APICS Study Terms

Question 1

Deck 1

Term

Answer 1

Definition

Question 2

Deck 1

demand manager

Answer 2

Person who assists sales and marketing in the development and maintenance of sales forecasts and reconciles volume and mix variations in the forecast.D

Question 3

Deck 1

product audit

Answer 3

The reinspection of any product to verify the adequacy of acceptance or rejection decisions made by inspection and testing personnel.P

Question 4

Deck 1

twenty-foot equivalent unit (TEU)

Answer 4

A measure of cargo capacity equivalent to a standard container (i.e., 20-feet long, 8-feet wide, and approximately 8-feet high).T

Question 5

Deck 1

cash-to-cash cycle time

Answer 5

An indicator of how efficiently a company manages its assets to improve cash flow. Inventory days + accounts receivable days – accounts payable days = cash-to-cash cycle time. See: cash conversion cycle.C

Question 6

Deck 1

process flexibility

Answer 6

The design of the manufacturing system, including operators and machinery, that allows quick changeovers to respond to near-term changes in product volume and mix. A necessary tool in lean and just in time.P

Question 7

Deck 1

product engineering

Answer 7

The discipline of designing a product or product line to take advantage of process technology and improve quality, reliability, and so forth.P

Question 8

Deck 1

assembly

Answer 8

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 9

Deck 1

net weight

Answer 9

The weight of an article exclusive of the weights of all packing materials and containers.N

Question 10

Deck 1

growth rate; and (4) Question marks

Answer 10

low market share, high growth rate. Sometimes this same set of terms is used to categorize products by market share and profitability. See: cash cow, dog, question mark, star.G

Question 11

Deck 1

operation

Answer 11

1) A job or task, consisting of one or more work elements, usually done essentially in one location. 2) The performance of any planned work or method associated with an individual, machine, process, department, or inspection. 3) One or more elements that involve one of the following: the intentional changing of an object in any of its physical or chemical characteristics; the assembly or disassembly of parts or objects; the preparation of an object for another operation, transportation, inspection, or storage; planning, calculating, or giving or receiving information.O

Question 12

Deck 1

multinational strategy

Answer 12

A strategy that focuses on opportunities to achieve cross-business and cross-country coordination, thereby enabling economies of scope and an improved competitive position with regard to reducing costs, cross-country subsidization, and so on, to outcompete rivals. See: global strategy. multiphase system Syn: multiple-phase queuing system.M

Question 13

Deck 1

nonlinear programming

Answer 13

Programming similar to linear programming but incorporating a nonlinear objective function and linear constraints or a linear objective function and nonlinear constraints or both a nonlinear objective function and nonlinear constraints.N

Question 14

Deck 1

deadhead

Answer 14

The return of an empty transportation container to its point of origin. See: backhauling.D

Question 15

Deck 1

countertrade

Answer 15

Any transaction in which partial or full payment is made with goods instead of money. This often applies in international trade.C

Question 16

Deck 1

production cycle elements

Answer 16

Elements of manufacturing strategy that define the span of an operation by addressing the following areas: (1) the established boundaries for the firm’s activities, (2) the construction of relationships outside the firm’s boundaries (i.e., suppliers, distributors, and customers), (3) circumstances under which changes in established boundaries or relationships are necessary, (4) the effect of such boundary or relationship changes on the firm’s competitive position. The production cycle elements must explicitly address the strategic implications of vertical integration in regard to (a) the direction of such expansion, (b) the extent of the process span desired, and (c) the balance among the resulting vertically linked activities.P

Question 17

Deck 1

planned receipt

Answer 17

1) An anticipated receipt against an open purchase order or open production order. 2) Syn: planned order receipt.P

Question 18

Deck 1

gatekeeping

Answer 18

A group technique applied by a team leader to effectively manage a situation, discussion, or meeting. For example, in a situation where a dominant spokesperson or person of authority monopolizes a discussion, the gatekeeper will intervene by requesting additional group member’s input.G

Question 19

Deck 1

idle inventory

Answer 19

The inventory generally not needed in a system of linked resources. From a theory of constraints perspective, idle inventory generally consists of protective inventory and excess inventory. See: excess inventory, productive inventory, protective inventory.I

Question 20

Deck 1

plan make

Answer 20

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

Question 21

Deck 1

material index

Answer 21

The total of raw material weights divided by final product weight.M

Question 22

Deck 1

seven tools of quality

Answer 22

Syn: basic seven tools of quality.S

Question 23

Deck 1

enterprise

Answer 23

Any undertaking, venture, initiative, or business organization with a defined mission.E

Question 24

Deck 1

cloud computing

Answer 24

An emerging way of computing where data is stored in massive data centers which can be accessed from any connected computers over the internet.C

Question 25

Deck 1

decision theory

Answer 25

A systematic approach to making decisions, particularly when uncertainty is present.D

Question 26

Deck 1

sampling distribution

Answer 26

The distribution of values of a statistic calculated from samples of a given size.S

Question 27

Deck 1

clearinghouse

Answer 27

An entity restricted to providing services such as settling accounts.C

Question 28

Deck 1

forty-foot equivalent unit

Answer 28

A measure of container capacity that is equivalent to two 20-foot equivalency units; that is, a unit equivalent to 40-feet long, 8-feet wide, and approximately 8-feet high.F

Question 29

Deck 1

equal employment opportunity (EEO)

Answer 29

In the United States, the laws prohibiting discrimination in employment because of race or color, sex, age, handicap status, religion, and national origin.E

Question 30

Deck 1

any-quantity rate

Answer 30

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

Question 31

Deck 1

work sequence

Answer 31

Ordered activities performed to accomplish work.W

Question 32

Deck 1

direct-deduct inventory transaction processing

Answer 32

A method of inventory bookkeeping that decreases the book (computer) inventory of an item as material is issued from stock, and increases the book inventory as transactions processed for each item. The key concept here is that the book record is updated coincidentally with the movement of material out of or into stock. As a result, the book record is a representation of what is physically in stock. Syn: discrete issue.D

Question 33

Deck 1

funnel experiment

Answer 33

An experiment that demonstrates the effects of tampering. Marbles are dropped through a funnel in an attempt to hit a flat-surfaced target below. The experiment shows that adjusting a stable process to compensate for an undesirable result or an extraordinarily good result will produce output that is worse than if the process had been left alone. See: tampering.F

Question 34

Deck 1

harmonic smoothing

Answer 34

An approach to forecasting based on fitting some set of sine and cosine functions to the historical pattern of a time series. Syn: seasonal harmonics.H

Question 35

Deck 1

futures

Answer 35

Contracts for the sale and delivery of commodities at a future time, made with the intention that no commodity be delivered or received immediately.F

Question 36

Deck 1

range

Answer 36

In statistics, the spread in a series of observations. For example, the anticipated demand for a particular product might vary from a low of 10 to a high of 500 per week. The range would therefore be 500 – 10, or 490.R

Question 37

Deck 1

pre-receiving

Answer 37

Paying for materials before receipt to prepare for incoming products and goods.P

Question 38

Deck 1

lateness

Answer 38

Delivery date minus due date. Lateness may be positive or, in the case of early jobs, negative. See: earliness, tardiness.L

Question 39

Deck 1

order entry

Answer 39

The process of accepting and translating what a customer wants into terms used by the manufacturer or distributor. The commitment should be based on the available-to-promise (ATP) line in the master schedule. This can be as simple as creating shipping documents for finished goods in a make-to-stock environment, or it might be a more complicated series of activities, including design efforts for make-to-order products. See: master schedule, order service.O

Question 40

Deck 1

electronic commerce application

Answer 40

A computer interface between two organizations that is used to carry out business transactions electronically.E

Question 41

Deck 1

business process management (BPM)

Answer 41

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

Question 42

Deck 1

priority control

Answer 42

The process of communicating start and completion dates to manufacturing departments in order to execute a plan. The dispatch list is the tool normally used to provide these dates and priorities based on the current plan and status of all open orders.P

Question 43

Deck 1

proxy

Answer 43

1) A written document authorizing an agent to vote a shareholder’s stock at a shareholder meeting. 2) The agent designated in 1).P

Question 44

Deck 1

organizational development (OD)

Answer 44

The process of building and strengthening core competencies and organizational capabilities that enable the execution of the business strategy and provide a sustainable competitive advantage over time. Organizational development includes staffing the organization, building core competencies and organizational capabilities, and continuous improvement initiatives in response to the changing business environment.O O

Question 45

Deck 1

failure mode effects analysis (FMEA)

Answer 45

A procedure in which each potential failure mode in every sub-item of an item is analyzed to determine its effect on other subitems and on the required function of the item.F

Question 46

Deck 1

bar code

Answer 46

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

Question 47

Deck 1

contestable market

Answer 47

A market having low entry costs.C

Question 48

Deck 1

open-end purchase order

Answer 48

A purchase agreement similar to a blanket purchase order that provides the added convenience of being able to negotiate additional items and expiration dates.O

Question 49

Deck 1

MRP nervousness

Answer 49

See: nervousness.M

Question 50

Deck 1

customer-defined attributes

Answer 50

The characteristics of a good or service that are viewed as being important in addressing the needs of the customer. See: house of quality.C

Question 51

Deck 1

horizontal dependency

Answer 51

The relationship between the components at the same level in the bill of material, in which all must be available at the same time and in sufficient quantity to manufacture the parent assembly. See: vertical dependency.H

Question 52

Deck 1

resource-constrained schedule

Answer 52

Syn: resource-limited schedule. See: drum-buffer-rope.R

Question 53

Deck 1

FPO

Answer 53

Abbreviation for firm planned order.F

Question 54

Deck 1

design for quality

Answer 54

A product design approach that uses quality measures to capture the extent to which the design meets the needs of the target market (customer attributes), as well as its actual performance, aesthetics, and cost. See: total quality engineering.D

Question 55

Deck 1

parametric estimating

Answer 55

The use of statistical and historical data to estimate activity parameters such as time or budget.P

Question 56

Deck 1

ISO certification

Answer 56

In quality management, denotes that a company has obtained an ISO9000 quality standard. Also, it is the process by which a firm achieves such certification. I

Question 57

Deck 1

product differentiation

Answer 57

A strategy of making a product distinct from the competition on a nonprice basis such as availability, durability, quality, or reliability.P

Question 58

Deck 1

backward integration

Answer 58

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

Question 59

Deck 1

QRM

Answer 59

Abbreviation for quick-response manufacturing.Q

Question 60

Deck 1

part type

Answer 60

A code for a component within a bill of material (e.g., regular, phantom, reference).P P

Question 61

Deck 1

total cost of quality

Answer 61

A sum that includes costs associated with rework, scrap, warranty costs, and other costs associated with preventing or resolving quality problems.T

Question 62

Deck 1

authorized deviation

Answer 62

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

Question 63

Deck 1

engineering drawings

Answer 63

A visual representation of the dimensional characteristics of a part or assembly at some stage of manufacture.E

Question 64

Deck 1

weight confirmation

Answer 64

The process of confirming a shipment arrival only by confirming the correct weight has been delivered.W

Question 65

Deck 1

supply chain risk

Answer 65

The variety of possible events and their outcomes that could have a negative effect on the flow of goods, services, funds, or information resulting in some level of quantitative or qualitative loss for the supply chain.S

Question 66

Deck 1

order release

Answer 66

The activity of releasing materials to a production process to support a manufacturing order. See: planned order release.O

Question 67

Deck 1

resellers

Answer 67

Organizations intermediate in the manufacturing and distribution process, such as wholesalers and retailers.R

Question 68

Deck 1

aggregate lead time

Answer 68

Syn: cumulative lead time.A

Question 69

Deck 1

tipping point

Answer 69

The moment when something unique becomes common. The term often refers to the popular acceptance of new technologies. The concept has been applied to any process in which beyond a certain point, the rate at which the process (chemical, sociological, environmental, etc.) proceeds increase dramatically.T

Question 70

Deck 1

dashboard

Answer 70

An easy-to-read management tool similar to an automobile’s dashboard designed to address a wide range of business objectives by combining business intelligence and data integration infrastructure. See: executive dashboard.D

Question 71

Deck 1

base inventory level

Answer 71

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

Question 72

Deck 1

pallet ticket

Answer 72

A label to track pallet-sized quantities of end items produced to identify the specific sublot with specifications determined by periodic sampling and analysis during production.P

Question 73

Deck 1

piece parts

Answer 73

Individual items in inventory at the simplest level in manufacturing (e.g., bolts and washers).P

Question 74

Deck 1

repair bill of material

Answer 74

In remanufacturing, the bill of material defining the actual work required to return a product to service. This bill is constructed based on inspection and determination of actual requirements. See: disassembly bill of material.R

Question 75

Deck 1

FMECA

Answer 75

Abbreviation for failure mode effects and criticality analysis.F

Question 76

Deck 1

project team directory

Answer 76

A list of team member names, roles, and communication information.P

Question 77

Deck 1

put-away time

Answer 77

The lead time between when a raw material or component arrives and when the items are available in the store. Syn: dock-to-stock time.P

Question 78

Deck 1

internet

Answer 78

A worldwide network of computers belonging to businesses, governments, and universities that enables users to share information in the form of files and to send electronic messages and have access to a tremendous store of information.I

Question 79

Deck 1

remedial maintenance

Answer 79

Unscheduled maintenance performed to return a product or process to a specified performance level after a failure or malfunction.R

Question 80

Deck 1

proportional rate

Answer 80

A lower rate given to specific parts of a shipment, instead of the entire rate being charged for only one part of the shipment.P

Question 81

Deck 1

cumulative receipts

Answer 81

A cumulative number, or running total, as a count of parts received in a series or sequence of shipments. The cumulative receipts provide a number that can be compared with the cumulative figures from a plan developed by cumulative MRP.C

Question 82

Deck 1

traveling requisition

Answer 82

Syn: traveling purchase requisition.T

Question 83

Deck 1

budget

Answer 83

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

Question 84

Deck 1

machine downtimes

Answer 84

Periods during which a machine is unavailable due to tool breakage, worker unavailability, machine breakdown, maintenance, teardown, setup, and other factors.M

Question 85

Deck 1

income

Answer 85

Syn: profit.I

Question 86

Deck 1

allocation

Answer 86

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 87

Deck 1

product-based layout

Answer 87

A type of layout where resources are arranged sequentially according to the steps required to make a particular complex product.P

Question 88

Deck 1

manufacturability

Answer 88

A measure of the design of a product or process in terms of its ability to be produced easily, consistently, and with high quality.M

Question 89

Deck 1

full pegging

Answer 89

The ability of a system to automatically trace requirements for a given component all the way up to its ultimate end item, customer, or contract number. Syn: contract pegging.F

Question 90

Deck 1

single-minute exchange of die (SMED)

Answer 90

The concept of setup times of less than 10 minutes, developed by Shigeo Shingo in 1970 at Toyota. See: single-digit setup.S

Question 91

Deck 1

functional organizational structure

Answer 91

An organizational structure based on functional specialization, such as sales, engineering, manufacturing, finance, and accounting.F

Question 92

Deck 1

workstation

Answer 92

The assigned location where a worker performs the job; it could be a machine or a workbench.W

Question 93

Deck 1

blockage

Answer 93

See: blocking.B

Question 94

Deck 1

lean manufacturing

Answer 94

Syn: lean production.L

Question 95

Deck 1

cargo container capacity

Answer 95

The inside usable cubic volume of a container.C

Question 96

Deck 1

linking tactical plans to strategic plans

Answer 96

production planning and sales and operations planning. See: operational planning, strategic planning, tactical plan.T

Question 97

Deck 1

reservation

Answer 97

The process of designating stock for a specific order or schedule. See: allocation.R

Question 98

Deck 1

direct loading

Answer 98

Syn: cross-docking.D D

Question 99

Deck 1

contract labor

Answer 99

Self-employed individuals or firms contracted by an organization to perform specific services on an intermittent or short-term basis.C

Question 100

Deck 1

location audit

Answer 100

A methodical verification of the location records for an item or group of items in inventory to ensure that when the record shows an item’s location, it is, in fact, in that location.L

Question 101

Deck 1

NVOCC

Answer 101

Abbreviation for non-vessel-operating common carrier.N O

Question 102

Deck 1

bespoke

Answer 102

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

Question 103

Deck 1

North American Free Trade Agreement (NAFTA)

Answer 103

An agreement among the United States, Canada, and Mexico to promote economic prosperity by reducing trade barriers.N

Question 104

Deck 1

semifinished goods

Answer 104

Products that have been stored uncompleted awaiting final operations that adapt them to different uses or customer specifications.S

Question 105

Deck 1

engineering change order

Answer 105

Syn: engineering change.E

Question 106

Deck 1

final assembly

Answer 106

The highest level assembled product, as it is shipped to customers.F

Question 107

Deck 1

part standardization

Answer 107

A program for planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation.P

Question 108

Deck 1

strategic deployment

Answer 108

See hoshin planning.S

Question 109

Deck 1

product velocity

Answer 109

Units sold per period.P

Question 110

Deck 1

finish-to-start

Answer 110

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

Question 111

Deck 1

accessory

Answer 111

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

Question 112

Deck 1

cross-docking

Answer 112

The concept of packing products on the incoming shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination. The items are carried from the incoming vehicle docking point to the outgoing vehicle docking point without being stored in inventory at the warehouse. Cross-docking reduces inventory investment and storage space requirements. Syn: direct loading.C

Question 113

Deck 1

commodity procurement strategy

Answer 113

The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.C

Question 114

Deck 1

process

Answer 114

A six sigma improvement process comprised of five stages: (1) Determine the nature of the problem, (2) Measure existing performance and commence recording data and facts that offer information about the underlying causes of the problem, (3) Study the information to determine the root causes of the problem, (4) Improve the process by effecting solutions to the problem, and (5) Monitor the process until the solutions become ingrained.D

Question 115

Deck 1

break-even analysis

Answer 115

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

Question 116

Deck 1

line efficiency

Answer 116

A measure of actual work content versus cycle time of the limiting operation in a production line. Line efficiency (percentage) is equal to the sum of all station task times divided by the longest task time multiplied by the number of stations. In an assembly line layout, the line efficiency is 100 percent minus the balance delay percentage.L

Question 117

Deck 1

lot size

Answer 117

The amount of a particular item that is ordered from the plant or a supplier or issued as a standard quantity to the production process. Syn: order quantity.L

Question 118

Deck 1

field finished goods

Answer 118

Finished goods kept in distribution centers or warehouses.F

Question 119

Deck 1

intermediate part

Answer 119

Material processed beyond raw material and used in higher level items. See: component.I

Question 120

Deck 1

capacity cushion

Answer 120

Extra capacity that is added to a system after capacity for expected demand is calculated. Syn: safety capacity. See: protective capacity.C

Question 121

Deck 1

end-of-life management

Answer 121

Planning for the phase-out of one product and the phase-in of a new product to avoid both the excessive inventory of and an out-of-stock situation with the old product before the replacement product is available.E

Question 122

Deck 1

count point

Answer 122

A point in a flow of material or sequence of operations at which parts, subassemblies, or assemblies are counted as being complete. Count points may be designated at the ends of lines or upon removal from a work center, but most often they are designated as the points at which material transfers from one department to another. Syn: pay point.C

Question 123

Deck 1

TQE

Answer 123

Abbreviation for total quality engineering.T

Question 124

Deck 1

overtime

Answer 124

Work beyond normal established working hours that usually requires that a premium be paid to the workers.O

Question 125

Deck 1

blend formula

Answer 125

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

Question 126

Deck 1

supply chain visibility

Answer 126

The ability of supply chain partners to access demand and production information from trading partners.S

Question 127

Deck 1

form-fit-function

Answer 127

A term used to describe the process of designing a part or product to meet or exceed the performance requirements expected by customers.F

Question 128

Deck 1

systems view

Answer 128

A holistic approach to management that considers how actions impact the production process. Included within the system are suppliers, product design, process design, the production process, distribution, and customers.S T

Question 129

Deck 1

special warranty

Answer 129

An assurance that the product is fit for the specific purpose for which the product will be used. See: general warranty, warranty.S

Question 130

Deck 1

program evaluation and review technique (PERT)

Answer 130

In project management, a network analysis technique in which each activity is assigned a pessimistic, most likely, and optimistic estimate of its duration. The critical path method is then applied using a weighted average of these times for each node. PERT computes a standard deviation of the estimate of project duration. See: critical path method, graphical evaluation and review technique, and network analysis.P

Question 131

Deck 1

loss leader pricing

Answer 131

Pricing some products below cost to attract customers into the store, in the expectation that they will buy other items as well.L

Question 132

Deck 1

define-measure-analyze-design-verify

Answer 132

A six sigma process that outlines the steps needed to create a completely new business process or product at six sigma quality levels.D

Question 133

Deck 1

tactical planning

Answer 133

The process of developing a set of tactical plans (e.g., production plan, sales plan, marketing plan). Two approaches to tactical planning exist for

Question 134

Deck 1

financial forecasting

Answer 134

Estimating a firm’s future financial statements.F

Question 135

Deck 1

part master record

Answer 135

Syn: item record.P

Question 136

Deck 1

multiple-factor productivity

Answer 136

A measure of the productivity of two or more inputs, especially labor, capital costs, energy, and material. See: single-factor productivity.M

Question 137

Deck 1

hub-and-spoke systems

Answer 137

In warehousing, a system that has a hub (or center point) where sorting or transfers occur, and the spokes are outlets serving the destinations related to the hub.H

Question 138

Deck 1

plan-do-check-action (PDCA)

Answer 138

A four-step process for quality improvement. In the first step (plan), a plan to effect improvement is developed. In the second step (do), the plan is carried out, preferably on a small scale. In the third step (check), the effects of the plan are observed. In the last step (action), the results are studied to determine what was learned and what can be predicted. The plan-do-check-¬action cycle is sometimes referred to as the Shewhart cycle (because Walter A. Shewhart discussed the concept in his book Statistical Method from the Viewpoint of Quality Control) and as the Deming circle (because W. Edwards Deming introduced the concept in Japan; the Japanese subsequently called it the Deming circle). Syn: plan-do-check-act cycle, Shewhart circle of quality, Shewhart cycle. See: Deming circle.P

Question 139

Deck 1

incremental cost

Answer 139

1) Cost added in the process of finishing an item or assembling a group of items. If the cost of the components of a given assembly equals $5 and the additional cost of assembling the components is $1, the incremental assembly cost is $1, while the total cost of the finished assembly is $6. 2) Additional cost incurred as a result of a decision.I

Question 140

Deck 1

black belt

Answer 140

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

Question 141

Deck 1

ECR

Answer 141

Abbreviation for efficient consumer response.E

Question 142

Deck 1

Wagner-Whitin algorithm

Answer 142

A mathematically complex, dynamic lot-sizing technique that evaluates all possible ways of ordering to cover net requirements in each period of the planning horizon to arrive at the theoretically optimum ordering strategy for the entire net requirements schedule. See: discrete order quantity, dynamic lot sizing.W

Question 143

Deck 1

auxiliary item

Answer 143

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

Question 144

Deck 1

finite loading

Answer 144

Assigning no more work to a work center than the work center can be expected to execute in a given time period. The specific term usually refers to a computer technique that involves calculating shop priority revisions in order to level load operation by operation. Syn: finite scheduling. See: drum-buffer-rope.F

Question 145

Deck 1

EAP

Answer 145

Abbreviation for employee assistance program.E

Question 146

Deck 1

grievance procedures

Answer 146

Methods identified in a collective bargaining agreement to resolve problems that develop or to determine if a contract has been violated.G

Question 147

Deck 1

process flow

Answer 147

The sequence of activities that when followed results in a product or service deliverable. See flow process chart, process chart.P

Question 148

Deck 1

product data management (PDM)

Answer 148

A system that tracks the configurations of parts and bills of material and also the revisions and history of product designs. It facilities the design release, distributes the design data to multiple manufacturing sites, and manages changes to the design in a closed-loop fashion. It provides the infrastructure that controls the design cycle and manages change.P

Question 149

Deck 1

distribution curve

Answer 149

A graphic display of numerous data points showing the mean and frequency of occurrences of observations on a chart. See: normal distribution curve.D

Question 150

Deck 1

revenue

Answer 150

The income received by a company from sales or other sources, such as stock owned in other companies.R

Question 151

Deck 1

labor ticket

Answer 151

Syn: labor claim.L

Question 152

Deck 1

risk adjusted discount rate

Answer 152

A discount rate that is higher for more risky projects and lower for less risky projects.R

Question 153

Deck 1

flow rack

Answer 153

A storage rack using metal shelves equipped with wheels or rollers allowing product to flow from the back to the front of the rack to make the product more accessible for order picking.F

Question 154

Deck 1

rack

Answer 154

A storage device for handling material in pallets. A rack usually provides storage for pallets arranged in vertical sections with one or more pallets to a tier. Some racks accommodate more than one-pallet-deep storage.R

Question 155

Deck 1

lost sale

Answer 155

A potential sale that was not completed, usually due to lack of availability of the item in question.L

Question 156

Deck 1

quality, cost, delivery (QCD)

Answer 156

Key measurements of customer satisfaction. Kaizen activity strives to improve these measurements.Q Q

Question 157

Deck 1

intermediately positioned strategy

Answer 157

To position a warehouse halfway between the supplier and the customer.I

Question 158

Deck 1

activity definition

Answer 158

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

Question 159

Deck 1

uniform resource locator (URL)

Answer 159

A means of locating web pages regardless of where they are on the internet.U

Question 160

Deck 1

straight-line schedule

Answer 160

Syn: gapped schedule.S

Question 161

Deck 1

spare parts

Answer 161

Syn: service parts.S

Question 162

Deck 1

brand manager

Answer 162

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

Question 163

Deck 1

protective capacity

Answer 163

The resource capacity needed to

Question 164

Deck 1

database

Answer 164

A data processing file-management approach designed to establish the independence of computer programs from data files. Redundancy is minimized, and data elements can be added to, or deleted from, the file structure without necessitating changes to existing computer programs.D

Question 165

Deck 1

standard components

Answer 165

Components of a finished product that are easy to manufacture and are made by many suppliers, making them more of commodity to buy at low cost.S

Question 166

Deck 1

calendar time

Answer 166

The passage of days or weeks as in the definition of lead time or scheduling rules, in contrast with running time.C

Question 167

Deck 1

life cycle costing

Answer 167

In evaluating alternatives, the consideration

Question 168

Deck 1

centralized authority

Answer 168

Limiting the ability to make decisions to a few managers.C

Question 169

Deck 1

exponential smoothing forecast

Answer 169

A type of weighted moving average forecasting technique in which past observations are geometrically discounted according to their age. The heaviest weight is assigned to the most recent data. The smoothing is termed exponential because data points are weighted in accordance with an exponential function of their age. The technique makes use of a smoothing constant to apply to the difference between the most recent forecast and the critical sales data, thus avoiding the necessity of carrying historical sales data. The approach can be used for data that exhibit no trend or seasonal patterns. Higher order exponential smoothing models can be used for data with either (or both) trend and seasonality.E

Question 170

Deck 1

zone of freedom

Answer 170

Legal authority for transportation companies to charge, within limits, more than their variable costs.Z

Question 171

Deck 1

disbursement list

Answer 171

Syn: picking list.D

Question 172

Deck 1

demand management process

Answer 172

A process that weighs both customer demand and a firm’s output capabilities, and tries to balance the two. Demand management is made up of planning demand, communicating demand, influencing demand, and prioritizing demand.D

Question 173

Deck 1

pallet positions

Answer 173

A calculation that determines the space needed for the number of pallets for inventory storage or transportation based on a standard pallet size. Pallet dimensions vary around the globe, but are typically a constant in regional markets. The term is frequently used to quote storage and transportation rates.P

Question 174

Deck 1

material specification

Answer 174

An explanation of the characteristics of material to be produced or purchased.M

Question 175

Deck 1

worker productivity

Answer 175

The value of total goods and services produced by an employee divided by the labor hours required to produce those goods and services.W

Question 176

Deck 1

blowthrough

Answer 176

Syn: phantom bill of material.B B

Question 177

Deck 1

np chart

Answer 177

A control chart for evaluating the stability of a process in terms of the total number of units in a sample in which an event of a given classification occurs. Syn: number of affected units chart.N

Question 178

Deck 1

EPA

Answer 178

Abbreviation for Environmental Protection Agency.E

Question 179

Deck 1

first expiry first out (FEFO)

Answer 179

A picking methodology assuring that the usage shelf life of items is optimized. Years ago, first in, first out (FIFO) was satisfactory as the F shelf-life days for items often didn’t vary and FIFO often coincided with the expiry dates. However, re-testing is frequently done to extend shelf-life dates on some lots or batches, while other lots may have typical shelf-life dates shortened because of quality or processes. Thus, FEFO was introduced by software vendors to provide this picking methodology for use with shelf-life controlled items.F

Question 180

Deck 1

SCOR®

Answer 180

An acronym for Supply Chain Operations Reference-model.S

Question 181

Deck 1

central processing unit (CPU)

Answer 181

The electronic processing unit of a computer, where mathematical calculations are performed.C

Question 182

Deck 1

average cost system

Answer 182

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

Question 183

Deck 1

globalization

Answer 183

The interdependence of economies globally that results from the growing volume and variety of international transactions in goods, services, and capital, and also from the spread of new technology.G

Question 184

Deck 1

EEO

Answer 184

Abbreviation for equal employment opportunity.E

Question 185

Deck 1

target market

Answer 185

1) A fairly homogeneous group of customers to whom a company wishes to appeal. 2) A definable group of buyers to which a marketer has decided to market.T

Question 186

Deck 1

tank inventory

Answer 186

Goods stored in tanks. These goods may be raw materials, intermediates, or finished goods. The description of inventory as tank inventory indicates the necessity of calculating the quantity on hand from the levels within the tanks.T

Question 187

Deck 1

marginal utility

Answer 187

The additional usefulness and enjoyment received from consuming one more unit of a good or service.M

Question 188

Deck 1

graphical user interface (GUI)

Answer 188

A connection between the computer and the user employing a mouse and icons so that the user makes selections by pointing at icons and clicking the mouse.G

Question 189

Deck 1

standing order

Answer 189

Syn: blanket purchase order.S

Question 190

Deck 1

promotion

Answer 190

One of the four Ps (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Promotion is the mechanism whereby information about the product offering is communicated to the customer and includes public relations, advertising, sales promotions, and other tools used to persuade customers to purchase the product offering. See: four Ps.P

Question 191

Deck 1

rush order

Answer 191

An order that for some reason must be fulfilled in less than normal lead time.R S

Question 192

Deck 1

channel equity

Answer 192

Important affiliations between suppliers and purchasers that improve value for everyone.C

Question 193

Deck 1

supplier-owned inventory

Answer 193

A system in which the supplier not only controls the inventory, but owns it and keeps in close to the consumer until it is purchased by the consumer. Falls within the supplier managed inventory umbrella.S

Question 194

Deck 1

merger

Answer 194

The acquisition of the assets and liabilities of one company by another.M

Question 195

Deck 1

key supply chain processes

Answer 195

Important steps in producing, marketing, and servicing goods and services.K L

Question 196

Deck 1

undertime

Answer 196

A condition occurring when more personnel are on the payroll than are required to produce the planned output.U

Question 197

Deck 1

container

Answer 197

A large box in which commodities to be shipped are placed.C

Question 198

Deck 1

dual sourcing

Answer 198

A method for sourcing requirements by using a few suppliers for the same products or services. See: multisourcing, multiple sourcing, single sourcing.D

Question 199

Deck 1

product quality

Answer 199

Attribute that reflects the capability of a product to satisfy customers’ needs.P

Question 200

Deck 1

strategic planning

Answer 200

The process of developing a strategic plan. See: operational planning, strategic plan, tactical planning.S

Question 201

Deck 1

transportation

Answer 201

The function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization.T

Question 202

Deck 1

statistical quality control (SQC)

Answer 202

The application of statistical techniques to control quality. Often the term statistical process control is used interchangeably with statistical quality control, although statistical quality control includes acceptance sampling as well as statistical process control.S

Question 203

Deck 1

upper specification limit (USL)

Answer 203

In statistical process control, the line that defines the maximum acceptable level of random output. See: tolerance limits.U

Question 204

Deck 1

time bucket

Answer 204

A number of days of data summarized into a columnar or row-wise display. A weekly time bucket would contain all of the relevant data for an entire week. Weekly time buckets are considered to be the largest possible (at least in the near and medium term) to permit effective MRP.T

Question 205

Deck 1

ES

Answer 205

Abbreviation for early start date.E

Question 206

Deck 1

configuration audit

Answer 206

A review of the product against the engineering specifications to determine whether the engineering documentation is accurate, up-to-date, and representative of the components, subsystems, or systems being produced.C

Question 207

Deck 1

unplanned issue

Answer 207

An issue transaction that updates the quantity on hand but for which no allocation exists.U

Question 208

Deck 1

bin trips

Answer 208

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

Question 209

Deck 1

implied contract

Answer 209

A binding agreement inferred from the actions of the parties.I

Question 210

Deck 1

hybrid strategy

Answer 210

Syn: hybrid production method.H

Question 211

Deck 1

enterprise resources planning (ERP)

Answer 211

Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage.E

Question 212

Deck 1

integrated services digital network (ISDN)

Answer 212

Emerging international standard for using public phone lines to transmit voice and data over the same line.I

Question 213

Deck 1

warranty costs

Answer 213

All of the costs associated with a warranty; these include shipping, receiving, repairing, replacement, and the materials needed for repair or replacement.W

Question 214

Deck 1

firewall

Answer 214

A device used to control access to a company’s data from the internet or other outside sources.F

Question 215

Deck 1

EOQ = 1

Answer 215

Reducing setup time and inventory to the point where it is economically sound to produce in batches with a size of one. Often EOQ = 1 is an ideal to strive for, like zero defects.E

Question 216

Deck 1

fishbone diagram

Answer 216

Syn: cause-and-effect diagram.F

Question 217

Deck 1

equal runout method

Answer 217

Syn: equal runout quantities.E

Question 218

Deck 1

product number

Answer 218

Syn: item number.P

Question 219

Deck 1

price elasticity

Answer 219

The degree of change in buyer demand in response to changes in product price. It is calculated by dividing the percentage of change in quantity bought by the percentage of change of price. Prices are considered elastic if demand varies with changes in price. If demand changes only slightly when the price changes, demand is said to be inelastic. For example, demand for most medical services is relatively inelastic, but demand for automobiles is generally elastic.P

Question 220

Deck 1

unit-of-measure conversion

Answer 220

A standard conversion ratio that a company or its computer system uses to quickly enter in the amount delivered based on a known quantity within each unit of measure (e.g., a case of soda contains 24 cans).U

Question 221

Deck 1

industrial market

Answer 221

A market where most or all customers are individuals or businesses that buy products to produce other goods and services. Syn: business market, producer market. See: consumer market, government market, institutional market.I

Question 222

Deck 1

CCR

Answer 222

Abbreviation for capacity-constrained resource.C

Question 223

Deck 1

order winners

Answer 223

Those competitive characteristics that cause a firm’s customers to choose that firm’s goods and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm. Order winners usually focus on one (rarely more than two) of the following strategic initiatives: price/cost, quality, delivery speed, delivery reliability, product design, flexibility, after-market service, and image. See: order losers, order qualifiers.O

Question 224

Deck 1

elasticity of demand (supply)

Answer 224

The ratio of the percentage change in quantity demanded (supplied) to the percentage change in price.E

Question 225

Deck 1

manual rescheduling

Answer 225

The most common method of rescheduling open orders (scheduled receipts). Under this method, the MRP system provides information on the part numbers and order numbers that need to be rescheduled. Due dates and order quantity changes required are then analyzed and changed by material M planners or other authorized persons. Syn: planner intervention. Ant: automatic rescheduling.M

Question 226

Deck 1

customer order servicing system

Answer 226

An automated system for order entry, where orders are keyed into a local terminal and a bill-of-material translator converts the catalog ordering numbers into required manufacturing part numbers and due dates for the MRP system. Advanced systems contain customer information, sales history, forecasting information, and product option compatibilicustomer C ty checks to facilitate order processing, “cleaning up” orders before placing a demand on the manufacturing system. Syn: configuration system, sales order - configuration.C

Question 227

Deck 1

ISO 14000 Series Standards

Answer 227

A series of generic environmental management standards developed by the International Organization of Standardization, which provide structure and systems for managing environmental compliance with legislative and regulatory requirements and affect every aspect of a company’s environmental operations.I

