APICS OO CSV Flashcards

Question

# APICS backup/restore

Answer 1

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

Answer 2

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 Each vessel normally contains a mixture of lots and materials that may be replenished and withdrawn for use or pack-out simultaneously.B

Answer 3

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

Answer 4

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

Answer 5

Syn: physical inventory.A

Answer 6

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

Answer 7

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

Answer 8

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

Answer 9

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

Answer 10

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

Answer 11

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

Answer 12

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

Answer 13

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

Answer 14

The number of bits transmitted per second.B

Answer 15

Abbreviation for artificial intelligence.A

Answer 16

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

Answer 17

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

Answer 18

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

Answer 19

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

Answer 20

Syn: activity-on-arrow network.A

Answer 21

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

Answer 22

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

Answer 23

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

Answer 24

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

Answer 25

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

Answer 26

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

Answer 27

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

Answer 28

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

Answer 29

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

Answer 30

Abbreviation for business-to-business commerce.B

Answer 31

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

Answer 32

Syn: reserved material.A

Answer 33

Syn: reserved material.A

Answer 34

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

Answer 35

Abbreviation for business process reengineering.B

Answer 36

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

Answer 37

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

Answer 38

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

Answer 39

Abbreviation for activity-on-arrow network.A

Answer 40

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

Answer 41

such as cash, accounts

Answer 42

Syn: absorption costing.A

Answer 43

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 44

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

Answer 45

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 46

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 47

Abbreviation for American Society for Quality.A

Answer 48

Syn: overhead.B

Answer 49

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 50

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 51

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

Answer 52

Syn: operating environment.B

Answer 53

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

Answer 54

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 55

Syn: phantom bill of material.B B

Answer 56

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 57

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

Answer 58

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

Answer 59

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 60

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

Answer 61

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

Answer 62

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

Answer 63

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

Answer 64

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

Answer 65

Syn: Malcolm Baldrige National Quality Award.B

Answer 66

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 67

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

Answer 68

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

Answer 69

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 70

Syn: base series.B

Answer 71

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

Answer 72

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

Answer 73

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 74

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 75

Syn: safety stock.B

Answer 76

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

Answer 77

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 78

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

Answer 79

Acronym for American Standard Code for Information Interchange.A

Answer 80

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 81

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

Answer 82

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 83

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 84

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 85

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

Answer 86

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 87

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 88

Acronym for analysis of variance.A

Answer 89

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

Answer 90

Abbreviation for accredited standards committee.A

Answer 91

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

Answer 92

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 93

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

Answer 94

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 95

Abbreviation for activity-on-node network.A

Answer 96

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

Answer 97

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 98

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 99

Syn: capacity available.A

Answer 100

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 101

Syn: receivables conversion period.A

Answer 102

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

Answer 103

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 104

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 105

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

Answer 106

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

Answer 107

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 108

Syn: cumulative lead time.A

Answer 109

Syn: 3D printing.A

Answer 110

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 111

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 112

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

Answer 113

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 114

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

Answer 115

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

Answer 116

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 117

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 118

Sponsored promotions that are nonpersonal in nature.A

Answer 119

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

Answer 120

Latin for “in good faith.”B

Answer 121

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

Answer 122

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 123

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

Answer 124

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

Answer 125

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 126

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 127

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 128

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 129

Acronym for American National Standards Institute.A

Answer 130

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

Answer 131

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

Answer 132

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

Answer 133

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 134

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

Answer 135

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

Answer 136

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

Answer 137

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 138

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 139

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 140

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 141

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 142

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

Answer 143

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

Answer 144

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

Answer 145

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

Answer 146

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

Answer 147

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 148

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

Answer 149

Abbreviation for automated information system.A

Answer 150

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

Answer 151

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

Answer 152

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 153

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 154

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

Answer 155

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 156

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

Answer 157

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

Answer 158

To hear and decide an issue under legal dispute.A

Answer 159

Syn: base demand.B

Answer 160

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

Answer 161

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

Answer 162

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

Answer 163

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

Answer 164

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

Answer 165

Syn: quick asset ratio.A

Answer 166

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

Answer 167

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 168

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 169

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

Answer 170

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 171

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 172

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 173

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

Answer 174

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

Answer 175

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 176

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 177

Putting a resource to work.A

Answer 178

A means of compactly describing a business process.A

Answer 179

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 180

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 181

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

Answer 182

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 183

Abbreviation for advance ship notice.A

Answer 184

Strengthening the capabilities of a key supplier.A

Answer 185

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

Answer 186

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 187

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 188

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

Answer 189

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 190

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 191

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 192

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 193

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 194

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

Answer 195

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 196

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

Answer 197

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

Answer 198

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

Answer 199

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

Answer 200

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 201

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

Answer 202

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 203

Syn: back scheduling.B

Answer 204

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 205

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 206

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

Answer 207

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 208

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

Answer 209

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

Answer 210

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

Answer 211

The ratio of total variable costs over units produced.A

Answer 212

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

Answer 213

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 214

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 215

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

Answer 216

A long-term debt of a firm.B

Answer 217

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 218

Syn: industrial market.B

Answer 219

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 220

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 221

A normal time value increased by appropriate allowances.A

Answer 222

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

Answer 223

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

Answer 224

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 225

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

Answer 226

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

Answer 227

Goodwill associated with the acquisition of a company asset.B

Answer 228

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

Answer 229

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 230

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 231

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 232

An objective comparison of actions to policies and plans.A

Answer 233

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

Answer 234

Abbreviation for annual percentage rate.A

Answer 235

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 236

