APICS OO CSV Flashcards

Question 1

Q

APICS

assortment warehousing

Answer

A

A warehousing technique that stores the goods close to the customer to ensure short customer lead times.A

Question 2

Q

APICS

blanket order

Answer

A

Syn: blanket purchase order.B

Question 3

Q

APICS

bulk packing

Answer

A

Placing several small packages in a larger container to prevent damage or theft.B

Question 4

Q

APICS

bill of capacity

Answer

A

Syn: bill of resources.B

Question 5

Q

APICS

block stacking

Answer

A

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

Question 6

Q

APICS

allocative efficiency

Answer

A

The use of resources to produce those goods and services most wanted by consumers.A

Question 7

Q

APICS

basic seven tools of quality (B7)

Answer

A

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

Question 8

Q

APICS

bonded warehouse

Answer

A

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

Question 9

Q

APICS

banner

Answer

A

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

Question 10

Q

APICS

bounded

Answer

A

The adjustment of a shop order quantity of a parent to use the remaining units of a component, raw material, or lot.B

Question 11

Q

APICS

batch number

Answer

A

Syn: lot number.B

Question 12

Q

APICS

assignable cause

Answer

A

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

Question 13

Q

APICS

ATP

Answer

A

Abbreviation for available-to-promise.A

Question 14

Q

APICS

beginning inventory

Answer

A

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

Question 15

Q

APICS

bookings

Answer

A

The value of all sales after discounts and rebates have been applied.B

Question 16

Q

APICS

business clusters

Answer

A

When businesses locate in close proximity for competition purposes.B

Question 17

Q

APICS

AGVS

Answer

A

Abbreviation for automated guided vehicle system.A

Question 18

Q

APICS

assembly bin

Answer

A

Syn: accumulation bin.A

Question 19

Q

APICS

break-bulk warehousing

Answer

A

A form of cross-docking in which the incoming shipments are from a single source or manufacturer.B

Question 20

Q

APICS

bucket

Answer

A

A time period, usually a week.B

Question 21

Q

APICS

business strategy

Answer

A

A plan for choosing how to compete. Three generic business strategies are (1) least cost, (2) differentiation, and (3) focus.B

Question 22

Q

APICS

assembly parts list

Answer

A

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

Question 23

Q

APICS

automatic identification and data capture (AIDC)

Answer

A

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

Question 24

Q

APICS

average payment period

Answer

A

The average time between receipt of materials and payment for those materials.A

Question 25

Q

APICS

backup/restore

Answer

A

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

Question 26

Q

APICS

bulk storage

Answer

A

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

Question 27

Q

APICS

activity

Answer

A

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

Question 28

Q

APICS

aggregate inventory

Answer

A

The inventory for any grouping of items or products involving multiple stockkeeping units. See: base inventory level.A

Question 29

Q

APICS

annual inventory count

Answer

A

Syn: physical inventory.A

Question 30

Q

APICS

breeder bill of material

Answer

A

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

Question 31

Q

APICS

attribute data

Answer

A

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

Question 32

Q

APICS

allocation

Answer

A

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

Question 33

Q

APICS

award audits

Answer

A

Site visits associated with award programs such as the Malcolm Baldrige National Quality Award or similar state-sponsored award programs.A

Question 34

Q

APICS

block diagram

Answer

A

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

Question 35

Q

APICS

business service

Answer

A

The software aspect of electronic commerce. It performs activities, such as encryption, that are required to support business transactions.B

Question 36

Q

APICS

alternate part

Answer

A

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

Question 37

Q

APICS

business-to-business commerce (B2B)

Answer

A

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

Question 38

Q

APICS

baud

Answer

A

The number of bits transmitted per second.B

Question 39

Q

APICS

AI

Answer

A

Abbreviation for artificial intelligence.A

Question 40

Q

APICS

analysis of variance (ANOVA)

Answer

A

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

Question 41

Q

APICS

blend formula

Answer

A

An ingredient list for a product in process industries. See: batch card, manufacturing order, mix ticket.B

