other companies, this choice must be made before shipment. See: feature.A
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action message
An output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem. Examples of action messages in an MRP system include release order, reschedule in, reschedule out, and cancel. Syn: exception message, action report.A
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advance material request
Ordering materials before the release of the formal product design. This early release is required because of long lead times.A
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business environment
Syn: operating environment.B
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average outgoing quality (AOQ)
The expected average quality level of outgoing product for a given value of incoming product quality.A
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billing and collection costs
In transportation, the costs related to issuing invoices or bills. These amounts can be reduced by combining shipments in an order to limit transportation frequency.B
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blowthrough
Syn: phantom bill of material.B B
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American Society for Quality (ASQ)
Founded in 1946, a not-for-profit educational organization with more than 100,000 individual and organizational members who are interested in quality improvement.A American Standard Code for Information Interchange
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accidental death and disability (AD&D)
Insurance that often is part of an employee benefit package, providing payment for either accidental death or disability.A
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activity duration
The planned difference between the start and finish dates of a project activity.A
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buffer
1) A quantity of materials awaiting further processing. It can refer to raw materials, semifinished stores or hold points, or a work backlog that is purposely maintained behind a work center. 2) In the theory of constraints, buffers can be time or material and support throughput and/or due date performance. B Buffers can be maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points.B
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aesthetics
A dimension of product quality that intends to appeal to the senses.A
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activity analysis
In project management, the identification and description of activities within an organization for the purpose of activity-based costing.A
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bundling
Combining two or more products or services into a single transaction.B
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bill-of-material accuracy
The degree to which a list of specified items conforms to administrative specifications and with correct quantities.B
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automated assembly system
A system that produces completed products or assemblies without the contribution of direct labor.A
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Baldrige Award
Syn: Malcolm Baldrige National Quality Award.B
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backflush
A method of inventory bookkeeping where the book (computer) inventory of components is automatically reduced by the computer after completion of activity on the component’s upper-level parent item based on what should have been used as specified on the bill of material and allocation records. This approach has the disadvantage of a built-in differential between the book record and what is physically in stock. Syn: explode-to-deduct, post-deduct inventory transaction processing. See: pre-deduct inventory transaction processing.B
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bit
Acronym for binary digit. It can have only the values 0 or 1.B
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avoidable delay
The delay controlled by a worker and therefore not allowed in the job standard.A
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back scheduling
A technique for calculating operation start dates and due dates. The schedule is computed starting with the due date for the order and working backward to determine the required start date and/or due dates for each operation. Syn: backward scheduling. Ant: forward scheduling.B
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base index
Syn: base series.B
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ASQC
Abbreviation for American Society for Quality Control, now simply American Society for Quality (ASQ).A
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acceptance criteria
Those performance requirements and conditions that must be reached before projects or products are accepted.A
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attractability efficiency
In e-commerce, a measure of how well an organization persuades people who are aware of its website to actually use the site. See: conversion efficiency.A
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backward integration
The process of buying or owning elements of the production cycle and channel of distribution back toward raw material suppliers. See: vertical integration.B
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buffer stock
Syn: safety stock.B
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black belt
In six sigma, team leader for process improvement. Responsibilities include defining, measuring, and controlling the improvement process.B
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batch sensitivity factor
A multiplier that is used for the rounding rules in determining the number of batches required to produce a given amount of product.B
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adaptable website
In e-commerce, a site that a visitor can change to customize.A
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ASCII
Acronym for American Standard Code for Information Interchange.A
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assets
An accounting/financial term (balance sheet classification of accounts) representing the resources owned by a company, whether tangible (cash, inventories) or intangible (patent, goodwill). Assets may
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balking
When customers will not join a queue when they learn how long it is. See: reneging.B
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blocking
The condition requiring a work center that has parts to process to remain idle as long as the queue to which the parts would be sent is full or kanbans authorizing production are not present.B
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Box-Jenkins model
A forecasting method based on regression and moving average models. The model is based not on regression of independent variables, but on past observations of the item to be forecast at varying time lags and on previous error values from forecasting. See: forecast.B
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aggregate planning
A process to develop tactical plans to support the organization’s business plan. Aggregate planning usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist: (1) production planning and (2) sales and operations planning. See: production planning, sales and operations planning, sales plan.A
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automatic identification system (AIS)
A system that can use various means, including bar code scanning and radio frequencies, to sense and load data in a computer.A
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bias
A consistent deviation from the mean in one direction (high or low). A normal property of a good forecast is that it is not biased. See: average forecast error.B
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batch card
A document used in the process industries to authorize and control the production of a quantity of material. Batch cards usually contain quantities and lot B numbers of ingredients to be used, processing variables, pack-out instructions, and product disposition. See: assembly parts list, batch sheet, blend formula, fabrication order, manufacturing order, mix ticket.B
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ANOVA
Acronym for analysis of variance.A
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bid pricing
Offering a specific price for each job rather than setting a standard price that applies for all customers.B
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ASC
Abbreviation for accredited standards committee.A
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AOQL
1) Abbreviation for average outgoing quality limit. 2) Abbreviation for acceptable outgoing quality level.A
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bucketed system
An MRP, DRP, or other time-phased system in which all time-phased data are accumulated into time periods called buckets. If the period of accumulation is one week, then the system is said to have weekly buckets.B
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apparent authority
Authority perceived by a third party to flow from a principal to an ostensible agent when in fact no agency relationship exists.A
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automatic relief
A set of inventory bookkeeping methods that automatically adjusts computerized inventory records based on a production transaction. Examples of automatic relief methods are backflushing, directdeduct, and pre-deduct processing.A