Question 228

Deck 1

right-to-work state

Answer 228

A state that allows workers to choose whether or not to join a union.R

Question 229

Deck 1

cross plot

Answer 229

Syn: scatter chart.C

Question 230

Deck 1

aggregate plan

Answer 230

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

Question 231

Deck 1

percent value-added time

Answer 231

The percentage of total cycle time that is spent on activities that provide value to the product or customer.P

Question 232

Deck 1

systems concept

Answer 232

An attempt to create the most efficient complete system as opposed to the most efficient individual parts. A “whole process” or “whole company” operating system that is driven by cause and effect.S

Question 233

Deck 1

turnaround time

Answer 233

Syn: setup.T

Question 234

Deck 1

prime operations

Answer 234

Critical or most significant operations whose production rates must be closely planned.P

Question 235

Deck 1

knowledge-based system

Answer 235

A computer program that employs knowledge of the structure of relations and reasoning rules to solve problems by generating new knowledge from the relationships about the subject.K

Question 236

Deck 1

management by walking around (MBWA)

Answer 236

The management technique of managers touring a facility on a regular basis to talk with workers and staff about problems, trends, and potential solutions.M

Question 237

Deck 1

consolidation warehouses

Answer 237

Collection points that receive less-than-truckload (LTL) shipments from regional sources and then ships in cargo load or truckload quantities to a manufacturing facility.C

Question 238

Deck 1

activity driver

Answer 238

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

Question 239

Deck 1

sequential-sampling plan

Answer 239

Controlling quality by repeatedly sampling units and each time making a decision to accept or reject a batch or to continue sampling.S

Question 240

Deck 1

financial management

Answer 240

The function concerned with ensuring the availability of funds for research and development, operations, and marketing.F

Question 241

Deck 1

defects per million opportunities

Answer 241

The quantity of defects

Question 242

Deck 1

system constraint

Answer 242

In supply chain management, the supply chain is viewed as the complete system. The system constraint is the resource at any one of the trading partners that is most limiting the end-to-end throughput of the supply chain.S

Question 243

Deck 1

reasonable rate

Answer 243

A pricing strategy that allows a company to profit, but not to achieve monopolistic profits. Normally determined by industry pricing analysis.R R

Question 244

Deck 1

performance measurement

Answer 244

Syn: performance measure.P

Question 245

Deck 1

item number

Answer 245

A number that serves to uniquely identify an item. Syn: part number, product number, stock code, stock number.I

Question 246

Deck 1

helper application

Answer 246

Software that assists the browser when audio, video, or large images are requested.H

Question 247

Deck 1

surge tank

Answer 247

A container to hold output from one process and feed it to a subsequent process. It is used when line balancing is not possible or practical or only on a contingency basis when downstream equipment is nonoperational. S

Question 248

Deck 1

yield

Answer 248

The amount of good or acceptable material available after the completion of a process. Usually computed as the final amount divided by the initial amount converted to a decimal or percentage. In manufacturing planning and control systems, yield is usually related to specific routing steps or to the parent item to determine how many units should be scheduled to produce a specific number of finished goods. For example, if 50 units of a product are required by a customer and a yield of 70 percent is expected then 72 units (computed as 50 units divided by .7) should be started in the manufacturing process. Syn: material yield. See: scrap factor, yield factor.Y

Question 249

Deck 1

bill-of-material accuracy

Answer 249

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

Question 250

Deck 1

single integrator solution

Answer 250

An enterprise resources planning implementation chosen entirely from one vendor.S

Question 251

Deck 1

cost of poor quality

Answer 251

The cost associated with providing poor quality products or services. There are four categories of costs: (1) internal failure costs (costs associated with defects found before the customer receives the product or service); (2) external failure costs (costs associated with defects found after the customer receives the product or service); (3) appraisal costs (costs incurred to determine the degree of conformance to quality requirements); and (4) prevention costs (costs incurred to keep failure and appraisal costs to a minimum). Syn: cost of quality.C

Question 252

Deck 1

authentication key

Answer 252

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

Question 253

Deck 1

backorder

Answer 253

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

Question 254

Deck 1

pilot test

Answer 254

1) In computer systems, a test before final acceptance of a new business system using a subset of data with engineered cases and documented results. 2) Generally, production of a quantity to verify manufacturability, customer acceptance, or other management P requirements before implementation of ongoing production. Syn: pilot, walkthrough.P

Question 255

Deck 1

blanket order

Answer 255

Syn: blanket purchase order.B

Question 256

Deck 1

packing list

Answer 256

A list showing merchandise packed, a copy of which is sent to the consignee to help verify the shipment.P

Question 257

Deck 1

shop calendar

Answer 257

Syn: manufacturing calendar.S

Question 258

Deck 1

de-expedite

Answer 258

The reprioritizing of jobs to a lower level of activity. All extraordinary actions involving these jobs stop.D

Question 259

Deck 1

six sigma

Answer 259

A methodology that furnishes tools for the improvement of business processes. The intent is to decrease process variation and improve product quality.S

Question 260

Deck 1

scenario planning

Answer 260

A planning process that identifies critical events before they occur and use this knowledge to determine effective alternatives.S

Question 261

Deck 1

network logic

Answer 261

Activity dependencies that make up a project schedule network diagram.N

Question 262

Deck 1

deblend

Answer 262

The further processing of a product to adjust specific physical and chemical properties to within specification ranges.D

Question 263

Deck 1

future order

Answer 263

An order entered for shipment at some future date.F

Question 264

Deck 1

long ton

Answer 264

Two thousand two hundred and forty pounds.L

Question 265

Deck 1

outbound logistics

Answer 265

Every process that is involved in the shipping and holding of products after they are completed until they are received by the customer.O

Question 266

Deck 1

design engineering

Answer 266

The discipline consisting of process engineering and product engineering.D

Question 267

Deck 1

future reality tree (FRT)

Answer 267

In the theory of constraints, a logic-based tool for constructing and testing potential solutions before implementation. The objectives are to (1) develop, expand, and complete the solution and (2) identify and solve or prevent new problems created by implementing the solution.F

Question 268

Deck 1

parent/child relationship

Answer 268

Refers to the logical linkage between higher and lower level items in the bill of material.P

Question 269

Deck 1

date code

Answer 269

A label on products with the date of production. In food industries, it is often an integral part of the lot number.D

Question 270

Deck 1

spend analysis

Answer 270

A purchasing activity in which a firm explores its spending patterns to identify opportunities to reduce costs or improve quality. This process is a part of value analysis as well as cost-benefit analysis.S

Question 271

Deck 1

one-piece flow

Answer 271

A concept that items are processed directly from one step to the next, one unit at a time. This helps to shorten lead times and lines of communication, thus more quickly identifying problems.O

Question 272

Deck 1

inventory investment

Answer 272

The dollars that are in all levels of inventory.I

Question 273

Deck 1

integrated logistics service providers

Answer 273

Organizations that provide one or many logistics services to a customer for a fee.I

Question 274

Deck 1

organizational breakdown structure

Answer 274

In project management, a representation of a project’s organization relating work packages to organizational units.O

Question 275

Deck 1

order

Answer 275

A general term that may refer to such diverse items as a purchase order, shop order, customer order, planned order, or schedule.O

Question 276

Deck 1

EDIFACT

Answer 276

Abbreviation for EDI for administration, commerce, and transport.E EDI for administration, commerce, and transport

Question 277

Deck 1

working capital

Answer 277

Syn: net working capital.W

Question 278

Deck 1

return on assets (ROA)

Answer 278

Net income for the previous 12 months divided by total assets. See: return on owner’s equity (ROE).R

Question 279

Deck 1

queuing theory

Answer 279

The collection of models dealing with waiting line problems; for example, problems for which customers or units arrive at some service facility at which waiting lines or queues may build. Syn: waiting line theory. See: queuing analysis.Q

Question 280

Deck 1

cash budget

Answer 280

A budget based on planned cash receipts and disbursements of a plant, division, or firm.C

Question 281

Deck 1

quotation expiration date

Answer 281

The date on which a quoted price is no longer valid.Q R

Question 282

Deck 1

family

Answer 282

A group of end items whose similarity of design and manufacture facilitates their being planned in aggregate, whose sales performance is monitored together, and, occasionally, whose cost is aggregated at this level.F

Question 283

Deck 1

OSHA

Answer 283

Acronym for Occupational Safety and Health Act.O

Question 284

Deck 1

period order quantity

Answer 284

A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods (e.g., weeks into the future). The number of periods to order is variable, each order size equalizing the holding costs and the ordering costs for the interval. See: discrete order quantity, dynamic lot sizing.P

Question 285

Deck 1

production management

Answer 285

1) The planning, scheduling, execution, and control of the process of converting inproduction P puts into finished goods. 2) A field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, inventory management, accounting, and other functions as they affect the transformation process.P

Question 286

Deck 1

bulk issue

Answer 286

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

Question 287

Deck 1

scatter diagram

Answer 287

Syn: scatter chart.S

Question 288

Deck 1

effectivity

Answer 288

Syn: effective date.E

Question 289

Deck 1

integrated change control

Answer 289

In project management, a system under which any changes are coordinated across the entire project.I

Question 290

Deck 1

proof of delivery

Answer 290

Carrier’s records indicating the person signing for delivery with the date, time, and other related information.P

Question 291

Deck 1

distribution by value

Answer 291

Syn: ABC classification.D

Question 292

Deck 1

order service

Answer 292

The function that encompasses receiving, entering, and promising orders from customers, distribution centers, and interplant operations. Order service is also typically responsible for responding to customer inquiries and interacting with the master scheduler on availability of products. In some companies, distribution and interplant requirements are handled separately. See: order entry, order promising.O

Question 293

Deck 1

statistical process control (SPC)

Answer 293

The application of statistical techniques to monitor and adjust an operation. Often the term statistical process control is used interchangeably with statistical quality control.S

Question 294

Deck 1

manufacturing planning and control system (MPC)

Answer 294

A closed-loop information system that includes the planning functions of production planning (sales and operations planning), master production scheduling, material requirements planning, and capacity requirements planning. Once the plan has been accepted as realistic, execution begins. The execution functions include inputoutput control, detailed scheduling, dispatching, anticipated delay reports (department and supplier), and supplier scheduling. A closed-loop MRP system is one example of a manufacturing planning and control system.M

Question 295

Deck 1

MRP II

Answer 295

Abbreviation for manufacturing resource planning.M

Question 296

Deck 1

PFEP

Answer 296

Abbreviation for plan for every part.P

Question 297

Deck 1

cost engineer

Answer 297

An engineer whose judgment and experience are used in the application of scientific principles and techniques to problems of cost estimation and cost control in business planning, profitability analysis, project management and production planning, scheduling, and control.C

Question 298

Deck 1

ISO/TS 16949

Answer 298

A standard written by the International Automotive Task Force that applies only to automotive companies. It includes quality management system; management responsibility; resource management; product realization; and measurement, analysis, and improvement. See: QS 9000.I

Question 299

Deck 1

consolidation

Answer 299

Packages and lots that move from suppliers to a carrier terminal and are sorted and then combined with similar shipments from another supplier’s container load or truckload for travel to a final destination. See: milk run.C

Question 300

Deck 1

customer

Answer 300

1) A person or organization receiving a good, service, or information. See: external customer, internal customer. 2) In project management, every project has a customer who may be internal or external to the organization and who is responsible for the final project acceptance.C

Question 301

Deck 1

NSN

Answer 301

Abbreviation for national stock number.N

Question 302

Deck 1

zero defects

Answer 302

A performance standard developed by Philip B. Crosby to address a dual attitude in the workplace: People are willing to accept imperfection in some areas, while in other areas, they expect the number of defects to be zero. This dual attitude has developed as a result of the conditioning that people are human and humans make mistakes. However, the zerodefects methodology states that if people commit themselves to watching details and avoiding errors, they can move closer to the goal of zero defects. The performance standard that must be set is “zero defects,” not “close enough.”Z

Question 303

Deck 1

measures constraint

Answer 303

A common misnomer. Bad measures are not the constraint. Rather, bad measures hinder effective constraint management by inhibiting the ability to fully exploit and/or subordinate to the constraint.M

Question 304

Deck 1

move time

Answer 304

The time that a job spends in transit from one operation to another in the plant.M

Question 305

Deck 1

line of balance planning

Answer 305

A project planning technique using a lead-time offset chart and a chart of required final assembly completions to graph a third bar chart showing the number of each component that should be completed to date. This bar chart forms a descending line, and aggregate component completions are then plotted against this line of balance. This is a crude form of material planning.L

Question 306

Deck 1

waiver

Answer 306

Authorization to accept an item that, during production or upon inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use as is or after rework.W

Question 307

Deck 1

value-driven enterprise

Answer 307

An organization that is designed and managed to add utility from the viewpoint of the customer in the transformation of raw materials into a finished good or service.V

Question 308

Deck 1

performance measurement baseline

Answer 308

An approved plan used to compare against actual execution to identify variances for management control.P

Question 309

Deck 1

make-or-buy decision

Answer 309

The act of deciding whether to produce an item internally or buy it from an outside supplier. Factors to consider in the decision include costs, capacity availability, proprietary and/or specialized knowledge, quality considerations, skill requirements, volume, and timing.M

Question 310

Deck 1

quick-response program (QRP)

Answer 310

A system of linking final retail sales with production and shipping schedules back through the chain of supply; employs point-of-sale scanning and electronic data interchange, and may use direct shipment from a factory to a retailer.Q

Question 311

Deck 1

inventory diversion

Answer 311

The shipment of parts against a project or contract other than the original project or contract for which the items were purchased.I

Question 312

Deck 1

to its cause. In the second phase

Answer 312

the remedial journey the team journeys from the cause to its remedy.D

Question 313

Deck 1

TWM

Answer 313

Abbreviation for total waste management.T

Question 314

Deck 1

demand deposits

Answer 314

Deposits that can be withdrawn on demand or paid to a third party by check.D

Question 315

Deck 1

pallet rack

Answer 315

A single- or multiple-level structure for storage used to support high stacking of palletized loads.P

Question 316

Deck 1

order-to-delivery cycle

Answer 316

The period of time that starts when the customer places an order and ends when the customer receives the order.O

Question 317

Deck 1

replacement cost

Answer 317

A method of setting the value of inventories based upon the cost of the next purchase.R

Question 318

Deck 1

duty

Answer 318

A tax levied by a government on the importation, exportation, or use and consumption of goods.D

Question 319

Deck 1

process focused

Answer 319

A type of manufacturing organization in which both plant and staff management responsibilities are delineated by production process. A highly centralized staff coordinates plant activities and intracompany material movements. This type of organization is best suited to companies whose dominant orientation is to a technology or a material and whose manufacturing processes tend to be complex and capital intensive. See: product focused, process-focused organization.P

Question 320

Deck 1

assemble-to-order

Answer 320

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

Question 321

Deck 1

marginal analysis

Answer 321

A decision rule that optimality occurs where incremental revenue equals incremental cost.M

Question 322

Deck 1

exempt positions

Answer 322

Positions that do not require the payment of overtime because they meet the tests of executive, supervisory, or administrative activity, as defined under the Fair Labor Standards Act.E

Question 323

Deck 1

total cost of ownership (TCO)

Answer 323

In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership.T T

Question 324

Deck 1

base demand

Answer 324

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

Question 325

Deck 1

nonevident failure

Answer 325

Failure occurring in either a product or a production process that is not immediately evident. This may be indicative of a faulty design.N

Question 326

Deck 1

family contracts

Answer 326

A purchase order that groups families of similar parts together to obtain pricing advantages and a continuous supply of material.F

Question 327

Deck 1

Fair Labor Standards Act (FLSA)

Answer 327

Federal law that governs the definitions of management and labor and establishes wage payment and hours worked and other employment practices.F

Question 328

Deck 1

OTED

Answer 328

Abbreviation for one-touch exchange of die.O

Question 329

Deck 1

inventory returns

Answer 329

Items returned to the manufacturer as defective, obsolete, overages, and so forth. An inventory item record transaction records the return or receipt into physical stores of materials from which the item may be scrapped.I

Question 330

Deck 1

produce-to-order

Answer 330

Syn: make-to-order.P

Question 331

Deck 1

turnkey system

Answer 331

1) Computer packages that are already prepared by a hardware manufacturer or software house and are ready to run. 2) Any system of machines that is ready for immediate use.T

Question 332

Deck 1

manufacturing strategy

Answer 332

A collective pattern of decisions that acts upon the formulation and deployment of manufacturing resources. To be most effective, the manufacturing strategy should act in support of the overall strategic direction of the business and provide for competitive advantages (edges).M

Question 333

Deck 1

trend component

Answer 333

A component of demand, usually describing the impact of increasing or decreasing growth on demand. See: time series analysis.T

Question 334

Deck 1

master file

Answer 334

A main reference file of information, such as the item master file or work center file. See: detail file, item master file.M

Question 335

Deck 1

supply chain planning

Answer 335

The determination of a set of policies and procedures that govern the operation of a supply chain. Planning includes the determination of marketing channels, promotions, respective quantities and timing, inventory and replenishment policies, and production policies. Planning establishes the parameters within which the supply chain will operate.S

Question 336

Deck 1

drop-dead date

Answer 336

The last possible date to apply influence to a future activity.D

Question 337

Deck 1

phantom bill of material

Answer 337

A bill-of-material coding and structuring technique used primarily for transient (nonstocked) subassemblies. For the transient item, lead time is set to zero and the order quantity to lot-for-lot. A phantom bill of material represents an item that is physically built, but rarely stocked, before being used in the next step or level of manufacturing. This permits MRP logic to drive requirements straight through the phantom item to its components, but the MRP system usually retains its ability to net against any occasional inventories of the item. This technique also facilitates the use of common bills of material for engineering and manufacturing. Syn: blowthrough, transient bill of material. See: pseudo bill of material.P

Question 338

Deck 1

relevant costs

Answer 338

Those costs incurred because of a decision. The costs would not have resulted unless the decision was made and implemented. They are relevant to the decision.R

Question 339

Deck 1

hybrid purchasing organization

Answer 339

A mix of the centralized

Question 340

Deck 1

innovative products

Answer 340

Products that tend to have a high profit margin, be unique, have less competition, and have dynamic demand.I

Question 341

Deck 1

compensation laws

Answer 341

Laws designed to pay employees for injuries sustained on the job.C

Question 342

Deck 1

in-transit lead time

Answer 342

The time between the date of shipment (at the shipping point) and the date of receipt (at the receiver’s dock). Orders normally specify the date by which goods should be at the dock. Consequently, this date should be offset by in-transit lead time for establishing a ship date for the supplier.I

Question 343

Deck 1

wand

Answer 343

A device connected to a bar-code reader to identify a bar code.W

Question 344

Deck 1

arrival rate

Answer 344

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

Question 345

Deck 1

pegging

Answer 345

In MRP and MPS, the capability to identify for a given item the sources of its gross requirements and/or allocations. Pegging can be thought of as active where-used information. See: requirements traceability.P

Question 346

Deck 1

cycle

Answer 346

1) The interval of time during which a system or process, such as seasonal demand or a manufacturing operation, periodically returns to similar initial conditions. 2) The interval of time during which an event or set of events is completed.C

Question 347

Deck 1

process benchmarking

Answer 347

Benchmarking focused on the target firm’s business processes, including process flows, operating systems, and process technologies. See: benchmarking.P

Question 348

Deck 1

CRM

Answer 348

Abbreviation for customer relationship management and customer relations management.C

Question 349

Deck 1

demand uncertainty

Answer 349

The uncertainty or variability in demand as measured by the standard deviation, mean absolute deviation (MAD), or variance of forecast errors.D

Question 350

Deck 1

continuous flow (production)

Answer 350

Syn: continuous production.C

Question 351

Deck 1

vendor scheduling

Answer 351

Syn: supplier scheduling.V

Question 352

Deck 1

dispatch list

Answer 352

A listing of manufacturing orders in priority sequence. The dispatch list, which is usually communicated to the manufacturing floor via paper or electronic media, contains detailed information on priority, location, quantity, and the capacity requirements of the manufacturing order by operation. Dispatch lists are normally generated daily and oriented by work center. Syn: work center schedule, priority report.D

Question 353

Deck 1

dispersion

Answer 353

The scattering of the observations of a frequency distribution around its average.D

Question 354

Deck 1

operations

Answer 354

The group that produces the goods and/or services that a company sells.O

Question 355

Deck 1

gravity models

Answer 355

An approach used for locating facilities at the “center of gravity.” Gravity is determined by the product of the masses of two bodies divided by the square of the distance between them. In gravity models, the population of each neighborhood in the region is used as the mass, and driving time is used as the distance.G

Question 356

Deck 1

consideration

Answer 356

In contract law, an obligation that is to the detriment of one party (promisee) or to the benefit of the other party (promisor).C

Question 357

Deck 1

final assembly department

Answer 357

The name for the manufacturing department where the product is assembled. See: blending department, pack-out department.F F

Question 358

Deck 1

operation costing

Answer 358

A method of costing used in batch manufacturing environments when products produced have common, as well as distinguishing, characteristics; for example, suits. The products are identified and costed by batches or by production runs, based on the variations.O

Question 359

Deck 1

differentiate its product; (3) Differentiated oligopoly

Answer 359

A few companies produce partially differentiated products or services that are marketed within a given area. Differentiation may be based on quality, features, styling, or services offered along with the product; (4)

Question 360

Deck 1

electronic mail (email)

Answer 360

A technology for handling mail electronically.E

Question 361

Deck 1

process chart

Answer 361

A chart that represents the sequence of work or the nature of events in process. It serves as a basis for examining and possibly improving the way the work is carried out. Syn: operations process chart. See: flow process chart, process flow.P

Question 362

Deck 1

hybrid manufacturing process

Answer 362

Syn: hybrid production method.H

Question 363

Deck 1

flexibility

Answer 363

1) The ability of the manufacturing system to respond quickly, in terms of range and time, to external or internal changes. Six different categories of flexibility can be considered: mix flexibility, design changeover flexibility, modification flexibility, volume flexibility, rerouting flexibility, and material flexibility (see each term for a more detailed discussion). In addition, flexibility involves concerns of product flexibility. Flexibility can be useful in coping with various types of uncertainty (regarding mix, volume, and so on). 2) The ability of a supply chain to mitigate, or neutralize, the risks of demand forecast variability, supply continuity variability, cycle time plus lead-time uncertainty, and transit time plus customs-clearance time uncertainty during periods of increasing or diminishing volume.F

Question 364

Deck 1

product segments

Answer 364

The shared information between a plan-of-resources and a production rule for a specific product. It is a logical grouping of personnel resources, equipment resources, and material specifications required to carry out the production step.P

Question 365

Deck 1

hoshin kanri

Answer 365

See hoshin planning.H

Question 366

Deck 1

page

Answer 366

In information systems, an internet document containing both text and hypertext links to other pages that are stored on the server.P

Question 367

Deck 1

task interleaving

Answer 367

An attempt at reducing/eliminating “deadheading,” or driving an empty material handling vehicle. A warehouse management system directs a material carrying vehicle to put away materials as it goes to pick up other materials.T

Question 368

Deck 1

strategic performance measurements

Answer 368

Measurements that relate to the long-term goals of a business. Examples include profitability, market share, growth, and productivity. See: global performance measurements, operational performance measurements.S S

Question 369

Deck 1

balance

Answer 369

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

Question 370

Deck 1

TMS

Answer 370

Abbreviation for transportation management system.T

Question 371

Deck 1

manufacturing release

Answer 371

The issuance of a manufacturing order into the factory.M

Question 372

Deck 1

mean absolute deviation (MAD)

Answer 372

The average of the absolute values of the deviations of observed values from some expected value. MAD can be calculated based on observations and the arithmetic mean of those observations. An alternative is to calculate absolute deviations of actual sales data minus forecast data. These data can be averaged in the usual arithmetic way or with exponential smoothing. See: forecast error, tracking signal.M

Question 373

Deck 1

format

Answer 373

The predetermined arrangement of the characters of data for computer input, storage, or output.F

Question 374

Deck 1

sequencing

Answer 374

Determining the order in which a manufacturing facility is to process a number of different jobs in order to achieve certain objectives.S

Question 375

Deck 1

audit

Answer 375

An objective comparison of actions to policies and plans.A

Question 376

Deck 1

market surveys

Answer 376

Questionnaires designed to get feedback from potential customers about demand for a product or service.M

Question 377

Deck 1

process costing

Answer 377

A cost accounting system in which the costs are collected by time period and averaged over all the units produced during the period. This system can be used with either actual or standard costs in the manufacture of a large number of identical units.P

Question 378

Deck 1

planning time fence

Answer 378

A point in time denoted in the planning horizon of the master scheduling process that marks a boundary inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries, and cost. Outside the planning time fence, customer orders may be booked and changes to the master schedule can be made within the constraints of the production plan. Changes inside the planning time fence must be made manually by the master scheduler. Syn: planning fence. See: cumulative lead time, demand time fence, firm planned order, planned order, planning horizon, time fence.P

Question 379

Deck 1

incremental utilization heuristic

Answer 379

Using a worker’s full capacity by adding one task at a time (in priority order) up to the maximum capacity, or waiting for the utilization to fall and then adding more tasks.I

Question 380

Deck 1

intermittent production

Answer 380

A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing. See: job shop.I I

Question 381

Deck 1

custom product

Answer 381

A product that is made to meet the requirements of specific customers.C

Question 382

Deck 1

fixed reorder cycle inventory model

Answer 382

A form of independent demand management model in which an order is placed every n time units. The order quantity is variable and essentially replaces the items consumed during the current time period. Let M be the maximum inventory desired at any time, and let x be the quantity on hand at the time the order is placed. Then, in the simplest model, the order quantity will be M – x. The quantity M must be large enough to cover the maximum expected demand during the lead time plus a review interval. The order quantity model becomes more complicated whenever the replenishment lead time exceeds the review interval, because outstanding orders then have to be factored into the equation. These reorder systems are sometimes called fixed-interval order systems, order level systems, or periodic review systems. Syn: fixedinterval order system, fixed order quantity system, order level system, periodic review system, time-based order system. See: fixed reorder quantity inventory model, hybrid inventory system, independent demand item management models, optional replenishment model.F

Question 383

Deck 1

to become virtual organizations

Answer 383

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

Question 384

Deck 1

standard output

Answer 384

An estimate of what should be produced, given a certain level of resources. Can be stated in units per hour or units per period (day, shift, etc.).S

Question 385

Deck 1

YMS

Answer 385

Abbreviation for yard management system.Y

Question 386

Deck 1

Southern Common Market (Mercosur)

Answer 386

A market/ customs alliance between Argentina, Brazil, Paraguay, and Uruguay created by the Treaty of Ascuncion (1991).S

Question 387

Deck 1

gain sharing plans

Answer 387

Syn: gain sharing.G

Question 388

Deck 1

master black belt

Answer 388

In six sigma, quality expert capable of implementing strategic quality efforts including teaching other facilitators (black belts) the quality applications within all levels of the organization.M

Question 389

Deck 1

count frequency

Answer 389

The number of times an item in inventory is counted during a period of time. Generally, highvalue inventories are counted more frequently than lowvalue items, although properties other than value can influence the frequency.C

Question 390

Deck 1

contract line items number (CLIN)

Answer 390

Specific items that are priced separately on a contract.C

Question 391

Deck 1

honeycombing

Answer 391

The practice of removing a pallet of merchandise where the space is not exhausted in an orderly fashion, resulting in a vacant space not usable for storage of other items. This is one of the hidden costs of warehousing.H

Question 392

Deck 1

variable

Answer 392

A quantity that can assume any of a given set of values. Ant: constant.V

Question 393

Deck 1

debt

Answer 393

An amount owed to creditors. It is generally equal to the total assets in a company less the equity. See: liabilities.D

Question 394

Deck 1

zone

Answer 394

1) A warehouse location methodology that includes some of the characteristics of fixed and random location methods. Zone locations hold certain kinds of items, depending on physical characteristics or frequency of use. 2) The specific warehouse location assigned to an order picker. In picking items for an order, the stock picker gets only the items for each order that are within his/her zone. The picker then fills the next order for items from his/her zone.Z

Question 395

Deck 1

unit of measure

Answer 395

The unit in which the quantity of an item is managed (e.g., pounds, each, box of 12, package of 20, case of 144).U

Question 396

Deck 1

project plan

Answer 396

In project management, a document that has been approved by upper management that is to be used in executing and controlling a project. It documents assumptions, facilitates communication, and documents the approved budget and schedule. It may exist at a summary or a detailed level.P

Question 397

Deck 1

multimedia

Answer 397

An interactive combination of two or more of the following: text, graphics, video, audio, and animation all controlled by a personal computer.M

Question 398

Deck 1

expeditor

Answer 398

A production control person whose primary duty is expediting.E

Question 399

Deck 1

where-used list

Answer 399

A listing of every parent item that calls for a given component, and the respective quantity required, from a bill-of-material file. See: implosion.W

Question 400

Deck 1

batch number

Answer 400

Syn: lot number.B

Question 401

Deck 1

rerouting flexibility

Answer 401

Accommodating unavailability of equipment by quickly and easily using alternate machines in the processing sequence.R R

Question 402

Deck 1

redundancy

Answer 402

1) A backup capability, coming either from extra machines or from extra components within a machine, to reduce the effects of breakdowns. 2) The use of one or more extra or duplicating components in a system or equipment (often to increase reliability).R

Question 403

Deck 1

P chart

Answer 403

A control chart for evaluating the stability of a process in terms of the percentage of the total number of units in a sample in which an event of a given classification occurs over time. P charts are used where it is difficult or costly to make numerical measurements or where it is desired to combine multiple types of defects into one measurement. Syn: percent chart.P

Question 404

Deck 1

time, all items in the order

Answer 404

in the correct quantity and

Question 405

Deck 1

performance variance

Answer 405

The difference between a performance standard and actual performance.P

Question 406

Deck 1

longest-task-time (LTT) heuristic

Answer 406

The method of attaching additional jobs to a workstation based on priority order, with the longest task scheduled first.L

Question 407

Deck 1

trend control chart

Answer 407

A control chart in which the deviation of the subgroup average, X-bar, from an expected trend in the process level is used to evaluate the stability of a process.T

Question 408

Deck 1

ubiquity

Answer 408

In inventory control, a raw material that is found at all locations.U

Question 409

Deck 1

Shewhart cycle

Answer 409

Syn: plan-do-check-action.S

Question 410

Deck 1

and decentralized purchasing format

Answer 410

usually decentralized at the corporate level and centralized at the business unit level.H

Question 411

Deck 1

sub-tier supplier

Answer 411

A supplier who delivers a product to a direct supplier to the customer.S

Question 412

Deck 1

optimization models

Answer 412

A class of mathematical models used when the modeler wishes to find the ideal (maximum or minimum) value of some objective function subject to a set of constraints.O

Question 413

Deck 1

analysis of variance (ANOVA)

Answer 413

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 414

Deck 1

product-market-focused organization

Answer 414

A firm in which individual plants are dedicated to manufacturing a specific product or product group.P

Question 415

Deck 1

human relations movement

Answer 415

A movement started in the early 1900s among managers who believed that employees are humans who should be treated with respect in the workplace.H

Question 416

Deck 1

remanufacturing

Answer 416

1) An industrial process in which worn-out products are restored to like-new condition. In contrast, a repaired product normally retains its identity, and only those parts that have failed or are badly worn are replaced or serviced. 2) The manufacturing environment where worn-out products are restored to likenew condition.R

Question 417

Deck 1

time and materials (T&M) contract

Answer 417

A type of contract that is a hybrid between cost-reimbursable and fixedtime contracts.T

Question 418

Deck 1

foreign trade zone (FTZ)

Answer 418

Areas supervised by U.S. Customs and Border Protection that are considered to be outside U.S. territory. Material in the zone is not subject to duty taxes, which are payable when the material is moved outside the zone for consumption. There is no limit on the time material may remain in the zone. Internationally, similar areas are called free trade zones.F F

Question 419

Deck 1

balancing the line

Answer 419

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

Question 420

Deck 1

possession utility

Answer 420

Product desirability created by marketing efforts.P

Question 421

Deck 1

WYSIWYG

Answer 421

Acronym for what you see is what you get.W X

Question 422

Deck 1

marginal revenue

Answer 422

The incremental sales dollars received when the level of output of some operation is increased by one unit.M

Question 423

Deck 1

loose standard

Answer 423

A standard time greater than that required by a qualified worker with normal skill and effort.L

Question 424

Deck 1

MRB

Answer 424

Abbreviation for material review board.M

Question 425

Deck 1

domestic corporation

Answer 425

A company incorporated in a particular state or country.D

Question 426

Deck 1

IIE

Answer 426

Abbreviation for Institute of Industrial Engineers.I

Question 427

Deck 1

recency, frequency, monetary (RFM)

Answer 427

Giving customers the highest rating who have bought recently, bought many times, and bought in large amounts.R

Question 428

Deck 1

receiving

Answer 428

The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.R

Question 429

Deck 1

service-oriented architecture (SOA)

Answer 429

A style of information technology (IT) design that guides all aspects of creating and using business services throughout their life cycles, as well as defining and provisioning the IT infrastructure that enables different computer applications to exchange data and participate in business processes, regardless of the operating systems or programming languages underlying those applications.S

Question 430

Deck 1

depreciation of a currency

Answer 430

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

Question 431

Deck 1

efficiency variance

Answer 431

In cost accounting, the difference between the actual volume of a resource used and the budgeted volume, multiplied by the budgeted or standard price.E

Question 432

Deck 1

scan-based trading (SBT)

Answer 432

As an item is sold, scanned information is sent to the manufacturer and creates a replacement order of that item. Used often in large retail store chains as well as large volume product producers.S

Question 433

Deck 1

master pack

Answer 433

A large, protective box used to contain smaller boxes. This reduces materials handling activities.M

Question 434

Deck 1

mix ticket

Answer 434

A listing of all the raw materials, ingredients, components, and such that are required to perform a mixing, blending, or similar operation. This listing is often printed on a paper ticket, which also may be used as a turnaround document to report component quantities actually used, final quantity actually produced, etc. This term is often used in batch process or chemical industries. See: assembly parts list, batch card, blend formula, manufacturing order.M

Question 435

Deck 1

automatic relief

Answer 435

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

Question 436

Deck 1

network analysis

Answer 436

In project management, the calculation of early and late start and finish times for those activities not yet completed. See: critical path method, graphical evaluation and review technique, and program evaluation and review technique (PERT).N

Question 437

Deck 1

quick asset ratio

Answer 437

A measure of a firm’s financial stability. It is defined as (current assets – inventory)/current liabilities. A value greater than one is desirable. Syn: quick ratio, acid test, acid test ratio.Q

Question 438

Deck 1

rework lead time

Answer 438

The time required to rework material in-house or at a supplier’s location.R

Question 439

Deck 1

lease

Answer 439

A rental agreement lasting an extended period.L

Question 440

Deck 1

reactor

Answer 440

A special vessel to contain a chemical reaction.R

Question 441

Deck 1

support functions

Answer 441

Activities such as accounting and information systems that do not directly participate in production but that are nevertheless essential.S

Question 442

Deck 1

lot tolerance percent defective (LTPD)

Answer 442

Expressed in percent defective, the poorest quality in an individual lot that should be accepted. Note: The LTPD is used as a basis for some inspection systems and is commonly associated with a value for a small consumer’s risk.L

Question 443

Deck 1

reorder quantity

Answer 443

1) In a fixed-reorder quantity system of inventory control, the fixed quantity that should be ordered each time the available stock (on-hand plus onorder) falls to or below the reorder point. 2) In a variable reorder quantity system, the amount ordered from time period to time period will vary. Syn: replenishment order quantity.R

Question 444

Deck 1

project production

Answer 444

Production in which each unit or small group of units is managed by a project team created especially for that purpose.P

Question 445

Deck 1

out-of-pocket costs

Answer 445

Costs that involve direct payments such as labor, freight, or insurance, as opposed to depreciation, which does not.O

Question 446

Deck 1

estimate at completion (EAC)

Answer 446

Estimated cost of an activity or project when the defined scope of work will be finished. It is the actual cost-to-date plus estimate-tocomplete for uncompleted activities.E

Question 447

Deck 1

c chart

Answer 447

A control chart for evaluating the stability of a process in terms of the count of events of a given classification occurring in a sample. Syn: count chart, number defective chart.C