Question 42

Q

APICS

blending

Answer

A

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

Question 43

Q

APICS

acceptance sampling

Answer

A

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

Question 44

Q

APICS

arrow diagram method

Answer

A

Syn: activity-on-arrow network.A

Question 45

Q

APICS

assembly

Answer

A

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

Question 46

Q

APICS

blemish

Answer

A

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

Question 47

Q

APICS

anticipation order

Answer

A

An order placed before an item has been made available for delivery.A

Question 48

Q

APICS

applications software

Answer

A

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

Question 49

Q

APICS

alternate feedstock

Answer

A

A backup supply of an item that either acts as a substitute or is used with alternate equipment.A

Question 50

Q

APICS

automated storage/retrieval system (AS/RS)

Answer

A

A highdensity, rack inventory storage system with vehicles automatically loading and unloading the racks.A

Question 51

Q

APICS

bottom-up planning

Answer

A

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

Question 52

Q

APICS

availability

Answer

A

The percentage of time that a worker or machine is capable of working. The formula is availability

Question 53

Q

APICS

black box design

Answer

A

When suppliers or company functions are given general design guidelines and are requested to complete the technical details.B

Question 54

Q

APICS

B2B

Answer

A

Abbreviation for business-to-business commerce.B

Question 55

Q

APICS

approved vendor list (AVL)

Answer

A

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

Question 56

Q

APICS

allocated material

Answer

A

Syn: reserved material.A

Question 57

Q

APICS

assigned material

Answer

A

Syn: reserved material.A

Question 58

Q

APICS

assumed receipt

Answer

A

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

Question 59

Q

APICS

BPR

Answer

A

Abbreviation for business process reengineering.B

Question 60

Q

APICS

accounts receivable

Answer

A

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

Question 61

Q

APICS

annual percentage rate

Answer

A

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

Question 62

Q

APICS

bricks and mortar

Answer

A

A company that sells through a physical location. Ant: clicks and mortar (selling over the internet).B

Question 63

Q

APICS

AOA

Answer

A

Abbreviation for activity-on-arrow network.A

Question 64

Q

APICS

affinity diagram

Answer

A

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

Answer 65

A

such as cash, accounts

Answer 66

A

Syn: absorption costing.A

Answer 67

A

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

Answer 68

A

The person in charge of the marketing program for a given brand. Syn: product manager.B

Answer 69

A

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

Answer 70

A

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

Answer 71

A

Abbreviation for American Society for Quality.A

Answer 72

A

Syn: overhead.B

Answer 73

A

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

Answer 74

A

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

Answer 75

A

Ordering materials before the release of the formal product design. This early release is required because of long lead times.A

Answer 76

A

Syn: operating environment.B

Answer 77

A

The expected average quality level of outgoing product for a given value of incoming product quality.A

Answer 78

A

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

Answer 79

A

Syn: phantom bill of material.B B

Answer 80

A

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

Answer 81

A

Insurance that often is part of an employee benefit package, providing payment for either accidental death or disability.A

Answer 82

A

The planned difference between the start and finish dates of a project activity.A

Answer 83

A

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

Answer 84

A

A dimension of product quality that intends to appeal to the senses.A

Answer 85

A

In project management, the identification and description of activities within an organization for the purpose of activity-based costing.A

Answer 86

A

Combining two or more products or services into a single transaction.B

Answer 87

A

The degree to which a list of specified items conforms to administrative specifications and with correct quantities.B

Answer 88

A

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

Answer 89

A

Syn: Malcolm Baldrige National Quality Award.B

Answer 90

A

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

Answer 91

A

Acronym for binary digit. It can have only the values 0 or 1.B

Answer 92

A

The delay controlled by a worker and therefore not allowed in the job standard.A

Answer 93

A

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

Answer 94

A

Syn: base series.B

Answer 95

A

Abbreviation for American Society for Quality Control, now simply American Society for Quality (ASQ).A

Answer 96

A

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

Answer 97

A

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

Answer 98

A

The process of buying or owning elements of the production cycle and channel of distribution back toward raw material suppliers. See: vertical integration.B

Answer 99

A

Syn: safety stock.B

Answer 100

A

In six sigma, team leader for process improvement. Responsibilities include defining, measuring, and controlling the improvement process.B

Answer 101

A

A multiplier that is used for the rounding rules in determining the number of batches required to produce a given amount of product.B