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AON
Abbreviation for activity-on-node network.A
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budgeted cost of work scheduled
In project management, this term has been replaced with the term planned value.B
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build cycle
The time period between a major setup and a cleanup. It recognizes cyclical scheduling of similar products with minor changes from one product/model to another.B
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anticipated delay report
A report, normally issued by both manufacturing and purchasing to the material planning function, regarding jobs or purchase orders that will not be completed on time. This report explains why the jobs or purchases are delayed and when they will be completed. This report is an essential ingredient of the closed-loop MRP system. It is normally a handwritten report. Syn: delay report.A
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available capacity
Syn: capacity available.A
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automation
The substitution of machine work for human physical and mental work, or the use of machines for work not otherwise able to be accomplished, entailing a less continuous interaction with humans than previous equipment used for similar tasks.A
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average collection period
Syn: receivables conversion period.A
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beta release
A version of a product sent to certain customers prior to general release in order to receive feedback on product performance.B
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annualized contract
A negotiated agreement with a supplier for one year that sets pricing, helps ensure a continuous supply of material, and provides the supplier with estimated future requirements.A
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backward pass
In the critical path method of project planning, working from the finish node backward through the network logic to the start node to determine the various late start dates and late finish dates. See: critical path method, forward pass.B
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blanket order release
A message that is used to release a quantity from a blanket order.B
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business unit
A division or segment of an organization generally treated as a separate profit-and-loss center.B
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back room
In service operations, the part of the operation that is completed without direct customer contact. Many service operations contain both back room and front room operations. See: front room.B
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aggregate lead time
Syn: cumulative lead time.A
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additive manufacturing
Syn: 3D printing.A
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activity-based planning (ABP)
In activity-based cost accounting, a continuing definition of activity and resource requirements (for both financial and operational systems) based on future demand for products or services by specific customer needs. Demand for resources is related to resource availability; capacity overages and shortfalls are corrected. Activity-based budgeting derives from the outputs of ABP.A
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awareness efficiency
In e-commerce, a measurement of how well an organization informs people who have access to the web that the organization’s website exists.A B
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boilerplate
The standard terms and conditions on a purchase order or other document.B
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bottom-up estimating
A method of estimation that involves disaggregating a piece of work into components, estimating each component requirement, and adding the resulting times and/or costs to arrive at the estimate for the whole.B
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allowable cost
A reasonable cost specifically permitted under Federal Acquisition Regulation (FAR) requirements.A
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appraisal
1) An evaluation of employee performance. 2) In total quality management, the formal evaluation and audit of quality.A
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actual duration
The difference between the actual start date of a project activity and the current date (if the activity is still in progress) or the difference between the actual start date of a project activity and the actual completion date (if the activity is completed).A
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ABC frequency of access
A warehouse location that is determined by both a product’s ABC classification and by the frequency with which it is removed or replaced.A
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advertising
Sponsored promotions that are nonpersonal in nature.A
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assembly order
A manufacturing order to an assembly department authorizing it to put components together into an assembly. See: blend order.A
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bona fide
Latin for “in good faith.”B
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to become virtual organizations
reducing costs, improving quality, reducing delivery lead time, and improving due-date performance.B
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algorithm
A prescribed set of well-defined rules or processes for solving a problem in a finite number of steps (e.g., the full statement of the arithmetic procedure for calculating the reorder point).A
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associative forecasting
Uses one or more variables that are believed to affect demand in order to forecast future demand.A
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absentee policy
The policy that discusses allowed job absences and the penalties from too many absences.A
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arrow diagram
A technique to determine the relationships and precedence of different activities and the time estimate for project completion. The technique is useful in identifying potential problems and improvement opportunities.A
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aggregation
The concept that pooling random variables reduces the relative variance of the resulting aggregated variable. For example, the relative variance in sales of all models of automobiles sold by a firm is less than that for a single model.A
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aggregate reporting
1) Reporting of process hours in general, allowing the system to assign the actual hours to specific products run during the period based on standards. 2) Also known as gang reporting, the reporting of total labor hours.A
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arrival date
The date purchased material is due to arrive at the receiving site. The arrival date can be input, it can be equal to the current due date, or it can be calculated from the ship date plus transit time. See: due date.A
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ANSI
Acronym for American National Standards Institute.A
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assignable variation
Variation made by one or more causes that can be identified and removed. See: assignable cause, common causes.A
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activity identifier
A unique alphanumeric code that differentiates one project activity from other activities.A
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attrition factor
The budget fraction apportioned for replacement personnel training because of projected personnel losses (retirements, promotions, and terminations).A
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activity-based budgeting (ABB)
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
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balance of trade
A plus or minus amount found by comparing a country’s exports of merchandise to its imports.B
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Bayesian analysis
Statistical analysis where uncertainty is incorporated, using all available information to choose among a number of alternative decisions.B
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alternate operation
Replacement for a normal step in the manufacturing process. Ant: primary operation.A
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business process management (BPM)
A business discipline or function that uses business practices, techniques, and methods to create and improve business processes. BPM is a holistic approach to the use of appropriate process-related business disciplines to gain business performance improvements across the enterprise or supply chain. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Most process improvement disciplines or activities can be considered as BPM.B
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accreditation
Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 Series Standards.A
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absentee rate
A ratio comparing the number of employee-days lost with the total number of available employee-days of employment during some base period, usually one month.A