Question 448

Deck 1

production planning

Answer 448

A process to develop tactical plans based on setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned levels of sales (sales plan or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times, and so on, as expressed in the overall business plan. The sales and production capabilities are compared, and a business strategy that includes a sales plan, a production plan, budgets, pro forma financial statements, and supporting plans for materials and workforce requirements, and so on, is developed. One of its primary purposes is to establish production rates that will achieve management’s objective of satisfying customer demand by maintaining, raising, or lowering inventories or backlogs, while usually attempting to keep the workforce relatively stable. Because this plan affects many company functions, it is normally prepared with information from marketing and coordinated with the functions of manufacturing, sales, engineering, finance, materials, and so on. See: aggregate planning, production plan, sales and operations planning, sales plan.P

Question 449

Deck 1

job shop

Answer 449

1) An organization in which similar equipment is organized by function. Each job follows a distinct routing through the shop. 2) A type of manufacturing process used to produce items to each customer’s specifications. Production operations are designed to handle a wide range of product designs and are performed at fixed plant locations using general-purpose equipment. Syn: jobbing. See: intermittent production, project manufacturing.J

Question 450

Deck 1

rate basis point

Answer 450

The center of shipping in a specific area; used to determine shipping rates.R

Question 451

Deck 1

clean technology

Answer 451

A technical measure taken to reduce or eliminate at the source the production of any nuiscleanup ● collaborative planning C ance, pollution, or waste and to help save raw materials, natural resources, and energy.C

Question 452

Deck 1

decoupling inventory

Answer 452

An amount of inventory kept between entities in a manufacturing or distribution network to create independence between processes or entities. The objective of decoupling inventory is to disconnect the rate of use from the rate of supply of the item. See: buffer.D

Question 453

Deck 1

single exponential smoothing

Answer 453

Syn: first-order smoothing.S

Question 454

Deck 1

sourcing decisions

Answer 454

High-level decisions regarding which products or services will be produced within a company and which will be purchased from external supply chain partners. These decisions normally are based on supplier cost and capability by comparison to producing the product in house.S

Question 455

Deck 1

FMS

Answer 455

Abbreviation for flexible manufacturing system.F

Question 456

Deck 1

perishability

Answer 456

The fact that an item has a limited shelf life and may be fragile and require special handling.P

Question 457

Deck 1

intangible

Answer 457

One distinguishing feature of pure services. Pure services cannot be inventoried or carried in stock for long periods of time.I

Question 458

Deck 1

first-piece inspection

Answer 458

Syn: first-article inspection.F

Question 459

Deck 1

standard hours

Answer 459

Syn: standard time.S

Question 460

Deck 1

workplace organization

Answer 460

The arrangement of tools, equipment, materials, and supplies according to their frequency of use. Those items that are never used are removed from the workplace, and those items that are used frequently are located for fast, easy access and Z replacement. This concept extends the idea of “a place for everything and everything in its place.”W

Question 461

Deck 1

option overplanning

Answer 461

Typically, scheduling extra quantities of a master schedule option greater than the expected sales for that option to protect against unanticipated demand. This schedule quantity may only be planned in the period where new customer orders are currently being accepted, typically just after the demand time fence. This technique is usually used on the second level of a two-level master scheduling approach to create a situation where more of the individual options are available than of the overall family. The historical average of demand for an item is quantified in a planning bill of material. Option overplanning is accomplished by increasing this percentage to allow for demands greater than forecast. See: demand time fence, hedge, planning bill of material.O

Question 462

Deck 1

private carrier

Answer 462

A group that provides transportation exclusively within an organization. Ant: common carrier.P

Question 463

Deck 1

tender offer

Answer 463

An offer by an organization to buy a block of shares directly from shareholders of another organization.T

Question 464

Deck 1

center

Answer 464

In statistics, values near the middle of results from a process.C

Question 465

Deck 1

IMC

Answer 465

Abbreviation for intermodal marketing company.I

Question 466

Deck 1

minimum weight

Answer 466

In transportation, the rate discount volume.M

Question 467

Deck 1

avoidable delay

Answer 467

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

Question 468

Deck 1

demand curve

Answer 468

A graphic description of the relationship between price and quantity demanded in a market, assuming that all other factors stay the same. Quantity demanded of a product is measured on the horizontal axis for an array of different prices measured on the vertical axis.D

Question 469

Deck 1

interleaving

Answer 469

Assigning multiple tasks to be performed concurrently, often the assignment of multiple picking orders to a single picker to pick concurrently.I

Question 470

Deck 1

co-product

Answer 470

A product that is usually manufactured together or sequentially because of product or process similarities. See: by-product.C

Question 471

Deck 1

life testing

Answer 471

The simulation of a product’s life under controlled real-world conditions to see if it holds up and performs as required.L

Question 472

Deck 1

dispatch(ing) board

Answer 472

Syn: control board.D

Question 473

Deck 1

setup

Answer 473

1) The work required to change a specific machine, resource, work center, or line from making the last good piece of item A to making the first good piece of item B. 2) The refitting of equipment to neutralize the effects of the last lot produced (e.g., teardown of the just-completed production, preparation of the equipment for production of the next scheduled item). Syn: changeover, turnaround, turnaround time.S

Question 474

Deck 1

future worth

Answer 474

1) The equivalent monetary value at a designated future date based on the time value of money. 2) The monetary sum, at a given future time, that is equivalent to one or more sums at given earlier times when interest is compounded at a given rate. See: time value of money.F

Question 475

Deck 1

production lead time

Answer 475

Syn: manufacturing lead time.P

Question 476

Deck 1

material usage variance

Answer 476

The difference between the planned or standard requirements for materials to produce a given item and the actual quantity used for a particular instance of manufacture.M

Question 477

Deck 1

summarized where-used

Answer 477

A form of an indented whereused bill of material that shows all parents in which a given component is used, the required quantities, and all the next-level parents until the end item is reached. Unlike the indented where-used, it does not list the levels of manufacture.S

Question 478

Deck 1

compound yield

Answer 478

The cumulative effect of yield loss at multiple operations within the manufacturing cycle.C

Question 479

Deck 1

vision statement

Answer 479

An organization’s statement of its vision. See: vision.V

Question 480

Deck 1

pattern recognition

Answer 480

Classifying raw data based on experience or statistical information.P

Question 481

Deck 1

cash flow statement

Answer 481

Syn: funds flow statement.C C

Question 482

Deck 1

process sheet

Answer 482

Detailed manufacturing instructions issued to the plant. The instructions may include specifications on speeds, feed, temperatures, tools, fixtures, and machines and sketches of setups and semifinished dimensions.P

Question 483

Deck 1

requisition

Answer 483

Syn: parts requisition.R

Question 484

Deck 1

market segment

Answer 484

A group of potential customers sharing some measurable characteristics based on demographics, psychographics, lifestyle, geography, benefits, and so forth.M

Question 485

Deck 1

certificate of analysis

Answer 485

A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody of materials.C

Question 486

Deck 1

procurement credit card

Answer 486

Credit cards with a predetermined credit limit issued to buyers. Syn: corporate purchasing cards.P

Question 487

Deck 1

optional replenishment model

Answer 487

A form of independent demand item management model in which a review of inventory on hand plus on order is made at fixed intervals. If the actual quantity is lower than some predetermined threshold, a reorder is placed for a quantity M – x, where M is the maximum allowable inventory and x is the current inventory quantity. The reorder point, R, may be deterministic or stochastic, and in either instance is large enough to cover the maximum expected demand during the review interval plus the replenishment lead time. The optional replenishment model is sometimes called a hybrid system because it combines certain aspects of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model. See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, hybrid inventory system, independent demand item management models.O

Question 488

Deck 1

warehouses (distribution centers)

Answer 488

Facilities used to store inventory. Decisions driving warehouse management include site selection, number of facilities in the system, layout, and methods of receiving, storing, and retrieving goods.W

Question 489

Deck 1

order interval

Answer 489

The time period between the placement of orders.O

Question 490

Deck 1

service factor

Answer 490

Syn: safety factor.S

Question 491

Deck 1

production leveling

Answer 491

Syn: level production method.P

Question 492

Deck 1

integrated enterprise

Answer 492

A business or organization made up of individuals who have acquired the knowledge and skills to work with others to make the organization a greater success than the sum of each individual’s output. Integration includes increased communication and coordination between individuals and within and across teams, functions, processes, and organizations over time. See: cross-functional integration.I

Question 493

Deck 1

staging

Answer 493

Pulling material for an order from inventory before the material is required. This action is often taken to identify shortages, but it can lead to increased problems in availability and inventory accuracy.S

Question 494

Deck 1

order qualifiers

Answer 494

Those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace. For example, a firm may seek to compete on characteristics other than price, but in order to “qualify” to compete, its costs and the related price must be within a certain range to be considered by its customers. Syn: qualifiers. See: order losers, order winners.O

Question 495

Deck 1

activity-based costing system

Answer 495

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

Question 496

Deck 1

indirect retail locations

Answer 496

A retailer who sells products to the public but who buys products indirectly through a third-party distributor, rather than directly from the seller.I

Question 497

Deck 1

synthetic time standard

Answer 497

Syn: predetermined motion time.S

Question 498

Deck 1

business cycle

Answer 498

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

Question 499

Deck 1

takt time

Answer 499

Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It is computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The takt time = 420 minutes per day/ 500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes. Syn: tact time.T

Question 500

Deck 2

Term

Answer 500

Definition

Question 501

Deck 2

research and development (R&D)

Answer 501

A function that performs basic and applied research and develops potential new products.R

Question 502

Deck 2

file

Answer 502

An organized collection of records.F

Question 503

Deck 2

aftermarket

Answer 503

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

Question 504

Deck 2

hybrid layout

Answer 504

This layout combines two or more layout types.H

Question 505

Deck 2

sample standard deviation

Answer 505

A key measure that represents the spread or dispersion of a sample.S

Question 506

Deck 2

extended enterprise

Answer 506

The notion that supply chain partners form a larger entity. See: supply chain community.E

Question 507

Deck 2

output standard

Answer 507

The expected number of units from a process against which actual output will be measured.O

Question 508

Deck 2

mean squared error (MSE)

Answer 508

A measure of statistical variation in a forecast. Computed by squaring the forecast errors and then taking the average of the sum of the squared errors.M

Question 509

Deck 2

FIFO

Answer 509

Acronym for first in, first out.F

Question 510

Deck 2

modular design strategy

Answer 510

The strategy of planning and designing products so that components or subassemblies can be used in current and future products or assembled to produce multiple configurations of a M product. Automobiles and personal computers are examples of modular designs.M

Question 511

Deck 2

company stock

Answer 511

generally tied into the compensation/ benefits package. The intention is to give workers a feeling of participation in the management and direction of the company.E

Question 512

Deck 2

cold chain

Answer 512

A term referring to the storage, transfer, and supply chain of temperature-controlled products. Industries in the cold chain include food and agriculture, pharmaceuticals, and chemicals.C

Question 513

Deck 2

normal and proper usage

Answer 513

Operation of the equipment with a program of regular maintenance in accordance with generally accepted practices and within the rated capacity and service classification for which it was specified and designed.N

Question 514

Deck 2

SBQ

Answer 514

Abbreviation for standard batch quantity.S

Question 515

Deck 2

CPIM

Answer 515

Abbreviation for Certified in Production and Inventory Management.C

Question 516

Deck 2

effectivity date

Answer 516

Syn: effective date.E

Question 517

Deck 2

standard service

Answer 517

Service that is the same for most customers.S

Question 518

Deck 2

production reporting and status control

Answer 518

A vehicle to provide feedback to the production schedule and allow for corrective action and maintenance of valid on-hand and on-order balances. Production reporting and status control normally include manufacturing order authorization, release, acceptance, operation start, delay reporting, move reporting, scrap and rework reporting, order close-out, and payroll interface. Syn: manufacturing order reporting, shop order reporting.P

Question 519

Deck 2

OC curve

Answer 519

Abbreviation for operating characteristic curve.O

Question 520

Deck 2

economic value added

Answer 520

In managerial accounting, the net operating profit earned above the cost of capital for a profit center.E

Question 521

Deck 2

buffer

Answer 521

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

Question 522

Deck 2

FTP

Answer 522

Abbreviation for file transfer protocol.F

Question 523

Deck 2

conference room pilot

Answer 523

Simulation of all business processes from end-to-end within the new information system in a controlled environment.C

Question 524

Deck 2

attribute data

Answer 524

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 525

Deck 2

critical path lead time

Answer 525

Syn: cumulative lead time.C

Question 526

Deck 2

minimum order quantity

Answer 526

An order quantity modifier, applied after the lot size has been calculated, that increases the order quantity to a pre-established minimum.M

Question 527

Deck 2

market research

Answer 527

Syn: marketing research.M

Question 528

Deck 2

dividend

Answer 528

A payment to stockholders either in cash or stock.D

Question 529

Deck 2

JIT supplier environment

Answer 529

To effectively participate as a supplier under just in time (JIT), a company must supply components and subassemblies in exact quantities, delivery time, and quality. Shipments are made within narrow time windows that are rigidly enforced. Virtually every component must be delivered on time and be within specifications.J

Question 530

Deck 2

assignable cause

Answer 530

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 531

Deck 2

DBR

Answer 531

Abbreviation for drum-buffer-rope.D

Question 532

Deck 2

indirect costs

Answer 532

Costs that are not directly incurred by a particular job or operation. Certain utility costs, such as plant heating, are often indirect. An indirect cost is typically distributed to the product through the overhead rates.I

Question 533

Deck 2

category management

Answer 533

In marketing, an organizational structure giving managers responsibility for planning and implementing marketing systems for certain product lines.C

Question 534

Deck 2

business service

Answer 534

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

Question 535

Deck 2

labor rate variance

Answer 535

Labor rate variance is the sum of the actual wage rate minus the standard wage rate multiplied by the actual number of labor hours. The variance is unfavorable if the actual rate is greater than the standard rate.L

Question 536

Deck 2

mixed production strategy

Answer 536

Syn: hybrid production method. See: chase production method, level production method.M

Question 537

Deck 2

unit load concept

Answer 537

Waiting for a container or pallet to be filled before the material is moved.U

Question 538

Deck 2

pure services

Answer 538

Services that result in few or no tangible products to the customer (e.g., education).P

Question 539

Deck 2

return material authorization (RMA)

Answer 539

1) A form that must be completed that describes the product returned and why it was returned. 2) A number given to authorize the acceptance of returned items. 3) Should require signatory authorization to return the goods.R

Question 540

Deck 2

run size

Answer 540

Syn: standard batch quantity.R

Question 541

Deck 2

short-term planning

Answer 541

The function of adjusting limits or levels of capacity within relatively short periods of time, such as parts of a day, a day, or a week.S

Question 542

Deck 2

neural network

Answer 542

A software system loosely based on how the brain works. It tries to simulate the multiple layers of elements called neurons. Each neuron is tied to several neighbors with a value that signifies the strength of the connections. Learning is accomplished by changing the values to cause the network to report appropriate results. Neural networks have been used for market forecasts and other applications.N

Question 543

Deck 2

unit-size

Answer 543

To combine a number of packages into one unit by attaching them together.U

Question 544

Deck 2

monitoring

Answer 544

The process of comparing actual to planned progress.M

Question 545

Deck 2

item

Answer 545

Any unique manufactured or purchased part, material, intermediate, subassembly, or product.I

Question 546

Deck 2

purchasing lead time

Answer 546

The total lead time required to obtain a purchased item. Included here are order preparation and release time; supplier lead time; transportation time; and receiving, inspection, and put-away time. See: lead time, supplier lead time, time-to-product.P

Question 547

Deck 2

shipping lead time

Answer 547

The number of working days normally required for goods to move between a shipping and receiving point, plus acceptance time in days at the receiving point.S

Question 548

Deck 2

line item

Answer 548

One item on an order, regardless of quantity.L

Question 549

Deck 2

Pareto chart

Answer 549

A bar graph that displays the results of a Pareto analysis. It may or may not display the 80-20 varPareto P iation, but it does show a distinct variation from the few compared to the many.P

Question 550

Deck 2

Deming circle

Answer 550

The concept of a continuously rotating wheel of plan-do-check-action (PDCA) used to show the need for interaction among market research, design, production, and sales to improve quality. See: plan-docheck- action.D

Question 551

Deck 2

QCD

Answer 551

Abbreviation for quality, cost, delivery.Q

Question 552

Deck 2

algorithm

Answer 552

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

Question 553

Deck 2

methods-time measurement (MTM)

Answer 553

A system of predetermined motion-time standards, a procedure that analyzes and classifies the movements of any operation into certain human motions and assigns to each motion a predetermined time standard selected by the nature of the motion and the conditions under which it will be made.M

Question 554

Deck 2

material-dominated scheduling (MDS)

Answer 554

A technique that schedules materials before processors (equipment or capacity). This technique facilitates the efficient use of materials. MDS can be used to schedule each stage in a process flow scheduling system. MRP systems use material-dominated scheduling logic. See: processordominated scheduling.M

Question 555

Deck 2

Pareto’s law

Answer 555

A concept developed by Vilfredo Pareto, an Italian economist, that states that a small percentage of a group accounts for the largest fraction of the impact, value, and so on. In an ABC classification, for example, 20 percent of the inventory items may constitute 80 percent of the inventory value. See: ABC classification, 80-20.P

Question 556

Deck 2

LIFO

Answer 556

Acronym for last in, first out.L

Question 557

Deck 2

customer/order fulfillment process

Answer 557

A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting.C

Question 558

Deck 2

customer partner

Answer 558

A customer organization with which a company has formed a customer-supplier partnership. See: outpartnering.C

Question 559

Deck 2

industrial trucks

Answer 559

Vehicles powered by hand, electricity, or propane for material handling activities in a warehouse. More flexible but slower and less constant than conveyors, they are not in a fixed position. Industrial trucks are the most-common form of materials handling equipment.I

Question 560

Deck 2

learning curve

Answer 560

A curve reflecting the rate of improvement in time per piece as more units of an item are made. A planning technique, the learning curve is particularly useful in project-oriented industries in which new products are frequently phased in. The basis for the learning curve calculation is that workers will be able to produce the product more quickly after they get used to making it. Syn: experience curve, manufacturing progress curve.L

Question 561

Deck 2

feasibility study

Answer 561

An analysis designed to establish the practicality and cost justification of a given project and, if it appears to be advisable to do so, to determine the direction of subsequent project efforts.F

Question 562

Deck 2

spread

Answer 562

Variability of an action. Often measured by the range or standard deviation of a particular dimension.S

Question 563

Deck 2

overstated master production schedule

Answer 563

A schedule that includes either past due quantities or quantities that are greater than the ability to produce, given current capacity and material availability. An overstated MPS should be made feasible before MRP is run.O

Question 564

Deck 2

flexible automation

Answer 564

Automation that provides short setup times and the ability to switch quickly from one product to another.F

Question 565

Deck 2

travel time

Answer 565

Syn: transit time.T

Question 566

Deck 2

bona fide

Answer 566

Latin for “in good faith.”B

Question 567

Deck 2

materials handling system

Answer 567

The system of transportation that receives, moves, and delivers materials during the production or distribution process.M

Question 568

Deck 2

collaborative transportation management

Answer 568

A method of sharing information among suppliers, buyers, and transporters to add value to the service.C

Question 569

Deck 2

MTTR

Answer 569

Abbreviation for mean time to repair.M

Question 570

Deck 2

export compliance

Answer 570

Cooperating with export rules regarding packaging and documentation.E

Question 571

Deck 2

offset quantity

Answer 571

Syn: overlap quantity.O

Question 572

Deck 2

functional test

Answer 572

Measure of a production component’s ability to work as designed to meet a level of performance.F

Question 573

Deck 2

traveler

Answer 573

A copy of the manufacturing order that actually moves with the work through the shop. Syn: shop traveler.T

Question 574

Deck 2

variable overhead

Answer 574

All manufacturing costs, other than direct labor and direct materials, that vary directly with production volume. Variable overhead is necessary to produce the product, but cannot be directly assigned to a specific product.V

Question 575

Deck 2

finish-to-order

Answer 575

Syn: assemble-to-order.F

Question 576

Deck 2

hazardous waste

Answer 576

Waste, such as chemicals or nuclear material, that is hazardous to humans or animals and requires special handling.H

Question 577

Deck 2

statistical thinking

Answer 577

The ability to draw conclusions based on data.S

Question 578

Deck 2

prevention vs. detection

Answer 578

A term used to contrast two types of quality activities. Prevention refers to those activities designed to prevent nonconformances in goods and services. Detection refers to those activities designed to detect nonconformances already in goods and services. Syn: designing in quality vs. inspecting in quality.P

Question 579

Deck 2

backup/restore

Answer 579

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 580

Deck 2

trading company

Answer 580

A company that introduces foreign buyers and sellers and arranges all product export/import details, documentation, and transportation.T

Question 581

Deck 2

empathy

Answer 581

A dimension of service quality referring to caring, individualized attention from a service firm.E

Question 582

Deck 2

exchange rate

Answer 582

The rate at which one currency converts to another.E

Question 583

Deck 2

inventory velocity

Answer 583

The speed with which inventory passes through an organization or supply chain at a given point in time as measured by inventory turnover. See: inventory turnover.I

Question 584

Deck 2

process oriented

Answer 584

A characteristic in which the focus is on the interrelated processes in a business environment. It includes the activities to transform inputs into outputs that have value.P

Question 585

Deck 2

remanufactured parts

Answer 585

Components or assemblies that are refurbished or rebuilt to perform the original function. Syn: refurbished goods, refurbished parts.R

Question 586

Deck 2

provisioning

Answer 586

The process of identifying and purchasing the support items and determining the quantity of each support item necessary to operate and maintain a system.P

Question 587

Deck 2

container on a flatcar (COFC)

Answer 587

A specialized form of containerization in which rail, motor, and sea transport coordinate.C

Question 588

Deck 2

decision variables

Answer 588

The variables that will be changed to find the optimal solution in an optimization problem.D

Question 589

Deck 2

CNC

Answer 589

Abbreviation for computer numerical control.C

Question 590

Deck 2

cost performance index (CPI)

Answer 590

A measure of project efficiency. Earned value over actual costs.C

Question 591

Deck 2

disassembly bill of material

Answer 591

In remanufacturing, a bill of material used as a guide for the inspection in the teardown and inspection process. On the basis of inspection, this bill is modified to a bill of repair defining the actual repair materials and work required. Syn: teardown bill of material. See: repair bill of material.D

Question 592

Deck 2

double smoothing

Answer 592

Syn: second-order smoothing.D

Question 593

Deck 2

BPM

Answer 593

Abbreviation for business process management.B

Question 594

Deck 2

implosion

Answer 594

The process of determining the where-used relationship for a given component. Implosion can be single-level (showing only the parents on the next higher level) or multilevel (showing the ultimate top-level parent). See: where-used list. Ant: explosion.I

Question 595

Deck 2

obeya

Answer 595

A Japanese word meaning “big room,” a command center.O

Question 596

Deck 2

managerial accounting

Answer 596

A branch of accounting that uses techniques such as break-even analysis, costvolume- profit analysis, make-buy analysis, and others to provide information used in day-to-day decision making.M

Question 597

Deck 2

regen

Answer 597

Slang abbreviation for regeneration MRP. Pronounced “ree-jen.”R

Question 598

Deck 2

trust

Answer 598

A fiduciary relationship in which the trustee holds ownership for the benefit of another party (benefactor).T

Question 599

Deck 2

PERT

Answer 599

Acronym for program evaluation and review technique.P

Question 600

Deck 2

offshore factory

Answer 600

A plant that imports or acquires locally all components and then exports the finished product.O

Question 601

Deck 2

chase-demand strategy

Answer 601

Syn: chase production method.C

Question 602

Deck 2

setup costs

Answer 602

Costs such as scrap costs, calibration costs, downtime costs, and lost sales associated with preparing the resource for the next product. Syn: changeover costs, turnaround costs.S

Question 603

Deck 2

resiliency

Answer 603

Resiliency in the supply chain is the ability to return to a position of equilibrium after experiencing an event that causes operational results to deviate from expectations. Resiliency is increased by strategically increasing the number of response options and/or decreasing the time to execute those options. Resiliency is improved by risk monitoring and control.R

Question 604

Deck 2

load projection

Answer 604

Syn: load profile.L

Question 605

Deck 2

time-based competition (TBC)

Answer 605

A corporate strategy that emphasizes time as the vehicle for achieving and maintaining a sustainable competitive edge. Its characteristics are (1) it deals only with those lead times that are important to the customers; (2) the leadtime reductions must involve decreases in both the mean and the variance; and (3) the lead-time reductions must be achieved through system/process analysis (the processes must be changed to reduce lead times). TBC is a broad-based strategy. Reductions in lead times are achieved by changing the processes and the decision structures used to design, produce, and deliver products to the customers. TBC involves design, manufacturing, and logistical processes.T

Question 606

Deck 2

local rate

Answer 606

A rate pertaining to two points served by a single carrier.L

Question 607

Deck 2

standard industrial classification (SIC)

Answer 607

Classification codes that are used to categorize companies into industry groupings.S

Question 608

Deck 2

hypertext transfer protocol (HTTP)

Answer 608

A protocol that tells computers how to communicate with each other. Most internet addresses begin with http://.H

Question 609

Deck 2

business process reengineering (BPR)

Answer 609

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

Question 610

Deck 2

throughput time

Answer 610

Syn: cycle time (second definition).T

Question 611

Deck 2

primary operation

Answer 611

A manufacturing step normally performed as part of a manufacturing part’s routing. Ant: alternate operation.P

Question 612

Deck 2

top management commitment (quality)

Answer 612

In the total quality management philosophy, participation of the highest-level official in the organization’s quality improvement efforts. Participation includes establishing and serving on a quality committee, establishing quality policies and goals, deploying those goals to lower levels of the organization, providing the resources and training that the lower levels need to achieve the goals, participating in quality improvement teams, reviewing organization-wide progress, recognizing those who have performed well, and revising the current reward system to reflect the importance of achieving the quality goals.T

Question 613

Deck 2

supplier partnership

Answer 613

The establishment of a working relationship with a supplier organization whereby two organizations act as one. Syn: collaborative supply relationship.S

Question 614

Deck 2

scope change

Answer 614

In project management, a change to a project’s scope, usually requiring an adjustment to the project’s budget and schedule.S S

Question 615

Deck 2

net present value

Answer 615

The present (discounted) value of future earnings (operating expenses have been deducted from net operating revenues) for a given number of time periods.N

Question 616

Deck 2

drawback

Answer 616

A refund of customs duties paid on material imported and later exported.D

Question 617

Deck 2

industry analysis

Answer 617

A major study of an industry; its major competitors, customers, and suppliers; and the focus and driving forces within that industry.I

Question 618

Deck 2

MSDS

Answer 618

Abbreviation for material safety data sheet.M

Question 619

Deck 2

composite manufacturing lead time

Answer 619

Syn: cumulative manufacturing lead time.C

Question 620

Deck 2

PLM

Answer 620

Abbreviation for product life cycle management.P

Question 621

Deck 2

three-point estimate

Answer 621

A project management technique that uses three cost or duration estimates to stand for the optimistic (O), most likely (M), and pessimistic (P) situation. The mean value (MV) is often found using MV=(O+4M+P)/6. This technique can improve the accuracy of cost or duration estimates when underlying assumptions are uncertain.T

Question 622

Deck 2

launch phase

Answer 622

In this last phase of product development, either the product is fed into the supply chain or the service is made available to consumers.L

Question 623

Deck 2

secure server

Answer 623

In e-commerce, a web server that protects users’ messages from interception while being transmitted over the internet.S

Question 624

Deck 2

earliness

Answer 624

If a job is finished before its due date, the difference between its completion date and the due date. See: lateness, tardiness.E

Question 625

Deck 2

Pareto analysis

Answer 625

Use of the Pareto principle in prioritizing or ranking a range of items to separate the vital few from the trivial many.P

Question 626

Deck 2

grievance

Answer 626

A complaint by an employee concerning alleged contract violations handled formally through contractually fixed procedures. If unsettled, a grievance may lead to arbitration.G

Question 627

Deck 2

mean

Answer 627

The arithmetic average of a group of values. Syn: arithmetic mean.M

Question 628

Deck 2

sample

Answer 628

A portion of a universe of data chosen to estimate some characteristics about the whole universe. The universe of data could consist of sizes of customer orders, number of units of inventory, number of lines on a purchase order, and so forth.S

Question 629

Deck 2

control phase

Answer 629

One of the six sigma phases of quality. Process performance is observed, often with control charts, for steady results.C

Question 630

Deck 2

experience curve

Answer 630

Syn: learning curve.E

Question 631

Deck 2

scheduled downtime

Answer 631

Planned shutdown of equipment or plant to perform maintenance or to adjust to softening demand.S

Question 632

Deck 2

channel conflict

Answer 632

Two or more agencies of one business competing for the same customer. For example, retail, catalog, or web sales.C

Question 633

Deck 2

sales plan

Answer 633

A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item. It represents sales and marketing management’s commitment to take all reasonable steps necessary to achieve this level of actual customer orders. The sales plan is a necessary input to the production planning process (or sales and operations planning process). It is expressed in units identical to those used for the production plan (as well as in sales dollars). See: aggregate planning, production plan, production planning, sales and operations planning.S

Question 634

Deck 2

contributory negligence

Answer 634

A rule under which a defendant may escape liability if it can be shown that the plaintiff was negligent to some extent.C

Question 635

Deck 2

private key

Answer 635

In information systems, an encryption key that is known only by the sender and receiver of the message. See: public key.P P

Question 636

Deck 2

late order

Answer 636

Syn: past due order.L

Question 637

Deck 2

demand shaping

Answer 637

The practice of using the four Ps (product, pricing, placement, and promotion) and other market variables to influence the demand of a product or service so that the demand better matches the available supply. See: four Ps.D

Question 638

Deck 2

SPI

Answer 638

Abbreviation for schedule performance index.S

Question 639

Deck 2

marketing mix

Answer 639

The concept that marketing strategy selects product, price, promotion, and channel targets in selected markets.M

Question 640

Deck 2

project manufacturing

Answer 640

A type of manufacturing process used for large, often unique, items or structures that require a custom design capability (engineer-to-order). This type of process is highly flexible and can cope with a broad range of product designs and design changes. Product manufacturing usually uses a fixed-position type layout. See: batch (fourth definition), continuous production, job shop (second definition), process manufacturing, project, repetitive manufacturing.P

Question 641

Deck 2

reconciling inventory

Answer 641

Comparing the physical inventory figures with the perpetual inventory record and making any necessary corrections.R

Question 642

Deck 2

econometric model

Answer 642

A set of equations intended to be used simultaneously to capture the way in which dependent and independent variables are interrelated.E

Question 643

Deck 2

quantity discount model

Answer 643

A variation of the economic order quantity model in which the assumption of a single price is relaxed and there is a schedule of prices based on specific volumes. Syn: price-break model.Q

Question 644

Deck 2

order policy code

Answer 644

Syn: lot-size code.O

Question 645

Deck 2

accept

Answer 645

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

Question 646

Deck 2

return merchandise authorization

Answer 646

Syn: return material authorization.R

Question 647

Deck 2

online processing

Answer 647

A method of computer processing in which data are processed immediately on entry into the computer.O

Question 648

Deck 2

treasury stock

Answer 648

Common stock that has been repurchased by the issuing company.T

Question 649

Deck 2

supplies

Answer 649

Materials used in manufacturing that are not normally charged to finished production, such as cutting and lubricating oils, machine repair parts, glue, or tape. Syn: general stores, indirect materials.S

Question 650

Deck 2

end product

Answer 650

Syn: end item.E

Question 651

Deck 2

international standards

Answer 651

Standards established by international standards-setting organizations to promote interoperability among operating environments.I

Question 652

Deck 2

discrete variable

Answer 652

A variable, such as number of defects, that can take on only certain values (such as integers). See: continuous variable.D

Question 653

Deck 2

inventory planner

Answer 653

Syn: material planner (first definition).I

Question 654

Deck 2

software as a service

Answer 654

Computer services are provided by a third party that keeps all of the software and hardware in its place of business and the company using the services accesses them via the internet. A very common technique used to outsource technological state-of-theart costs that can be avoided.S

Question 655

Deck 2

broadcast system

Answer 655

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

Question 656

Deck 2

3D printing

Answer 656

The process of layering materials to make products and components using computer data. Syn: additive manufacturing. See: rapid prototyping.3

Question 657

Deck 2

isolation

Answer 657

The determination of the location of a failure through the use of accessory support and diagnostic equipment.I

Question 658

Deck 2

executive information system

Answer 658

A software application used by top managers, without assistance, to access information on the current organizational status.E E

Question 659

Deck 2

post deduct

Answer 659

In a JIT system, work in process materials used to build finished goods are relieved from inventory by multiplying the number of units completed by the number of parts in the bill of material. Effective only if the bill of material is accurate and manufacturing lead times are short. See: backflushing.P

Question 660

Deck 2

machine hours

Answer 660

The amount of time, in hours, that a machine is actually running. Machine hours, rather than labor hours, may be used for planning capacity for scheduling, and for allocating costs.M

Question 661

Deck 2

production level

Answer 661

Syn: production rate.P

Question 662

Deck 2

form utility

Answer 662

The value created by changing a good’s form through a production process.F

Question 663

Deck 2

motion study

Answer 663

A type of methods study focused on therbligs, basic hand and body movements. See: therblig.M

Question 664

Deck 2

internal rate of return

Answer 664

The rate of compound interest at which the company’s outstanding investment is repaid by proceeds from the project.I

Question 665

Deck 2

actual demand

Answer 665

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

Question 666

Deck 2

value index

Answer 666

A measure that uses the performance and importance scores for various dimensions of performance for an item or service to calculate a score that indicates the overall value of an item or service to a customer.V

Question 667

Deck 2

central limit theorem

Answer 667

A theorem that states that a distribution consisting of sample means can be assumed to be normally distributed, even if the population from C which the samples are drawn is not normally distributed.C

Question 668

Deck 2

spoiled work order

Answer 668

Syn: rework order.S

Question 669

Deck 2

engineering order

Answer 669

Syn: experimental order.E

Question 670

Deck 2

electronic commerce (e-commerce)

Answer 670

The use of computer and telecommunication technologies to conduct business via electronic transfer of data and documents.E

Question 671

Deck 2

expert system

Answer 671

A type of artificial intelligence computer system that mimics human experts by using rules and heuristics rather than deterministic algorithms.E

Question 672

Deck 2

quick changeover

Answer 672

The ability to shorten machine setups between different machine operation requirements to increase process flexibility. Most concentration is on reducing external setup time first, then on internal setup issues. This reduces economic order quantity, queue and manufacturing lead times, and work in process inventory; it improves quality, process, and material flows.Q

Question 673

Deck 2

root cause analysis

Answer 673

Analytical methods to determine the core problem(s) of an organization, process, product, market, and so forth. See: current reality tree, five whys, stratification analysis.R

Question 674

Deck 2

cycle stock

Answer 674

One of the two main conceptual components of any item inventory, the cycle stock is the most active component; the cycle stock depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. The other conceptual component of the item inventory is the safety stock, which is a cushion of protection against uncertainty in the demand or in the replenishment lead time. Syn: cycle inventory.C

Question 675

Deck 2

appellant

Answer 675

One who appeals a court decision to higher authority.A

Question 676

Deck 2

double-declining-balance depreciation

Answer 676

A type of accelerated depreciation. See: depreciation.D

Question 677

Deck 2

design review

Answer 677

A technique for evaluating a proposed design to ensure that the design (1) is supported by adequate materials and materials that are available on a timely basis, (2) will perform successfully during use, (3) can be manufactured at low cost, and (4) is suitable for prompt field maintenance.D

Question 678

Deck 2

customer acquisition

Answer 678

In marketing, the rate at which new customers are switching to an organization’s brand.C

Question 679

Deck 2

shrinkage

Answer 679

Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, and so forth.S

Question 680

Deck 2

(EDIFACT)

Answer 680

A set of United Nations rules for electronic data interchange. These are international guidelines and standards for the electronic exchange of data regarding trade.E

Question 681

Deck 2

economic lot size

Answer 681

Syn: economic order quantity.E

Question 682

Deck 2

Toyota Production System (TPS)

Answer 682

A manufacturing methodology developed at Toyota that has evolved into the concepts of just in time and lean manufacturing.T