Answer 102

A

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

Answer 103

A

Acronym for American Standard Code for Information Interchange.A

Answer 104

A

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

Answer 105

A

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

Answer 106

A

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

Answer 107

A

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

Answer 108

A

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

Answer 109

A

A system that can use various means, including bar code scanning and radio frequencies, to sense and load data in a computer.A

Answer 110

A

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

Answer 111

A

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

Answer 112

A

Acronym for analysis of variance.A

Answer 113

A

Offering a specific price for each job rather than setting a standard price that applies for all customers.B

Answer 114

A

Abbreviation for accredited standards committee.A

Answer 115

A

1) Abbreviation for average outgoing quality limit. 2) Abbreviation for acceptable outgoing quality level.A

Answer 116

A

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

Answer 117

A

Authority perceived by a third party to flow from a principal to an ostensible agent when in fact no agency relationship exists.A

Answer 118

A

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

Answer 119

A

Abbreviation for activity-on-node network.A

Answer 120

A

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

Answer 121

A

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

Answer 122

A

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

Answer 123

A

Syn: capacity available.A

Answer 124

A

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

Answer 125

A

Syn: receivables conversion period.A

Answer 126

A

A version of a product sent to certain customers prior to general release in order to receive feedback on product performance.B

Answer 127

A

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

Answer 128

A

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

Answer 129

A

A message that is used to release a quantity from a blanket order.B

Answer 130

A

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

Answer 131

A

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

Answer 132

A

Syn: cumulative lead time.A

Answer 133

A

Syn: 3D printing.A

Answer 134

A

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

Answer 135

A

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

Answer 136

A

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

Answer 137

A

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

Answer 138

A

A reasonable cost specifically permitted under Federal Acquisition Regulation (FAR) requirements.A

Answer 139

A

1) An evaluation of employee performance. 2) In total quality management, the formal evaluation and audit of quality.A

Answer 140

A

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

Answer 141

A

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

Answer 142

A

Sponsored promotions that are nonpersonal in nature.A

Answer 143

A

A manufacturing order to an assembly department authorizing it to put components together into an assembly. See: blend order.A

Answer 144

A

Latin for “in good faith.”B

Answer 145

A

reducing costs, improving quality, reducing delivery lead time, and improving due-date performance.B

Answer 146

A

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

Answer 147

A

Uses one or more variables that are believed to affect demand in order to forecast future demand.A

Answer 148

A

The policy that discusses allowed job absences and the penalties from too many absences.A

Answer 149

A

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

Answer 150

A

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

Answer 151

A

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

Answer 152

A

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

Answer 153

A

Acronym for American National Standards Institute.A

Answer 154

A

Variation made by one or more causes that can be identified and removed. See: assignable cause, common causes.A

Answer 155

A

A unique alphanumeric code that differentiates one project activity from other activities.A

Answer 156

A

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

Answer 157

A

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

Answer 158

A

A plus or minus amount found by comparing a country’s exports of merchandise to its imports.B

Answer 159

A

Statistical analysis where uncertainty is incorporated, using all available information to choose among a number of alternative decisions.B

Answer 160

A

Replacement for a normal step in the manufacturing process. Ant: primary operation.A

Answer 161

A

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

Answer 162

A

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

Answer 163

A

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

Answer 164

A

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

Answer 165

A

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

Answer 166

A

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

Answer 167

A

An imposed responsibility in which a company sells imported goods at prices below what is charged in their domestic market.A

Answer 168

A

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

Answer 169

A

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

Answer 170

A

Permission for a supplier or the plant to manufacture an item that is not in conformance with the applicable drawings or specifications.A

Answer 171

A

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

Answer 172

A

Data gathered when a company initiates conversation with the customer.A

Answer 173

A

Abbreviation for automated information system.A

Answer 174

A

Dividing truckloads of homogeneous items into smaller, more appropriate quantities for use.B

Answer 175

A

Overview of a product containing assembly and subassembly operations, materials, and components.A A

Answer 176

A

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

Answer 177

A

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

Answer 178

A

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

Answer 179

A

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

Answer 180

A

The function of maintaining, analyzing, and explaining the financial records and status of an organization.A

Answer 181

A

The tendency of some consumers to stay with a preferred product in spite of a competitor’s advantages.B