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average cost system
In cost accounting, a method of inventory valuation for accounting purposes. A weighted average (based on quantity) of item cost is used to determine the cost of goods sold (income statement) and inventory valuation (balance sheet). Average cost provides a valuation between last-in, first-out and first-in, first-out methods. See: first in, first out; last in, first out.A
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bar code
A series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers. A bar code is used to facilibar B tate timely and accurate input of data to a computer system.B
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budgeted capacity
The volume/mix of throughput on which financial budgets were set and overhead/burden absorption rates established.B
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anti-dumping duty
An imposed responsibility in which a company sells imported goods at prices below what is charged in their domestic market.A
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acceptable outgoing quality level (AOQL)
A demarcation between the level of defects in a lot at which the lot will be accepted or rejected.A
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assignee
One who receives a transfer of contract rights from a party to the contract.A
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authorized deviation
Permission for a supplier or the plant to manufacture an item that is not in conformance with the applicable drawings or specifications.A
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actual demand
Actual demand is composed of customer orders (and often allocations of items, ingredients, or raw materials to production or distribution). Actual demand nets against or “consumes” the forecast, depending upon the rules chosen over a time horizon. For example, actual demand will totally replace forecast inside the sold-out customer order backlog horizon (often called the demand time fence) but will net against the forecast outside this horizon based on the chosen forecast consumption rule.A
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active data gathering
Data gathered when a company initiates conversation with the customer.A
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AIS
Abbreviation for automated information system.A
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break-bulk
Dividing truckloads of homogeneous items into smaller, more appropriate quantities for use.B
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assembly chart
Overview of a product containing assembly and subassembly operations, materials, and components.A A
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allowance
1) In work measurement, a time value or percentage of time by which the normal time is increased, or the amount of nonproductive time applied, to compensate for justifiable causes or policy requirements that necessitate performance time not directly measured for each element or task. Usually includes irregular elements, incentive opportunity on machinecontrolled time, minor unavoidable delays, rest time to overcome fatigue, and time for personal needs. 2) In assembly, the minimum clearance or maximum interference distance between two adjacent objects.A
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batch processing
1) A manufacturing technique in which parts are accumulated and processed together in a lot. 2) A computer technique in which transactions are accumulated and processed together or in a lot. Syn: batch production.B
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assays
Tests of the physical and chemical properties of a sample.A
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agent
One who acts on behalf of another (the principal) in dealing with a third party. Examples include a sales agent and a purchasing agent.A
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accounting
The function of maintaining, analyzing, and explaining the financial records and status of an organization.A
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brand loyalty
The tendency of some consumers to stay with a preferred product in spite of a competitor’s advantages.B
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adjudicate
To hear and decide an issue under legal dispute.A
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baseload demand
Syn: base demand.B
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administrative contracting officer
A government employee who ensures compliance with the terms and conditions of contracts.A
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bin transfer
An inventory transaction to move a quantity from one valid location (bin) to another valid location (bin).B B
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blueprint
In engineering, a line drawing showing the physical characteristics of a part.B
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active inventory
The raw materials, work in process, and finished goods that will be used or sold within a given period.A
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blocking bug
A defect that prevents a thorough investigation as to the cause, or that prevents shipment of a product.B
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acid test
Syn: quick asset ratio.A
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business process
A set of logically related tasks or activities performed to achieve a defined business outcome.B
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activity driver
In activity-based cost accounting, a yardstick of demands placed on an activity by given cost objects. Its purpose is to assign activity costs to cost objects.A
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batch bill of materials
A recipe or formula in which the statement of quantity per is based on the standard batch quantity of the parent. Syn: batch formula.B
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actual costs
The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.A
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arrow
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
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base series
A standard succession of values of demand-over-time data used in forecasting seasonal items. This series of factors is usually based on the relative level of demand during the corresponding period of previous years. The average value of the base series over a seasonal cycle will be 1.0. A figure higher than 1.0 indicates that the demand for that period is more than the average; a figure less than 1.0 indicates less than the average. For forecasting purposes, the base series is superimposed upon the average demand and trend in demand for the item in question. Syn: base index. See: seasonal index, seasonality.B
APICS
brand name
A word or combination of words used to identify a product and differentiate it from other prodbrand B ucts; the verbal part of a trademark, in contrast to the pictorial mark; a trademark word.B
APICS
automated flow line
A production line that has machines linked by automated parts transfer and handling machines.A
APICS
attachment
An accessory that has to be physically attached to the product. See: feature.A
APICS
bond (performance)
A guarantee of satisfactory work completion that is executed in connection with a contract and that secures the performance and fulfillment of all the undertakings, covenants, terms, conditions, and agreements contained in the contract.B
APICS
budget
A plan that includes an estimate of future costs and revenues related to expected activities. The budget serves as a pattern for and a control over future operations.B
APICS
activation
Putting a resource to work.A
APICS
A3 method
A means of compactly describing a business process.A
APICS
bubble chart
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
APICS
American National Standards Institute (ANSI)
The parent organization of the interindustry electronic interchange of the business transaction standard. This group is the clearinghouse on U.S. electronic data interchange standards.A
APICS
beta distribution
A type of probability distribution often used to model activity times.B
APICS
brainstorming
A technique that teams use to generate ideas on a particular subject. Each person on the team is asked to think creatively and write down as many ideas as possible. The ideas are not discussed or reviewed until after the brainstorming session.B
APICS
ASN
Abbreviation for advance ship notice.A
APICS
alliance development
Strengthening the capabilities of a key supplier.A
APICS
activity list
A record of planned activities in a project, including an activity description and an activity identifier.A
APICS
batch
1) A quantity scheduled to be produced or in production. See: process batch, transfer batch. 2) For discrete products, the batch is planned to be the standard batch quantity, but during production, the standard batch quantity may be broken into smaller lots. See: lot. 3) In nondiscrete products, the batch is a quantity that is planned to be produced in a given time period based on a formula or recipe that often is developed to produce a given number of end items. 4) A type of manufacturing process used to produce items with similar designs and that may cover a wide range of order volumes. Typically, items ordered are of a repeat nature, and production may be for a specific customer order or for stock replenishment. See: project manufacturing.B