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

Answer 237

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 238

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

Answer 239

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 240

Syn: mean.A

Answer 241

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 242

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

Answer 243

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 244

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 245

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

Answer 246

Acronym for budget at completion.B

Answer 247

See: blocking.B

Answer 248

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

Answer 249

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

Answer 250

Syn: distribution network structure.B

Answer 251

Syn: quick asset ratio.A

Answer 252

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

Answer 253

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 254

Abbreviation for activity-based budgeting.A

Answer 255

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 256

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 257

Syn: advanced planning and scheduling.A

Answer 258

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

Answer 259

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 260

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 261

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 262

A sworn written statement.A

Answer 263

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 264

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

Answer 265

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

Answer 266

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

Answer 267

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 268

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 269

Abbreviation for activity-based management.A

Answer 270

Abbreviation for automated storage/retrieval system.A

Answer 271

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

Answer 272

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

Answer 273

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

Answer 274

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

Answer 275

The application of basic scientific

Answer 276

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 277

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

Answer 278

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 279

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 280

Syn: batch bill of materials.B

Answer 281

Abbreviation for activity-based planning.A

Answer 282

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

Answer 283

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 284

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

Answer 285

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

Answer 286

Syn: distribution center.B

Answer 287

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 288

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 289

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 290

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

Answer 291

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 292

Abbreviation for activity-based cost accounting.A

Answer 293

Abbreviation for accidental death and disability.A

Answer 294

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 295

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 296

Abbreviation for automatic identification and data capture.A

Answer 297

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 298

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 299

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 300

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

Answer 301

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 302

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 303

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 304

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

Answer 305

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

Answer 306

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

Answer 307

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 308

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 309

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

Answer 310

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

Answer 311

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 312

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 313

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

Answer 314

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

Answer 315

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 316

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 317

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 318

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 319

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 320

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 321

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

Answer 322

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 323

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

Answer 324

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 325

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 326

Abbreviation for application service provider.A

Answer 327

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 328

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

Answer 329

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

Answer 330

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 331

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

Answer 332

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 333

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 334

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 335

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 336

Syn: physical inventory.A

Answer 337

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 338

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

Answer 339

Syn: activity-on-arrow network.A

Answer 340

Abbreviation for acceptable quality level.A

Answer 341

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

Answer 342

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 343

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 344

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

Answer 345

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

Answer 346

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

Answer 347

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

Answer 348

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 349

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

Answer 350

Abbreviation for aggregate production plan.A

Answer 351

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 352

Syn: bottleneck.B

Answer 353

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

Answer 354

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

Answer 355

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 356

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 357

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 358

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 359

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

Answer 360

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 361

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

Answer 362

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 363

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

Answer 364

A guaranteed supply source generally created by a contract.A

Answer 365

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

Answer 366

Syn: batch processing.B

Answer 367

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 368

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

Answer 369

Abbreviation for business process management.B

Answer 370

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 371

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

Answer 372

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

Answer 373

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 374

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

Answer 375

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

Answer 376

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 377

Definition

Answer 378

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 379

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 380

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

Answer 381

Abbreviation for average outgoing quality.A

Answer 382

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 383

Syn: warehouse demand.B

Answer 384

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 385

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

Answer 386

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

Answer 387

Syn: two-bin inventory system.B

Answer 388

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 389

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

Answer 390

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 391

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

Answer 392

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

Answer 393

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

Answer 394

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 395

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 396

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 397

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 398

Work scheduled that may not be on hand.A

Answer 399

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 400

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

Answer 401

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 402

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 403

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

Answer 404

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

Answer 405

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

Answer 406

Syn: base inventory level.B

Answer 407

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 408

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

Answer 409

Syn: ABC classification.A

Answer 410

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

Answer 411

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 412

Syn: advanced planning and scheduling.A

Answer 413

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

Answer 414

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 415

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 416

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 417

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

Answer 418

Abbreviation for the basic seven tools of quality.B

Answer 419

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

Answer 420

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

Answer 421

One who sells contract rights to a third person.A

Answer 422

Abbreviation for business-to-consumer sales.B

Answer 423

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 424

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

Answer 425

An inventory control approach based on the ABC classification.A

Answer 426

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 427

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 428

Syn: floor stocks.B

Answer 429

Syn: routing.B

Answer 430

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 431

Abbreviation for approved vendor list.A

Answer 432

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 433

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 434

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

Answer 435

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

Answer 436

Syn: action message.A

Answer 437

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

Answer 438

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

Answer 439

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 440

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 441

Syn: market plan.B

Answer 442

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

Answer 443

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

Answer 444

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

Answer 445

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

Answer 446

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 447

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 448

Syn: available inventory.B

Answer 449

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 450

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 451

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

Answer 452

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 453

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

Answer 454

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

Answer 455

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

Answer 456

A firm that produces outsourced services for clients.A

Answer 457

Syn: smoothing constant.A

Answer 458

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

Answer 459

Syn: allocation.A

Answer 460

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 461

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

Answer 462

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

Answer 463

The accounting value of an asset.B

Answer 464

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

Answer 465

Abbreviation for bill of material.B

Answer 466

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 467

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 468

One who appeals a court decision to higher authority.A

Answer 469

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

Answer 470

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

Answer 471

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

Answer 472

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

Answer 473

Syn: field service.A

Answer 474

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

Answer 475

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

Answer 476

The total planned budget for a project.B

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