Answer 182

A

To hear and decide an issue under legal dispute.A

Answer 183

A

Syn: base demand.B

Answer 184

A

A government employee who ensures compliance with the terms and conditions of contracts.A

Answer 185

A

An inventory transaction to move a quantity from one valid location (bin) to another valid location (bin).B B

Answer 186

A

In engineering, a line drawing showing the physical characteristics of a part.B

Answer 187

A

The raw materials, work in process, and finished goods that will be used or sold within a given period.A

Answer 188

A

A defect that prevents a thorough investigation as to the cause, or that prevents shipment of a product.B

Answer 189

A

Syn: quick asset ratio.A

Answer 190

A

A set of logically related tasks or activities performed to achieve a defined business outcome.B

Answer 191

A

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

Answer 192

A

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

Answer 193

A

The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.A

Answer 194

A

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

Answer 195

A

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

Answer 196

A

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

Answer 197

A

A production line that has machines linked by automated parts transfer and handling machines.A

Answer 198

A

An accessory that has to be physically attached to the product. See: feature.A

Answer 199

A

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

Answer 200

A

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

Answer 201

A

Putting a resource to work.A

Answer 202

A

A means of compactly describing a business process.A

Answer 203

A

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

Answer 204

A

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

Answer 205

A

A type of probability distribution often used to model activity times.B

Answer 206

A

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

Answer 207

A

Abbreviation for advance ship notice.A

Answer 208

A

Strengthening the capabilities of a key supplier.A

Answer 209

A

A record of planned activities in a project, including an activity description and an activity identifier.A

Answer 210

A

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

Answer 211

A

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

Answer 212

A

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

Answer 213

A

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

Answer 214

A

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

Answer 215

A

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

Answer 216

A

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

Answer 217

A

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

Answer 218

A

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

Answer 219

A

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

Answer 220

A

In queuing theory, the value or distribution describing how often a person or thing arrives for service.A

Answer 221

A

The process of constructing the business plan. See: business plan.B

Answer 222

A

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

Answer 223

A

In project management, a value that allows filtering or ordering of activities in reports.A

Answer 224

A

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

Answer 225

A

Establishing the overall level (dollar value) of inventory desired and implementing controls to achieve this goal.A

Answer 226

A

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

Answer 227

A

Syn: back scheduling.B

Answer 228

A

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

Answer 229

A

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

Answer 230

A

Control of the production process in groups, or “blocks,” of shop orders for products undergoing the same basic processes.B

Answer 231

A

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

Answer 232

A

In information systems, the act of identifying a person or confirming the source of a message.A

Answer 233

A

The process of recovering (via expensing) a capital investment over a period of time. See: capital recovery.A

Answer 234

A

A designation claimed by companies that have been granted a site visit by the Malcolm Baldrige National Quality Award examiners.B

Answer 235

A

The ratio of total variable costs over units produced.A

Answer 236

A

Factors that prevent companies from entering into a particular market, such as high initial investment in equipment.B

Answer 237

A

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

Answer 238

A

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

Answer 239

A

A method of encoding data using bar code for fast and accurate readability.B

Answer 240

A

A long-term debt of a firm.B

Answer 241

A

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

Answer 242

A

Syn: industrial market.B

Answer 243

A

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

Answer 244

A

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

Answer 245

A

A normal time value increased by appropriate allowances.A

Answer 246

A

or a long-term value (such as equipment, land, and buildings). See: balance sheet, liabilities, owner’s equity.A

Answer 247

A

Giving up a route by a carrier. For example, a railroad.A

Answer 248

A

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

Answer 249

A

Being answerable for, but not necessarily personally charged with, doing the work. Accountability cannot be delegated, but it can be shared.A

Answer 250

A

A stream of fixed payments for a stipulated time, yearly or at other intervals.A

Answer 251

A

Goodwill associated with the acquisition of a company asset.B

Answer 252

A

A specific plan that indicates the sampling sizes and the associated acceptance or nonacceptance criteria to be used.A