Question 683

Deck 2

long-term planning

Answer 683

Business planning that addresses the strategic needs of the organization. See: business plan, resource planning.L

Question 684

Deck 2

order promising

Answer 684

The process of making a delivery commitment (i.e., answering the question “When can you ship?”). For make-to-order products, this usually involves a check of uncommitted material and availability of capacity, often as represented by the master schedule available-to-promise. Syn: customer order promising, order dating. See: available-to-promise, order service.O

Question 685

Deck 2

standard error

Answer 685

A measurement of the variability of statistics such as the sample mean. See: estimate of error.S

Question 686

Deck 2

consumer

Answer 686

A person who purchases a good or service for his or her own use (not for resale). See: customer.C

Question 687

Deck 2

forward flow scheduling

Answer 687

A procedure for building process train schedules that starts with the first stage and proceeds sequentially through the process structure until the last stage is scheduled.F

Question 688

Deck 2

amortization

Answer 688

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

Question 689

Deck 2

transfer pricing

Answer 689

The pricing of goods or services transferred from one segment of a business to another. See: interplant transfer.T

Question 690

Deck 2

assembly bin

Answer 690

Syn: accumulation bin.A

Question 691

Deck 2

process capability analysis

Answer 691

A procedure to estimate the parameters defining a process. The mean and standard deviation of the process are estimated and compared to the specifications, if known. This comparison is the basis for calculating capability indexes. In addition, the form of the relative frequency distribution of the characteristic of interest may be estimated. Syn: capability study. See: process capability.P

Question 692

Deck 2

distribution cost

Answer 692

Those items of cost related to the activities associated with the movement and storage of finished products. Distribution costs can include invendistribution D tory costs, transportation costs, and order processing costs.D

Question 693

Deck 2

anticipation order

Answer 693

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

Question 694

Deck 2

forward integration

Answer 694

Process of buying or owning elements of the production cycle and the channel of distribution forward toward the final customer. See: vertical integration.F

Question 695

Deck 2

forecasting

Answer 695

The business function that attempts to predict sales and use of products so they can be purchased or manufactured in appropriate quantities in advance.F

Question 696

Deck 2

planning horizon

Answer 696

The amount of time a plan extends into the future. For a master schedule, this is normally set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers or of key suppliers. For longer term plans the planning horizon must be long enough to permit any needed additions to capacity. See: cumulative lead time, planning time fence.P

Question 697

Deck 2

gross margin

Answer 697

The difference between total revenue and the cost of goods sold. Syn: gross profit margin.G

Question 698

Deck 2

churn reduction

Answer 698

Not losing as many customers to the competition.C

Question 699

Deck 2

three-bin kanban

Answer 699

Simple kanban structure that focuses on cycling three bins of material continually and provides a visible method to align replenishment with consumption. One bin is ready to ship from the supplier at all times, while two are back to back in manufacturing/production at or near point of use. As the front bin empties, a signal is sent to the supplier to send a full bin and the back bin is issued forward into production. See: kanban.T

Question 700

Deck 2

theory of constraints accounting

Answer 700

A cost and managerial accounting system that accumulates costs and revenues

Question 701

Deck 2

synchronous scheduling

Answer 701

Scheduling processes (kanban in just in time and drum-buffer-rope in theory of constraints environments) that focus on synchronizing all operations to the constraint of the system. See: synchronized production.S

Question 702

Deck 2

material sublot

Answer 702

A uniquely identifiable subset of a material lot containing quantity and location. A sublot may be a single item.M

Question 703

Deck 2

planned load

Answer 703

The standard hours of work required by the planned production orders.P

Question 704

Deck 2

prepaid

Answer 704

A term denoting that transportation charges have been or are to be paid at the point of shipment by the sender.P

Question 705

Deck 2

on-time in full (OTIF)

Answer 705

A delivery scoring system that sets a target goal, usually in percent, and the deliverer tries to meet that goal of full deliveries and by the delivery date.O

Question 706

Deck 2

mean absolute percent error (MAPE)

Answer 706

A measure of statistical variation in a forecast. Computed by dividing each absolute forecast error by the actual demand, multiplying that by 100 to get the absolute percentage error, and computing the average.M

Question 707

Deck 2

backward pass

Answer 707

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

Question 708

Deck 2

time utility

Answer 708

When a delivery gets to a customer at exactly the right time (not early, not late).T T

Question 709

Deck 2

reorder point

Answer 709

Syn: order point.R

Question 710

Deck 2

retention efficiency

Answer 710

In marketing, a measurement of how well a company creates repeat customers.R

Question 711

Deck 2

parts requisition

Answer 711

An authorization that identifies the item and quantity required to be withdrawn from an inventory. Syn: requisition. See: purchase requisition.P

Question 712

Deck 2

configuration

Answer 712

The arrangement of components as specified to produce an assembly.C

Question 713

Deck 2

coefficient of correlation

Answer 713

A value used to express the relationship between two variables, whether there is a strong or weak correlation. The coefficient of correlation varies from 0 to 1 with values close to 0 indicating no relationship, or a weak relationship, and values close to 1 indicating a strong relationship. The existence of a relationship does not prove causality.C

Question 714

Deck 2

frequently asked questions (FAQs)

Answer 714

A list of commonly asked questions pertaining to a website (or perhaps software, hardware, and so on) along with the answers to these questions.F

Question 715

Deck 2

joint venture

Answer 715

An agreement between two or more firms to risk equity capital to attempt a specific business objective.J

Question 716

Deck 2

risk management planning

Answer 716

The process of defining how to identify and minimize risk factors for a project.R

Question 717

Deck 2

best-in-class

Answer 717

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

Question 718

Deck 2

open-to-buy

Answer 718

A control technique used in aggregate inventory management in which authorizations to purchase are made without being committed to specific suppliers. These authorizations are often reviewed by management using such measures as commodity in dollars and by time period.O

Question 719

Deck 2

purchase price variance

Answer 719

The difference in price between the amount paid to the supplier and the planned or standard cost of that item.P

Question 720

Deck 2

average forecast error

Answer 720

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

Question 721

Deck 2

intermodal marketing companies (IMCs)

Answer 721

Organizations that are the intermediary for shippers and intermodal rail carriers.I

Question 722

Deck 2

real time

Answer 722

The technique of coordinating data processing with external related physical events as they occur, thereby permitting prompt reporting of conditions. See: online service.R

Question 723

Deck 2

requirements traceability

Answer 723

The capability to determine the source of demand requirements through record linkages. It is used in analyzing requirements to make adjustments to plans for material or capacity. See: pegging.R

Question 724

Deck 2

EPC

Answer 724

Abbreviation for electronic product code.E

Question 725

Deck 2

arrival

Answer 725

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

Question 726

Deck 2

single-channel, single-phase system

Answer 726

A queuing system that has only one channel for arrivals to enter and only one phase to completely service the arrival.S

Question 727

Deck 2

point reporting

Answer 727

The recording and reporting of milestone manufacturing order occurrences, typically done at checkpoint locations rather than operations and easily controlled from a reporting standpoint.P

Question 728

Deck 2

DBMS

Answer 728

Abbreviation for database management system.D

Question 729

Deck 2

multinational corporation

Answer 729

A company with capital investments in more than a single country.M

Question 730

Deck 2

vertical integration

Answer 730

The degree to which a firm has decided to directly produce multiple value-adding stages from raw material to the sale of the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated. See: backward integration, forward integration.V

Question 731

Deck 2

multilevel bill of material

Answer 731

A display of all the components directly or indirectly used in a parent, together with the quantity required of each component. If a component is a subassembly, blend, intermediate, etc., all its components and all their components also will be exhibited, down to purchased parts and raw materials.M

Question 732

Deck 2

electronic form

Answer 732

An electronic version of a paper form. These forms eliminate the cost of printing, storing, and distributing paper forms.E

Question 733

Deck 2

Fourier series

Answer 733

A form of analysis useful for forecasting. The model is based on fitting sine waves with increasing frequencies and phase angles to a time series.F

Question 734

Deck 2

five Ss

Answer 734

Five terms beginning with “S” used to create a workplace suitable for lean production. Sort means to separate needed items from unneeded ones and remove the latter. Simplify means to neatly arrange items for use. Scrub means clean up the work area. Standardize means to sort, simplify, and scrub daily. Sustain means to always follow the first four Ss. Sometimes referred to by the Japanese equivalents: seiri, seiton, seiso, seiketsu, and shitsuke.F

Question 735

Deck 2

formula

Answer 735

A statement of ingredient requirements. A formula may also include processing instructions and ingredient sequencing directions. Syn: formulation, recipe.F

Question 736

Deck 2

firm master production schedule

Answer 736

A part of the master production schedule in which changes can occur only rarely.F

Question 737

Deck 2

scatter chart

Answer 737

A graphical technique to analyze the relationship between two variables. Two sets of data are plotted on a graph, with the y axis used for the variable to be predicted and the x axis used for the variable to make the prediction. The graph will show possible relationships (although two variables might appear to be

Question 738

Deck 2

consignor

Answer 738

The originator of a shipment of freight.C

Question 739

Deck 2

steady state

Answer 739

Waiting lines are subject to wide fluctuations when they first are created in a simulation model. A less variable (steady) state emerges after the line has existed for some time. Usually data are not collected from the simulation until after steady state is reached. See: transient state.S

Question 740

Deck 2

union shop

Answer 740

A facility in which all hourly employees are unionized, or more formally a clause in a collective bargaining agreement under which membership in the union is required as a condition of employment. Union shops are illegal in some regions.U

Question 741

Deck 2

permission marketing

Answer 741

Syn: relationship marketing.P

Question 742

Deck 2

quality policy

Answer 742

A top-management statement of the overall quality direction of an organization as required by ISO 9001.Q

Question 743

Deck 2

resource breakdown structure

Answer 743

A hierarchical structure that breaks resources into categories and types; can be useful for plan resource schedules, including human resources.R

Question 744

Deck 2

radio frequency identification (RFID)

Answer 744

A system using electronic tags to store data about items. Accessing these data is accomplished through a specific radio frequency and does not require close proximity or line-ofsight access for data retrieval. See: active tag, passive tag, semi-passive tag.R

Question 745

Deck 2

compound interest

Answer 745

1) The type of interest that is periodically added to the amount of investment (or loan) so that subsequent interest is based on the cumulative amount. 2) The interest charges under the condition that interest is charged on any previous interest earned in any time period, as well as on the principal.C

Question 746

Deck 2

express warranty

Answer 746

A positive representation, made by a seller, concerning the nature, character, use, and purpose of goods, that induces the buyer to buy and on which the seller intends the buyer to depend.E

Question 747

Deck 2

scheduled finish date

Answer 747

In project management, an activity’s planned finish time, normally between the early finish time and the late finish time. It may reflect resource limitations. Syn: planned finish date.S

Question 748

Deck 2

synchronized production

Answer 748

A manufacturing management philosophy that includes a consistent set of principles, procedures, and techniques where every action is evaluated in terms of the global goal of the system. Both kanban, which is a part of the JIT philosophy, and drum-buffer-rope, which is a part of the theory of constraints philosophy, represent synchronized production control approaches. Syn: synchronous manufacturing. See: drum-buffer-rope, kanban, synchronous scheduling.S

Question 749

Deck 2

earned value method

Answer 749

In project management, a comparison of planned activity time and cost to actual activity time and cost to see if a project is on schedule by time and by budget.E E

Question 750

Deck 2

linearity

Answer 750

1) Production at a constant quantity. 2) Use of resources at a level rate, typically measured daily or more frequently.L

Question 751

Deck 2

fixed-cost contribution per unit

Answer 751

An allocation process where total fixed cost for a period is divided by total units produced in that given time period.F

Question 752

Deck 2

project scope

Answer 752

In project management, the work required to create a product with given features and options.P

Question 753

Deck 2

rescheduling assumption

Answer 753

A fundamental assumption of MRP logic that existing open orders can be rescheduled in nearer time periods far more easily than new orders can be released and received. As a result, planned order receipts are not created until all scheduled receipts have been applied to cover gross requirements.R

Question 754

Deck 2

project calendar

Answer 754

A calendar of working days and nonworking days that shows when scheduled activities are idle. Typically, it includes holidays and weekends. See: resource calendar.P

Question 755

Deck 2

bias

Answer 755

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

Question 756

Deck 2

equal runout quantities

Answer 756

Order quantities for items in a group that result in a supply that covers an equal time for all items. Syn: equal runout method. See: fair-share quantity logic.E

Question 757

Deck 2

operation time

Answer 757

The total of setup and run time for a specific task. Syn: operation duration.O

Question 758

Deck 2

operational performance measurements

Answer 758

1) In traditional management, performance measurements related to machine, worker, or department efficiency or utilization. These performance measurements are usually poorly correlated with organizational performance. 2) In theory of constraints, performance measurements that link causally to organizational performance measurements. Throughput, inventory, and operating expense are examples. See: global performance measurements, local performance measurements, strategic performance measurements.O

Question 759

Deck 2

bilateral contract

Answer 759

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

Question 760

Deck 2

economic order quantity (EOQ)

Answer 760

A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. The intent is to minimize the combined costs of acquiring and carrying inventory. The basic formula is: quantity

Question 761

Deck 2

separable cost

Answer 761

A cost that is assignable to a given portion of a business.S

Question 762

Deck 2

attribute

Answer 762

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

Question 763

Deck 2

external failure costs

Answer 763

The costs related to problems found after the product reaches the customer. This usually includes such costs as warranty and returns.E

Question 764

Deck 2

ISO

Answer 764

Abbreviation for International Organization for Standardization.I

Question 765

Deck 2

statistical inventory control

Answer 765

The use of statistical methods to model the demands and lead times experienced by an inventory item or group of items. Demand during lead time and between reviews can be modeled, and reorder points, safety stocks, and maximum inventory levels can be defined to strive for desired customer service levels, inventory investments, manufacturing and distribution efficiency, and targeted returns on investments. Syn: scientific inventory control. See: fixed reorder quantity inventory model.S

Question 766

Deck 2

expedite

Answer 766

To rush or chase production or purchase orders that are needed in less than the normal lead time; to take extraordinary action because of an increase in relative priority. Syn: stockchase.E

Question 767

Deck 2

bill-of-material explosion

Answer 767

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

Question 768

Deck 2

make-or-buy cost analysis

Answer 768

A comparison of all of the costs associated with making an item versus the cost of buying the item.M

Question 769

Deck 2

due date

Answer 769

The date when purchased material or production material is due to be available for use. Syn: expected receipt date. See: arrival date.D

Question 770

Deck 2

program

Answer 770

In project management, a coordinated set of related projects usually including ongoing work.P

Question 771

Deck 2

materiel

Answer 771

A term, used more frequently in nonmanufacturing organizations, to refer to the equipment, apparatus, and supplies used by an organization.M

Question 772

Deck 2

first-article inspection

Answer 772

A quality check on the first component run after a new setup has been completed. Syn: first-piece inspection.F

Question 773

Deck 2

link

Answer 773

The transportation method used in a logistics system to connect the nodes of the system.L

Question 774

Deck 2

manufacturing cycle efficiency

Answer 774

The ratio of value-added time to manufacturing lead time or cycle time. Manufacturing cycle time can be improved by the reduction of manufacturing lead time by eliminating nonvalue- added activities such as inspecting, moving, and queuing.M

Question 775

Deck 2

centralized marketing system

Answer 775

An organizational structure in which a central marketing group manages functionally divided areas, such as advertising, sales, and marketing research.C

Question 776

Deck 2

small group improvement activity

Answer 776

An organizational technique for involving employees in continuous improvement activities. See: quality circle.S

Question 777

Deck 2

differentiation strategy

Answer 777

A business strategy that focuses on setting a product or service apart from the competition focusing on making a product or service unique.D

Question 778

Deck 2

load-distance analysis

Answer 778

In layout analysis, a method of choosing a facility layout based on selecting the layout with the shortest product or material travel per time period.L

Question 779

Deck 2

brand plan

Answer 779

Syn: market plan.B

Question 780

Deck 2

market hedge

Answer 780

Scheduling or holding an inventory quantity greater than the expected demand because of expected inaccuracy or volatility in the forecasted demand. See: hedge.M

Question 781

Deck 2

cross-functional team

Answer 781

A set of individuals from various departments assigned a specific task such as implementing new computer software. See: core team.C

Question 782

Deck 2

customer tolerance time

Answer 782

Syn: demand lead time.C

Question 783

Deck 2

inventory usage

Answer 783

The value or the number of units of an inventory item consumed over a period of time.I

Question 784

Deck 2

bond (performance)

Answer 784

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

Question 785

Deck 2

node

Answer 785

In project management, a point connected by arrows in a network.N

Question 786

Deck 2

graphical forecasting methods

Answer 786

The use of visual information to predict sales patterns, it typically involves plotting information in a graphical form. It is relatively easy to convert a spreadsheet into a graph that conveys the information visually. Trends and patterns of data are easier to spot, and extrapolation of previous demand can be used to predict future demands.G

Question 787

Deck 2

seasonality

Answer 787

A repetitive pattern of demand from year to year (or other repeating time interval) with some periods considerably higher than others. Syn: seasonal variation. See: base series.S

Question 788

Deck 2

linear layout

Answer 788

A layout of various machines in one straight line. This type of layout makes it difficult to reallocate operations among workers and machinery.L

Question 789

Deck 2

continuous process control

Answer 789

The use of transducers (sensors) to monitor a process and make automatic changes in operations through the design of appropriate feedback control loops. Although such devices have historically been mechanical or electromechanical, there is now widespread use of microcomputers and centralized control.C

Question 790

Deck 2

FAS

Answer 790

1) Abbreviation for final assembly schedule. 2) Abbreviation for free alongside ship.F

Question 791

Deck 2

bench stocks

Answer 791

Syn: floor stocks.B

Question 792

Deck 2

order dating

Answer 792

Syn: order promising.O

Question 793

Deck 2

loss to society

Answer 793

According to Genichi Taguchi, a loss to society occurs whenever a dimension of a product differs from its target value. This loss increases with the square of the deviation from the target. According to this concept, a loss to society occurs even though a dimension

Question 794

Deck 2

coupon

Answer 794

A promotional device offering special savings when a product is purchased.C

Question 795

Deck 2

blueprint

Answer 795

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

Question 796

Deck 2

customer contact centers

Answer 796

Centers that combine phone centers and web contact services to enable customers to contact the center 24 hours a day via phone, web, or email.C

Question 797

Deck 2

marketing channel

Answer 797

That set of organizations through which a good or service passes in going from a raw state to the final consumer. See: channels of distribution, distribution channel.M

Question 798

Deck 2

outpartnering

Answer 798

The process of involving the supplier in a close partnership with the firm and its operations management system. Outpartnering is characterized by close working relationships between buyers and suppliers, high levels of trust, mutual respect, and emphasis on joint problem solving and cooperation. With outpartnering, the supplier is viewed not as an alternative source of goods and services (as observed under outsourcing) but rather as a source of knowledge, expertise, and complementary core competencies. Outpartnering is typically found during the early stages of the product life cycle when dealing with products that are viewed as critical to the strategic survival of the firm. See: customer-supplier partnership, supplier partner, and customer partner.O

Question 799

Deck 2

finish date

Answer 799

The time of completion of a project or activity. It may be planned, actual, early, late, baseline, or target.F

Question 800

Deck 2

primary demand

Answer 800

The demand for a category of products rather than for a specific brand.P

Question 801

Deck 2

plan deliver

Answer 801

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

Question 802

Deck 2

dojo

Answer 802

A Japanese word meaning hall.D

Question 803

Deck 2

data mining

Answer 803

The process of studying data to search for previously unknown relationships. This knowledge is then applied to achieving specific business goals.D

Question 804

Deck 2

maximum order quantity

Answer 804

An order quantity modifier, applied after the lot size has been calculated, that limits the order quantity to a pre-established maximum.M

Question 805

Deck 2

brainstorming

Answer 805

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

Question 806

Deck 2

Outsourcing involves substitution

Answer 806

the replacement of internal capacity and production by that of the supplier. See: subcontracting.O

Question 807

Deck 2

departmental stocks

Answer 807

An informal system of holding some stock in a production department. This action is taken as a protection from stockouts in the stockroom or for convenience; however, it results in increased inventory investment and possible degradation of the accuracy of the inventory records.D

Question 808

Deck 2

certificate of origin

Answer 808

A document attesting to a shipment’s country of origin.C

Question 809

Deck 2

penetration pricing

Answer 809

Introducing a product below its long-run price to secure entry into a market.P

Question 810

Deck 2

production rate

Answer 810

The rate of production usually expressed in units, cases, or some other broad measure, expressed by a period of time (e.g., per hour, shift, day, or week). Syn: production level.P

Question 811

Deck 2

terminal-handling costs

Answer 811

Carrier charges dependent on the number of times a shipment must be loaded, handled and unloaded. Cost can be reduced by consolidating shipments into fewer parcels or by shipping in truckload quantities.T

Question 812

Deck 2

fitness for use

Answer 812

A term used to indicate that a good or service fits the customer’s defined purpose for that good or service.F

Question 813

Deck 2

decryption

Answer 813

Transformation of encrypted text into a readable format.D

Question 814

Deck 2

returns inventory costs

Answer 814

All of the costs associated with handling returned inventory.R R

Question 815

Deck 2

inventory turns

Answer 815

Syn: inventory turnover.I

Question 816

Deck 2

risk mitigation

Answer 816

Reducing the exposure to risk, either by its likelihood or its impact.R

Question 817

Deck 2

logistics management

Answer 817

The part of supply chain management that oversees the planning and execution of forward and reverse flow of goods and related information between points in the supply chain to meet customer requirements.L

Question 818

Deck 2

performance and event management systems

Answer 818

Systems that record and measure the performance of key supply chain processes. With these data, employees can deperformance P termine when the key processes have changed and why they have changed. These data then are utilized to adjust the existent data.P

Question 819

Deck 2

market plan

Answer 819

The output of the market planning process. The market plan includes the current market position, opportunity and issue analysis, marketing objectives and strategies, action plans, programs, projects, budgets, and pro forma profit and loss statement and management controls. Syn: brand plan, product plan.M

Question 820

Deck 2

data dictionary

Answer 820

1) A catalog of requirements and specifications for an information system. 2) A file that stores facts about the files and databases for all systems that are currently being used or for the software involved.D

Question 821

Deck 2

human-machine interface

Answer 821

The location where data is transferred from a worker to a computer, or vice-versa.H

Question 822

Deck 2

leading indicator

Answer 822

A specific business activity index that indicates future trends. For example, housing starts is a leading indicator for the industry that supplies builders’ hardware.L

Question 823

Deck 2

global sourcing

Answer 823

Using international sources for supplies.G

Question 824

Deck 2

EEOC

Answer 824

Abbreviation for Equal Employment Opportunity Commission.E

Question 825

Deck 2

external customer

Answer 825

A person or organization that receives a good, a service, or information but is not part of the organization supplying it. See: customer, internal customer.E

Question 826

Deck 2

calibration frequency

Answer 826

The interval in days between tooling calibrations.C

Question 827

Deck 2

progress payments

Answer 827

Payments arranged in connection with purchase transactions requiring periodic payments in advance of delivery for certain amounts or for certain percentages of the purchase price.P

Question 828

Deck 2

work ticket

Answer 828

Syn: work order.W

Question 829

Deck 2

data file

Answer 829

A collection of related data records organized in a specific manner (e.g., one record for each inventory item showing product code, unit of measure, production costs, transactions, selling price, and production lead time).D

Question 830

Deck 2

ways

Answer 830

Paths over which a carrier operates, including right-of-way, roadbed, tracks, and other physical facilities. May be owned by the government or privately held by the carrier or provided by nature.W

Question 831

Deck 2

path

Answer 831

In project management, a set of serially related activities in a network diagram.P

Question 832

Deck 2

dynamic lot sizing

Answer 832

Any lot-sizing technique that creates an order quantity subject to continuous recomputation. See: least total cost, least unit cost, part period balancing, period order quantity, Wagner-Whitin algorithm.D

Question 833

Deck 2

fringe benefits

Answer 833

Employer-granted compensations that are not directly tied to salary.F

Question 834

Deck 2

into three areas

Answer 834

throughput, inventory, and operating expense. It does not create incentives (through allocation of overhead) to build up inventory. The system is considered to provide a truer reflection of actual revenues and costs than traditional cost accounting. It is closer to a cash flow concept of income than is traditional accounting. The theory of constraints (TOC) accounting provides a simplified and more accurate form of direct costing that subtracts true variable costs (those costs that vary with throughput quantity). Unlike traditional cost accounting systems in which the focus is generally placed on reducing costs in all the various accounts, the primary focus of TOC accounting is on aggressively exploiting the constraint(s) to make more money for the firm. Syn: constraint accounting, throughput accounting.T

Question 835

Deck 2

replenishment period

Answer 835

The time between successive replenishment orders. Syn: replenishment interval. See: review period.R

Question 836

Deck 2

allocated item

Answer 836

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

Question 837

Deck 2

competitive benchmarking

Answer 837

Benchmarking a product or service against competitors. Syn: performance benchmarking. See: benchmarking.C

Question 838

Deck 2

subassembly

Answer 838

An assembly that is used at the next level of the bill of material to build another assembly.S

Question 839

Deck 2

micro-land-bridge traffic

Answer 839

A multimodal transportation solution that moves goods over water and then land, with the final destination inland. See: mini-land-bridge traffic.M

Question 840

Deck 2

trigger level

Answer 840

Syn: order point.T

Question 841

Deck 2

process control

Answer 841

1) The function of maintaining a process within a given range of capability by feedback, correction, and so forth. 2) The monitoring of instrumentation attached to equipment (valves, meters, mixers, liquid, temperature, time, etc.) from a control room to ensure that a high-quality product is being produced to specification.P

Question 842

Deck 2

performance measure

Answer 842

In a performance measurement system, the actual value measured for the criterion. Syn: performance measurement. See: performance criterion, performance measurement system, performance standard.P

Question 843

Deck 2

sequential

Answer 843

In numeric sequence, normally in ascending order.S

Question 844

Deck 2

stores ledger card

Answer 844

A card on which records of the items on hand and on order are maintained.S

Question 845

Deck 2

CPOF

Answer 845

Abbreviation for capacity planning using overall factors.C

Question 846

Deck 2

quality at the source

Answer 846

A producer’s responsibility to provide 100 percent acceptable quality material to the consumer of the material. The objective is to reduce or eliminate shipping or receiving quality inspections and line stoppages as a result of supplier defects.Q

Question 847

Deck 2

manufacturing resource planning (MRP II)

Answer 847

A method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer what-if questions. It is made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems for capacity and material. Output from these systems is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars. Manufacturing resource planning is a direct outgrowth and extension of closed-loop MRP.M

Question 848

Deck 2

frequency of repair

Answer 848

Syn: repair factor.F

Question 849

Deck 2

service parts revenue

Answer 849

The value of sales of replacement parts to external and internal customers, net of discounts and coupons.S

Question 850

Deck 2

ratification

Answer 850

The situation wherein a principal, failing to repudiate an agent’s unauthorized conduct, is bound by the conduct.R

Question 851

Deck 2

group technology (GT)

Answer 851

An engineering and manufacturing philosophy that identifies the physical similarity of parts (common routing) and establishes their effective production. It provides for rapid retrieval of existing designs and facilitates a cellular layout.G

Question 852

Deck 2

maintenance, repair, and overhaul (MRO)

Answer 852

An item for reprocessing in the remanufacturing industry.M

Question 853

Deck 2

normal distribution

Answer 853

A particular statistical distribution where most of the observations fall fairly close to one mean, and a deviation from the mean is as likely to be plus as it is to be minus. When graphed, the normal distribution takes the form of a bell-shaped curve.N

Question 854

Deck 2

e-commerce

Answer 854

Abbreviation for electronic commerce.E

Question 855

Deck 2

design

Answer 855

The conversion of a need or innovation into a product, process, or service that meets both the enterprise and customer expectations. The design process consists of translating a set of functional requirements into an operational product, process, or service.D

Question 856

Deck 2

AON

Answer 856

Abbreviation for activity-on-node network.A

Question 857

Deck 2

convertible security

Answer 857

An asset (stock or bond) that may be changed for another asset at the owner’s request.C

Question 858

Deck 2

transient state

Answer 858

In waiting line models, early behavior of a characteristic of the model, such as line length, is more erratic than eventual performance of the line. Data are usually not collected from the model until less erratic behavior emerges. See: steady state.T

Question 859

Deck 2

project costing

Answer 859

An accounting method of assigning valuations that is generally used in industries where services are performed on a project basis. Each assignment is unique and costed without regard to other assignments. Examples are shipbuilding, construction projects, and public accounting firms. Project costing is opposed to process costing, where products to be valued are homogeneous.P

Question 860

Deck 2

single-source supplier

Answer 860

A company that is selected to have 100 percent of the business for a part although S alternate suppliers are available. See: sole-source supplier.S

Question 861

Deck 2

awareness efficiency

Answer 861

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

Question 862

Deck 2

knowledge management

Answer 862

Concept of information being used by executives, managers, and employees to more effectively produce product, interface with customers, and navigate through competitive markets.K

Question 863

Deck 2

continuous production

Answer 863

A production system in which the productive equipment is organized and sequenced according to the steps involved to produce the product. This term denotes that material flow is continuous during the production process. The routing of the jobs is fixed and setups are seldom changed. Syn: continuous flow (production), continuous process, continuous manufacturing. See: mass production, project manufacturing.C

Question 864

Deck 2

replacement parts

Answer 864

Parts that can be used as substitutes that differ from completely interchangeable service parts in that they require some physical modification (e.g., boring, cutting, drilling) before they can replace the original part.R

Question 865

Deck 2

time-definite services

Answer 865

Delivery of goods and services where an agreement has been reached on the day and time of the delivery.T

Question 866

Deck 2

MAPE

Answer 866

Abbreviation for mean absolute percent error.M

Question 867

Deck 2

champion

Answer 867

(1) In quality control, sponsor of a six sigma implementation project. (2) In general, sponsor of an improvement effort.C

Question 868

Deck 2

content management applications

Answer 868

Supports the evolutionary life cycle of digital-based information and makes information dynamically updatable online; includes the ability to publish content to a repository and support access to digital-based content.C

Question 869

Deck 2

blocking bug

Answer 869

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

Question 870

Deck 2

consuming the forecast

Answer 870

The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period. Syn: forecast consumption.C

Question 871

Deck 2

earned value

Answer 871

In project management, the total value, including overhead, of approved estimates for completed activities or portions thereof.E

Question 872

Deck 2

dog

Answer 872

A slang term used to refer to a low-growth, lowmarket- share product. See: growth-share matrix.D

Question 873

Deck 2

single-digit setup (SDS)

Answer 873

The idea of performing setups in less than 10 minutes. See: single-minute exchange of die.S

Question 874

Deck 2

activity network diagram

Answer 874

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

Question 875

Deck 2

lumpy demand

Answer 875

Syn: discontinuous demand.L M

Question 876

Deck 2

periodic replenishment

Answer 876

A method of aggregating requirements to place deliveries of varying quantities at evenly spaced time intervals, rather than variably spaced deliveries of equal quantities.P

Question 877

Deck 2

resource planning

Answer 877

Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long-range capacity. Resource planning is normally based on the production plan but may be driven by higher level plans beyond the time horizon for the production plan (e.g., the business plan). It addresses those resources that take long periods of time to acquire. Resource planning decisions always require top management approval. Syn: resource requirements planning. See: capacity planning, long-term planning.R

Question 878

Deck 2

stock split

Answer 878

The issuance of new shares to stockholders without requiring additional equity.S

Question 879

Deck 2

safety factor

Answer 879

1) The ratio of average strength to the worst stress expected. It is essential that the variation, in addition to the average value, be considered in design. 2) The numerical value used in the service function (based on the standard deviation or mean absolute deviation of the forecast) to provide a given level of customer service. For example, if the item MAD is 100 and a .95 customer service level (safety factor of 2.06) is desired, then a safety stock of 206 units should be carried. This safety stock must be adjusted if the forecast interval and item lead times differ. Syn: service factor. See: service function.S

Question 880

Deck 2

specification limits

Answer 880

Syn: tolerance limits.S

Question 881

Deck 2

stickering

Answer 881

Placing manufacturer-or customer-requested stickers on the boxes of the product being sent to them. These are typically done so that the customer, typically a retailer, can more effectively track its inventory. Bar coding is commonly a part of the stickering process.S

Question 882

Deck 2

operation setback chart

Answer 882

A graphical display of the bill of materials and lead-time information provided by the routing for each part. The horizontal axis provides the lead time from raw materials purchase to component manufacture to assembly of the finished product.O

Question 883

Deck 2

container design

Answer 883

The characteristics of the product that make it transportable with ease of handling and stowability. Container concepts include packaging, monetary density, and physical density.C

Question 884

Deck 2

operations finite loading

Answer 884

A finite loading technique that aims to minimize possible delays to individual operations and, thus, the potential delay of each scheduled order. Eligible operations from an order or a group of orders are loaded period by period onto a work center or a group of work centers, according to operation-level priority rules. Syn: operations sequencing. See: constraint-oriented finite loading, drum-buffer-rope, order-oriented finite loading.O

Question 885

Deck 2

current finish time

Answer 885

In project management, the present estimate of an activity’s finish time.C

Question 886

Deck 2

cost allocation

Answer 886

The assignment of costs that cannot be directly related to production activities via more measurable means (e.g., assigning corporate expenses to different products via direct labor costs or hours).C

Question 887

Deck 2

manufacturing layout strategies

Answer 887

An element of manufacturing strategy. It is the analysis of physical capacity, geography, functional needs, corporate philosophy, and product-market/process focus to systematically respond to required facility changes driven by organizational, strategic, and environmental considerations.M

Question 888

Deck 2

planned value

Answer 888

In project management, the total value (including overhead) of approved estimates for planned activities.P

Question 889

Deck 2

cooperative training

Answer 889

An educational process in which students alternate formal studies with actual on-the-job experience. Successful completion of the off-campus experience may be a prerequisite for graduation from the program of study.C

Question 890

Deck 2

dock receipt

Answer 890

A receipt recorded for a shipment received or delivered at a pier or dock.D

Question 891

Deck 2

bottleneck

Answer 891

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

Question 892

Deck 2

materials management

Answer 892

The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product.M

Question 893

Deck 2

virtual corporation

Answer 893

The logical extension of outpartnering. With the virtual corporation, the capabilities and systems of the firm are merged with those of the suppliers, resulting in a new type of corporation where the boundaries between the suppliers’ systems and those of the firm seem to disappear. The virtual corporation is dynamic in that the relationships and structures formed change according to the changing needs of the customer.V

Question 894

Deck 2

GAMP

Answer 894

Acronym for generally accepted manufacturing practices.G

Question 895

Deck 2

hybrid organizational structure

Answer 895

An organizational structure that embodies multiple organizational forms (functional, product, or geographical) simultaneously. For example, some functions may be centralized (such as finance and accounting), whereas others may be duplicated geographically (such as sales).H

Question 896

Deck 2

net operating income

Answer 896

The income before interest and taxes are subtracted. Syn: earnings before interest and taxes.N

Question 897

Deck 2

product load profile

Answer 897

A listing of the required capacity and key resources needed to manufacture one unit of a selected item or family. The resource requirements are further defined by a lead-time offset to predict the impact of the product on the load of the key resources by specific time period. The product load profile can be used for rough-cut capacity planning to calculate the approximate capacity requirements of the master production schedule. See: bill of resources, resource profile, rough-cut capacity planning.P

Question 898

Deck 2

industry

Answer 898

A set of companies providing a product or service where each company’s offering is a close substitute for its competitors’ offerings.I

Question 899

Deck 2

resource leveling

Answer 899

The process of scheduling (and rescheduling) the start and finish dates of operations (or activities) to achieve a consistent rate of resource usage so that resource requirements do not exceed resource availability for a given time period. Syn: leveling.R

Question 900

Deck 2

in-process inventory

Answer 900

Syn: work in process.I

Question 901

Deck 2

material planner

Answer 901

1) The person normally responsible for managing the inventory levels, schedules, and availability of selected items, either manufactured or purchased. Syn: inventory planner. 2) In an MRP system, the person responsible for reviewing and acting on order release, action, and exception messages from the system. Syn: parts planner, planner.M

Question 902

Deck 2

full cost pricing

Answer 902

Establishing price at some markup over the full cost (absorption costing). Full costing includes direct manufacturing as well as applied overhead.F