APICS
analyze phase
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
APICS
automated quality control inspection system
A system that employs machines to help inspect products for quality control.A
APICS
business-to-consumer sales (B2C)
Business being conducted between businesses and final consumers largely over the internet. It includes traditional brick and mortar businesses that also offer products online and businesses that trade exclusively electronically.B
APICS
backlog
All the customer orders received but not yet shipped. Sometimes referred to as open orders or the order board. See: order backlog, past due order.B
APICS
automated clearinghouse
A U.S. nationwide system for electronic payments preferred by a myriad of banks, consumers, and corporations. This system can carry payment information in a standardized, computer accessible format.A
APICS
business process outsourcing
Contracting with third parties to perform non-core activities within a business. Functions often outsourced include human resources, accounts receivable, accounts payable, and payroll.B
APICS
balancing operations
In repetitive just-in-time production, matching actual output cycle times of all operations to the demand or use for parts as required by final assembly and, eventually, as required by the market.B
APICS
actual start date
In project management, the date on which an activity in a project was actually started.A
APICS
agility
The ability to successfully manufacture and market a broad range of low-cost, high-quality products and services with short lead times and varying volumes that provide enhanced value to customers through cusAGVS ● analog A tomization. Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility.A
APICS
arrival rate
In queuing theory, the value or distribution describing how often a person or thing arrives for service.A
APICS
business planning
The process of constructing the business plan. See: business plan.B
APICS
attractor
In information systems, a website that, over time, continues to attract a large number of visitors.A
APICS
activity code
In project management, a value that allows filtering or ordering of activities in reports.A
APICS
activity-on-node network (AON)
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
APICS
aggregate inventory management
Establishing the overall level (dollar value) of inventory desired and implementing controls to achieve this goal.A
APICS
broadcast system
A sequence of specific units to be assembled and completed at a given rate. This sequence is communicated to supply and assembly activities to perform operations and position material so that it merges with the correct assembled unit.B
APICS
backward scheduling
Syn: back scheduling.B
APICS
APICS
Founded in 1957 as the American Production Operations Management builds operations management excellence in individuals and enterprises through superior education and training, internationally recognized certifications, comprehensive resources, and a worldwide network of accomplished industry professionals.A
APICS
base demand
The percentage of a company’s demand that derives from continuing contracts and/or existing customers. Because this demand is well known and recurring, it becomes the basis of management’s plans. Syn: baseload demand.B
APICS
block control
Control of the production process in groups, or “blocks,” of shop orders for products undergoing the same basic processes.B
APICS
actual volume
Actual output expressed as a volume of capacity. It is used in the calculation of variances when compared with demonstrated capacity (practical capacity) or budgeted capacity.A
APICS
authentication
In information systems, the act of identifying a person or confirming the source of a message.A
APICS
amortization
The process of recovering (via expensing) a capital investment over a period of time. See: capital recovery.A
APICS
Baldrige-qualified
A designation claimed by companies that have been granted a site visit by the Malcolm Baldrige National Quality Award examiners.B
APICS
average variable cost
The ratio of total variable costs over units produced.A
APICS
barrier to entry
Factors that prevent companies from entering into a particular market, such as high initial investment in equipment.B
APICS
bill of batches
A method of tracking the specific multilevel batch composition of a manufactured item. The bill of batches provides the necessary where-used and where-from relationships required for lot traceability.B
APICS
average chart
A control chart in which the subgroup average, X-bar, is used to evaluate the stability of the process level. Syn: X-bar chart.A
APICS
bar coding
A method of encoding data using bar code for fast and accurate readability.B
APICS
bond
A long-term debt of a firm.B
APICS
best practices
In benchmarking, the measurement or performance standard by which similar items are evaluated. Defining a best practice identifies opportunities to improve effectiveness. The process of comparing an actual result to a best practice may be applied to resources, activities, or cost objects.B
APICS
business market
Syn: industrial market.B
APICS
aggregate plan
A plan that includes budgeted levels of finished goods, inventory, production backlogs, and changes in the workforce to support the production strategy. Aggregated information (e.g., product line, family) rather than product information is used, hence the name aggregate plan.A
APICS
application system
A set of programs of specific instructions for processing activities needed to compute specific tasks for computer users, as opposed to operating systems that control the computer’s internal operations. Examples are payroll, spreadsheets, and word processing programs. See: application software.A
APICS
allowed time
A normal time value increased by appropriate allowances.A
APICS
receivable, and inventory
or a long-term value (such as equipment, land, and buildings). See: balance sheet, liabilities, owner’s equity.A
APICS
abandonment
Giving up a route by a carrier. For example, a railroad.A
APICS
business plan
1) A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow (source and application of funds) statement. A business plan is usually stated in terms of dollars and grouped by product family. The business plan is then translated into synchronized tactical functional plans through the production planning process (or the sales and operations planning process). Although frequently C stated in different terms (dollars versus units), these tactical plans should agree with each other and with the business plan. See: long-term planning, strategic plan. 2) A document consisting of the business details (organization, strategy, and financing tactics) prepared by an entrepreneur to plan for a new business.B
APICS
accountability
Being answerable for, but not necessarily personally charged with, doing the work. Accountability cannot be delegated, but it can be shared.A
APICS
annuity
A stream of fixed payments for a stipulated time, yearly or at other intervals.A
APICS
blue sky
Goodwill associated with the acquisition of a company asset.B
APICS
acceptable sampling plan
A specific plan that indicates the sampling sizes and the associated acceptance or nonacceptance criteria to be used.A
APICS
accelerated depreciation
A depreciation method involving high write-offs in the early years of an asset’s life and lower write-offs later. This method lowers the value of an asset faster than straight-line depreciation.A
APICS
activity ratio
A financial ratio to determine how an organization’s resources perform relative to the revenue the resources produce. Activity ratios include inventory turnover, receivables conversion period, fixed-asset turnover, and return on assets.A
APICS
available work
Work that is actually in a department ready to be worked on as opposed to scheduled work that may not yet be physically on hand. Syn: live load.A
APICS
audit
An objective comparison of actions to policies and plans.A
APICS
backsourcing
Company processes that, previously handled externally, have been reassigned internally.B
APICS
APR
Abbreviation for annual percentage rate.A
APICS
assembly line
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
APICS
autonomation
Automated shutdown of a line, process, or machine upon detection of an abnormality or defect.A
APICS
bulk issue
Parts issued from stores to work-in-process inventory, but not based on a job order. They are issued in quantities estimated to cover requirements of individual work centers and production lines. The issue may be used to cover a period of time or to fill a fixed-size container.B
APICS
bill-of-material structuring
The process of organizing bills of material to perform specific functions.B
APICS
activity-based cost accounting
A cost accounting system that accumulates costs based on activities performed and then uses cost drivers to allocate these costs to products or other bases, such as customers, markets, or projects. It is an attempt to allocate overhead costs on a more realistic basis than direct labor or machine hours. Syn: activity-based costing, activitybased cost accounting. See: absorption costing.A
APICS
arithmetic mean
Syn: mean.A
APICS
baseline measures
A set of measurements (or metrics) that seeks to establish the current or starting level of performance of a process, function, product, firm, and so on. Baseline measures are usually established before implementing improvement activities and programs.B
APICS
blocked operations
A group of operations identified separately for instructions and documentation but reported as one.B