Answer 253

A

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

Answer 254

A

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

Answer 255

A

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

Answer 256

A

An objective comparison of actions to policies and plans.A

Answer 257

A

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

Answer 258

A

Abbreviation for annual percentage rate.A

Answer 259

A

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

Answer 260

A

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

Answer 261

A

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

Answer 262

A

The process of organizing bills of material to perform specific functions.B

Answer 263

A

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

Answer 264

A

Syn: mean.A

Answer 265

A

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

Answer 266

A

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

Answer 267

A

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

Answer 268

A

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

Answer 269

A

An alternate location or maintainer that can provide the same service response or support as the primary location or maintainer.B

Answer 270

A

Acronym for budget at completion.B

Answer 271

A

See: blocking.B

Answer 272

A

An electronic data interchange (EDI) notification of shipment of product.A

Answer 273

A

How an organization determines which product lots to accept or reject based on samples. See: acceptance sampling.A

Answer 274

A

Syn: distribution network structure.B

Answer 275

A

Syn: quick asset ratio.A

Answer 276

A

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

Answer 277

A

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

Answer 278

A

Abbreviation for activity-based budgeting.A

Answer 279

A

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

Answer 280

A

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

Answer 281

A

Syn: advanced planning and scheduling.A

Answer 282

A

The total fixed cost divided by units produced. This value declines as output increases.A

Answer 283

A

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

Answer 284

A

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

Answer 285

A

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

Answer 286

A

A sworn written statement.A

Answer 287

A

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

Answer 288

A

A term used to describe the pilot evaluation of a good or service (i.e., “the second evaluation”).B

Answer 289

A

The value of goods and services acquired for which payment has not yet been made.A

Answer 290

A

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

Answer 291

A

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

Answer 292

A

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

Answer 293

A

Abbreviation for activity-based management.A

Answer 294

A

Abbreviation for automated storage/retrieval system.A

Answer 295

A

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

Answer 296

A

One or more unassembled items shipped together as a set of items.B

Answer 297

A

An extremely early version of a product released to obtain feedback about its suitability.A

Answer 298

A

An operation scheduling technique where each operation is allowed a “block” of time, such as a day or a week.B

Answer 299

A

The application of basic scientific

Answer 300

A

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

Answer 301

A

Having a common location with a variety of other companies.A

Answer 302

A

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

Answer 303

A

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

Answer 304

A

Syn: batch bill of materials.B

Answer 305

A

Abbreviation for activity-based planning.A

Answer 306

A

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

Answer 307

A

Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations.A

Answer 308

A

Capacity, such as labor or tools, that can be changed in the short term.A

Answer 309

A

The process of defining and documenting dependencies among project activities.A

Answer 310

A

Syn: distribution center.B

Answer 311

A

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

Answer 312

A

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

Answer 313

A

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

Answer 314

A

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

Answer 315

A

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

Answer 316

A

Abbreviation for activity-based cost accounting.A

Answer 317

A

Abbreviation for accidental death and disability.A

Answer 318

A

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

Answer 319

A

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

Answer 320

A

Abbreviation for automatic identification and data capture.A

Answer 321

A

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

Answer 322

A

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

Answer 323

A

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

Answer 324

A

In process industries, the name of the department where the ingredients are mixed. See: final assembly department.B

Answer 325

A

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

Answer 326

A

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

Answer 327

A

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

Answer 328

A

An accounting definition of inventory units or value obtained from perpetual inventory records rather than by actual count.B

Answer 329

A

1) The arithmetic mean of the forecast errors. 2) The exponentially smoothed forecast error. See: bias, forecast error.A

Answer 330

A

Estimating the types and amounts of resources that will be needed for various project activities.A

Answer 331

A

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

Answer 332

A

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

Answer 333

A

An increase in the buying power of a country’s currency in terms of other countries’ goods and services.A

Answer 334

A

The receipt of an item as being complete and sound.A

Answer 335

A

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

Answer 336

A

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

Answer 337

A

A coaxial cable offering a single channel for text, voice, or video transmission.B

Answer 338

A

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

Answer 339

A

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

Answer 340

A

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

Answer 341

A

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

Answer 342

A

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

Answer 343

A

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

Answer 344

A

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

Answer 345

A

An innovative process that may be unusual enough to pose a risk to the customer or client.B