Question 903

Deck 2

activity-based planning (ABP)

Answer 903

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

Question 904

Deck 2

process capability index

Answer 904

The value of the tolerance specified for the characteristic divided by the process capability. There are several types of process capability indices, including the widely used Cpk and Cp.P P

Question 905

Deck 2

retirement of debt

Answer 905

The termination of a debt obligation by appropriate settlement with the lender. Understood to be in full amount unless partial settlement is specified.R

Question 906

Deck 2

total procurement lead time

Answer 906

Syn: procurement lead time.T

Question 907

Deck 2

seiso

Answer 907

A term that states that a productive workplace is found through cleanliness. See: five Ss.S

Question 908

Deck 2

demand

Answer 908

A need for a particular product or component. The demand could come from any number of sources (e.g., a customer order or forecast, an interplant requirement, a branch warehouse request for a service part or the manufacturing of another product). At the finished goods level, demand data are usually different from sales data because demand does not necessarily result in sales (i.e., if there is no stock, there will be no sale). There are generally up to four components of demand: cyclical component, random component, seasonal component, and trend component. See: booked orders.D

Question 909

Deck 2

free alongside ship (FAS)

Answer 909

A term of sale indicating the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used F by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship’s receipt of goods.F

Question 910

Deck 2

manufacturing representative

Answer 910

Syn: manufacturer’s representative. M

Question 911

Deck 2

claim

Answer 911

A charge made against a company because of loss or damage.C

Question 912

Deck 2

inbound stockpoint

Answer 912

A defined location next to the place of use on a production floor. Materials are brought to the stockpoint as needed and taken from it for immediate use. Inbound stockpoints are used with a pull system of material control.I

Question 913

Deck 2

calculated usage

Answer 913

The determination of usage of components or ingredients in a manufacturing process by multiplying the receipt quantity of a parent by the quantity per of each component or ingredient in the bill or recipe, accommodating standard yields.C

Question 914

Deck 2

five whys

Answer 914

The common practice in total quality management is to ask “why” five times when confronted with a problem. By the time the answer to the fifth “why” is found, the ultimate cause of the problem is identified. Syn: five Ws. See: root cause analysis.F

Question 915

Deck 2

overhead

Answer 915

The costs incurred in the operation of a business that cannot be directly related to the individual goods or services produced. These costs, such as light, heat, supervision, and maintenance, are grouped in several pools (e.g., department overhead, factory overhead, general overhead) and distributed to units of goods or services by some standard allocation method such as direct labor hours, direct labor dollars, or direct materials dollars. Syn: burden. See: expense.O

Question 916

Deck 2

original equipment manufacturer (OEM)

Answer 916

A manufacturer that buys and incorporates another supplier’s products into its own products. Also, products supplied to the original equipment manufacturer or sold as part of an assembly. For example, an engine may be sold to an OEM for use as that company’s power source for its generator units.O

Question 917

Deck 2

operation splitting

Answer 917

Syn: lot splitting.O

Question 918

Deck 2

strict performance

Answer 918

The performance of a contract good enough for the contractor to be paid full price less the other party’s losses.S

Question 919

Deck 2

discount period

Answer 919

The time allowed a customer to receive a cash discount for timely payment of an invoice.D

Question 920

Deck 2

break-bulk warehousing

Answer 920

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

Question 921

Deck 2

waiting line theory

Answer 921

Syn: queuing theory.W

Question 922

Deck 2

level production method

Answer 922

A production planning method that maintains a stable production rate while varying inventory levels to meet demand. Syn: level strategy, production leveling. See: level schedule.L

Question 923

Deck 2

plant finished goods

Answer 923

Finished goods inventory held in plant rather than being shipped to a customer.P

Question 924

Deck 2

bill of labor

Answer 924

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

Question 925

Deck 2

adjustable capacity

Answer 925

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

Question 926

Deck 2

total cost analysis

Answer 926

In purchasing, a process by which a firm seeks to identify and quantify all of the major costs associated with various sourcing options.T

Question 927

Deck 2

data acquisition

Answer 927

Obtaining data from a source, such as a database, and communicating that data to another database or a data warehouse.D

Question 928

Deck 2

labor efficiency

Answer 928

1) Syn: worker efficiency. 2) The average of worker efficiency for all direct workers in a department or facility.L

Question 929

Deck 2

run chart

Answer 929

A graphical technique that illustrates how a process is performing over time. By statistically analyzing a run chart, a process can be determined to be under or out of control. The most common types of data used to construct the charts are ranges, averages, percentages/counts, and individual process attributes (e.g., temperature). Syn. run diagram. See: C chart, P chart, R chart, U chart, X-bar chart.R

Question 930

Deck 2

performance criterion

Answer 930

The characteristic to be measured (e.g., parts per million defective, business profit). See: performance measure, performance measurement system, performance standard.P

Question 931

Deck 2

conveyor

Answer 931

A device following a fixed route that has the capability of moving material between points in a facility. This device commonly is used when there is a high volume of flow along the route.C

Question 932

Deck 2

automatic identification system (AIS)

Answer 932

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

Question 933

Deck 2

flow processing

Answer 933

In process systems development, work flows from one workstation to another at a nearly constant rate and with no delays. When producing discrete (geometric) units, the process is called repetitive manufacturing; when producing non-geometric units over time, the process is called continuous manufacturing. A physical-chemical reaction takes place in the continuous flow process.F

Question 934

Deck 2

parallel implementation strategy

Answer 934

A system implementation technique whereby the current system and the new system are both executed for some period of time. The results of the two systems are compared to ensure that the new system is executing properly. When a level of confidence is built that the new system is executing properly, the old system is turned off and the new system becomes the designated business system.P

Question 935

Deck 2

log normal distribution

Answer 935

A continuous probability distribution where the logarithms of the variable are normally distributed.L

Question 936

Deck 2

positioning strategy

Answer 936

Within manufacturing, a plan for inventory, product design, and production process.P

Question 937

Deck 2

independent action

Answer 937

In transportation, the publication of a freight rate that differs from that of the rate bureau to which the publisher is a member. This is a permitted action.I

Question 938

Deck 2

protection time

Answer 938

Syn: safety lead time.P P

Question 939

Deck 2

base series

Answer 939

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

Question 940

Deck 2

bill-of-material structuring

Answer 940

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

Question 941

Deck 2

parts bank

Answer 941

1) In the narrow sense, an accumulation of inventory between operations that serves to keep a subsequent operation running although there are interruptions in the preceding operations. See: buffer. 2) In the larger sense, a stockroom or warehouse. The implication is that the contents of these areas should be controlled like the contents of a bank.P

Question 942

Deck 2

housekeeping

Answer 942

The manufacturing activity of identifying and maintaining an orderly environment for preventing errors and contamination in the manufacturing process.H

Question 943

Deck 2

work rules

Answer 943

1) Compensation rules concerning such issues as overtime, vacation, and shift premiums. 2) Employee and employer job rights and obligation rules, such as performance standards, promotion procedures, job descriptions, and layoff rules. Work rules are usually a part of a union contract and may include a code of conduct for workers and language to ensure decent conditions and health standards.W

Question 944

Deck 2

tare weight

Answer 944

The weight of a substance, obtained by deducting the weight of the empty container from the gross weight of the full container.T

Question 945

Deck 2

lower specification limit (LSL)

Answer 945

In statistical process control, charting the line that defines the minimum acceptable level of random output. See: tolerance limits.L

Question 946

Deck 2

cyberspace

Answer 946

A common name encompassing both the internet and other forms of electronic communication.C

Question 947

Deck 2

interactive customer care

Answer 947

A generic term for a variety of services provided over the internet. These services include customer service and technical support.I

Question 948

Deck 2

ROE

Answer 948

Abbreviation for return on owner’s equity.R

Question 949

Deck 2

manufacturing order reporting

Answer 949

Syn: production reporting and status control.M

Question 950

Deck 2

process flow scheduling

Answer 950

A generalized method for planning equipment usage and material requirements that uses the process structure to guide scheduling calculations. It is used in flow environments common in process industries.P

Question 951

Deck 2

cost reduction

Answer 951

The act of lowering the cost of goods or services by securing a lower price, reducing labor costs, and so forth. In cost reduction, the item usually is not changed, but the circumstances around which the item

Question 952

Deck 2

five focusing steps

Answer 952

In the theory of constraints, a process to continuously improve organizational profit by evaluating the production system and market mix to determine how to make the most profit using the system constraint. The steps consist of (1) identifying the constraint to the system, (2) deciding how to exploit the constraint to the system, (3) subordinating all nonconstraints to the constraint, (4) elevating the constraint to the system, (5) returning to step 1 if the constraint is broken in any previous step, while not allowing inertia to set in.F

Question 953

Deck 2

batch sensitivity factor

Answer 953

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

Question 954

Deck 2

dividend yield

Answer 954

The ratio of dividends per share over stock price.D

Question 955

Deck 2

manufacturing data sheet

Answer 955

Syn: routing.M

Question 956

Deck 2

action message

Answer 956

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

Question 957

Deck 2

work in process (WIP)

Answer 957

A good or goods in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory. Many accounting systems also include the value of semifinished stock and components in this category. Syn: in-process inventory.W

Question 958

Deck 2

finite forward scheduling

Answer 958

An equipment scheduling technique that builds a schedule by proceeding sequentially from the initial period to the final period while observing capacity limits. A Gantt chart may be used with this technique. See: finite loading.F

Question 959

Deck 2

CSCP

Answer 959

Abbreviation for Certified Supply Chain Professional.C

Question 960

Deck 2

lead time

Answer 960

1) A span of time required to perform a process (or series of operations). 2) In a logistics context, the time between recognition of the need for an order and the receipt of goods. Individual components of lead time can include order preparation time, queue time, processing time, move or transportation time, and receiving and inspection time. Syn: total lead time. See: manufacturing lead time, purchasing lead time.L

Question 961

Deck 2

QFD

Answer 961

Abbreviation for quality function deployment.Q

Question 962

Deck 2

unitization

Answer 962

In warehousing, the consolidation of several units into larger units for fewer handlings.U

Question 963

Deck 2

nemawashi

Answer 963

A Japanese word meaning getting a group to agree on a strategy before beginning to implement it.N

Question 964

Deck 2

ton-mile

Answer 964

A way to measure the transportation of freight. It is the multiplication of weight being transported (in tons) by the distance it is being transported (in miles). Heavily used in rail and ship transportation mode.T

Question 965

Deck 2

punitive damages

Answer 965

The money awarded a plaintiff, not as payment for the plaintiff ’s losses, but as punishment for the defendant’s conduct.P

Question 966

Deck 2

agility

Answer 966

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

Question 967

Deck 2

APR

Answer 967

Abbreviation for annual percentage rate.A

Question 968

Deck 2

ASC

Answer 968

Abbreviation for accredited standards committee.A

Question 969

Deck 2

AD&D

Answer 969

Abbreviation for accidental death and disability.A

Question 970

Deck 2

labor voucher

Answer 970

Syn: labor claim.L

Question 971

Deck 2

open office

Answer 971

An office, with moveable partitions and furniture, that deemphasizes the compartmentalization of people.O

Question 972

Deck 2

group layout

Answer 972

A layout in which machine groups are arranged to process families of parts with similar characteristics. G

Question 973

Deck 2

electronic funds transfer (EFT)

Answer 973

A computerized system that processes financial transactions and information about these transactions or performs the exchange of value between two parties.E electronic invoice presentment and payment (EIPP) Accepting and sending invoices and payments over the internet.E

Question 974

Deck 2

variable costing

Answer 974

An inventory valuation method in which only variable production costs are applied to the product; fixed factory overhead is not assigned to the product. Traditionally, variable production costs are direct labor, direct material, and variable overhead costs. Variable costing can be helpful for internal management analysis but is not widely accepted for external financial reporting. For inventory order quantity purposes, however, the unit costs must include both the variable and allocated fixed costs to be compatible with the other terms in the order quantity formula. For make-orbuy decisions, variable costing should be used rather than full absorption costing. Syn: direct costing.V

Question 975

Deck 2

hard automation

Answer 975

Use of specialized machines to manufacture and assemble products. Each machine is normally dedicated to one function, such as milling.H H

Question 976

Deck 2

transformation system

Answer 976

Syn: transformation process.T

Question 977

Deck 2

total quality management (TQM)

Answer 977

A term coined to describe Japanese-style management approaches to quality improvement. Since then, total quality management (TQM) has taken on many meanings. Simply put, TQM is a management approach to long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work. The methods for implementing this approach are found in teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, J.M. Juran, and Genichi Taguchi.T

Question 978

Deck 2

optical character recognition (OCR)

Answer 978

A mechanized method of collecting data involving the reading of handprinted material or special character fonts. If handwritten, the information must adhere to predefined rules of size, format, and locations on the form.O

Question 979

Deck 2

static budget

Answer 979

Syn: master budget.S

Question 980

Deck 2

third-party registration system

Answer 980

Using an outside party (rather than the buyer) to determine the adequacy of a seller’s product quality. If several buyers use the same third party system, such as ISO9000, the seller avoids having multiple audits.T

Question 981

Deck 2

common law

Answer 981

Law flowing from judicial decisions over the years rather than from legislative action.C

Question 982

Deck 2

formal culture

Answer 982

The visible segment of the organizational culture, such as policies and procedures, mission statement, and dress codes. See: informal culture.F

Question 983

Deck 2

bar coding

Answer 983

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

Question 984

Deck 2

input/output analysis

Answer 984

Syn: input/output control.I

Question 985

Deck 2

Dodge-Romig tables

Answer 985

Information about the correct sample size and maximum defective quantity in a sample to satisfy lot acceptance; a quality control measurement.D

Question 986

Deck 2

nondurable goods

Answer 986

Goods whose serviceability is generally limited to a period of less than three years (such as perishable goods and semidurable goods).N

Question 987

Deck 2

disbursement

Answer 987

The physical issuance and reporting of the movement of raw material, components, or other items from a stores room or warehouse. Taking a part out of inventory. See: issue.D

Question 988

Deck 2

project-based layout

Answer 988

A type of layout where the good or product is stationary and the workers come to the site to work on it.P

Question 989

Deck 2

hub

Answer 989

A large manufacturer or retailer doing business with many trading partners.H

Question 990

Deck 2

alternate operation

Answer 990

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

Question 991

Deck 2

diagnostic journey and remedial journey

Answer 991

A two-phase investigation used by teams to solve chronic quality

Question 992

Deck 2

RMA

Answer 992

Abbreviation for return material authorization.R

Question 993

Deck 2

gross sales

Answer 993

The total amount charged to all customers during the accounting time period.G

Question 994

Deck 2

merge in transit

Answer 994

Combining shipments from several vendors at an intermediate point of shipment and delivering the combined load to the customer.M

Question 995

Deck 2

back scheduling

Answer 995

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

Question 996

Deck 2

cycle counter

Answer 996

An individual who is assigned to do cycle counting.C

Question 997

Deck 2

discount

Answer 997

An allowance or deduction granted by the seller to the buyer, usually when the buyer meets certain stipulated conditions that reduce the price of the products purchased. A quantity discount is an allowance determined by the quantity or value of the purchase. A cash discount is an allowance extended to encourage payment of an invoice on or before a stated date. A trade discount is a deduction from an established price for goods or services made by the seller to those engaged in certain businesses. See: price break.D

Question 998

Deck 2

fixture

Answer 998

A device to hold and locate a work piece during inspection or production operations. See: jig.F F

Question 999

Deck 3

Term

Answer 999

Definition

Question 1000

Deck 3

population

Answer 1000

The entire set of items from which a sample is drawn.P

Question 1001

Deck 3

time and attendance

Answer 1001

A collection of data relating to an employee’s record of absences and hours worked.T

Question 1002

Deck 3

bill of activities

Answer 1002

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

Question 1003

Deck 3

MBNQA

Answer 1003

Abbreviation for the Malcolm Baldrige National Quality Award.M

Question 1004

Deck 3

material requisition

Answer 1004

This is the first step to placing a replenishment order; initiated by the material user.M

Question 1005

Deck 3

confidence limit

Answer 1005

The bounds of an interval. A probability can be given for the likelihood that the true value will lie between the confidence limits.C

Question 1006

Deck 3

equivalent unit cost

Answer 1006

A method of costing that uses the total cost incurred for all like units for a period of time divided by the equivalent units completed during the same time period.E E

Question 1007

Deck 3

channel integration

Answer 1007

Strengthening relationships up and down the supply chain from suppliers’ suppliers to customers’ customers.C

Question 1008

Deck 3

special-purpose machinery

Answer 1008

Machines that are designed to perform a small number of activities. They are not as flexible as general purpose machinery but they may be faster and more accurate.S

Question 1009

Deck 3

blocked operation

Answer 1009

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

Question 1010

Deck 3

black box design

Answer 1010

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

Question 1011

Deck 3

denied party list

Answer 1011

A list of organizations that are unauthorized to submit a bid for an activity.D

Question 1012

Deck 3

bleeding edge

Answer 1012

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

Question 1013

Deck 3

materials system

Answer 1013

Connecting material flows contained in a production system.M

Question 1014

Deck 3

storage costs

Answer 1014

A subset of inventory carrying costs, including the cost of warehouse utilities, material handling personnel, equipment maintenance, building maintenance, and security personnel.S

Question 1015

Deck 3

focus strategy

Answer 1015

Targeting a narrow market with specialized goods or services.F

Question 1016

Deck 3

SPT

Answer 1016

Abbreviation for shortest processing time rule.S

Question 1017

Deck 3

lot number control

Answer 1017

Assignment of unique numbers to each instance of receipt and carrying forth that number into subsequent manufacturing processes so that, in review of an end item, each lot consumed from raw materials through end item can be identified as having been used for the manufacture of this specific end item lot.L

Question 1018

Deck 3

number of affected units chart

Answer 1018

Syn: np chart.N

Question 1019

Deck 3

replacement cost systems

Answer 1019

A method of inventory valuation that assigns an item cost based on the next item price incurred.R

Question 1020

Deck 3

parallel conversion

Answer 1020

A method of system implementation in which the operation of the new system overlaps with the operation of the system being replaced. The old system is discontinued only when the new system is shown to be working properly, thus minimizing the risk and negative consequences of a poor system implementation.P

Question 1021

Deck 3

manufacturing process development

Answer 1021

The definition and implementation of an execution system for making a part, good, or service that is consistent with the objectives of the firm.M

Question 1022

Deck 3

poka-yoke (mistake-proof)

Answer 1022

Mistake-proofing techniques, such as manufacturing or setup activity designed in a way to prevent an error from resulting in a product defect. For example, in an assembly operation, if each correct part is not used, a sensing device detects that a part was unused and shuts down the operation, thereby preventing the assembler from moving the incomplete part to the next station or beginning another operation. Sometimes spelled poke-yoke. Syn: failsafe techniques, failsafe work methods, mistake-proofing.P

Question 1023

Deck 3

fixed-position layout

Answer 1023

A factory layout that plans for the product to be in a set place; the people, machines, and tools are brought to and from the product.F

Question 1024

Deck 3

fiduciary

Answer 1024

One having the duty to act on another’s behalf in a trustworthy and confidential fashion.F

Question 1025

Deck 3

overlapped production

Answer 1025

A method of production in which completed pieces of a production lot are processed at one or more succeeding stations while remaining pieces continue to be processed at the original workstation. See: overlapped schedule.O

Question 1026

Deck 3

depreciation

Answer 1026

An allocation of the original value of an asset against current income to represent the declining value of the asset as a cost of that time period. Depreciation does not involve a cash payment. It acts as a tax shield and thereby reduces the tax payment. See: capital recovery, depletion, double-decliningbalance depreciation, straight line depreciation, unitsof- production depreciation.D

Question 1027

Deck 3

certified supplier

Answer 1027

A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.C

Question 1028

Deck 3

point of sale (POS)

Answer 1028

The relief of inventory and computation of sales data at the time and place of sale, generally through the use of bar coding or magnetic media and equipment.P

Question 1029

Deck 3

seasonal adjustment

Answer 1029

Syn: seasonal index.S

Question 1030

Deck 3

production validation

Answer 1030

Demonstrating that a production process will consistently lead to the expected results.P

Question 1031

Deck 3

timetables

Answer 1031

Schedules that are organized by starting location/destination and show the times for departures and arrivals.T

Question 1032

Deck 3

smallest processing time rule

Answer 1032

Syn: shortest processing time rule.S

Question 1033

Deck 3

seasonal variation

Answer 1033

See: seasonality.S

Question 1034

Deck 3

production material

Answer 1034

Any material used in the manufacturing process.P

Question 1035

Deck 3

process design

Answer 1035

The design of the manufacturing method.P

Question 1036

Deck 3

AQL

Answer 1036

Abbreviation for acceptable quality level.A

Question 1037

Deck 3

order quantity

Answer 1037

Syn: lot size.O

Question 1038

Deck 3

sustaining activity

Answer 1038

In activity-based cost accounting, an activity that is not directly beneficial to any specific cost object but does benefit the organization as a whole.S

Question 1039

Deck 3

time standard

Answer 1039

The predetermined times allowed for the performance of a specific job. The standard will often consist of two parts, that for machine setup and that for actual running. The standard can be developed through observation of the actual work (time study), summation of standard micromotion times (predetermined or synthetic time standards), or approximation (historical job times).T

Question 1040

Deck 3

return goods handling

Answer 1040

The work a company puts into accepting returned goods from their customers.R

Question 1041

Deck 3

forecast accuracy

Answer 1041

A measurement of forecast usefulness, often defined as the average difference between the forecast value to the actual value. Syn: sales forecast. See: forecast error.F

Question 1042

Deck 3

webpage

Answer 1042

A document containing hypertext links to certain other documents including multimedia documents.W

Question 1043

Deck 3

internet operations

Answer 1043

Operations performed over the internet encompassing such things as email, telnet, newsgroups, file transfer protocol, and the World Wide Web.I

Question 1044

Deck 3

average chart

Answer 1044

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

Question 1045

Deck 3

A3 method

Answer 1045

A means of compactly describing a business process.A

Question 1046

Deck 3

cybernetics

Answer 1046

The study of control processes in mechanical, biological, electrical, and information systems.C

Question 1047

Deck 3

end user

Answer 1047

1) The final consumer of a product. 2) The recipient of an output from a computer system.E

Question 1048

Deck 3

CTP

Answer 1048

Abbreviation for capable-to-promise.C

Question 1049

Deck 3

production time

Answer 1049

Setup time plus total processing time, where total processing time is processing time per piece multiplied by the number of pieces.P

Question 1050

Deck 3

abandonment

Answer 1050

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

Question 1051

Deck 3

linear regression

Answer 1051

A statistical data technique that expresses a variable as a linear function of an independent variable. Linear regression can be used to develop forecasting models.L

Question 1052

Deck 3

active inventory

Answer 1052

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

Question 1053

Deck 3

flexible budget

Answer 1053

A budget showing the costs and revenues expected to be incurred or realized over a period of time at different levels of activity, measured in terms of some activity base such as direct labor hours, direct labor costs, or machine hours. A flexible manufacturing overhead budget gives the product costs of various manufacturing overhead items at different levels of activity. See: step budget.F

Question 1054

Deck 3

NOPAT

Answer 1054

Acronym for net operating profit after taxes.N

Question 1055

Deck 3

implementation

Answer 1055

The act of installing a system into operation. It concludes the system project with the exception of appropriate follow-up or post-installation review.I

Question 1056

Deck 3

capable-to-promise (CTP)

Answer 1056

The process of committing orders against available capacity as well as inventory. This process may involve multiple manufacturing or distribution sites. Capable-to-promise is used to determine when a new or unscheduled customer order can be delivered. Capable-to-promise employs a finite-scheduling model of the manufacturing system to determine when an item can be delivered. It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, the current manufacturing environment, and future order commitments. The objective is to reduce the time spent by production planners in expediting orders and adjusting plans because of inaccurate delivery-date promises.C

Question 1057

Deck 3

personal discrimination

Answer 1057

In transportation, charging different companies with similar deliveries different rates for shipping. This is a policy decision, probably based on importance of the customer.P personal fatigue and unavoidable delay allowance Factor by which the motion study term “normal time” is increased to allow for personal needs and unavoidable delays.P

Question 1058

Deck 3

location grid

Answer 1058

A layout of a warehouse used to improve inventory management and cycle counting.L

Question 1059

Deck 3

balance of trade

Answer 1059

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

Question 1060

Deck 3

export license

Answer 1060

A document received from a governmental agency authorizing a certain quantity of an export to be sent to a given country.E

Question 1061

Deck 3

model number

Answer 1061

An item number for a finished good. This number may encompass other parts, such as a user’s manual.M

Question 1062

Deck 3

UDE

Answer 1062

Abbreviation for undesirable effect. Pronounced“oodee.”U

Question 1063

Deck 3

marketing

Answer 1063

The design, pricing, promotion, and distribution of goods to create transactions with businesses and consumers.M

Question 1064

Deck 3

project management team

Answer 1064

In project management, the personnel assigned to a project who are directly involved in management activities.P

Question 1065

Deck 3

private label

Answer 1065

Also known as store or dealer brands, these are products that are designed and produced by one company, but carry the name of the store that sells them. Oftentimes called generic to the purchaser.P

Question 1066

Deck 3

cause-and-effect diagram

Answer 1066

A tool for analyzing process dispersion. It is also referred to as the Ishikawa diagram (because Kaoru Ishikawa developed it) and the fishbone diagram (because the complete diagram resembles a fish skeleton). The diagram illustrates the main causes and subcauses leading to an effect (symptom). The cause-and-effect diagram is one of the seven tools of quality. Syn: fishbone chart, Ishikawa diagram.C

Question 1067

Deck 3

dynamic programming

Answer 1067

A method of sequential decision making in which the result of the decision at each stage affords the best possible means to exploit the expected range of likely (yet unpredictable) outcomes in the following decision-making stages.D E

Question 1068

Deck 3

data date

Answer 1068

The date through which a report has provided actual accomplishment. Syn: time-now date.D D

Question 1069

Deck 3

EBT

Answer 1069

Abbreviation for earnings before taxes.E

Question 1070

Deck 3

dynamic kanban

Answer 1070

An electronic signal using kanban to create an automatic purchase order to a supplier or a manufacturing order to a shop. Dynamic kanban is one of the elements of a manufacturing execution system that enables just-in-time deliveries to production. See: kanban.D

Question 1071

Deck 3

intelligent agent

Answer 1071

A program that regularly gathers information without the owner being present.I

Question 1072

Deck 3

flag of convenience

Answer 1072

A ship registered in a nation with low taxes and lax safety regulations. Liberia and Panama are two favorite flags of convenience.F

Question 1073

Deck 3

demand planning

Answer 1073

The process of combining statistical forecasting techniques and judgment to construct demand estimates for products or services (both high and low volume; lumpy and continuous) across the supply chain from the suppliers’ raw materials to the consumer’s needs. Items can be aggregated by product family, geographical location, product life cycle, and so forth, to determine an estimate of consumer demand for finished products, service parts, and services. Numerous forecasting models are tested and combined with judgment from marketing, sales, distributors, warehousing, service parts, and other functions. Actual sales are compared with forecasts provided by various models and judgments to determine the best integration of techniques and judgment to minimize forecast error. See: demand management.D

Question 1074

Deck 3

depletion

Answer 1074

The reduction in the value of a capital asset (usually a natural resource) in the balance sheet and charging this amount as an expense against income for the period. See: capital recovery.D

Question 1075

Deck 3

capacity required

Answer 1075

The capacity of a system or resource needed to produce a desired output in a particular time period. Syn: required capacity. See: capacity.C

Question 1076

Deck 3

aggregate unit of capacity

Answer 1076

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

Question 1077

Deck 3

fixed reorder quantity inventory model

Answer 1077

A form of independent demand item management model in expected demand during the replenishment lead time. Fixed reorder quantity models assume the existence of some form of a perpetual inventory record or some form of physical tracking (e.g., a two-bin system that is able to determine when the reorder point is reached). These reorder systems are sometimes called fixed order quantity systems, lot-size systems, or order point-order quantity systems. Syn: fixed order quantity system, lot-size system, order point-order quantity system, quantitybased order system. See: fixed reorder cycle inventory model, hybrid inventory system, independent demand item management models, optional replenishment model, order point, order point system, statistical inventory control, time-phased order point.F

Question 1078

Deck 3

speed of design process

Answer 1078

The time frame that a product or service is designed to satisfy customer needs and regulations and be field-tested before entering a market.S

Question 1079

Deck 3

build-up forecasts

Answer 1079

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

Question 1080

Deck 3

spot stock warehousing

Answer 1080

Positioning seasonal items in proximity to the market. When the season ends, these items are either disposed or relocated to a more centralized location.S

Question 1081

Deck 3

pure oligopoly

Answer 1081

A market in which a few companies produce essentially the same product or service and market it within a given area. A company is forced to price its product at the going rate unless it can differentiate its product. See: industry structure types.P

Question 1082

Deck 3

central point scheduling

Answer 1082

A variant of scheduling that employs both forward and backward scheduling, starting from the scheduled start date of a particular operation.C

Question 1083

Deck 3

critical failure

Answer 1083

The malfunction of those parts that are essential for continual operation or the safety of the user.C

Question 1084

Deck 3

product liability

Answer 1084

The responsibility a producer bears when someone is injured during the use of his or her product.P

Question 1085

Deck 3

delivery lead time

Answer 1085

The time from the receipt of a customer order to the delivery of the product. Syn: delivery cycle.D

Question 1086

Deck 3

risk avoidance

Answer 1086

Changing a plan to eliminate a risk or to protect plan objectives from its impact.R

Question 1087

Deck 3

business planning

Answer 1087

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

Question 1088

Deck 3

parent item

Answer 1088

The item produced from one or more components. Syn: parent.P

Question 1089

Deck 3

forward buying

Answer 1089

The practice of buying materials in a quantity exceeding current requirements but not beyond the point that the long-term need exists.F

Question 1090

Deck 3

brand loyalty

Answer 1090

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

Question 1091

Deck 3

activity attributes

Answer 1091

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

Question 1092

Deck 3

corrective maintenance

Answer 1092

The maintenance required to restore an item to a satisfactory condition.C

Question 1093

Deck 3

prime rate

Answer 1093

The interest rate charged by banks to their most preferred customers.P

Question 1094

Deck 3

post-release

Answer 1094

The period after the product design has been released to manufacturing when the product has ongoing support and product enhancement.P

Question 1095

Deck 3

Institute for Supply Management (ISM)

Answer 1095

A nonprofit society for purchasing managers and others, formerly the National Association of Purchasing Management (NAPM).I

Question 1096

Deck 3

output

Answer 1096

The product being completed by a process or facility.O

Question 1097

Deck 3

protective packaging

Answer 1097

Wrapping or covering of material that provides containment, protection, and identification of inventory in a warehouse. The material must be contained in such a way that will support movement and storage and will fit into the dimension of storage space and transportation vehicles.P

Question 1098

Deck 3

one-touch exchange of die (OTED)

Answer 1098

The ideal of reducing or eliminating the setup effort required between operations on the same equipment.O

Question 1099

Deck 3

zero-based budgeting

Answer 1099

A budget procedure used primarily by governmental agencies, in which managers are required to justify each budgetary expenditure anew, as if the budget were being initiated for the first time rather than being based on an adjustment of prior-year data.Z

Question 1100

Deck 3

grouping

Answer 1100

Matching like operations and running them together sequentially, thereby taking advantage of a common setup.G

Question 1101

Deck 3

implode

Answer 1101

1) Compression of detailed data in a summary-level record or report. 2) Tracing a usage and/or cost impact from the bottom to the top (end product) of a bill of material using where-used logic.I

Question 1102

Deck 3

split lot

Answer 1102

A manufacturing order quantity that has been divided into two or more smaller quantities, usually after the order has been released. The quantities of a split lot may be worked on in parallel, or a portion of the original quantity may be sent ahead to a subsequent operation to be worked on while work on the remainder of the quantity is being completed at the current operation. The purpose of splitting a lot is to reduce the lead time of the order.S

Question 1103

Deck 3

environmentally responsible business

Answer 1103

A firm that operates in such a way as to minimize deleterious impacts to society. See: green manufacturing, green supply chain.E

Question 1104

Deck 3

proprietary data

Answer 1104

Any financial, technical, or other information developed at the expense of the person or other entity submitting it, deemed to be of strategic or tactical importance to the company. It may be offered to customers on a restricted-use basis.P

Question 1105

Deck 3

bad-debt loan ratio

Answer 1105

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

Question 1106

Deck 3

generic processing

Answer 1106

A means of developing routings or processes for the manufacture of products through a family relationship, usually accomplished by means of tabular data to establish interrelationships. It is especially prevalent in the manufacture of raw material such as steel, aluminum, or chemicals.G

Question 1107

Deck 3

middleware

Answer 1107

Software that interconnects incompatible applications software and databases from various trading partners into decision-support tools such as ERP.M

Question 1108

Deck 3

VMI

Answer 1108

Abbreviation for vendor-managed inventory.V

Question 1109

Deck 3

flow time

Answer 1109

The time between the release of a job to a work center or shop until the job is finished.F

Question 1110

Deck 3

receivables conversion period

Answer 1110

The length of time required to collect sales receipts. Syn: average collection period.R

Question 1111

Deck 3

call center

Answer 1111

A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in-house or outsourced.C

Question 1112

Deck 3

reverse logistics

Answer 1112

A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling.R

Question 1113

Deck 3

racking

Answer 1113

A function performed by a rack-jobber, a fullfunction intermediary who performs all regular warehousing functions and some retail functions, typically stocking a display rack.R

Question 1114

Deck 3

interrelationship digraph

Answer 1114

A technique used to define how factors relate to one another. Complex multivariable problems or desired outcomes can be displayed with their interrelated factors. The logical and often causal relationships between the factors can be illustrated.I I

Question 1115

Deck 3

part period balancing (PPB)

Answer 1115

A dynamic lot-sizing technique that uses the same logic as the least total cost method, but adds a routine called look ahead/look back. When the look ahead/look back feature is used, a lot quantity is calculated, and before it is firmed up, the next or the previous period’s demands are evaluated to determine whether it would be economical to include them in the current lot. See: discrete order quantity, dynamic lot sizing.P

Question 1116

Deck 3

decentralized computer network

Answer 1116

A network where there is no central computer or computers linked to all other computers in the group.D

Question 1117

Deck 3

FMAPE

Answer 1117

Abbreviation for forecast mean absolute percentage of error.F

Question 1118

Deck 3

acclimatization

Answer 1118

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

Question 1119

Deck 3

dark factory

Answer 1119

A completely automated production facility with no labor. Syn: lightless plant.D

Question 1120

Deck 3

reference capacity model

Answer 1120

A simulation model with accurate operational details and demand forecasts that can provide practical capacity utilization predictions. Various alternatives for system operation can be evaluated effectively.R

Question 1121

Deck 3

queuing analysis

Answer 1121

The study of waiting lines. See: queuing theory.Q

Question 1122

Deck 3

conversion efficiency

Answer 1122

In e-commerce, a measure of how well an organization transforms visits to its website into customer orders. See: attractability efficiency.C

Question 1123

Deck 3

bracketed recall

Answer 1123

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

Question 1124

Deck 3

MSE

Answer 1124

Abbreviation for mean squared error.M M

Question 1125

Deck 3

fixed-price contract

Answer 1125

Syn: firm fixed-price contract.F

Question 1126

Deck 3

labor standard

Answer 1126

Under normal conditions, the quantity of worker minutes necessary to finish a product or process.L

Question 1127

Deck 3

cost-volume-profit analysis

Answer 1127

The study of how profits change with various levels of output and selling price.C

Question 1128

Deck 3

piecework

Answer 1128

Work done on a piece rate.P

Question 1129

Deck 3

data normalization

Answer 1129

A database maintenance term used in the context of relational databases, which helps to minimize the duplication of information or safeguard the database against certain types of logical or structural data anomalies. It is often used when merging data from one or more databases.D

Question 1130

Deck 3

ROI

Answer 1130

Abbreviation for return on investment.R

Question 1131

Deck 3

total factor productivity

Answer 1131

A measure of productivity (of a department, plant, strategic business unit, firm, etc.) that combines the individual productivities of all its resources, including labor, capital, energy, material, and equipment. These individual factor productivities are often combined by weighting each according to its monetary value and then adding them. For example, if material accounts for 40 percent of the total cost of sales and labor 10 percent of the total cost of sales, etc., total factor productivity = .4 (material productivity) + .1 (labor productivity) + etc.T