APICS
adaptive website
In e-commerce, a site that records a visitor’s behavior, uses artificial intelligence software to “learn” this behavior, and chooses what to present to the visitor based on this learning.A
APICS
arbitration
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
APICS
backup support
An alternate location or maintainer that can provide the same service response or support as the primary location or maintainer.B
APICS
BAC
Acronym for budget at completion.B
APICS
blockage
See: blocking.B
APICS
advance ship notice (ASN)
An electronic data interchange (EDI) notification of shipment of product.A
APICS
acceptance plan
How an organization determines which product lots to accept or reject based on samples. See: acceptance sampling.A
APICS
bill of distribution
Syn: distribution network structure.B
APICS
acid test ratio
Syn: quick asset ratio.A
APICS
body of knowledge
The knowledge in a given area that a person is expected to understand to be certified as a practitioner.B
APICS
analytic workplace design
A design based on established biomechanical and behavioral concepts, including the known operating characteristics of people. Produces a workplace situation well within the range of human capacity and does not generally require modification, improvement, or preliminary experimental “mock-up.”A
APICS
ABB
Abbreviation for activity-based budgeting.A
APICS
bill of labor
A structured listing of all labor requirements for the fabrication, assembly, and testing of a parent item. See: bill of resources, capacity bill procedure, routing.B
APICS
batch picking
A method of picking orders in which order requirements are aggregated by product across orders to reduce movement to and from product locations. The aggregated quantities of each product are then transported to a common area where the individual orders are constructed. See: discrete order picking, order picking, zone picking.B
APICS
advanced production system (APS)
Syn: advanced planning and scheduling.A
APICS
average fixed cost
The total fixed cost divided by units produced. This value declines as output increases.A
APICS
blocked operation
An upstream work center that is not permitted to produce because of a full queue at a downstream work center or because no kanban authorizes production.B
APICS
attribute inspection
Inspection for a go/no-go decision or yes/no decision or to count the number of defects on a unit. See: attribute, attribute data.A
APICS
bid proposal
The response to the written request from a potential customer asking for the submission of a quotation or proposal to provide goods or services. The bid proposal is in response to a request for proposal (RFP) or request for quote (RFQ).B
APICS
affidavit
A sworn written statement.A
APICS
available inventory
The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called beginning available balance. Syn: beginning available balance, net inventory.A
APICS
beta test
A term used to describe the pilot evaluation of a good or service (i.e., “the second evaluation”).B
APICS
accounts payable
The value of goods and services acquired for which payment has not yet been made.A
APICS
backflush costing
The application of costs based on the output of a process. Backflush costing is usually associated with repetitive manufacturing environments.B
APICS
breadman
In kanban, an arrangement in which the customer does not specify the quantity to be delivered on a specific basis, but instead gives the supplier a set of guidelines. The delivery person determines the quantity according to these rules.B
APICS
balancing the line
In repetitive manufacturing, regulating the assignments given to each workstation in order to ensure that all tasks at each workstation on the line are done in as close to the same time as possible.B
APICS
ABM
Abbreviation for activity-based management.A
APICS
AS/RS
Abbreviation for automated storage/retrieval system.A
APICS
bill-of-material processor
A computer program for maintaining and retrieving bill-of-material information.B
APICS
bundle
One or more unassembled items shipped together as a set of items.B
APICS
alpha release
An extremely early version of a product released to obtain feedback about its suitability.A
APICS
block scheduling
An operation scheduling technique where each operation is allowed a “block” of time, such as a day or a week.B
APICS
accident prevention
The application of basic scientific
APICS
acceptance number
1) A number used in acceptance sampling as a cutoff at which the lot will be accepted or rejected. For example, if x or more units are bad within the sample, the lot will be rejected. 2) The value of the test statistic that divides all possible values into acceptance and rejection regions.A
APICS
agglomeration
Having a common location with a variety of other companies.A
APICS
adaptive control
1) The ability of a control system to change its own parameters in response to a measured change in operating conditions. 2) Machine control units in which feeds and/or speeds are not fixed. The control unit, working from feedback sensors, is able to optimize favorable situations by automatically increasing or decreasing the machining parameters. This process ensures optimum tool life or surface finish and/or machining costs or production rates.A
APICS
backorder
An unfilled customer order or commitment. A backorder is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand. See: stockout.B B
APICS
batch formula
Syn: batch bill of materials.B
APICS
ABP
Abbreviation for activity-based planning.A
APICS
branch and bound
Operations research models for determining optimal solutions based on the enumeration of subsets of possible solutions, which implicitly enumerate all possible solutions.B
APICS
anticipation inventories
Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations.A
APICS
adjustable capacity
Capacity, such as labor or tools, that can be changed in the short term.A
APICS
activity sequencing
The process of defining and documenting dependencies among project activities.A
APICS
branch warehouse
Syn: distribution center.B
APICS
big Q, little q
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
APICS
bid evaluation
A comparison of supplier quotes for a product based on price, quality, lead time, delivery performance, and other criteria and, based on that comparison, selecting a supplier.B
APICS
allocated item
In an MRP system, an item for which a picking order has been released to the stockroom but not yet sent from the stockroom.A
APICS
audit trail
Tracing the transactions affecting the contents or origin of a record.A
APICS
base point pricing
A type of geographic pricing policy where customers order from designated shipping points without freight charges if they are located within a specified distance from the base point. Customers outside area boundaries pay base price plus transportation costs from the nearest base point.B
APICS
ABC
Abbreviation for activity-based cost accounting.A
APICS
AD&D
Abbreviation for accidental death and disability.A
APICS
bill of lading (uniform)
A carrier’s contract and receipt for goods the carrier agrees to transport from one place to another and to deliver to a designated person. In case of loss, damage, or delay, the bill of lading is the basis for filing freight claims.B
APICS
build-up forecasts
A qualitative forecasting technique in which individuals who are familiar with specific market segments estimate the demand within these segments. The overall forecast then is obtained by calculating the sum of the forecasts for these segments.B
APICS
AIDC
Abbreviation for automatic identification and data capture.A
APICS
autonomous work group
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
APICS
backhauling
The process of a transportation vehicle returning from the original destination point to the point of origin. The 1980 Motor Carrier Act deregulated interstate commercial trucking and thereby allowed carriers to contract for the return trip. The backhaul can be with a full, partial, or empty load. An empty backhaul is called deadheading. See: deadhead.B
APICS
attribute
1) Quality control value that is either a yes/no value or is counted rather than being measured on a continuous scale. See: variable, attribute data. 2) A description of an item or service that specifies either a presence or an absence, such as “on-time” versus “late.”A
APICS
blending department
In process industries, the name of the department where the ingredients are mixed. See: final assembly department.B
APICS
Boolean algebra
A form of algebra that, like ordinary algebra, represents relationships and properties with symbols. However, Boolean algebra also has classes, propositions, on-off circuit elements, and operators (and, or, not, except, if, then). Boolean algebra is useful in defining the logic of a complex system.B
APICS
blanket routing
A routing that lists groups of operations needed to produce a family of items. The items may have small differences in size, but they use the same sequence of operations. Specific times or tools for each individual item can be included.B
APICS
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
APICS
book inventory
An accounting definition of inventory units or value obtained from perpetual inventory records rather than by actual count.B
APICS
average forecast error
1) The arithmetic mean of the forecast errors. 2) The exponentially smoothed forecast error. See: bias, forecast error.A
APICS
activity resource estimating
Estimating the types and amounts of resources that will be needed for various project activities.A