Answer 346

A

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

Answer 347

A

In queuing theory, a unit that arrives for service, such as a person or part.A

Answer 348

A

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

Answer 349

A

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

Answer 350

A

Abbreviation for application service provider.A

Answer 351

A

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

Answer 352

A

A custom-made product or service. The term originally was applied to clothing, but now applies to software as well.B

Answer 353

A

A graphical method of displaying data by grouping observations into specific clusters.B

Answer 354

A

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

Answer 355

A

A sign board with signal lights used to make workers and management aware of a quality, quality, or process problem.A

Answer 356

A

A system that can measure the performance of a process, compare the result to predetermined standards, and then make adjustments to the process.A

Answer 357

A

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

Answer 358

A

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

Answer 359

A

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

Answer 360

A

Syn: physical inventory.A

Answer 361

A

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

Answer 362

A

A bill for services, such as inside deliveries, which are made in addition to transportation charges.A

Answer 363

A

Syn: activity-on-arrow network.A

Answer 364

A

Abbreviation for acceptable quality level.A

Answer 365

A

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

Answer 366

A

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

Answer 367

A

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

Answer 368

A

Combined capacity unit of measure when a variety of outputs exist.A

Answer 369

A

The ratio of total costs (the sum of total fixed costs and total variable costs) over units produced.A

Answer 370

A

A manufacturing order to a blending department authorizing it to mix the ingredients of a product. See: assembly order.B

Answer 371

A

The cost required to obtain one or more units of an item. It is order quantity times unit cost. See: ordering cost.A

Answer 372

A

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

Answer 373

A

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

Answer 374

A

Abbreviation for aggregate production plan.A

Answer 375

A

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

Answer 376

A

Syn: bottleneck.B

Answer 377

A

The adjusted purchase price of the asset plus any costs necessary to prepare the asset for use.A

Answer 378

A

The specific work to be performed that defines a project deliverable.A

Answer 379

A

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

Answer 380

A

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

Answer 381

A

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

Answer 382

A

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

Answer 383

A

An item required to support the operation of another item.A

Answer 384

A

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

Answer 385

A

An agreement wherein each party makes a promise to the other party.B

Answer 386

A

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

Answer 387

A

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

Answer 388

A

A guaranteed supply source generally created by a contract.A

Answer 389

A

A system for selecting items to be cycle counted by a group or block of numbers.B

Answer 390

A

Syn: batch processing.B

Answer 391

A

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

Answer 392

A

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

Answer 393

A

Abbreviation for business process management.B

Answer 394

A

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

Answer 395

A

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

Answer 396

A

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

Answer 397

A

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

Answer 398

A

Recall from customers of suspect lot numbers plus a specified number of lots produced before and after the suspect ones.B

Answer 399

A

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

Answer 400

A

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

Answer 401

A

Definition

Answer 402

A

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

Answer 403

A

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

Answer 404

A

In financial management, the fraction of accounts receivable that is never recovered.B

Answer 405

A

Abbreviation for average outgoing quality.A

Answer 406

A

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

Answer 407

A

Syn: warehouse demand.B

Answer 408

A

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

Answer 409

A

In project management, the approved timephased plan for the schedule or cost of a piece of work, including approved changes.B

Answer 410

A

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

Answer 411

A

Syn: two-bin inventory system.B

Answer 412

A

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

Answer 413

A

A form of exponential smoothing in which the smoothing constant is automatically adjusted as a function of forecast error measurement.A

Answer 414

A

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

Answer 415

A

A coaxial cable offering several channels for text, voice, and/or video transmission.B

Answer 416

A

In many process industries, a document that combines product and process definition. See: batch card.B

Answer 417

A

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

Answer 418

A

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

Answer 419

A

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

Answer 420

A

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

Answer 421

A

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

Answer 422

A

Work scheduled that may not be on hand.A

Answer 423

A

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

Answer 424

A

A radio frequency identification tag that broadcasts information and contains its own power source. See: radio frequency identification (RFID).A

Answer 425

A

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

Answer 426

A

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

Answer 427

A

Usually, the number of transactions per stockkeeping unit per unit of time.B

Answer 428

A

In process industries, the rework of material by introducing a small percentage into another run of the same product.B