Question 1132

Deck 3

slot based production

Answer 1132

A term used in lean manufacturing that describes a production schedule that is held level, but leaves some openings to meet unexpectedly high levels of demand. This is a part of the “extra capacity” planning process.S

Question 1133

Deck 3

inventory shrinkage

Answer 1133

Losses of inventory resulting from scrap, deterioration, pilferage, and so forth.I

Question 1134

Deck 3

capacity bill procedure

Answer 1134

A rough-cut capacity planning method that takes into account any shifts in product mix. Bill of material and routing information are required with direct labor-hour or machine-hour data available for each operation. See: bill of labor.C

Question 1135

Deck 3

job progress chart

Answer 1135

Syn: Gantt chart.J

Question 1136

Deck 3

in-transit inventory

Answer 1136

Material moving between two or more locations, usually separated geographically; for example, finished goods being shipped from a plant to a distribution center.I

Question 1137

Deck 3

market planning

Answer 1137

The process of developing market plans for products and services. This process is composed

Question 1138

Deck 3

repetitive industries

Answer 1138

The group of manufacturers that produce high-volume, low-variety products such as R spark plugs, lawn mowers, and paper clips. See: repetitive manufacturing.R

Question 1139

Deck 3

procurement services provider

Answer 1139

A company that has product, sourcing, and supply management knowledge and acts as an outsourced process by other companies and provides procurement help. They are most often used by companies where procurement is a significant part of business, but the company lacks the expertise to effectively manage the process. This is a third-party process.P

Question 1140

Deck 3

least changeover cost

Answer 1140

Determining the lowest cost of making machine changeovers between jobs by sequencing the jobs accordingly.L

Question 1141

Deck 3

SBU

Answer 1141

Abbreviation for strategic business unit.S

Question 1142

Deck 3

inefficiency risk

Answer 1142

The risk of losing customers because another firm has lower unit costs.I

Question 1143

Deck 3

critical path

Answer 1143

The longest sequence of activities through a network. The critical path defines the planned project duration. See: critical activity, critical path method.C

Question 1144

Deck 3

ISO 9000

Answer 1144

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements to be implemented to maintain an efficient quality system. The standards, initially published in 1987, are not specific to any particular industry, product, or service. The standards were developed by the International Organization for Standardization, known as ISO, a specialized international agency for standardization composed of the national standards bodies of 91 countries. The standards underwent major revision in 2008 and now include ISO 9000:2008 (definitions), ISO 9001:2008 (requirements), and ISO 9004:2008 (continuous improvement). See: ISO/TS 16949, QS 9000.I

Question 1145

Deck 3

market strategy

Answer 1145

The marketing plan to support the business strategy.M

Question 1146

Deck 3

order processing

Answer 1146

The activity required to administratively process a customer’s order and make it ready for shipment or production.O

Question 1147

Deck 3

transit privilege

Answer 1147

A service provided by a shipper that allows the purchasing company to stop a shipment midroute to allow changes to the delivery, but pay the nonstop rate.T

Question 1148

Deck 3

TOFC

Answer 1148

Abbreviation for trailer on a flatcar.T

Question 1149

Deck 3

PPP

Answer 1149

Abbreviation for public-private partnering.P

Question 1150

Deck 3

electronic publishing

Answer 1150

Representation of text and multimedia documents electronically.E

Question 1151

Deck 3

order preparation lead time

Answer 1151

The time needed to analyze requirements and open order status and to create the paperwork necessary to release a purchase order or a production order.O

Question 1152

Deck 3

process manufacturing

Answer 1152

Production that adds value by mixing, separating, forming, and/or performing chemical reactions. It may be done in either batch or continuous mode. See: project manufacturing.P

Question 1153

Deck 3

lot-size code

Answer 1153

A code that indicates the lot-sizing technique selected for a given item. Syn: order policy code.L

Question 1154

Deck 3

14 Points

Answer 1154

W. Edwards Deming’s 14 management practices to help companies increase their quality and productivity: (1) create constancy of purpose for improving products and services; (2) adopt the new philosophy; (3) cease dependence on inspection to achieve quality; (4) end the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier; (5) improve constantly and forever every process for planning, production, and service; (6) institute training on the job; (7) adopt and institute leadership; (8) drive out fear; (9) break down barriers between staff areas; (10) eliminate slogans, exhortations, and targets for the workforce; (11) eliminate numerical quotas for the workforce and numerical goals for management; (12) remove barriers that rob people of pride of workmanship and eliminate the annual rating or merit system; (13) institute a vigorous program of education and self-improvement for everyone; and (14) put everybody in the company to work to accomplish the transformation. Syn: Deming’s 14 Points.F

Question 1155

Deck 3

buyer behavior

Answer 1155

The way individuals or organizations behave in a purchasing situation. The customeroriented concept finds out the wants, needs, and desires of customers and adapts resources of the organization to deliver need-satisfying goods and services.B

Question 1156

Deck 3

bandwidth

Answer 1156

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

Question 1157

Deck 3

standardized ingredient

Answer 1157

A raw ingredient that has been preprocessed to bring all its specifications within standard ranges before it is introduced to the main process. This preprocessing minimizes variability in the production process.S

Question 1158

Deck 3

master route sheet

Answer 1158

The authoritative route process sheet from which all other format variations and copies are derived.M

Question 1159

Deck 3

sales and operations planning (S&OP)

Answer 1159

A process to develop tactical plans that provide management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer-focused marketing plans for new and existing products with the management of the supply chain. The process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financial) into one integrated set of plans. It is performed at least once a month and is reviewed by management at an aggregate (product family) level. The process must reconcile all supply, demand, and newproduct plans at both the detail and aggregate levels and tie to the business plan. It is the definitive statement of the company’s plans for the near to intermediate term, covering a horizon sufficient to plan for resources and to support the annual business planning process. Executed properly, the sales and operation planning process links the strategic plans for the business with its execution and reviews performance measurements for continuous improvement. See: aggregate planning, executive sales and operations planning, production plan, production planning, sales plan, tactical planning.S

Question 1160

Deck 3

open order

Answer 1160

1) A released manufacturing order or purchase order. Syn: released order. See: scheduled receipt. 2) An unfilled customer order.O

Question 1161

Deck 3

mediation

Answer 1161

The introduction of a neutral third party who attempts to provide alternatives to issues causing conflict that have not been put forth by either party or to M change the way the parties perceive the situation. It is often used in collective bargaining to reach an agreement.M

Question 1162

Deck 3

inventory buffer

Answer 1162

Inventory used to protect the throughput of an operation or the schedule against the negative effects caused by delays in delivery, quality problems, delivery of incorrect quantity, and so on. Syn: inventory cushion. See: fluctuation inventory, safety stock.I

Question 1163

Deck 3

average outgoing quality (AOQ)

Answer 1163

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

Question 1164

Deck 3

export broker

Answer 1164

A party that introduces the buyer to the seller and eventually withdraws, getting a fee for services rendered.E

Question 1165

Deck 3

conflict of interest

Answer 1165

Any business activity, personal or company-related, that interferes with a company’s goals or that entails unethical or illegal actions.C

Question 1166

Deck 3

purchasing agent

Answer 1166

A person authorized by the company to purchase goods and services for the company.P

Question 1167

Deck 3

move signal

Answer 1167

Syn: move card.M

Question 1168

Deck 3

acknowledgment

Answer 1168

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

Question 1169

Deck 3

beta release

Answer 1169

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

Question 1170

Deck 3

cross-training

Answer 1170

Providing training or experience in several different areas (e.g., training an employee on several machines). Cross-training provides backup workers in case the primary operator is unavailable.C

Question 1171

Deck 3

distressed goods

Answer 1171

Products that are damaged or close to their expiration date and cannot be sold at full price.D

Question 1172

Deck 3

one-card kanban system

Answer 1172

A kanban system where only a move card is employed. Typically, the work centers are adjacent, therefore no production card is required. In many cases, squares located between work centers are O used as the kanban system. An empty square signals the supplying work center to produce a standard container of the item. Syn: single-card kanban system. See: two-card kanban system.O

Question 1173

Deck 3

primary location

Answer 1173

The designation of a certain storage location as the standard, preferred location for an item.P

Question 1174

Deck 3

bulk packing

Answer 1174

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

Question 1175

Deck 3

nesting

Answer 1175

The act of combining several small processes to form one larger process.N

Question 1176

Deck 3

download

Answer 1176

The process of transferring data or programs from one computer to another (and usually saving to a disk).D

Question 1177

Deck 3

priority planning

Answer 1177

The function of determining what material is needed and when. Master production scheduling and material requirements planning are the elements used for the planning and replanning process to maintain proper due dates on required materials.

Question 1178

Deck 3

dedicated capacity

Answer 1178

A work center that is designated to produce a single item or a limited number of similar items. Equipment that is dedicated may be special equipment or may be grouped general-purpose equipment committed to a composite part.D

Question 1179

Deck 3

instruction sheet

Answer 1179

Syn: routing.I

Question 1180

Deck 3

paired-cell overlapping loops of cards (POLCA)

Answer 1180

A special material control and replenishment system developed to be used with quick-response manufacturing in cellular manufacturing environments. It is a hybrid push-pull system where the push authority to proceed is generated by high-level manufacturing resources planning. See: quick-response manufacturing.P

Question 1181

Deck 3

affidavit

Answer 1181

A sworn written statement.A

Question 1182

Deck 3

disciplinary action

Answer 1182

An action taken to enforce compliance with organizational rules and policies.D

Question 1183

Deck 3

scope definition

Answer 1183

In project management, subdividing a project into smaller components to facilitate management.S

Question 1184

Deck 3

TPOP

Answer 1184

Abbreviation for time-phased order point.T

Question 1185

Deck 3

computer-aided manufacturing (CAM)

Answer 1185

The use of computers to program, direct, and control production equipment in the fabrication of manufactured items.C

Question 1186

Deck 3

risk pooling

Answer 1186

A method often associated with the management of inventory risk. Manufacturers and retailers that experience high variability in demand for their products can pool together common inventory components associated with a broad family of products to buffer the overall burden of having to deploy inventory for each discrete product.R R

Question 1187

Deck 3

shrinkage rate

Answer 1187

Syn: shrinkage factor.S

Question 1188

Deck 3

downstream operation

Answer 1188

The tasks subsequent to the task currently being planned or executed.D

Question 1189

Deck 3

seasonal inventory

Answer 1189

Inventory built up to smooth production in anticipation of a peak seasonal demand. Syn: seasonal stock.S

Question 1190

Deck 3

material analyst

Answer 1190

The person assigned responsibility for and identification of the planning requirements for specific items and responsibility for each order.M

Question 1191

Deck 3

nongovernmental organization (NGO)

Answer 1191

A legally constituted organization that operates independently from any government. The term is usually applied only to organizations that pursue some wider social aim with political aspects, but that are not overtly political organizations such as political parties. These types of organizations are called civil society organizations and other names in some jurisdictions.N

Question 1192

Deck 3

total line-haul cost

Answer 1192

Basic costs of carrier operation to move a container of freight, including driver’s wages and usage depreciation, which vary with the distance shipped and the cost per mile.T

Question 1193

Deck 3

critical characteristics

Answer 1193

The attributes of a product that must function properly to avoid the failure of the product. Syn: functional requirements.C

Question 1194

Deck 3

CAD

Answer 1194

Acronym for computer-aided design.C C

Question 1195

Deck 3

buffer management

Answer 1195

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

Question 1196

Deck 3

buying down

Answer 1196

Given a product that historically experienced price swings, attempting to buy when the price is low or down. See: hedging, speculative buying.B

Question 1197

Deck 3

flexible capability

Answer 1197

Machinery’s ability to be readily adapted to processing different components on an ongoing basis.F

Question 1198

Deck 3

from gross profit. 3) Net profit

Answer 1198

earnings or income after adjusting for miscellaneous income and expenses (patent royalties, interest, capital gains) and tax from operating profit. Syn: income.P

Question 1199

Deck 3

bid proposal

Answer 1199

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

Question 1200

Deck 3

tariff

Answer 1200

An official schedule of taxes and fees imposed by a country on imports or exports.T

Question 1201

Deck 3

business plan

Answer 1201

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

Question 1202

Deck 3

award audits

Answer 1202

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

Question 1203

Deck 3

traffic department

Answer 1203

The area of an organization that plans and executes shipping requirements.T

Question 1204

Deck 3

objective function

Answer 1204

The goal or function that is to be optimized in a model. Most often it is a cost function that should be minimized subject to some restrictions or a profit function that should be maximized subject to some restrictions.O

Question 1205

Deck 3

make-to-stock

Answer 1205

A production environment where products can be and usually are finished before receipt of a customer order. Customer orders are typically filled from existing stocks, and production orders are used to replenish those stocks. Syn: produce-to-stock. See: assemble-to-order, make-to-order.M

Question 1206

Deck 3

bin tag

Answer 1206

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

Question 1207

Deck 3

service parts demand

Answer 1207

The need or requirement for a component to be sold by itself, as opposed to being used in production to make a higher level product. Syn: repair parts demand, spare parts demand.S

Question 1208

Deck 3

general merchandise warehouse

Answer 1208

A warehouse for the storage of goods that require no special handling.G

Question 1209

Deck 3

vertical marketing

Answer 1209

A coordinated product marketing system, with activities undertaken by one company, for a supply chain.V

Question 1210

Deck 3

operations sequence analysis

Answer 1210

Method of planning a facility layout by using graphics to determine the placement of departments.O

Question 1211

Deck 3

noncurrent assets

Answer 1211

An accounting/financial term (balance sheet classification of accounts) representing the long-term resources owned by a company, including property, plant, and equipment.N

Question 1212

Deck 3

marginal cost of capital

Answer 1212

The cost of the next dollar, after taxes, that a firm expects to raise for investment.M

Question 1213

Deck 3

interoperation time

Answer 1213

The time between the completion of one operation and the start of the next.I

Question 1214

Deck 3

active tag

Answer 1214

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

Question 1215

Deck 3

green field

Answer 1215

The initiation of a new process where no similar initiatives have previously existed.G

Question 1216

Deck 3

cube utilization

Answer 1216

In warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse.C

Question 1217

Deck 3

inventory accounting

Answer 1217

The branch of accounting dealing with valuing inventory. Inventory may be recorded or valued using either a perpetual or a periodic system. A perpetual inventory record is updated frequently or in real time, while a periodic inventory record is counted or measured at fixed time intervals (e.g., every two weeks or monthly). Inventory valuation methods of LIFO, FIFO, or average costs are used with either recording system.I

Question 1218

Deck 3

protocol

Answer 1218

In information systems, a set of rules for defining the format and relationships for sharing information between devices. These rules govern the transmission of data across a network and serve as the grammar of data communication languages.P

Question 1219

Deck 3

OSI

Answer 1219

Abbreviation for open systems interconnection.O

Question 1220

Deck 3

optimal order period

Answer 1220

Within a fixed order period inventory system, the time between a status check on the material that balances ordering costs with carrying costs.O

Question 1221

Deck 3

statement of cash flows

Answer 1221

Syn: funds flow statement.S

Question 1222

Deck 3

packing and marking

Answer 1222

The activities of packing for safe shipping and unitizing one or more items of an order, placing them into an appropriate container, and marking and labeling the container with customer shipping P destination data, as well as other information that may be required.P

Question 1223

Deck 3

shojinka

Answer 1223

Continually balancing the number of workers in a work center to meet demand with a minimum number of workers. It requires a line design, such as Ushaped, that supports varying the number of workers.S

Question 1224

Deck 3

spare parts demand

Answer 1224

Syn: service parts demand.S

Question 1225

Deck 3

ESOP

Answer 1225

Acronym for employee stock ownership plan.E

Question 1226

Deck 3

LS

Answer 1226

Abbreviation for late start date.L

Question 1227

Deck 3

general stores

Answer 1227

Syn: supplies.G

Question 1228

Deck 3

Institute of Industrial Engineers (IIE)

Answer 1228

A nonprofit educational organization with members interested in the field of industrial engineering.I

Question 1229

Deck 3

delinquent order

Answer 1229

Syn: past due order.D

Question 1230

Deck 3

consigned stocks

Answer 1230

Inventories, generally of finished goods, that are in the possession of customers, dealers, agents, and so on, but remain the property of the manufacturer by agreement with those in possession. Syn: consignment inventory, vendor-owned inventory. See: consignment.C

Question 1231

Deck 3

advanced planning and scheduling (APS)

Answer 1231

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

Question 1232

Deck 3

responsiveness

Answer 1232

A dimension of service quality referring to the promptness and helpfulness in providing a service.R

Question 1233

Deck 3

voucher

Answer 1233

A written document that bears witness to, or “vouches” for, something. A voucher generally is an instrument showing services performed or goods purchased and authorizing payment to the supplier.V W

Question 1234

Deck 3

straight-line depreciation

Answer 1234

A method of depreciation whereby the amount to be recovered (written off as an expense) is spread uniformly over the estimated life of the asset in terms of time periods. See: depreciation.S

Question 1235

Deck 3

allocation costing

Answer 1235

Syn: absorption costing.A

Question 1236

Deck 3

design for six sigma

Answer 1236

An approach to designing products and processes that attempts to ensure the firm can provide products or services that meet six sigma quality levels. These quality levels correspond to approximately 3.4 defects per million opportunities.D

Question 1237

Deck 3

ANSI

Answer 1237

Acronym for American National Standards Institute.A

Question 1238

Deck 3

DRP

Answer 1238

Abbreviation for distribution requirements planning.D

Question 1239

Deck 3

transformation process

Answer 1239

The process of converting inputs into finished goods or services. In a service firm, the input may be a customer. Syn: transformation system. See: manufacturing process, production process.T T

Question 1240

Deck 3

forecast error

Answer 1240

The difference between actual demand and forecast demand, stated as an absolute value or as a percentage. See: average forecast error, forecast accuracy, mean absolute deviation, tracking signal.F

Question 1241

Deck 3

limited liability company

Answer 1241

In the United States, a business organization that, as with a corporation, enjoys limited liability yet is not a taxable entity.L

Question 1242

Deck 3

message distribution

Answer 1242

The software component of electronic commerce that enables the sending and receiving of messages.M

Question 1243

Deck 3

scorecard

Answer 1243

This is a performance measurement tool used by a company that summarizes its key performance indicators. Another use of scorecard is to measure the supply chain members and ensure that their performance is meeting company standards.S

Question 1244

Deck 3

critical value analysis

Answer 1244

A modified ABC analysis where a subjective metric of the criticality of an item is assigned to each item.C

Question 1245

Deck 3

Java

Answer 1245

A general-purpose computer language created by Sun Microsystems.J

Question 1246

Deck 3

Full-Baldrige approach

Answer 1246

A quality award program modeled after the Malcolm Baldrige National Quality Award and using the same criteria.F

Question 1247

Deck 3

operator flexibility

Answer 1247

Training machine workers to perform tasks outside their immediate jobs and in problemsolving techniques to improve process flexibility. This is a necessary process in developing a fully cross-trained workforce.O

Question 1248

Deck 3

logistics

Answer 1248

1) In an industrial context, the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities. 2) In a military sense (where it has greater usage), its meaning can also include the movement of personnel.L

Question 1249

Deck 3

proactive

Answer 1249

A strategy of anticipating issues and presenting beneficial solutions to the customer.P

Question 1250

Deck 3

SPC

Answer 1250

Abbreviation for statistical process control.S

Question 1251

Deck 3

significant variances

Answer 1251

Those differences between planned and actual performance that exceed established thresholds and that require further review, analysis, and action.S

Question 1252

Deck 3

check digit

Answer 1252

A digit added to each number in a coding system that allows for detection of errors in the recording of the code numbers. Through the use of the check digit and a predetermined mathematical formula, recording errors such as digit reversal or omission can be discovered.C

Question 1253

Deck 3

piece rate pay system

Answer 1253

A compensation system based upon volume of output of an individual worker.P

Question 1254

Deck 3

cost tradeoff

Answer 1254

Considering the advantages and disadvantages of one method to another, such as different avenues of distribution or providing customer service.C

Question 1255

Deck 3

job ticket

Answer 1255

Syn: time ticket.J

Question 1256

Deck 3

order cost

Answer 1256

A direct labor cost incurred when a purchaser places an order.O

Question 1257

Deck 3

shareholder wealth

Answer 1257

The present value of all anticipated payments to the shareholders of a firm.S

Question 1258

Deck 3

unfair labor practice

Answer 1258

Activities by management or labor that violate the National Labor Relations Act. Failure to bargain in good faith is an example.U

Question 1259

Deck 3

activity

Answer 1259

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 1260

Deck 3

process selection

Answer 1260

An economic analysis used to decide which process should be used when operations can be performed by more than one process.P

Question 1261

Deck 3

BPR

Answer 1261

Abbreviation for business process reengineering.B

Question 1262

Deck 3

environmental scanning

Answer 1262

Process used to expose an organization’s potential strengths, weaknesses, opportunities, and threats. Many experts emphasize opportunities and threats because the tool is primarily external.E

Question 1263

Deck 3

actual costs

Answer 1263

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

Question 1264

Deck 3

executing processes

Answer 1264

The processes performed to complete a project plan to accomplish the objectives set forth in the project scope.E

Question 1265

Deck 3

process improvement

Answer 1265

The activities designed to identify and eliminate causes of poor quality, process variation, and non-value-added activities.P P

Question 1266

Deck 3

simplification

Answer 1266

Improving quality and cutting costs by removing complexity from a product or service.S

Question 1267

Deck 3

trading bloc

Answer 1267

Syn: trade bloc.T

Question 1268

Deck 3

teardown time

Answer 1268

The time needed to remove a setup from a machine or facility. Teardown is an element of manufacturing lead time, but it is often allowed for in setup or run time rather than separately. See: teardown.T

Question 1269

Deck 3

end item

Answer 1269

A product sold as a completed item or repair part; any item subject to a customer order or sales forecast. Syn: end product, finished good, finished product. See: good.E

Question 1270

Deck 3

semivariable costs

Answer 1270

Costs that change in increments. They remain fixed over a given range, and outside that range, the cost changes to a new level.S

Question 1271

Deck 3

green marketing

Answer 1271

In advertising, promoting products because of their environmental sensitivity.G

Question 1272

Deck 3

jidoka

Answer 1272

The Japanese term for the practice of stopping the production line when a defect occurs.J

Question 1273

Deck 3

material lot

Answer 1273

A uniquely identifiable amount of a material. This describes the actual quantity or amount of material available, its current state, and its specific property values.M

Question 1274

Deck 3

expected receipt date

Answer 1274

Syn: due date.E

Question 1275

Deck 3

operations strategy

Answer 1275

The total pattern of decisions that shape the long-term capabilities of an operation and O their contribution to overall strategy. Operations strategy should be consistent with overall strategy. See: strategic plan.O

Question 1276

Deck 3

theory of constraints (TOC)

Answer 1276

A holistic management philosophy developed by Dr. Eliyahu M. Goldratt that is based on the principle that complex systems exhibit inherent simplicity. Even a very complex system comprising thousands of people and pieces of equipment can have, at any given time, only a very, very small number

Question 1277

Deck 3

multiple regression models

Answer 1277

A form of regression analysis where the model involves more than one independent variable, such as developing a forecast of dishwasher sales based upon housing starts, gross national product, and disposable income.M

Question 1278

Deck 3

quantitative forecasting techniques

Answer 1278

An approach to forecasting where historical demand data are used to project future demand. Extrinsic and intrinsic techniques are typically used. See: extrinsic forecasting method, intrinsic forecasting method.Q

Question 1279

Deck 3

throughput accounting

Answer 1279

A management accounting method that is based on the belief that because every system has a constraint that limits global performance, the most effective way to evaluate the impact that any proposed action will have on the system as a whole is to look at the expected changes in the global measures of throughput, inventory, and operating expense.T

Question 1280

Deck 3

unneeded movements, (4) processing

Answer 1280

poor

Question 1281

Deck 3

incoming business

Answer 1281

The number of orders, the dollar value of orders, or the quantity of units that have been received on orders from customers. This volume is particularly important to the forecaster, who must compare incoming business against the forecast rather than against actual shipments when actual shipments do not reflect true customer demand. This situation may exist because of back-ordered items, bottlenecks in the shipping room, and so forth.I

Question 1282

Deck 3

repair parts

Answer 1282

Syn: service parts.R

Question 1283

Deck 3

panel consensus

Answer 1283

A judgmental forecasting technique by which a committee, sales force, or group of experts arrives at a sales estimate. See: Delphi method, management estimation.P

Question 1284

Deck 3

Deming’s 14 Points

Answer 1284

Syn: 14 Points.D

Question 1285

Deck 3

demerit chart

Answer 1285

Syn: D chart.D

Question 1286

Deck 3

quality engineering

Answer 1286

The engineering discipline concerned with improving the quality of products and processes.Q

Question 1287

Deck 3

trend

Answer 1287

General upward or downward movement of a variable over time (e.g., demand, process attribute).T

Question 1288

Deck 3

jurisdiction

Answer 1288

The authority of a governmental agency to undertake its activities.J

Question 1289

Deck 3

channels of distribution

Answer 1289

Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. See: distribution channel.C

Question 1290

Deck 3

price erosion

Answer 1290

Increased competition and efficiencies in production over time cause the price to gradually reduce.P

Question 1291

Deck 3

finished goods inventory

Answer 1291

Those items on which all manufacturing operations, including final test, have been completed. These products are available for shipment to the customer as either end items or repair parts. Syn: finished products inventory. See: goods.F

Question 1292

Deck 3

standardized product

Answer 1292

A product that can be made in large quantities, or continuously, because of very few product designs.S

Question 1293

Deck 3

cranes and hoists

Answer 1293

Equipment capable of moving items up and down or side to side.C

Question 1294

Deck 3

need date

Answer 1294

The date when an item is required for its intended use. In an MRP system, this date is calculated by a bill-of-material explosion of a schedule and the netting of available inventory against that requirement.N

Question 1295

Deck 3

offshore

Answer 1295

Outsourcing a business function to another company in a different country than the original company’s country.O

Question 1296

Deck 3

flow line

Answer 1296

Syn: flow shop.F

Question 1297

Deck 3

manifest system

Answer 1297

A production control system where the exact sequence of items to be assembled is required.M

Question 1298

Deck 3

Juran trilogy

Answer 1298

Syn: quality trilogy.J

Question 1299

Deck 3

user interface

Answer 1299

The portion of a computer system through which the end user interacts with the system. It may include the keyboard, mouse, touch-screen, and other devices.U

Question 1300

Deck 3

projected on hand

Answer 1300

Projected available balance, excluding planned orders.P

Question 1301

Deck 3

workers’ compensation

Answer 1301

The replacement of an employee’s loss of earnings capacity caused by an occupational injury or disease. Formerly known as workmen’s compensation.W

Question 1302

Deck 3

SKU

Answer 1302

Abbreviation for stockkeeping unit. Pronounced as skew.S

Question 1303

Deck 3

rescheduling notice

Answer 1303

A message from planning system software to change the planned start and/or finish date of an order. This often is the result of a change in plans of a parent item. See: nervousness.R

Question 1304

Deck 3

inventory cushion

Answer 1304

Syn: inventory buffer.I

Question 1305

Deck 3

speculative buying

Answer 1305

Purchasing an item not immediately needed in anticipation of future price increase. See: buying down, hedge, hedging.S

Question 1306

Deck 3

crew-size standard

Answer 1306

A labor estimate of the number of workers necessary to complete the required output for a given shift.C

Question 1307

Deck 3

lead logistics providers (LLPs)

Answer 1307

Organizations that oversee the third-party logistics operations of their clients.L

Question 1308

Deck 3

total fixed costs

Answer 1308

Costs that remain constant in total regardless of changes in activity.T

Question 1309

Deck 3

customer facing

Answer 1309

A hardware or software product, technology, or any thing or person that a business’s customer deals with directly.C

Question 1310

Deck 3

repairables

Answer 1310

Items that are technically feasible to repair economically.R

Question 1311

Deck 3

expected value

Answer 1311

The average value that would be observed in taking an action an infinite number of times. The expected value of an action is calculated by multiplying the outcome of the action by the probability of achieving the outcome.E

Question 1312

Deck 3

master schedule

Answer 1312

The master schedule is a format that includes time periods (dates), the forecast, customer orders, projected available balance, available-topromise, and the master production schedule. The master schedule takes into account the forecast; the production plan; and other important considerations such as backlog, availability of material, availability of capacity, and management policies and goals. See: master production schedule.M

Question 1313

Deck 3

material planning

Answer 1313

Syn: inventory planning.M

Question 1314

Deck 3

supplier certification

Answer 1314

Certification procedures verifying that a supplier operates, maintains, improves, and documents effective procedures that relate to the customer’s requirements. Such requirements can include cost, quality, delivery, flexibility, maintenance, safety, and ISO quality and environmental standards.S

Question 1315

Deck 3

cyclical component

Answer 1315

A component of demand, usually describing the impact of the business cycle on demand. See: decomposition, time series analysis.C

Question 1316

Deck 3

procurement

Answer 1316

The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.P

Question 1317

Deck 3

first in, first out (FIFO)

Answer 1317

A method of inventory valuation for accounting purposes. The accounting assumption is that the oldest inventory (first in) is the first to be used (first out), but there is no necessary relationship with the actual physical movement of specific items. See: first-come-first-served rule, average cost system.F

Question 1318

Deck 3

valuation

Answer 1318

The technique of determining worth, typically of inventory. Valuation of inventories may be expressed in standard dollars, replacement dollars, current average dollars, or last-purchase-price dollars.V

Question 1319

Deck 3

internal failure costs

Answer 1319

The cost of things that go wrong before the product reaches the customer. Internal failure costs usually include rework, scrap, downgrades, reinspection, retest, and process losses.I

Question 1320

Deck 3

jishuken

Answer 1320

A Japanese word meaning voluntary study groups.J

Question 1321

Deck 3

account manager

Answer 1321

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

Question 1322

Deck 3

changeover

Answer 1322

Syn: setup.C

Question 1323

Deck 3

ramp rate

Answer 1323

The speed at which a company expands or grows. Syn: growth trajectory.R

Question 1324

Deck 3

ROA

Answer 1324

Abbreviation for return on assets.R

Question 1325

Deck 3

production system

Answer 1325

A system that accepts inputs and converts them to the desired outputs.P

Question 1326

Deck 3

dock-to-stock inventory

Answer 1326

A supplier-customer relationship where specified quality and packaging requirements are met before the product is released. The product is then received directly into the customer’s indock- D ventories. See: point-of-use inventory, stockless purchasing.D

Question 1327

Deck 3

field service

Answer 1327

The functions of installing and maintaining a product for a customer after the sale or during the lease. Field service may also include training and implementation assistance. Syn: after-sale service.F

Question 1328

Deck 3

coefficient of variation

Answer 1328

In statistics, the ratio of the standard deviation to the mean for a particular process.C

Question 1329

Deck 3

line loading

Answer 1329

The loading of a production line by multiplying the total pieces by the rate per piece for each item to come up with a finished schedule for the line.L

Question 1330

Deck 3

private warehouse

Answer 1330

A company-owned warehouse.P

Question 1331

Deck 3

ANOVA

Answer 1331

Acronym for analysis of variance.A

Question 1332

Deck 3

manufacturing calendar

Answer 1332

A calendar used in inventory and production planning functions that consecutively numbers only the working days so that the component and work order scheduling may be done based on the actual number of workdays available. Syn: M-day calendar, planning calendar, production calendar, shop calendar. See: resource calendar.M

Question 1333

Deck 3

firm fixed-price contract

Answer 1333

A contract in which the seller is paid a set price without regard to costs. Syn: fixedprice contract.F

Question 1334

Deck 3

R chart

Answer 1334

A control chart in which the subgroup range, R, is used to evaluate the stability of the variability within a process. Syn: range chart.R

Question 1335

Deck 3

one less at a time

Answer 1335

A process of gradually reducing the lot size of the number of items in the manufacturing pipeline to expose, prioritize, and eliminate waste.O

Question 1336

Deck 3

tiered workforce

Answer 1336

A strategy used to vary workforce levels, where additional full-time or part-time employees are hired during peak demand periods, while a smaller, permanent staff is maintained year-round. This technique is used heavily in perishable seasonal goods industries (e.g. chocolate production, nursery plants, etc.).T

Question 1337

Deck 3

charge ticket

Answer 1337

A document used for receiving goods and charging those goods to an operating cost center.C

Question 1338

Deck 3

controllable cost

Answer 1338

A cost that is under the direct control of a given level of management.C

Question 1339

Deck 3

information system architecture

Answer 1339

A model of how the organization operates regarding information. The model considers four factors: (1) organizational functions, (2) communication of coordination requirements, (3) data modeling needs, and (4) management and control structures. The architecture of the information system should be aligned with and match the architecture of the organization.I

Question 1340

Deck 3

master schedule item

Answer 1340

A part number selected to be planned by the master scheduler. The item is deemed critical in its impact on lower level components or resources such as skilled labor, key machines, or dollars. Therefore, the master scheduler, not the computer, maintains the plan for these items. A master schedule item may be an end item, a component, a pseudo number, or a planning bill of material.M

Question 1341

Deck 3

maximum inventory

Answer 1341

The planned maximum allowable inventory for an item based on its planned lot size and target safety stock.M

Question 1342

Deck 3

inventory reserve

Answer 1342

An accounting deduction from earnings to fairly and reasonably represent the value of inventoried assets on a balance sheet. The inventory reserve is used to make up for the fact that all inventory will not be sold at the cost to the firm.I

Question 1343

Deck 3

business clusters

Answer 1343

When businesses locate in close proximity for competition purposes.B

Question 1344

Deck 3

responsible procurement

Answer 1344

Assuring the use of ethical sources of goods and services to bring about a positive impact and minimize the negative impact on societies and environments, including reduce, reuse, and recycle of materials, where a firm does business. It includes processes for identifying, assessing, and managing the environmental, social, and ethical risk in the supply chain. Syn: environmentally responsible purchasing.R

Question 1345

Deck 3

consolidator

Answer 1345

A company that groups together various shipments or orders to facilitate movement.C

Question 1346

Deck 3

priority report

Answer 1346

Syn: dispatch list. private brand applied by a distributor rather than a manufacturer.P Syn: dispatch list.P

Question 1347

Deck 3

floor stocks

Answer 1347

Stocks of inexpensive production parts held in the factory, from which production workers can draw without requisitions. Syn: bench stocks, expensed stocks.F

Question 1348

Deck 3

supplier lead time

Answer 1348

The amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped. Syn: vendor lead time. See: purchasing lead time.S

Question 1349

Deck 3

EDD

Answer 1349

Abbreviation for earliest due date.E

Question 1350

Deck 3

operation priority

Answer 1350

1) The relative importance an operation is given based on its scheduled due date and/or start date, usually as determined by the backscheduling process. 2) The relative importance a job is given in a queue of jobs by a priority dispatching heuristic such as shortest processing time first or least slack remaining first.O

Question 1351

Deck 3

capacity requirements planning (CRP)

Answer 1351

The function of establishing, measuring, and adjusting limits or levels of capacity. The term capacity requirements planning in this context refers to the process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production. Open shop orders and planned orders in the MRP system are input to CRP, which through the use of parts routings and time standards translates these orders into hours of work by work center by time period. Even though rough-cut capacity planning may indicate that sufficient capacity exists to execute the MPS, CRP may show that capacity is insufficient during specific time periods. See: capacity planning.C

Question 1352

Deck 3

mass customization

Answer 1352

The creation of a high-volume product with large variety so that a customer may specify an exact model out of a large volume of possible end items while manufacturing cost is low due to large volume. An example is a personal computer order in which the customer may specify processor speed, memory size, hard disk size and speed, removable storage device characteristics, and many other options when PCs are assembled on one line and at low cost.M

Question 1353

Deck 3

contract pegging

Answer 1353

Syn: full pegging.C

Question 1354

Deck 3

dynamic congruence

Answer 1354

In simulation, the situation where a physical system and a simulation model mimic one another closely.D

Question 1355

Deck 3

direct labor

Answer 1355

Labor that is specifically applied to the good being manufactured or used in the performance of the service. Syn: touch labor.D

Question 1356

Deck 3

decisions under uncertainty

Answer 1356

Decisions for which the analyst elects to consider several possible futures, the probabilities of which cannot be estimated.D