APICS
burden rate
A cost, usually in dollars per hour, that is normally added to the cost of every standard production hour to cover overhead expenses.B
APICS
(ASCII)
Standard seven-bit character code used by computer manufacturers to represent 128 characters for information interchange among data processing systems, communications systems, and other information system equipment. An eighth bit is added as a parity bit to check a string of ASCII characters for correct transmission.A
APICS
appreciation of a currency
An increase in the buying power of a country’s currency in terms of other countries’ goods and services.A
APICS
accept
The receipt of an item as being complete and sound.A
APICS
balance-of-stores record
A double-entry record system that shows the balance of inventory items on hand and the balances of items on order and available for future orders. Where a reserve system of materials control is used, the balance of material on reserve is also shown.B
APICS
business judgment rule
Under common law, an absence of liability for corporate directors and officers if they have used rational business judgment and have no conflict of interest.B
APICS
baseband coax
A coaxial cable offering a single channel for text, voice, or video transmission.B
APICS
agency tariff
Rates for a variety of carriers published in a single document.A
APICS
break-even point
The level of production or the volume of sales at which operations are neither profitable nor unprofitable. The break-even point is the intersection of the total revenue and total cost curves. See: total cost curve.B
APICS
aggregate production plan (APP)
A long-range plan that is used to determine timing and quantity of total future production for a family of products. Syn: long-term production plan.A
APICS
bin tag
1) A type of perpetual inventory record, designed for storekeeping purposes, maintained at the storage area for each inventory item. 2) An identifying marking on a storage location.B
APICS
bottom-up replanning
In MRP, the process of using pegging data to solve material availability or other problems. This process is accomplished by the planner (not the computer system), who evaluates the effects of possible solutions. Potential solutions include compressing lead time, cutting order quantity, substituting material, and changing the master schedule.B
APICS
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
APICS
balanced scorecard
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
APICS
bleeding edge
An innovative process that may be unusual enough to pose a risk to the customer or client.B
APICS
acclimatization
The physiological, emotional, and behavioral adjustment to changes in the environment. Proper performance depends on adequate acclimatization to the workplace, including significant mechanical features such as seat height and lighting. Heat, cold, humidity, and light are important physiologically.A
APICS
arrival
In queuing theory, a unit that arrives for service, such as a person or part.A
APICS
backroom costs
Indirect costs for operations that do not add direct value to a product and may or may not be necessary to support its production.B
APICS
business cycle
A period of time marked by long-term fluctuations in the total level of economic activity. Measures of business cycle activity include the rate of unemployment and the level of gross domestic product.B
APICS
ASP
Abbreviation for application service provider.A
APICS
business intelligence
Information collected by an organization on customers, competitors, products or services, and processes. Business intelligence provides organizational data in such a way that the organizational knowledge filters can easily associate with this data and turn it into information for the organization. Persons involved in business intelligence processes may use application software and other technologies to gather, store, analyze, and provide access to data, and present that data in a simple, useful manner. The software aids in business performance management and aims to help consumers make better business decisions by offering them accurate, current, and relevant information. Some businesses use data warehouses because they are a logical collection of information gathered from various operational databases for the purpose of creating business intelligence.B
APICS
bespoke
A custom-made product or service. The term originally was applied to clothing, but now applies to software as well.B
APICS
bar graph
A graphical method of displaying data by grouping observations into specific clusters.B
APICS
base inventory level
The inventory level made up of aggregate lot-size inventory plus the aggregate safety stock inventory. It does not take into account the anticipation inventory that will result from the production plan. The base inventory level should be known before the production plan is made. Syn: basic stock. See: aggregate inventory.B
APICS
andon
A sign board with signal lights used to make workers and management aware of a quality, quality, or process problem.A
APICS
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
APICS
acknowledgment
A communication by a supplier to advise a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier.A
APICS
balance
1) The act of evenly distributing the work elements between the two hands performing an operation. 2) The state of having approximately equal working times among the various operations in a process, or the stations on an assembly line. See: balance delay.B
APICS
bandwidth
In telecommunications, a measurement of how much data can be moved along a communications channel per unit of time, usually measured in bits per second.B
APICS
annual physical inventory
Syn: physical inventory.A
APICS
bullwhip effect
An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain. Inventory can quickly move from being backordered to being excess. This is caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving product down the chain. The bullwhip effect can be eliminated by synchronizing the supply chain.B
APICS
accessorial charges
A bill for services, such as inside deliveries, which are made in addition to transportation charges.A
APICS
activity-on-arc network
Syn: activity-on-arrow network.A
APICS
AQL
Abbreviation for acceptable quality level.A
APICS
application-to-application
The exchange of data between computers without reentry of data.A A
APICS
activity-based management (ABM)
The use of activitybased costing information about cost pools and drivers, activity analysis, and business processes to identify business strategies; improve product design, manufacturing, and distribution; and remove waste from operations. See: activity-based cost accounting.A
APICS
appraisal costs
Those costs associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time.A
APICS
aggregate unit of capacity
Combined capacity unit of measure when a variety of outputs exist.A
APICS
average total cost
The ratio of total costs (the sum of total fixed costs and total variable costs) over units produced.A
APICS
blend order
A manufacturing order to a blending department authorizing it to mix the ingredients of a product. See: assembly order.B
APICS
acquisition cost
The cost required to obtain one or more units of an item. It is order quantity times unit cost. See: ordering cost.A
APICS
bill of resources
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
APICS
arbitrage
Risk-free buying of an asset in one market and simultaneous selling of an identical asset at a profit in another market.A
APICS
APP
Abbreviation for aggregate production plan.A
APICS
balance delay
1) The idle time of one hand in an operation caused by uneven workload balancing. 2) The idle time of one or more operations in a series caused by uneven workload balancing. See: balance, lost time factor.B
APICS
bottleneck operation
Syn: bottleneck.B
APICS
asset value
The adjusted purchase price of the asset plus any costs necessary to prepare the asset for use.A
APICS
activity definition
The specific work to be performed that defines a project deliverable.A
APICS
blanket purchase order
A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. Often blanket orders cover only one item with predetermined delivery dates. Syn: blanket order, standing order.B
APICS
break-even chart
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
APICS
balance sheet
A financial statement showing the resources owned, the debts owed, and the owner’s share of a company at a given point in time. See: funds flow statement, income statement.B
APICS
break-even time
The total elapsed time of a technology transfer beginning with a scientific investigation and ending when the profits from a new product offset the cost of its development.B
APICS
auxiliary item
An item required to support the operation of another item.A
APICS
tended to be limited
they only had to meet the demands of human users entering and retrieving data. With the emergence of e-commerce and internet search engines, database technology is evolving to manage humans and computers. Today, with the amount of data growing by 50 percent each year, it is information technology that is capable of managing, processing, and finding value.B
APICS
bilateral contract
An agreement wherein each party makes a promise to the other party.B
APICS
analog
As applied to an electrical or computer system, the capability of representing data in continuously varying physical phenomena (as in a voltmeter) and converting them into numbers.A A
APICS
agile manufacturing
The ability to respond quickly to unpredictable changes in customer needs by reconfiguring operations.A