Answer 429

A

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

Answer 430

A

Syn: base inventory level.B

Answer 431

A

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

Answer 432

A

A situation in which no quantity discount is available for large shipments.A

Answer 433

A

Syn: ABC classification.A

Answer 434

A

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

Answer 435

A

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

Answer 436

A

Syn: advanced planning and scheduling.A

Answer 437

A

A rate that does not depend on the distance cargo is transported.B

Answer 438

A

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

Answer 439

A

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

Answer 440

A

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

Answer 441

A

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

Answer 442

A

Abbreviation for the basic seven tools of quality.B

Answer 443

A

A process to obtain results identified by one or more objectives.A

Answer 444

A

A secondary market for parts and accessories used to repair or enhance an item.A

Answer 445

A

One who sells contract rights to a third person.A

Answer 446

A

Abbreviation for business-to-consumer sales.B

Answer 447

A

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

Answer 448

A

A manager who has direct responsibility for a customer’s interest.A

Answer 449

A

An inventory control approach based on the ABC classification.A

Answer 450

A

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

Answer 451

A

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

Answer 452

A

Syn: floor stocks.B

Answer 453

A

Syn: routing.B

Answer 454

A

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

Answer 455

A

Abbreviation for approved vendor list.A

Answer 456

A

The degree to which customers recognize a particular brand identity and associate it with a particular product line relative to other available brands.B

Answer 457

A

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

Answer 458

A

Remedial maintenance that occurs when equipment fails and must be repaired on an emergency or priority basis. Syn: irregular maintenance, reactive maintenance.B

Answer 459

A

A condition with two related processes run to finish independently of each other.A

Answer 460

A

Syn: action message.A

Answer 461

A

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

Answer 462

A

A quotation specifically given to a prospective purchaser upon request, usually in competition with other vendors. See: quotation.B

Answer 463

A

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

Answer 464

A

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

Answer 465

A

Syn: market plan.B

Answer 466

A

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

Answer 467

A

The maximum average outgoing quality over all possible levels of incoming quality for a given acceptance sampling plan and disposal specification.A

Answer 468

A

A file that specifically identifies the location where each item in inventory is stored.B

Answer 469

A

A computer program or set of programs designed for a specific application (e.g., inventory control, MRP).A

Answer 470

A

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

Answer 471

A

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

Answer 472

A

Syn: available inventory.B

Answer 473

A

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

Answer 474

A

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

Answer 475

A

A set of activity-based cost accounting models that collectively define data on an organization’s resources, activities, drivers, objects, and measurements.A

Answer 476

A

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

Answer 477

A

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

Answer 478

A

The estimated total cost, including allocated overhead, to produce a batch of goods divided by the total number of units produced.A

Answer 479

A

A study of the number of units, or amount of time, required to recoup an investment.B

Answer 480

A

A firm that produces outsourced services for clients.A

Answer 481

A

Syn: smoothing constant.A

Answer 482

A

An order with a signed blank check attached that is usually only good up to a specific amount.B

Answer 483

A

Syn: allocation.A

Answer 484

A

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

Answer 485

A

One of the dimensions of service quality. The ability of employees to inspire trust and confidence.A

Answer 486

A

Multiple features associated with each activity to be performed. These include predecessor activities, successor activities, and resource requirements.A

Answer 487

A

The accounting value of an asset.B

Answer 488

A

Demand that is grouped (e.g., all sedans) for making forecasts or plans. See: aggregate forecast.A

Answer 489

A

Abbreviation for bill of material.B

Answer 490

A

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

Answer 491

A

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

Answer 492

A

One who appeals a court decision to higher authority.A

Answer 493

A

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

Answer 494

A

The ability of a bar code reader to read several different types of symbols consecutively.A

Answer 495

A

An organization, often from another industry, recognized for excellence in a specific process area. See: process benchmarking.B

Answer 496

A

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

Answer 497

A

Syn: field service.A

Answer 498

A

Demand that has been confirmed. See: customer order, demand, order penetration point.B

Answer 499

A

A state or company quality award program modeled after the Malcolm Baldrige National Quality Award but with a simplified application process.B

Answer 500

A

The total planned budget for a project.B

Brainscape's Knowledge GenomeTM

APICS OO CSV Flashcards

Learn Something

Brainscape's Knowledge Genome^TM