Question 1357

Deck 3

unplanned order

Answer 1357

After a forecast has been developed, an unplanned order is any order outside of this forecast.U

Question 1358

Deck 3

product mix

Answer 1358

The proportion of individual products that make up the total production or sales volume. Changes in the product mix can mean drastic changes in the manufacturing requirements for certain types of labor and material.P P

Question 1359

Deck 3

scientific inventory control

Answer 1359

Syn: statistical inventory control.S

Question 1360

Deck 3

move order

Answer 1360

The authorization to move a particular item from one location to another.M

Question 1361

Deck 3

pallet

Answer 1361

A platform designed to be loaded with packages and moved by a forklift. Standard pallet size is 48 inches by 40 inches by 4 inches.P

Question 1362

Deck 3

sampling plan

Answer 1362

Within acceptance sampling, the determination of the sample size and the number of defectives that will trigger rejection of a lot.S

Question 1363

Deck 3

channel

Answer 1363

1) In queuing theory, a line for waiting. 2) In distribution, a route from raw materials through consumption. See: distribution channel, marketing channel.C

Question 1364

Deck 3

logistics strategy

Answer 1364

A plan for the logistics elements of a

Question 1365

Deck 3

correlated demands

Answer 1365

Demands that consistently vary in the same direction because of the relationship between the items demanded.C

Question 1366

Deck 3

order selection

Answer 1366

Syn: order picking.O

Question 1367

Deck 3

liquidity

Answer 1367

The ability of a firm to pay debts as they come due.L

Question 1368

Deck 3

bid evaluation

Answer 1368

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

Question 1369

Deck 3

fixed-price-incentive-fee contract

Answer 1369

A contract in which the seller is paid a set price and can earn an additional profit if certain stipulations are met.F

Question 1370

Deck 3

project team

Answer 1370

An inclusive term incorporating the workers assigned to the project, the project managers, and sometimes the project sponsor.P

Question 1371

Deck 3

electronic market

Answer 1371

An internet-based market where most sales occur electronically.E

Question 1372

Deck 3

direct marketing

Answer 1372

Communicating directly with consumers in an effort to elicit a response or a transaction.D

Question 1373

Deck 3

total preventive maintenance

Answer 1373

Syn: total productive maintenance.T

Question 1374

Deck 3

business judgment rule

Answer 1374

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

Question 1375

Deck 3

SWOT analysis

Answer 1375

An analysis of the strengths, weaknesses, opportunities, and threats of and to an organization. SWOT analysis is useful in developing strategy.S

Question 1376

Deck 3

quality loss function

Answer 1376

A parabolic approximation of the quality loss that occurs when a quality characteristic deviates from its target value. The quality loss function is expressed in monetary units: The cost of deviating from the target increases quadratically as the quality characteristic moves farther from the target. The formula used to compute the quality loss function depends on the type of quality characteristic being used. The quality loss function was first introduced in this form by Genichi Taguchi.Q

Question 1377

Deck 3

process requirement criteria

Answer 1377

consistency between process type (job shop, repetitive, continuous, etc.) and the production planning and control system, (3) organization

Question 1378

Deck 3

cwt

Answer 1378

Abbreviation for hundredweight.C

Question 1379

Deck 3

seiri

Answer 1379

A term that refers to organizing or throwing away things that are not needed. See: five Ss.S S

Question 1380

Deck 3

lead management tool

Answer 1380

A tool used by sales personnel that helps them follow a specified sales process to close deals.L

Question 1381

Deck 3

forward pass

Answer 1381

In the critical path method of project management, working from the first node to the last node calculating early start times and early finish times as well as the project’s duration. See: forward scheduling, backward pass, critical path method.F

Question 1382

Deck 3

description by specification

Answer 1382

A method to identify a product or service required by communicating its characteristics in detail.D

Question 1383

Deck 3

Deming Prize

Answer 1383

An award given annually to organizations that, according to the award guidelines, have successfully applied companywide quality control based on statistical quality control and will keep up with it in the future. Although the award is named in honor of W. Edwards Deming, its criteria are not specifically related to Deming’s teachings. There are three separate divisions for the award: the Deming Application Prize, the Deming Prize for Individuals, and the Deming Prize for Overseas Companies. The award process is overseen by the Deming Prize Committee of the Union of Japanese Scientists and Engineers in Tokyo.D

Question 1384

Deck 3

standard containers

Answer 1384

Predetermined, specifically sized containers used for storing and moving components. These containers protect the components from damage and simplify the task of counting components.S

Question 1385

Deck 3

integrated logistics

Answer 1385

Syn: service response logistics.I

Question 1386

Deck 3

import/export license

Answer 1386

Official authorization issued by a government allowing the shipping or delivery of a product across national boundaries.I

Question 1387

Deck 3

customer driven

Answer 1387

A company’s consideration of customer wants and desires in deciding what is produced and its quality.C

Question 1388

Deck 3

sensei

Answer 1388

A Japanese word meaning teacher or one with experience.S

Question 1389

Deck 3

input/output control (I/O)

Answer 1389

A technique for capacity control where planned and actual inputs and planned and actual outputs of a work center are monitored. Planned inputs and outputs for each work center are developed by capacity requirements planning and approved by manufacturing management. Actual input is compared to planned input to identify when work center output might vary from the plan because work is not available at the work center. Actual output is also compared to planned output to identify problems within the work center. Syn: input/output analysis. See: capacity control.I

Question 1390

Deck 3

performance standard

Answer 1390

In a performance measurement system, the accepted, targeted, or expected value for the criterion. See: performance criterion, performance measure, performance measurement system.P

Question 1391

Deck 3

forecast interval

Answer 1391

The time unit for which forecasts are prepared, such as week, month, or quarter. Syn: forecast period.F

Question 1392

Deck 3

avoidable cost

Answer 1392

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

Question 1393

Deck 3

transportation requirements planning (TRP)

Answer 1393

Using existing MRP, DRP, or ERP databases to plan transportation requirements based on actual demand.T

Question 1394

Deck 3

agent

Answer 1394

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

Question 1395

Deck 3

change request

Answer 1395

An application to change scopes of work, budgets, and/or schedules.C

Question 1396

Deck 3

project life cycle

Answer 1396

In project management, a set of project phases (objectives definition, requirements deproject P finition, external and internal design, construction, system test, and implementation and maintenance), whose definition is determined by the needs of those controlling the project.P

Question 1397

Deck 3

failure mode effects and criticality analysis (FMECA)

Answer 1397

A procedure that is performed after a failure mode effects analysis to classify each potential failure effect according to its severity and probability of occurrence.F

Question 1398

Deck 3

virtual inventory systems

Answer 1398

A virtual system that enables supply chain partners to share data in a central database.V

Question 1399

Deck 3

queue management

Answer 1399

Tactics to deal with an excess number of items, such as products or customers, waiting in line for service.Q

Question 1400

Deck 3

activity-based cost accounting

Answer 1400

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

Question 1401

Deck 3

what you see is what you get (WYSIWYG)

Answer 1401

Computer speak that means what the file appears to the editor appears the exact same way to the end user.W

Question 1402

Deck 3

gateway operation

Answer 1402

Syn: gateway work center.G

Question 1403

Deck 3

nominal group technique

Answer 1403

A technique, similar to brainstorming, used by teams to generate ideas on a particular subject. Team members are asked to silently come up with as many ideas as possible, writing them down. Each member is then asked to share one idea, which is recorded. After all the ideas are recorded, they are discussed and prioritized by the group.N

Question 1404

Deck 3

machine flexibility

Answer 1404

In work-cell design, choosing between general-purpose machinery versus specialpurpose machinery, so that the lowest cost and most adaptability is achieved.M

Question 1405

Deck 3

qualitative forecasting techniques

Answer 1405

An approach to forecasting that is based on intuitive or judgmental evaluation. It is used generally when data are scarce, not available, or no longer relevant. Common types of qualitative techniques include: personal insight, sales force estimates, panel consensus, market research, visionary forecasting, and the Delphi method. Examples include developing long-range projections and new product introduction. Q

Question 1406

Deck 3

PE ratio

Answer 1406

Abbreviation for price to earnings ratio.P

Question 1407

Deck 3

organizational design

Answer 1407

The creation of an organizational structure to support the strategic business plans and goals of an enterprise; (e.g., for-profit and not-for-profit companies). Given the mission and business strategy, the organizational structure design provides the framework within which the business operational and management activities will be performed.O

Question 1408

Deck 3

interactive computer system

Answer 1408

A computer system that supports real-time interaction with a user. The response time to the user is similar to the actual timing of the business or physical process. See: interactive system.I

Question 1409

Deck 3

blending department

Answer 1409

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

Question 1410

Deck 3

process flow diagram

Answer 1410

A graphical and progressive representation of the various steps, events, and tasks that make up an operations process. This diagram provides the viewer with a picture of what actually occurs when a product is manufactured or a service is performed.P

Question 1411

Deck 3

U chart

Answer 1411

A control chart for evaluating the stability of a process in terms of the average count of events of a given classification per unit occurring in a sample. Syn: count-per-unit chart.U

Question 1412

Deck 3

extensible markup language (XML)

Answer 1412

This language facilitates direct communication among computers on the internet. Unlike the older hypertext markup language (HTML), which provides HTML tags giving instructions to a web browser about how to display information, XML tags give instructions to a web browser about the category of information.E

Question 1413

Deck 3

AOQ

Answer 1413

Abbreviation for average outgoing quality.A

Question 1414

Deck 3

hybrid EDI

Answer 1414

A situation in which only one trading partner is EDI-enabled, while the other continues to use paper and fax. Usually the EDI-enabled partner would have electronic documents converted to fax.H

Question 1415

Deck 3

quick-response manufacturing (QRM)

Answer 1415

A manufacturing technique based on time-based competition to drive continuous improvement. With its roots in the strategies adopted by the Japanese in the 1980s and developed further by the University of Wisconsin, quick-response manufacturing focuses on the relentless pursuit of lead time reduction. Using manufacturing resources planning for higher-level planning, it often uses a replenishment technique called paired-cell overlapping loops of cards, which combines the best of push and pull strategies. See: paired-cell overlapping loops of cards.Q

Question 1416

Deck 3

corrective action

Answer 1416

The implementation of solutions resulting in the reduction or elimination of an identified problem.C

Question 1417

Deck 3

scanner

Answer 1417

An electronic device that optically converts coded information into electrical control signals for data collection or system transaction input.S

Question 1418

Deck 3

value of transfers

Answer 1418

The amount transferred, in a fiscal year, from one stage of the manufacturing process to another. For example, it is the amount of raw materials that are transformed into work in process.V

Question 1419

Deck 3

balance delay

Answer 1419

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

Question 1420

Deck 3

activity code

Answer 1420

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

Question 1421

Deck 3

short-haul discrimination

Answer 1421

A pricing strategy in which more is charged for a shorter haul than for a longer haul, when the route and the delivery are the same. Used to push the long-haul process.S

Question 1422

Deck 3

two-bin inventory system

Answer 1422

A type of fixed-order system in which inventory is carried in two bins. A replenishment quantity is ordered when the first bin (working) is empty. During the replenishment lead time, material is used from the second bin. When the material is received, the second bin (which contains a quantity to cover demand during lead time plus some safety stock) is refilled and the excess is put into the working bin. At this time, stock is drawn from the first bin until it is again exhausted. This term is also used loosely to describe any fixed-order system even when physical “bins” do not exist. Syn: bin reserve system. See: visual review system.T

Question 1423

Deck 3

endogenous variable

Answer 1423

A variable whose value is determined by relationships included within the model.E

Question 1424

Deck 3

material receipt inspection

Answer 1424

The receiving department compares the incoming material to the purchase order to verify that the correct material and quantity have been received. The material is then inspected for quality and general condition. A material receipt report is prematerial M pared and copies are distributed to the appropriate departments such as purchasing and accounting.M

Question 1425

Deck 3

decentralized inventory control

Answer 1425

Inventory decision making exercised at each stocking location for SKUs at that location.D

Question 1426

Deck 3

exemplar

Answer 1426

A particularly strong practice that should be imitated.E

Question 1427

Deck 3

value-adding/non-value-adding

Answer 1427

The assessment of each of the company’s activities to determine if that activity adds value to the organization or its customers. If an activity is considered non-value-adding it should be eliminated to increase an organization’s efficiency.V

Question 1428

Deck 3

field service parts

Answer 1428

Service parts kept in distribution centers or warehouses.F

Question 1429

Deck 3

engineering change notice

Answer 1429

Syn: engineering change.E

Question 1430

Deck 3

working stock

Answer 1430

Stock located in a facility which is used to fulfill demand.W

Question 1431

Deck 3

process-focused production

Answer 1431

This type of factory operation requires frequent machine changeover and produces small batches of unique products that flow along different paths.P

Question 1432

Deck 3

ODD

Answer 1432

Abbreviation for earliest operation due date.O

Question 1433

Deck 3

business

Answer 1433

including warehousing, information systems,

Question 1434

Deck 3

n

Answer 1434

Sample size (the number of units in a sample).N

Question 1435

Deck 3

performance measurement units

Answer 1435

Time, error rates, accuracy rates, cost, and other measures of system performance.P

Question 1436

Deck 3

component availability

Answer 1436

The availability of component inventory for the manufacture of a specific parent order or group of orders or schedules.C

Question 1437

Deck 3

time card

Answer 1437

A document recording attendance time, often used for indicating the number of hours for which wages are to be paid. Syn: clock card.T

Question 1438

Deck 3

effective date

Answer 1438

The date on which a component or an operation is to be added or removed from a bill of material or an assembly process. The effective dates are used in the explosion process to create demands for the correct items. Normally, bills of material and routing systems provide for an effectivity start date and stop date, signifying the start or stop of a particular relationship. Effectivity control also may be by serial number rather than date. Syn: effectivity, effectivity date.E

Question 1439

Deck 3

global strategy

Answer 1439

A strategy that focuses on improving worldwide performance through the sales and marketing of common goods and services with minimum product variation by country. Its competitive advantage grows through selecting the best locations for operations in other countries. See: multinational strategy.G

Question 1440

Deck 3

translation software

Answer 1440

Software that converts business data into an electronic data interchange standard format and vice versa.T

Question 1441

Deck 3

quantity per

Answer 1441

The quantity of a component to be used in the production of its parent. This value is stored in the bill of material and is used to calculate the gross requirements for components during the explosion process of MRP.Q

Question 1442

Deck 3

waste

Answer 1442

1) Any activity that does not add value to the good or service in the eyes of the consumer. 2) A byproduct of a process or task with unique characteristics requiring special management control. Waste production can usually be planned and somewhat controlled. Scrap is typically not planned and may result from the same production run as waste. See: hazardous waste.W

Question 1443

Deck 3

specialization

Answer 1443

Producing a limited product line in order to focus on a product or a process. Specialization is often intended to improve productivity and reduce costs.S

Question 1444

Deck 3

decision tree

Answer 1444

A method of analysis that evaluates alternative decisions in a tree-like structure to estimate values and/or probabilities. Decision trees take into account the time value of future earnings by using a rollback concept. Calculations are started at the far right-hand side, then traced back through the branches to identify the appropriate decision.D

Question 1445

Deck 3

order placement

Answer 1445

The commitment of a customer to buy a product and the subsequent administrative and data processing steps followed by the supplier.O

Question 1446

Deck 3

shop order

Answer 1446

Syn: manufacturing order.S

Question 1447

Deck 3

chance variation

Answer 1447

Variation in process results occurring because of numerous small factors such as workers, equipment, raw material, work methods, and environmental differences.C

Question 1448

Deck 3

blank check purchase order

Answer 1448

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

Question 1449

Deck 3

process flow analysis

Answer 1449

A procedure to evaluate the effectiveness of a sequence of business activities. The analysis determines which elements of the flow are value-added and eliminates those that are not, determines which parts of the process can be automated, evaluates activities as to whether they contribute to the core competencies of the business or are candidates for outsourcing, and designs a structure for the activities of the process that remain to improve productivity.P

Question 1450

Deck 3

functional silo

Answer 1450

A view of an organization where each department is operated independently of the others. Each group is referred to as a silo. See: silo effect.F

Question 1451

Deck 3

customer relations management (CRM)

Answer 1451

Syn: customer relationship management.C

Question 1452

Deck 3

major setup

Answer 1452

The equipment setup and related activities required to manufacture a group of items in sequence, exclusive of the setup required for each item in the group.M

Question 1453

Deck 3

chart of accounts

Answer 1453

In accounting, a list of general ledger accounts used to track costs, revenues, assets, liabilities, and so on by category.C

Question 1454

Deck 3

third-order smoothing

Answer 1454

Syn: triple smoothing.T

Question 1455

Deck 3

management estimation

Answer 1455

A judgmental forecasting technique whereby responsible individuals predict the demand for new products or alter a quantitative forecast for existing products largely on the basis of experience and intuition. Other judgmental forecasting techniques may be used in combination with management estimation to improve the accuracy of the estimate. See: Delphi method, historical analogy, panel consensus, pyramid forecasting.M

Question 1456

Deck 3

employee empowerment

Answer 1456

The practice of giving nonmanagerial employees the responsibility and the power to make decisions regarding their jobs or tasks. It is associated with the practice of transfer of managerial responsibility to the employee. Empowerment allows the employee to take on responsibility for tasks normally associated with staff specialists. Examples include allowing the employee to make scheduling, quality, process design, or purchasing decisions.E

Question 1457

Deck 3

value-added network (VAN)

Answer 1457

A network, often supporting EDI, providing services additional to those provided by common carriers.V

Question 1458

Deck 3

cubic space

Answer 1458

In warehousing, a measurement of space available or required in transportation and warehousing.C

Question 1459

Deck 3

signed message

Answer 1459

In information systems, a message for which the sender can be authenticated.S

Question 1460

Deck 3

run order

Answer 1460

Syn: manufacturing order.R

Question 1461

Deck 3

MRP

Answer 1461

Abbreviation for material requirements planning.M

Question 1462

Deck 3

social responsibility

Answer 1462

Commitment by top management to behave ethically and to contribute to community development. This may also entail improving the workforce’s quality of life.S

Question 1463

Deck 3

sum of deviations

Answer 1463

Syn: cumulative sum.S

Question 1464

Deck 3

post-deduct inventory transaction processing

Answer 1464

Syn: backflush.P

Question 1465

Deck 3

estimate of error

Answer 1465

In statistics, a measure of dispersion. See: standard deviation, standard error, variance.E

Question 1466

Deck 3

PDF

Answer 1466

Abbreviation for portable document format.P

Question 1467

Deck 3

TQM

Answer 1467

Abbreviation for total quality management.T

Question 1468

Deck 3

change control

Answer 1468

The process of determining, approving, or rejecting changes to a plan baseline.C

Question 1469

Deck 3

ISO 9000:2000

Answer 1469

A certification process requiring a third-party audit that defines in broad terms what must be done to manage company quality and to document these quality processes. It recently was updated by ISO 9000:2008.I

Question 1470

Deck 3

common parts bill of material

Answer 1470

A type of planning bill that groups common components for a product or family of products into one bill of material, structured to a pseudoparent item number. Syn: common parts bill.C

Question 1471

Deck 3

single sourcing

Answer 1471

A method whereby a purchased part is supplied by only one supplier. Traditional manufacturers usually have at least two suppliers for each component part they purchase to ensure continuity of supply and (more so) to foster price competition between the suppliers. A JIT manufacturer will frequently have only one supplier for a purchased part so that close relationships can be established with a smaller number of suppliers. These close relationships (and mutual interdependence) foster high quality, reliability, short lead times, and cooperative action. Ant: multisourcing. See: sole source.S

Question 1472

Deck 3

time ticket

Answer 1472

An operator-entered labor claim. Syn: job ticket.T

Question 1473

Deck 3

application package

Answer 1473

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

Question 1474

Deck 3

an employee is assigned to and is proficient in

Answer 1474

for example, assembler, machinist, or welder.C

Question 1475

Deck 3

labor claim

Answer 1475

A factory worker’s report that lists the jobs an employee worked on (number of pieces, number of hours, etc.) and often the amount of money to which the employee is entitled. A labor claim is usually made on a labor chit or time ticket. Syn: labor ticket, labor voucher.L

Question 1476

Deck 3

price analysis

Answer 1476

The examination of a seller’s price proposal or bid by comparison with price benchmarks, without examination and evaluation of all of the separate elements of the cost and profit making up the price in the bid.P

Question 1477

Deck 3

economic life

Answer 1477

The time until a product is scrapped because it is unusable but because repairs are becoming too expensive to justify further use.E

Question 1478

Deck 3

fair-share quantity logic

Answer 1478

The process of equitably allocating available stock among field distribution centers. Fair-share quantity logic is normally used when stock available from a central inventory location is less than the cumulative requirements of the field stocking locations. The use of fair-share quantity logic involves procedures that “push” stock out to the field, instead of allowing the field to “pull” in what is needed. The objective is to maximize customer service from the limited available inventory. See: equal runout quantities.F

Question 1479

Deck 3

seiton

Answer 1479

A term that refers to neatness in the workplace that is achieved by straightening offices and work areas. See: five Ss.S

Question 1480

Deck 3

input rate capacity

Answer 1480

Measurement that takes rates of different inputs and transforms them into a common unit to measure the input. See: capacity utilization.I

Question 1481

Deck 3

total cost of quality curve

Answer 1481

A curve that suggests there is some optimal quality level, Q*. The curve is calculated by adding costs of internal and external failures, prevention costs, and appraisal costs. The optimal quality level occurs where this curve reaches a minimum point. It is a single turning point curve that always has a minimum.T

Question 1482

Deck 3

adaptive smoothing

Answer 1482

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

Question 1483

Deck 3

value chain analysis

Answer 1483

An examination of all links a company uses to produce and deliver its products and services starting from the origination point and continuing through delivery to the final customer.V

Question 1484

Deck 3

Shingo’s seven wastes

Answer 1484

Shigeo Shingo, a pioneer in the Japanese just-in-time philosophy, identified seven barriers to improving manufacturing. They are the waste of overproduction, waste of waiting, waste of transportation, waste of stocks, waste of motion, waste of making defects, and waste of the processing itself.S

Question 1485

Deck 3

resource limited schedule

Answer 1485

Project schedule with no early or late start or finish dates. The activity, and scheduled start and finish dates, show the expected availability of resources. Syn: resource-constrained schedule.R

Question 1486

Deck 3

sigma

Answer 1486

A Greek letter (Σ) commonly used to designate the standard deviation of a population.S

Question 1487

Deck 3

GUI

Answer 1487

Abbreviation for graphical user interface.G H

Question 1488

Deck 3

hardware

Answer 1488

1) In manufacturing, relatively standard items such as nuts, bolts, washers, or clips. 2) In data processing, the computer and its peripherals.H

Question 1489

Deck 3

available-to-promise (ATP)

Answer 1489

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

Question 1490

Deck 3

terminals

Answer 1490

In transportation, locations where carriers load and unload goods to and from vehicles. Also used to make connections between local pickup and delivery service and line-haul service. Functions performed in terminals include weighing connections with other routes and carriers, vehicle routing, dispatching, maintenance, paperwork, and administration. Terminals may be owned and operated by the carrier or the public.T

Question 1491

Deck 3

price-break model

Answer 1491

Syn: quantity discount model.P

Question 1492

Deck 3

buffer stock

Answer 1492

Syn: safety stock.B

Question 1493

Deck 3

demand forecast updating

Answer 1493

Recomputing a forecast after deleting the oldest data and adding data that occurred since the last forecast revision.D

Question 1494

Deck 3

lot

Answer 1494

A quantity produced together and sharing the same production costs and specifications. See: batch.L

Question 1495

Deck 3

pipeline stock

Answer 1495

Inventory in the transportation network and the distribution system, including the flow through intermediate stocking points. The flow time through the pipeline has a major effect on the amount of inventory required in the pipeline. Time factors involve order transmission, order processing, scheduling, shipping, transportation, receiving, stocking, review time, and so forth. Syn: pipeline inventory. See: distribution system, transportation inventory.P

Question 1496

Deck 3

real property

Answer 1496

Land and associated rights improvements, utility systems, buildings, and other structures.R

Question 1497

Deck 3

intrastate commerce

Answer 1497

Moving people or materials between points within a single state.I

Question 1498

Deck 4

Term

Answer 1498

Definition

Question 1499

Deck 4

cost control

Answer 1499

Applying procedures that monitor the progress of operations against authorized budgets, and taking action to achieve minimal costs.C

Question 1500

Deck 4

impulse response

Answer 1500

How quickly an estimate or forecast changes when the underlying data of the estimate have changed.I

Question 1501

Deck 4

teardown bill of material

Answer 1501

Syn: disassembly bill of material.T

Question 1502

Deck 4

AGVS

Answer 1502

Abbreviation for automated guided vehicle system.A

Question 1503

Deck 4

mapping

Answer 1503

Drawing the organization’s processes or relationships that form a business process.M M

Question 1504

Deck 4

production schedule

Answer 1504

A plan that authorizes the factory to manufacture a certain quantity of a specific item. It is usually initiated by the production planning department.P

Question 1505

Deck 4

third-party logistics company

Answer 1505

A company that manages all or part of another company’s product delivery operations.T

Question 1506

Deck 4

allowable cost

Answer 1506

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

Question 1507

Deck 4

mathematical programming

Answer 1507

The general problem of optimizing a function of several variables subject to a number of constraints. If the function and constraints are linear in the variables and a subset of the constraints restricts the variables to be nonnegative, a linear programming problem exists.M

Question 1508

Deck 4

flow process chart

Answer 1508

A graphic, symbolic representation of the work performed, or to be performed, on a product as it passes through some or all of the stages of a process. Typically, the information included in the chart is quantity, distance moved, type of work done (by symbol with explanation), and equipment used. Work times may also be included. The flow process chart symbols (ASME Standard Symbols) generally used are as follows: O operation: A subdivision of a process that changes or modifies a part, material, or product and is done essentially at one workplace location → transportation (move): Change in location of a person, part, material, or product from one workplace to another ■ inspection: Comparison of observed quality or quantity of a product with a quality or quantity standard ▼ storage: Keeping a product, material, or part protected against unauthorized removal D delay: An event that occurs when an object or person waits for the next planned action O combined activity: Adjustment during testing (e.g., combination of the separate operation and inspection symbols) Syn: process flowchart, process flow diagram. See: flowchart, process flow.F

Question 1509

Deck 4

master budget

Answer 1509

The document that consolidates all other budgets of an organization into an overall plan, including the projection of a cash flow statement and an operating statement for the budget period as well as a balance sheet for the end of the budget period. Syn: static budget.M

Question 1510

Deck 4

shipping point

Answer 1510

The location from which material is sent. Ant: receiving point.S

Question 1511

Deck 4

outbound stockpoint

Answer 1511

The designated locations near the point of use on a plant floor to which material produced is taken until it is pulled to the next operation.O

Question 1512

Deck 4

discussion list

Answer 1512

A group of people who have all signed up on a listserver to participate via email in the discussion of a given topic.D

Question 1513

Deck 4

batch processing

Answer 1513

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

Question 1514

Deck 4

pull signal

Answer 1514

Any signal that indicates when to produce or transport items in a pull replenishment system. For example, in just-in-time production control systems, a kanban card is used as the pull signal to replenish parts to the using operation. See: pull system.P

Question 1515

Deck 4

center-of-gravity models

Answer 1515

Syn: gravity models.C

Question 1516

Deck 4

functional benchmarking

Answer 1516

Benchmarking a single function within an organization rather than the entire organization. See: benchmarking.F

Question 1517

Deck 4

SIPOC

Answer 1517

An acronym for supplier, input, process, output, customer (pronounced “sye-pahk”).S

Question 1518

Deck 4

bill of material (BOM)

Answer 1518

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

Question 1519

Deck 4

SBT

Answer 1519

Abbreviation for scan-based trading.S

Question 1520

Deck 4

AOA

Answer 1520

Abbreviation for activity-on-arrow network.A

Question 1521

Deck 4

tool order

Answer 1521

A document authorizing issue of specific tools from the tool crib or other storage. Syn: tool issue order.T

Question 1522

Deck 4

program manager

Answer 1522

A person assigned program management responsibilities for the implementation activities associated with a new or ongoing product or service offering to customers. See: program management.P

Question 1523

Deck 4

grades

Answer 1523

The sublabeling of items to identify their particular makeup and to separate one lot from other production lots of the same item.G

Question 1524

Deck 4

sale-and-leaseback

Answer 1524

An agreement by which a firm first sells its assets to a financial institution and then leases these same assets from the financial institution.S

Question 1525

Deck 4

less-than-truckload (LTL)

Answer 1525

Either a small shipment that does not fill the truck or a shipment of not enough weight to qualify for a truckload quantity (usually set at about 10,000 lbs.) rate discount, offered to a general commodity trucker.L

Question 1526

Deck 4

floating order point

Answer 1526

An order point that is responsive to changes in demand or to changes in lead time.F

Question 1527

Deck 4

suboptimization

Answer 1527

A solution to a problem that is best from a narrow point of view but not from a higher or overall company point of view. For example, a department manager who would not have employees work overtime to minimize the department’s operating expense may cause lost sales and a reduction in overall company profitability.S

Question 1528

Deck 4

start date

Answer 1528

In project management, the time an activity begins; this may be defined as an actual start date or a planned start date.S

Question 1529

Deck 4

offline

Answer 1529

Computer work completed either when disconnected from the internet or from an intranet. This term describes anytime when someone cannot be contacted via their computer.O

Question 1530

Deck 4

going concern value

Answer 1530

The value of the firm as a whole, rather than the sum of the values of the separate parts.G

Question 1531

Deck 4

point-of-sale information

Answer 1531

Information about customers collected at the time of sale.P

Question 1532

Deck 4

Mercosur

Answer 1532

Southern Common Market.M

Question 1533

Deck 4

customer service life cycle

Answer 1533

In information systems, a model that describes the relationship with a customer as having four phases: requirements, acquisition, ownership, and retirement.C

Question 1534

Deck 4

design cycle

Answer 1534

The interval of time between the start of the design process of one model and the completion of the design process for the model.D

Question 1535

Deck 4

cost driver analysis

Answer 1535

In activity-based cost accounting, the examination of the impact of cost drivers. The results of this analysis are useful in the continuous improvement of cost, quality, and delivery times.C

Question 1536

Deck 4

pull system

Answer 1536

1) In production, the production of items only as demanded for use or to replace those taken for use. See: pull signal. 2) In material control, the withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user. 3) In distribution, a system for replenishing field warehouse inventories where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant.P

Question 1537

Deck 4

retailer

Answer 1537

A business that takes title to products and resells them to final consumers.R

Question 1538

Deck 4

crew size

Answer 1538

The number of people required to perform an operation. The associated standard time should represent the total time for all crew members to perform the operation, not the net start to finish time for the crew.C C

Question 1539

Deck 4

tracking capacity strategy

Answer 1539

Adding capacity in small amounts to attempt to respond to changing demand in real time in the marketplace. This approach may satisfy total demand and help minimize unit costs, but it can be difficult in some situations to add incremental amounts of capacity, especially if the facility has no more space available.T

Question 1540

Deck 4

distribution warehouse

Answer 1540

A facility where goods are received in large-volume uniform lots, stored briefly, and then broken down into smaller orders of different items required by the customer. Emphasis is on expeditious movement and handling.D

Question 1541

Deck 4

scope

Answer 1541

In project management, the totality of products to be created by a project.S

Question 1542

Deck 4

manufacturing

Answer 1542

A series of interrelated activities and operations involving the design, material selection, planning, production, quality assurance, management, and marketing of discrete consumer and durable goods.M

Question 1543

Deck 4

performance rating

Answer 1543

Observation of worker performance to rate the productivity of the workers as a percentage in terms of the standard or normal worker performance.P

Question 1544

Deck 4

profitability analysis

Answer 1544

In activity-based cost accounting, the examination of profit received from cost objects to attempt to optimize profitability. A variety of views may be examined including customer, distribution channel, product, and regions.P

Question 1545

Deck 4

required capacity

Answer 1545

Syn: capacity required.R

Question 1546

Deck 4

cross-shipment

Answer 1546

Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.C

Question 1547

Deck 4

concentration

Answer 1547

The percentage of an active ingredient within the whole. For example, a 40 percent solution of hydrochloric acid.C

Question 1548

Deck 4

capacity utilization

Answer 1548

Goods produced, or customers served, divided by total output capacity.C

Question 1549

Deck 4

skills inventories

Answer 1549

An organized file of information on each employee’s skills, abilities, knowledge, and experience, usually maintained by a personnel office. See: labor grade.S

Question 1550

Deck 4

process layout

Answer 1550

Syn: functional layout.P

Question 1551

Deck 4

composite part

Answer 1551

A part that represents operations common to a family or group of parts controlled by group technology. Tools, jigs, and dies are used for the composite part; therefore, any parts of that family can be processed with the same operations and tooling. The goal here is to reduce setup costs.C

Question 1552

Deck 4

leverage-capital structure ratio

Answer 1552

An indicator of whether or not a company has the ability to retire its long-term debts.L

Question 1553

Deck 4

growth trajectory

Answer 1553

Syn: ramp rate.G

Question 1554

Deck 4

floor-ready merchandise

Answer 1554

Products shipped by a supplier having all needed tags, prices, security devices, and so on already in place.F F

Question 1555

Deck 4

bonded warehouse

Answer 1555

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 1556

Deck 4

variance

Answer 1556

1) The difference between the expected (budgeted or planned) value and the actual. 2) In statistics, a measurement of dispersion of data. See: estimate of error.V

Question 1557

Deck 4

transportation brokers

Answer 1557

Firms that find shipments for carriers for a fee.T

Question 1558

Deck 4

legacy systems

Answer 1558

A computer application program that is old and interfaces poorly with other applications but is too expensive to replace. It often runs on antiquated hardware.L

Question 1559

Deck 4

contract administration

Answer 1559

Managing all aspects of a contract to guarantee that the contractor fulfills his obligations.C

Question 1560

Deck 4

multilevel master schedule

Answer 1560

A master scheduling technique that allows any level in an end item’s bill of material to be master scheduled. To accomplish this, MPS items must receive requirements from independent and dependent demand sources. See: two-level master schedule.M

Question 1561

Deck 4

capital structure

Answer 1561

The combination of permanent shortterm debt, long-term debt, preferred stock, and common equity used to finance a firm.C

Question 1562

Deck 4

backhauling

Answer 1562

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

Question 1563

Deck 4

tool

Answer 1563

Any instrument, such as a saw blade, that is the working part of a machine.T

Question 1564

Deck 4

bricks and mortar

Answer 1564

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

Question 1565

Deck 4

ordering cost

Answer 1565

Used in calculating order quantities, the costs that increase as the number of orders placed increases. It includes costs related to the clerical work of preparing, releasing, monitoring, and receiving orders, the physical handling of goods, inspections, and setup costs, as applicable. See: acquisition cost, inventory costs.O

Question 1566

Deck 4

FTZ

Answer 1566

Abbreviation for foreign trade zone.F

Question 1567

Deck 4

cumulative trauma disorder

Answer 1567

An occupational injury believed to be caused by repetitive motions such as typing or twisting.C

Question 1568

Deck 4

infrastructural elements

Answer 1568

Elements of a strategy including decision rules, policies, personnel guidelines, and organizational structure.I

Question 1569

Deck 4

inventory record

Answer 1569

A history of the inventory transactions of a specific material.I

Question 1570

Deck 4

strategic partnerships

Answer 1570

Alliances with top supplier and buyer performers to enhance a firm’s performance.S

Question 1571

Deck 4

direct material

Answer 1571

Material that becomes a part of the final product in measurable quantities.D

Question 1572

Deck 4

eurocurrency

Answer 1572

Money that is deposited outside of the country that issued it (outside of the issuing country’s control).E

Question 1573

Deck 4

RFID

Answer 1573

Abbreviation for radio frequency identification.R

Question 1574

Deck 4

fishbone analysis

Answer 1574

A technique to organize the elements of a problem or situation to aid in the determination of the causes of the problem or situation. The analysis relates the effect of the environment to the several possible sources of the problem.F

Question 1575

Deck 4

acceptance plan

Answer 1575

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

Question 1576

Deck 4

schedule

Answer 1576

A timetable for planned occurrences (e.g., shipping schedule, master production schedule, maintenance schedule, supplier schedule). Some schedules include the starting and ending time for activities (e.g., project schedule).S