APICS
assured source of supply
A guaranteed supply source generally created by a contract.A
APICS
block system
A system for selecting items to be cycle counted by a group or block of numbers.B
APICS
batch production
Syn: batch processing.B
APICS
authentication key
In information systems, a key that ensures that data in an electronic business transaction A are not changed. It can also be used as a form of digital signature.A
APICS
burn rate
The rate at which a company consumes cash. It can be used to determine when more cash must be raised.B
APICS
BPM
Abbreviation for business process management.B
APICS
accumulation bin
A place, usually a physical location, used to accumulate all components that go into an assembly before the assembly is sent out to the assembly floor. Syn: assembly bin.A
APICS
bill-back
A penalty given to the supplier because a late delivery or poor quality resulted in extra costs.B
APICS
capacity
traditionally in only factory products and processes (little q).B
APICS
bill of activities
In activity-based cost accounting, a summary of activities needed by a product or other cost object. The bill of activities includes volume and cost of each activity.B
APICS
bracketed recall
Recall from customers of suspect lot numbers plus a specified number of lots produced before and after the suspect ones.B
APICS
actual finish date
In project management, the date on which an activity in a project was actually completed.A
APICS
avoidable cost
A cost associated with an activity that would not be incurred if the activity was not performed (e.g., telephone cost associated with vendor support).A
APICS
Term
Definition
APICS
accessibility
1) In transportation, the facility with which a carrier provides service from one point to another. 2) In warehousing, the ability to get to and within the point of storage easily.A
APICS
activity-on-arrow network (AOA)
A project management network in which the passage of time, via activities, takes place on the arrows. The start of an activity is represented by the tail of the arrow, while the completion of the activity is represented by the tip of the arrow. The sequence of the arrows represents the sequence of activities. Arrows are connected by nodes, which are usually circles. Syn: activity-on-arc network, arrow diagram method, event-on-arrow network.A
APICS
bad-debt loan ratio
In financial management, the fraction of accounts receivable that is never recovered.B
APICS
AOQ
Abbreviation for average outgoing quality.A
APICS
benchmark measures
A set of measurements (or metrics) that is used to establish goals for improvements in processes, functions, products, and so on. Benchmark measures are often derived from other firms that display best-in-class achievement.B
APICS
branch warehouse demand
Syn: warehouse demand.B
APICS
activity network diagram
One of the seven new tools of quality. A drawing including nodes that represent operations to be performed and arrows representing precedence relationships. This drawing represents all of the activities to be finished to complete a project. Also known as a critical path diagram or PERT chart.A
APICS
baseline
In project management, the approved timephased plan for the schedule or cost of a piece of work, including approved changes.B
APICS
assembly lead time
The time that normally elapses between the issuance of a work order to the assembly floor and work completion.A
APICS
bin reserve system
Syn: two-bin inventory system.B
APICS
average inventory
One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time. The average can be calculated as an average of several inventory observations taken over several historical time periods; for example, 12-month ending inventories may be averaged. When demand and lot sizes are not uniform, the stock level versus time can be graphed to determine the average.A
APICS
adaptive smoothing
A form of exponential smoothing in which the smoothing constant is automatically adjusted as a function of forecast error measurement.A
APICS
big data
A collection of data and technology that accesses, integrates, and reports all available data by filbig B tering, correlating, and reporting insights not attainable with past data technologies. It describes data processing beyond the human scale. In the past, databases
APICS
broadband
A coaxial cable offering several channels for text, voice, and/or video transmission.B
APICS
batch sheet
In many process industries, a document that combines product and process definition. See: batch card.B
APICS
blanket release
The authorization to ship and/or produce against a blanket agreement or contract.B
APICS
automatic rescheduling
Rescheduling done by the computer to automatically change due dates on scheduled receipts when it detects that due dates and need dates are out of phase. Ant: manual rescheduling.A
APICS
automated information system (AIS)
Computer hardware and software configured to automate calculating, computing, sequencing, storing, retrieving, displaying, communicating, or otherwise manipulating data and textual material to provide information.A
APICS
abnormal demand
Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing. Care must be taken in evaluating the nature of the demand: is it a volume change; is it a change in product mix; or is it related to the timing of the order? See: outlier.A
APICS
additives
A special class of ingredients characterized either by being used in minimal quantities or by being introduced into the processing cycle after the initial stage.A
APICS
active load
Work scheduled that may not be on hand.A
APICS
ABC classification
The classification of a group of items in decreasing order of annual dollar volume (price multiplied by projected volume) or other criteria. This array is then split into three classes, called A, B, and C. The A group usually represents 10 percent to 20 percent by number of items and 50 percent to 70 percent by projected dollar volume. The next grouping, B, usually represents about 20 percent of the items and about 20 percent of the dollar volume. The C class contains 60 percent to 70 percent of the items and represents about 10 percent to 30 percent of the dollar volume. The ABC principle states that effort and money can be saved through applying looser controls to the low-dollarvolume class items than will be applied to high-dollarvolume class items. The ABC principle is applicable to inventories, purchasing, sales, and so on. Syn: ABC analysis, distribution by value. See: 80-20, Pareto analysis, Pareto’s law.A
APICS
active tag
A radio frequency identification tag that broadcasts information and contains its own power source. See: radio frequency identification (RFID).A
APICS
artificial intelligence (AI)
1) Computer programs that can learn and reason in a manner similar to humans. The problem is defined in terms of states and operators to generate a search space that is examined for the best solution. In contrast, conventional programming collects and processes data by algorithm or fixed stepby- step procedures. 2) An area in computer science that attempts to develop AI computer programs.A
APICS
base stock system
A method of inventory control that includes, as special cases, most of the systems in practice. In this system, when an order is received for any item, it is used as a picking ticket, and duplicate copies, called replenishment orders, are sent back to all stages of production to initiate replenishment of stocks. Positive or negative orders, called base stock orders, are also used from time to time to adjust the level of the base stock of each item. In actual practice, replenishment orders are usually accumulated when they are issued and are released at regular intervals.B
APICS
bin trips
Usually, the number of transactions per stockkeeping unit per unit of time.B
APICS
blend off
In process industries, the rework of material by introducing a small percentage into another run of the same product.B
APICS
batch manufacturing
A type of manufacturing process in which sets of items are moved through the different manufacturing steps in a group or batch.B
APICS
basic stock
Syn: base inventory level.B
APICS
acceptable quality level (AQL)
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
APICS
any-quantity rate
A situation in which no quantity discount is available for large shipments.A
APICS
ABC analysis
Syn: ABC classification.A
APICS
bin
1) A storage device designed to hold small discrete parts. 2) A shelving unit with physical dividers separating the storage locations.B
APICS
advanced planning and scheduling (APS)
Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and longterm time periods. APS describes any computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-topromise, and capable-to-promise capabilities. APS often generates and evaluates multiple scenarios. Management then selects one scenario to use as the A “official plan.” The five main components of APS systems are (1) demand planning, (2) production planning, (3) production scheduling, (4) distribution planning, and (5) transportation planning.A
APICS
advanced planning system (APS)
Syn: advanced planning and scheduling.A
APICS
blanket rate
A rate that does not depend on the distance cargo is transported.B
APICS
alternate routing
A routing that is usually less preferred than the primary routing but results in an identical item. Alternate routings may be maintained in the computer or off-line via manual methods, but the computer software must be able to accept alternate routings for specific jobs.A
APICS
buffer management
In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, and assembly buffers). By expediting this material into the buffers, the system helps avoid idleness at the constraint and missed customer due dates. In addition, the causes of items missing from the buffer are identified, and the frequency of occurrence is used to prioritize improvement activities.B
APICS
bill of material (BOM)
1) A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly. It is used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released. A variety of display formats exist for bills of material, including the single-level bill of material, indented bill of material, modular (planning) bill of material, transient bill of material, matrix bill of material, and costed bill of material. 2) A list of all the materials needed to make one production run of a product, by a contract manufacturer, of piece parts/components for its customers. The bill of material may also be called the formula, recipe, or ingredients list in certain process industries.B
APICS
and technical principles
including education and training for the detection, analysis, and minimization of hazards, with the objective of avoiding accidents.A
APICS
B7
Abbreviation for the basic seven tools of quality.B
APICS
action plan
A process to obtain results identified by one or more objectives.A
APICS
aftermarket
A secondary market for parts and accessories used to repair or enhance an item.A
APICS
assignor
One who sells contract rights to a third person.A
APICS
B2C
Abbreviation for business-to-consumer sales.B
APICS
activity dictionary
In activity-based cost accounting, a set of standard definitions of activities including descriptions, business process, function source, cost drivers, and other data important to activity-based planning.A
APICS
account manager
A manager who has direct responsibility for a customer’s interest.A
APICS
ABC inventory control
An inventory control approach based on the ABC classification.A
APICS
aggregate forecast
An estimate of sales, often timephased, for a grouping of products or product families produced by a facility or firm. Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning (or for sales and operations planning) purposes. See: product group forecast.A
APICS
basic producer
A manufacturer that uses natural resources to produce materials for other manufacturing. A typical example is a steel company that processes iron ore and produces steel ingots; other examples are companies that make wood pulp, glass, and rubber.B
APICS
bench stocks
Syn: floor stocks.B
APICS
bill of operations
Syn: routing.B
APICS
affirmative action
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
APICS
AVL
Abbreviation for approved vendor list.A
APICS
brand recognition
The degree to which customers recognize a particular brand identity and associate it with a particular product line relative to other available brands.B
APICS
American customer satisfaction index
A metric cosponsored by the University of Michigan and the American Society for Quality that measures the satisfaction of U.S. customers with the goods and services available to them from both domestic and foreign origins.A
APICS
breakdown maintenance
Remedial maintenance that occurs when equipment fails and must be repaired on an emergency or priority basis. Syn: irregular maintenance, reactive maintenance.B
APICS
asynchronous process
A condition with two related processes run to finish independently of each other.A
APICS
action report
Syn: action message.A
APICS
branding
The use of a name, term, symbol, or design, or a combination of these, to identify a product.B
APICS
bid
A quotation specifically given to a prospective purchaser upon request, usually in competition with other vendors. See: quotation.B
APICS
business process reengineering (BPR)
A procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service, and speed. Any BPR activity is distinguished by its emphasis on (1) process rather than functions and products and (2) the customers for the process.B
APICS
absorption costing
An approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production. The fixed costs are usually allocated to units of output on the basis of direct labor hours, machine hours, or material costs. Syn: allocation costing. See: activity-based costing.A
APICS
brand plan
Syn: market plan.B
APICS
APS
1) Abbreviation for advanced planning and scheduling. 2) Abbreviation for advanced planning system.A
APICS
average outgoing quality limit (AOQL)
The maximum average outgoing quality over all possible levels of incoming quality for a given acceptance sampling plan and disposal specification.A
APICS
bin location file
A file that specifically identifies the location where each item in inventory is stored.B
APICS
application package
A computer program or set of programs designed for a specific application (e.g., inventory control, MRP).A
APICS
bucketless system
An MRP, DRP, or other time-phased system in which all time-phased data are processed, stored, and usually displayed using dated records rather than defined time periods (buckets).B
APICS
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
APICS
beginning available balance
Syn: available inventory.B
APICS
accuracy
The degree of freedom from error or the degree of conformity to a standard. Accuracy is different from precision. For example, four-significant-digit numbers are less precise than six-significant-digit numbers; however, a properly computed four-significant-digit number might be more accurate than an improperly computed six-significant-digit number.A
APICS
benchmarking
Comparing a company’s costs, products, and services to that of a company thought to have superior performance. The benchmark target is often a competitor but is not always a firm in the same industry. Seven types of benchmarking have been cited: (1) competitive benchmarking, (2) financial benchmarking, (3) functional benchmarking, (4) performance benchmarking, (5) process benchmarking, (6) product benchmarking, and (7) strategic benchmarking. See: competitive benchmarking, financial benchmarking, functional benchmarking, performance benchmarking, process benchmarking, product benchmarking, strategic benchmarking.B
APICS
activity-based costing system
A set of activity-based cost accounting models that collectively define data on an organization’s resources, activities, drivers, objects, and measurements.A
APICS
available time
The number of hours a work center can be used, based on management decisions regarding shift structure, extra shifts, regular overtime, observance of weekends and public holidays, shutdowns, and the like. See: capacity available, utilization.A
APICS
activity level
A description of how reactive one activity is to changes in the level of another activity or cost object.A
APICS
average cost per unit
The estimated total cost, including allocated overhead, to produce a batch of goods divided by the total number of units produced.A
APICS
break-even analysis
A study of the number of units, or amount of time, required to recoup an investment.B
APICS
application service provider (ASP)
A firm that produces outsourced services for clients.A
APICS
alpha factor
Syn: smoothing constant.A
APICS
blank check purchase order
An order with a signed blank check attached that is usually only good up to a specific amount.B
APICS
assignment
Syn: allocation.A
APICS
assemble-to-order
A production environment where a good or service can be assembled after receipt of a customer’s order. The key components (bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components. Syn: finish-to-order. See: make-to-order, make-to-stock.A
APICS
assurance
One of the dimensions of service quality. The ability of employees to inspire trust and confidence.A
APICS
activity attributes
Multiple features associated with each activity to be performed. These include predecessor activities, successor activities, and resource requirements.A
APICS
book value
The accounting value of an asset.B
APICS
aggregate demand
Demand that is grouped (e.g., all sedans) for making forecasts or plans. See: aggregate forecast.A
APICS
BOM
Abbreviation for bill of material.B
APICS
bill-of-material explosion
The process of determining component identities, quantities per assembly, and other parent/component relationship data for a parent item. Explosion may be single level, indented, or summarized.B
APICS
bottleneck
A facility, function, department, or resource whose capacity is less than the demand placed upon it. For example, a bottleneck machine or work center exists where jobs are processed at a slower rate than they are demanded. Syn: bottleneck operation.B
APICS
appellant
One who appeals a court decision to higher authority.A
APICS
alternate work center
The work center where an operation is not normally performed but can be performed. Ant: primary work center.A
APICS
autodiscrimination
The ability of a bar code reader to read several different types of symbols consecutively.A
APICS
best-in-class
An organization, often from another industry, recognized for excellence in a specific process area. See: process benchmarking.B
APICS
budgeted cost of work performed
In project management, this term has been replaced with the term earned value.B
APICS
after-sale service
Syn: field service.A
APICS
booked orders
Demand that has been confirmed. See: customer order, demand, order penetration point.B
APICS
Baldrige lite
A state or company quality award program modeled after the Malcolm Baldrige National Quality Award but with a simplified application process.B
APICS
budget at completion (BAC)
The total planned budget for a project.B