Question 1577

Deck 4

reactive maintenance

Answer 1577

Syn: breakdown maintenance.R

Question 1578

Deck 4

client

Answer 1578

In information systems, a software program that is used to contact and obtain data from a server program on another computer. Each client program is designed to work with one or more specific kinds of server programs, and each server requires a specific kind of client. A browser is one type of client.C

Question 1579

Deck 4

industrial engineering

Answer 1579

The engineering discipline concerned with facilities layout, methods measurement and improvement, statistical quality control, job design and evaluation, and the use of management sciences to solve business problems.I

Question 1580

Deck 4

physical distribution

Answer 1580

Syn: distribution.P

Question 1581

Deck 4

percent of fill

Answer 1581

Syn: customer service ratio.P

Question 1582

Deck 4

average cost per unit

Answer 1582

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

Question 1583

Deck 4

triple bottom line (TBL)

Answer 1583

An approach that measures the economic, social, and environmental impact of an organization’s activities with the intent of bringing value for both its shareholders and society.T

Question 1584

Deck 4

sequential development process

Answer 1584

A process in which the product or services idea must clear specific hurdles before it can go on the next development phase.S

Question 1585

Deck 4

strategic plan

Answer 1585

The plan for how to marshal and determine actions to support the mission, goals, and objectives of an organization. Generally includes an organization’s explicit mission, goals, and objectives and the specific actions needed to achieve those goals and objectives. See: business plan, operational plan, strategic planning, strategy, tactical plan.S

Question 1586

Deck 4

calculated capacity

Answer 1586

Syn: rated capacity.C

Question 1587

Deck 4

microeconomics

Answer 1587

The analysis of the behavior of individual economic decision makers (individuals and firms).M

Question 1588

Deck 4

warehouse management system (WMS)

Answer 1588

A computer application system designed to manage and optimize workflows and the storage of goods within a warehouse. These systems often interface with automated data capture and enterprise resources planning systems.W

Question 1589

Deck 4

load center

Answer 1589

Syn: work center.L

Question 1590

Deck 4

standard cost accounting system

Answer 1590

A cost accounting system that uses cost units determined before production for estimating the cost of an order or product. For management control purposes, the standards are compared to actual costs, and variances are computed.S

Question 1591

Deck 4

vendor-owned inventory (VOI)

Answer 1591

Syn: consigned stocks.V

Question 1592

Deck 4

periodic review system

Answer 1592

Syn: fixed reorder cycle inventory model.P

Question 1593

Deck 4

participative design/engineering

Answer 1593

A concept that refers to the simultaneous participation of all the functional areas of the firm in the product design activity. Suppliers and customers are often also included. The intent is to enhance the design with the inputs of all the key stakeholders. Such a process should ensure that the final design meets all the needs of the stakeholders and should ensure a product that can be quickly brought to the marketplace while maximizing quality and minimizing costs. Syn: co-design, concurrent design, concurrent engineering, new product development team, parallel engineering, simultaneous design/engineering, simultaneous engineering, team design/ engineering. See: early manufacturing involvement.P

Question 1594

Deck 4

product life cycle management (PLM)

Answer 1594

The process of facilitating the development, use, and support of products that customers want and need. PLM helps professionals envision the creation and preservation of product information, both to the customer and along the reverse-logistics portion of the supply chain.P

Question 1595

Deck 4

computer-aided design (CAD)

Answer 1595

The use of computers in interactive engineering drawing and storage of designs. Programs complete the layout, geometric transformations, projections, rotations, magnifications, and interval (cross-section) views of a part and its relationship with other parts.C

Question 1596

Deck 4

capacity requirements plan

Answer 1596

A time-phased display of present and future load (capacity required) on all resources based on the planned and released supply authorizations (i.e., orders) and the planned capacity (capacity available) of these resources over a span of time. See: load profile.C

Question 1597

Deck 4

supply chain event management (SCEM)

Answer 1597

A term associated with supply chain management software applications, where users have the ability to flag the occurrence of certain supply chain events to trigger some form of alert or action within another supply chain application. SCEM can be deployed to monitor supply S chain business processes such as planning, transportation, logistics, or procurement. SCEM can also be applied to supply chain business intelligence applications to alert users to any unplanned or unexpected event.S

Question 1598

Deck 4

benchmarking

Answer 1598

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

Question 1599

Deck 4

pack-out department

Answer 1599

The department that performs the final steps (often including packaging and labeling) before shipment to the customer. See: final assembly department.P

Question 1600

Deck 4

gross profit margin rate

Answer 1600

Sales minus cost of goods sold then divided by sales.G

Question 1601

Deck 4

forecast horizon

Answer 1601

The period of time into the future for which a forecast is prepared.F

Question 1602

Deck 4

service blueprint

Answer 1602

A service analysis method that allows service designers to identify processes involved in the service delivery system, isolate potential failure points in the system, establish time frames for the service delivery, and set standards for each step that can be quantified for measurement.S

Question 1603

Deck 4

product manager concept

Answer 1603

A marketing method in which a manager is given complete responsibility for managing the introduction, stocking policy, marketing, and sales of a specific product.P

Question 1604

Deck 4

item master record

Answer 1604

Syn: item record.I

Question 1605

Deck 4

tier one

Answer 1605

The group of suppliers that are directly responsible for not only product supply but product development.T

Question 1606

Deck 4

postponement

Answer 1606

A product design strategy that shifts product differentiation closer to the consumer by postponing identity changes, such as assembly or packaging, to the last possible supply chain location.P

Question 1607

Deck 4

closed-loop feedback system

Answer 1607

A planning and control system that monitors system progress toward the plan and has an internal control and replanning capability.C

Question 1608

Deck 4

drop ship

Answer 1608

To take the title of the product but not actually handle, stock, or deliver it (i.e., to have one supplier ship directly to another or to have a supplier ship directly to the buyer’s customer).D

Question 1609

Deck 4

kitted material

Answer 1609

Syn: kit.K

Question 1610

Deck 4

eurodollar

Answer 1610

A U.S. dollar held in a foreign bank.E

Question 1611

Deck 4

portfolio

Answer 1611

In project management, a collection of projects that are grouped to facilitate management. They are not necessarily interdependent.P

Question 1612

Deck 4

webcasting

Answer 1612

Syn: push technology.W

Question 1613

Deck 4

breeder bill of material

Answer 1613

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 1614

Deck 4

network path

Answer 1614

Any continuous series of project activities connected by precedence relationships in a project schedule network diagram.N

Question 1615

Deck 4

corporate culture

Answer 1615

The set of important assumptions that members of the company share. It is a system of shared values about what is important and beliefs about how the company works. These common assumptions influence the ways the company operates.C

Question 1616

Deck 4

unit cost

Answer 1616

Total labor, material, and overhead cost for one unit of production (e.g., one part, one gallon, one pound).U

Question 1617

Deck 4

user-friendly

Answer 1617

Characteristic of computer software or hardware that makes it easy for the user or operator to use the programs or equipment with a minimum of specialized knowledge or recourse to operating manuals.U

Question 1618

Deck 4

counseling

Answer 1618

The providing of basic, technical, and sometimes professional human assistance to employees to help them with personal and work-related problems.C

Question 1619

Deck 4

quality function deployment (QFD)

Answer 1619

A methodology designed to ensure that all the major requirements of the customer are identified and subsequently met or exceeded through the resulting product design process and the design and operation of the supporting production management system. QFD can be viewed as a set of communication and translation tools. QFD tries to eliminate the gap between what the customer wants in a new product and what the product is capable of delivering. QFD often leads to a clear identification of the major requirements of the customers. These expectations are referred to as the voice of the customer (VOC). See: house of quality.Q

Question 1620

Deck 4

projected finish date

Answer 1620

The current estimate of the date when an activity will be completed.P

Question 1621

Deck 4

OTIF

Answer 1621

Abbreviation for on-time in-full.O

Question 1622

Deck 4

MES

Answer 1622

Abbreviation for manufacturing execution systems.M

Question 1623

Deck 4

confiscation

Answer 1623

The taking of property without adequate compensation for it.C

Question 1624

Deck 4

hold points

Answer 1624

Stockpoints for semifinished inventory.H

Question 1625

Deck 4

fourth-party logistics (4PL)

Answer 1625

Fourth-party logistics differs from third-party logistics in the following ways: (1) the 4PL organization is often a separate entity formed by a joint venture or other long-term contract between a client and one or more partners; (2) the 4PL organization is an interface between the client and multiple logistics services providers; (3) ideally, all aspects of the client’s supply chain are managed by the 4PL organization; and, (4) it is possible for a major 3PL organization to form a 4PL organization within its existing structure. See: third-party logistics.F

Question 1626

Deck 4

adaptive website

Answer 1626

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

Question 1627

Deck 4

integrated carrier

Answer 1627

A company that provides a variety of transportation services including ground, sea, air carriage, and freight forwarding.I

Question 1628

Deck 4

revision level

Answer 1628

A number or letter representing the number of times a part drawing or specification has been changed.R

Question 1629

Deck 4

holding costs

Answer 1629

Syn: carrying costs.H

Question 1630

Deck 4

CEP

Answer 1630

Abbreviation for cost equalization point.C

Question 1631

Deck 4

direct offset

Answer 1631

Similar to bartering, trading goods or services for related goods or services or agreeing on coproduction. D

Question 1632

Deck 4

arrow diagram

Answer 1632

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

Question 1633

Deck 4

product family

Answer 1633

A group of products with similar characteristics, often used in production planning (or sales and operations planning). Syn: product line.P

Question 1634

Deck 4

manufacturing engineering

Answer 1634

The engineering discipline concerned with designing and improving production processes. See: process engineering.M

Question 1635

Deck 4

learning organization

Answer 1635

1) Group of people who have woven a continuous, enhanced capacity to learn into the corporate culture. 2) An organization in which learning processes are analyzed, monitored, developed, and aligned with competitive goals.L

Question 1636

Deck 4

POS

Answer 1636

Abbreviation for point of sale.P

Question 1637

Deck 4

assembly parts list

Answer 1637

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 1638

Deck 4

consumables

Answer 1638

Supplies or materials (such as paint, cleaning materials, or fuel) that are consumed or exhausted in the production or sale of a good or service. Syn: consumable tooling, supplies; expendables.C

Question 1639

Deck 4

occurrence factor

Answer 1639

Within the repair/remanufacturing environment, the occurrence factor is associated with how often a repair is required to bring the average part to a serviceable condition (some repair operations do not occur 100 percent of the time). The factor is expressed at the operation level in the routing. See: repair factor, replacement factor.O

Question 1640

Deck 4

cubage

Answer 1640

Cubic volume of space being used or available for shipping or storage.C

Question 1641

Deck 4

multilevel where-used

Answer 1641

A display for a component listing all the parents in which that component is directly used and the next higher level parents into which each of those parents is used, until ultimately all top-level (level 0) parents are listed.M

Question 1642

Deck 4

feedback loop

Answer 1642

The part of a closed-loop system that allows the comparison of response with command.F

Question 1643

Deck 4

banner

Answer 1643

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 1644

Deck 4

concurrent design

Answer 1644

Syn: participative design/ engineering.C

Question 1645

Deck 4

RORO

Answer 1645

Acronym for roll-on/roll-off container ship.R

Question 1646

Deck 4

fixed order quantity system

Answer 1646

An inventory system, such as economic order quantity, in which the same order quantity is used from order to order. The time between orders (order period) then varies from order to order. Syn: fixed reorder quantity inventory model. See: fixed order period system.F

Question 1647

Deck 4

freight charge

Answer 1647

The rate established for the transportation of freight.F

Question 1648

Deck 4

salable goods

Answer 1648

A part or assembly authorized for sale to final customers through the marketing function.S

Question 1649

Deck 4

capacity requirements

Answer 1649

The resources needed to produce the projected level of work required from a facility over a time horizon. Capacity requirements are usually expressed in terms of hours of work or, when units consume similar resources at the same rate, units of production.C

Question 1650

Deck 4

operation list

Answer 1650

Syn: routing.O

Question 1651

Deck 4

lean enterprise

Answer 1651

A group of individuals, functions, and sometimes legally separate but operationally synchronized organizations. The value stream defines the lean enterprise. The objectives of the lean enterprise are to correctly specify value to the ultimate customer, and to analyze and focus the value stream so that it does everything from product development and production to sales and service in a way that actions that do not create value are removed and actions that do create value proceed in a continuous flow as pulled by the customer. Lean enterprise differs from a “virtual corporation” in which the organizational membership and structure keeps changing.L

Question 1652

Deck 4

batch sheet

Answer 1652

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

Question 1653

Deck 4

inventory ordering system

Answer 1653

Inventory models for the replenishment of inventory. Independent demand inventory ordering models include but are not limited to fixed reorder cycle, fixed reorder quantity, optional replenishment, and hybrid models. Dependent demand inventory ordering models include material requirements planning, kanban, and drum-buffer-rope.I

Question 1654

Deck 4

cumulative lead time

Answer 1654

The longest planned length of time to accomplish the activity in question. It is found by reviewing the lead time for each bill of material path below the item; whichever path adds up to the greatest number defines cumulative lead time. Syn: aggregate lead time, combined lead time, composite lead time, critical path lead time, stacked lead time. See: planning horizon, planning time fence.C

Question 1655

Deck 4

review period

Answer 1655

The time between successive evaluations of inventory status to determine whether to reorder. See: replenishment period.R

Question 1656

Deck 4

demand lead time

Answer 1656

The amount of time potential customers are willing to wait for the delivery of a good or a service. Syn: customer tolerance time.D

Question 1657

Deck 4

exogenous variable

Answer 1657

A variable whose values are determined by considerations outside the model in question.E

Question 1658

Deck 4

free slack

Answer 1658

The amount of time by which the completion of an activity in a project network can increase without delaying the start of the next activity.F

Question 1659

Deck 4

buyer

Answer 1659

An individual whose functions may include supplier selection, negotiation, order placement, supplier follow-up, measurement and control of supplier performance, value analysis, and evaluation of new materials and processes. In some companies, the functions of order placement and supplier follow-up are handled by the supplier scheduler.B

Question 1660

Deck 4

supply uncertainty

Answer 1660

The risk of interruptions in the flow of components from upstream suppliers.S

Question 1661

Deck 4

explode-to-deduct

Answer 1661

Syn: backflush.E E

Question 1662

Deck 4

control board

Answer 1662

A visual means of showing machine loading or project planning, usually a variation of the basic Gantt chart. Syn: dispatch(ing) board, planning board, schedule board. See: schedule chart.C

Question 1663

Deck 4

host computer

Answer 1663

Any computer on a network that is a repository for services available to other computers on the network. It is common to have one host machine provide several services such as the World Wide Web.H

Question 1664

Deck 4

competitive analysis

Answer 1664

An analysis of a competitor that includes its strategies, capabilities, prices, and costs.C

Question 1665

Deck 4

schedule board

Answer 1665

Syn: control board.S

Question 1666

Deck 4

acceptance sampling

Answer 1666

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 1667

Deck 4

first pass yield

Answer 1667

The ratio of products that conform to specifications without rework or modification to total input.F

Question 1668

Deck 4

order batching

Answer 1668

The process of gathering a group of orders or data before sending them out to the next stage.O order complete manufacture to customer receipt of

Question 1669

Deck 4

cost-budgeting

Answer 1669

In project management, accumulating the estimated costs of individual activities to arrive at a cost baseline.C C

Question 1670

Deck 4

co-location

Answer 1670

Placing project team members in physical proximity to facilitate communication and working relationships. C

Question 1671

Deck 4

bounded

Answer 1671

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

Question 1672

Deck 4

shop order reporting

Answer 1672

Syn: production reporting and status control.S

Question 1673

Deck 4

HLL

Answer 1673

Abbreviation for high-level language.H

Question 1674

Deck 4

financial benchmarking

Answer 1674

Comparing one company’s financial results with that of another company. This type of benchmarking need not involve direct contact between the initiator company and the target company, as many financial records are publicly available. See: benchmarking. F

Question 1675

Deck 4

CFPIM

Answer 1675

Abbreviation for Certified Fellow in Production and Inventory Management.C

Question 1676

Deck 4

constraint-oriented finite loading

Answer 1676

A finite loading technique that plans orders around bottleneck work centers. The objective is to maximize total production throughput. Orders in small lot sizes aggregate into large lot sizes at the constraint and then load forward. Prior operations are then backward-scheduled, and downstream operations are forward-scheduled. See: drumbuffer- rope, order-oriented finite loading.C

Question 1677

Deck 4

expected life

Answer 1677

The average length of time a product remains in service or in a serviceable condition.E

Question 1678

Deck 4

capacity

Answer 1678

1) The capability of a system to perform its expected function. 2) The capability of a worker, machine, work center, plant, or organization to produce output per time period. Capacity required represents the system capability needed to make a given product mix (assuming technology, product specification, etc.). As a planning function, both capacity available and capacity required can be measured in the short term (capacity requirements plan), intermediate term (roughcut capacity plan), and long term (resource requirements plan). Capacity control is the execution through the I/O control report of the short-term plan. Capacity can be classified as budgeted, dedicated, demonstrated, productive, protective, rated, safety, standing, or theoretical. See: capacity available, capacity required. 3) Required mental ability to enter into a contract.C

Question 1679

Deck 4

serpentine picking

Answer 1679

A picking technique aimed at reducing travel time by 50 percent and improving the flow of pickers down each aisle. This technique involves picking from both sides of each aisle as the picker goes down it. This is in contrast to picking from one side of the aisle and then crossing to the other side.S

Question 1680

Deck 4

exempt employee

Answer 1680

A person filling an exempt position. See: exempt positions.E

Question 1681

Deck 4

traceability

Answer 1681

1) The attribute allowing the ongoing location of a shipment to be determined. 2) The registering and tracking of parts, processes, and materials used in production, by lot or serial number.T

Question 1682

Deck 4

purchasing unit of measure

Answer 1682

Syn: unit of measure (purchasing). P

Question 1683

Deck 4

inventory

Answer 1683

1) Those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts). Demand for inventory may be dependent or independent. Inventory functions are anticipation, hedge, cycle (lot size), fluctuation (safety, buffer, or reserve), transportation (pipeline), and service parts. 2) All the money currently tied up in the system. As used in theory of constraints, inventory refers to the equipment, fixtures, buildings, and so forth that the system owns as well as inventory in the forms of raw materials, workin- process, and finished goods.I

Question 1684

Deck 4

file transfer protocol (FTP)

Answer 1684

A protocol used to transfer files over the internet.F

Question 1685

Deck 4

locator file

Answer 1685

A file used in a stockroom (or anywhere) providing information on where each item is located. See: locator system.L

Question 1686

Deck 4

performance appraisal

Answer 1686

Supervisory or peer analysis of work performance. May be made in connection with wage and salary review, promotion, transfer, or employee training.P

Question 1687

Deck 4

minimum inventory

Answer 1687

The planned lowest amount or level of inventory for an item.M

Question 1688

Deck 4

cut-off control

Answer 1688

A procedure for synchronizing cycle counting and transaction processing.C

Question 1689

Deck 4

on-time schedule performance

Answer 1689

A measure (percentage) of meeting the customer’s originally negotiated delivery request date. Performance can be expressed as a percentage based on the number of orders, line items, or dollar value shipped on time.O

Question 1690

Deck 4

curve fitting

Answer 1690

An approach to forecasting based on a straight line, polynomial, or other curve that describes some historical time series data.C

Question 1691

Deck 4

LTPD

Answer 1691

Abbreviation for lot tolerance percent defective.L

Question 1692

Deck 4

predatory pricing

Answer 1692

Lowering prices below cost to drive out competition and then raising prices again. In the United States, this is a violation of Article 2 of the Sherman Act.P P

Question 1693

Deck 4

end-of-life-inventory

Answer 1693

Inventory kept on hand to satisfy demand for products that are no longer being manufactured.E

Question 1694

Deck 4

cumulative manufacturing lead time

Answer 1694

The cumulative planned lead time when all purchased items are assumed to be in stock. Syn: composite manufacturing lead time.C

Question 1695

Deck 4

robust design

Answer 1695

Type of design for a product or service that plans for intended performance even in the face of a harsh environment.R

Question 1696

Deck 4

rescheduling

Answer 1696

The process of changing order or operation due dates, usually as a result of their being out of phase with when they are needed.R

Question 1697

Deck 4

flexible machine center (FMC)

Answer 1697

An automated system, which usually consists of computer numerical control machines with robots loading and unloading the parts conveyed into, and through, the system. Its purpose is to provide quicker throughput, changeovers, setups, and so forth to enable the manufacturing of multiple products.F

Question 1698

Deck 4

PAC

Answer 1698

Acronym for production activity control.P

Question 1699

Deck 4

component lead-time offset

Answer 1699

Syn: lead-time offset.C

Question 1700

Deck 4

process controllers

Answer 1700

Computers designed to monitor the manufacturing cycle during production, often with the capability to modify conditions, to bring the production back to within prescribed ranges.P

Question 1701

Deck 4

customer-supplier partnership

Answer 1701

A long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer’s organization. The partnership is based on several commitments. The buyer provides long-term contracts and uses fewer suppliers. The supplier implements quality assurance processes so that incoming inspection can be minimized. The supplier also helps the buyer reduce costs and improve product and process designs. Syn: customer partnership. See: outpartnering.C

Question 1702

Deck 4

feature code

Answer 1702

An identifying code assigned to a distinct product feature that may contain one or more specific part number configurations.F

Question 1703

Deck 4

transit time

Answer 1703

A standard allowance that is assumed on any given order for the movement of items from one operation to the next. Syn: travel time.T

Question 1704

Deck 4

constraints management

Answer 1704

The practice of managing resources and organizations in accordance with the theory of constraints (TOC) principles. See: theory of constraints.C

Question 1705

Deck 4

durable goods

Answer 1705

Generally, any goods whose continuous serviceability is likely to exceed three years (e.g., trucks, furniture). See: consumer durable goods.D

Question 1706

Deck 4

net working capital

Answer 1706

The current assets of a firm minus its current liabilities. Syn: working capital.N

Question 1707

Deck 4

action plan

Answer 1707

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

Question 1708

Deck 4

ASQC

Answer 1708

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

Question 1709

Deck 4

inventory policy

Answer 1709

A statement of a company’s goals and approach to the management of inventories.I

Question 1710

Deck 4

computer-assisted software engineering (CASE)

Answer 1710

The use of computerized tools to assist in the process of designing, developing, and maintaining software products and systems.C C

Question 1711

Deck 4

co-design

Answer 1711

Syn: participative design/engineering.C

Question 1712

Deck 4

modularization

Answer 1712

In product development, the use of standardized parts for flexibility and variety. Permits product development cost reductions by using the same item(s) to build a variety of finished goods. This is the first step in developing a planning bill of material process.M

Question 1713

Deck 4

transportation legal classifications

Answer 1713

Legal regulatory classification of transportation by product, shipping size, rates, carriers, and types of services.T

Question 1714

Deck 4

application service provider (ASP)

Answer 1714

A firm that produces outsourced services for clients.A

Question 1715

Deck 4

profit

Answer 1715

1) Gross profit after direct costs of goods sold have been deducted from sales revenue for a given period. 2)

Question 1716

Deck 4

NTED

Answer 1716

Abbreviation for no-touch exchange of dies.N

Question 1717

Deck 4

defect

Answer 1717

A good’s or service’s nonfulfillment of an intended requirement or reasonable expectation for use, including safety considerations. There are four classes of defects: Class 1, Very Serious, leads directly to severe injury or catastrophic economic loss; Class 2, Serious, leads directly to significant injury or significant economic loss; Class 3, Major, is related to major problems with respect to intended normal or reasonably foreseeable use; and Class 4, Minor, is related to minor problems with respect to intended normal or reasonably D foreseeable use. See: blemish, imperfection, nonconformity.D

Question 1718

Deck 4

private ownership

Answer 1718

A form of business ownership in which the business is either owned by a single person (i.e., proprietorship) or organized under law as a separate legal entity but in which the company stock is not publicly traded. See: partnership, public ownership.P

Question 1719

Deck 4

random events

Answer 1719

1) occurrences that have no discernable pattern. 2) In statistics, unexplained movements occurring in historical (time series) data. See: random variation.R

Question 1720

Deck 4

activity dictionary

Answer 1720

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

Question 1721

Deck 4

statute of limitations

Answer 1721

A statute restricting the length of time in which a lawsuit may be filed.S

Question 1722

Deck 4

contribution

Answer 1722

The difference between sales price and variable costs. Contribution is used to cover fixed costs and profits.C

Question 1723

Deck 4

COTS

Answer 1723

Abbreviation for commercial-off-the-shelf.C Council of Supply Chain Management Professionals

Question 1724

Deck 4

operations management

Answer 1724

1) The planning, scheduling, and control of the activities that transform inputs into finished goods and services. 2) A field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the operation.O

Question 1725

Deck 4

CTQs

Answer 1725

Abbreviation for critical-to-quality characteristicsC

Question 1726

Deck 4

inventory write-off

Answer 1726

A deduction of inventory dollars from the financial statement because the inventory is of less value. An inventory write-off may be necessary because the value of the physical inventory is less than its book value or because the items in inventory are no longer usable.I

Question 1727

Deck 4

demand segmentation

Answer 1727

Categorizing demand types into groups that share similar characteristics (e.g., government, large customers, seasonal products). Similar segments can be treated alike in business or capacity planning.D

Question 1728

Deck 4

path convergence

Answer 1728

In project management, the point in a network diagram where one or more parallel paths come together. A delay on any of the parallel paths can conceivably delay network completion.P

Question 1729

Deck 4

production release

Answer 1729

Syn: manufacturing order.P

Question 1730

Deck 4

selling and administrative cost

Answer 1730

Those costs that are associated with the marketing, sales, and administrative functions for a plant or company. This is a function of overhead costing and is an important number in the COGS (costs of goods sold) calculation.S

Question 1731

Deck 4

intranet

Answer 1731

A privately owned network that makes use of internet technology and applications to meet the needs of an enterprise. It resides entirely within a department or company, providing communication and access to information, similar to the internet, with web pages, and so on for internal use only.I

Question 1732

Deck 4

PLC

Answer 1732

Abbreviation for programmable logic controller.P

Question 1733

Deck 4

alternate routing

Answer 1733

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

Question 1734

Deck 4

route sheet

Answer 1734

Syn: routing.R

Question 1735

Deck 4

interpolation

Answer 1735

The process of finding a value of a function between two known values. Interpolation may be performed numerically or graphically.I

Question 1736

Deck 4

assignable variation

Answer 1736

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

Question 1737

Deck 4

FOB origination

Answer 1737

The buyer takes possession of the goods at the supplier’s location, and the buyer must provide transportation.F

Question 1738

Deck 4

feeder workstations

Answer 1738

An area of manufacture whose products feed a subsequent work area.F

Question 1739

Deck 4

breadman

Answer 1739

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

Question 1740

Deck 4

baseload demand

Answer 1740

Syn: base demand.B

Question 1741

Deck 4

float

Answer 1741

1) The amount of work-in-process inventory between two manufacturing operations, especially in repetitive manufacturing. 2) In supply chains, the time necessary for items such as documents and checks to go from one supply chain partner to another. 3) In the critical path method of project management, the amount of time that an activity’s early start or early finish time can be delayed without delaying the completion time of the entire project. There are three types: total float, free float, and independent float. Syn: path float, slack.F

Question 1742

Deck 4

planned order receipt

Answer 1742

The quantity planned to be received at a future date as a result of a planned order release. Planned order receipts differ from scheduled receipts in that they have not been released. Syn: planned receipt.P

Question 1743

Deck 4

base index

Answer 1743

Syn: base series.B

Question 1744

Deck 4

lower control limit (LCL)

Answer 1744

Control limit for points below the central line in a control chart.L

Question 1745

Deck 4

limited life material

Answer 1745

Material having a finite shelf life.L

Question 1746

Deck 4

supplier number

Answer 1746

A numerical code used to distinguish one supplier from another.S

Question 1747

Deck 4

empirical

Answer 1747

Pertaining to a statement or formula based upon experience or observation rather than on deduction or theory.E

Question 1748

Deck 4

subplant

Answer 1748

An organizational structure within a factory, consisting of a compact entrepreneurial unit, either process-oriented or product-oriented and structured to achieve maximum productivity.S

Question 1749

Deck 4

process integration

Answer 1749

Coordinating operations and consolidating data to simplify processes and increase efficiency.P

Question 1750

Deck 4

pooling

Answer 1750

1) In transportation, shipments from multiple companies are placed together in the same shipment in order to reduce the costs of each shipment. 2) In production, that action that combines in parallel previously independent processes to reduce the total variance compared to the variances that would occur when the processes were independent.P

Question 1751

Deck 4

dependent demand

Answer 1751

Demand that is directly related to or derived from the bill of material structure for other items or end products. Such demands are therefore calculated and need not and should not be forecast. A given inventory item may have both dependent and independent demand at any given time. For example, a part may simultaneously be the component of an assembly and sold as a service part. See: independent demand.D

Question 1752

Deck 4

financial accounting

Answer 1752

The use of generally accepted accounting principles to prepare reports to external agencies, such as investors and governmental agencies.F

Question 1753

Deck 4

value chain

Answer 1753

The functions within a company that add value to the goods or services that the organization sells to customers and for which it receives payment.V

Question 1754

Deck 4

contract target cost

Answer 1754

The estimated cost negotiated in a contract.C

Question 1755

Deck 4

designing in quality vs. inspecting in quality

Answer 1755

Syn: prevention vs. detection.D

Question 1756

Deck 4

purchase price discount

Answer 1756

A pricing strategy in which a seller offers a customer a cheaper price in exchange for purchasing more goods.P

Question 1757

Deck 4

FOB destination

Answer 1757

The supplier pays for transportation to the buyer’s location, where the buyer takes possession of the goods.F

Question 1758

Deck 4

CISG

Answer 1758

Abbreviation for contracts for the international sale of goods.C

Question 1759

Deck 4

WIP

Answer 1759

Acronym for work in process.W

Question 1760

Deck 4

is within tolerance

Answer 1760

as long as the dimension is not exactly on the target. For example, a loss to society might occur because an assembly made of components that are within specification, but not exactly on target, wears out faster than an assembly comprised of components that are all exactly on the target.L

Question 1761

Deck 4

process industries

Answer 1761

The group of manufacturers that produce products by mixing, separating, forming, and/or performing chemical reactions. Paint manufacturers, refineries, and breweries are examples of process industries.P

Question 1762

Deck 4

prototype

Answer 1762

1) A product model constructed for testing and evaluation to see how the product performs before releasing the product to manufacture. 2) Model consisting of all files and programs needed for a business application.P

Question 1763

Deck 4

break-even time

Answer 1763

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

Question 1764

Deck 4

shop order close-out station

Answer 1764

A stocking point on the shop floor where completed production of components is transacted (received) into and subsequently transacted (issued) to assembly or other downstream operations. This technique is used to reduce material handling by avoiding the need to move items into and out of stockrooms, while simultaneously enabling a high degree of inventory record accuracy.S

Question 1765

Deck 4

average total cost

Answer 1765

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

Question 1766

Deck 4

Baldrige-qualified

Answer 1766

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

Question 1767

Deck 4

schedule performance index (SPI)

Answer 1767

Earned value (EV) divided by planned value (PV), which measures a project’s schedule efficiency.S

Question 1768

Deck 4

people involvement

Answer 1768

Syn: employee involvement.P

Question 1769

Deck 4

block control

Answer 1769

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

Question 1770

Deck 4

blend order

Answer 1770

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

Question 1771

Deck 4

work sampling

Answer 1771

The use of a number of random samples to determine the frequency with which certain activities are performed.W

Question 1772

Deck 4

consumer market

Answer 1772

A market composed of individuals and families who buy products and services for consumption. See: government market, industrial market, institutional market.C

Question 1773

Deck 4

landed cost

Answer 1773

This cost includes the product cost plus the costs of logistics, such as warehousing, transportation, and handling fees.L

Question 1774

Deck 4

alliance development

Answer 1774

Strengthening the capabilities of a key supplier.A

Question 1775

Deck 4

slack

Answer 1775

Syn: float, slack time.S

Question 1776

Deck 4

simplex algorithm

Answer 1776

A procedure for solving a general linear programming problem.S

Question 1777

Deck 4

transportation management system (TMS)

Answer 1777

A computer application system designed to manage transportation operations. These systems typically offer modules focused on specific functions, such as intermodal transportation, import/export management, fleet service management, and load planning and optimization.T

Question 1778

Deck 4

flexible manufacturing system (FMS)

Answer 1778

A group of numerically controlled machine tools interconnected by a central control system. The various machining cells are interconnected via loading and unloading stations by an automated transport system. Operational flexibility is enhanced by the ability to execute all manufacturing tasks on numerous product designs in small quantities and with faster delivery.F

Question 1779

Deck 4

market

Answer 1779

A set of buyers and sellers exchanging products. Prices tend to equalize through ongoing exchanges between buyers and sellers. Markets include institutional markets, government markets, industrial markets, and consumer markets. See: consumer market, government market, industrial market, institutional market.M

Question 1780

Deck 4

incoterms

Answer 1780

Short for International Commercial Terms; created to simplify international transactions.I

Question 1781

Deck 4

planogram

Answer 1781

A graph or map of allotted shelf space based on an analysis of sales date indicating the best arrangement of products on a store shelf.P

Question 1782

Deck 4

process design, (5) motion

Answer 1782

activities that do not add

Question 1783

Deck 4

R&D order

Answer 1783

Syn: experimental order.R

Question 1784

Deck 4

overrun

Answer 1784

1) The quantity received from manufacturing or a supplier that is in excess of the quantity ordered. 2) The condition resulting when expenditures exceed the budget.O

Question 1785

Deck 4

contract manufacturing

Answer 1785

A situation in which a third party makes products that are packaged under another company’s label.C

Question 1786

Deck 4

cellular layout

Answer 1786

An equipment configuration to support cellular manufacturing.C

Question 1787

Deck 4

irregular maintenance

Answer 1787

Syn: breakdown maintenance.I I

Question 1788

Deck 4

replan cycle

Answer 1788

The time it takes to implement a new production plan into the plant’s actual production plan. Done after completion of the last cycle and is a rolling document.R

Question 1789

Deck 4

setup lead time

Answer 1789

Syn: setup time.S

Question 1790

Deck 4

market-positioned warehouse

Answer 1790

Warehouse positioned to replenish customer inventory assortments and to afford maximum inbound transport consolidation economies from inventory origin points with relatively shorthaul local delivery.M

Question 1791

Deck 4

description by performance characteristics

Answer 1791

A method to identify a product or service by specifying the performance required.D

Question 1792

Deck 4

functional systems design

Answer 1792

The development and definition of the business functions to be accomplished by a computer system (i.e., preparing a statement of the proposed computer system’s data input, data manipulation, and information output in common business terms that can be reviewed, understood, and approved by a user organization). This statement, after approval, provides the basis for the computer system’s design.F

Question 1793

Deck 4

cost object driver

Answer 1793

In activity-based cost accounting, a numerical measure of the demand placed on one cost object by other cost objects.C

Question 1794

Deck 4

request for proposal (RFP)

Answer 1794

A document used to solicit vendor responses when the functional requirements and features are known but no specific product is in mind. Syn: invitation for bid (IFB). See: request for information (RFI).R

Question 1795

Deck 4

Thomas Register

Answer 1795

A privately produced reference set that includes a listing of part suppliers by product type and geographic area.T

Question 1796

Deck 4

flow diagram

Answer 1796

Syn: flowchart.F

Question 1797

Deck 4

responsible landfill

Answer 1797

Landfill operations designed to turn waste into recoverable resources, minimize the amount of space consumed, and maximize the operational life of the landfill.R

Question 1798

Deck 4

product layout

Answer 1798

Layout of resources arranged sequentially based on the product’s routing.P

Question 1799

Deck 4

design-to-order

Answer 1799

Syn: engineer-to-order.D

Question 1800

Deck 4

balance sheet

Answer 1800

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

Question 1801

Deck 4

central storage

Answer 1801

Using a central location for storing all inventory items in order to obtain more control of inventory and to improve inventory record accuracy.C

Question 1802

Deck 4

of variables

Answer 1802

perhaps only one, known as a constraint that actually limit the ability to generate more of the system’s goal.T

Question 1803

Deck 4

flexible workforce

Answer 1803

A workforce whose members are cross-trained and whose work rules permit assignment of individual workers to different tasks.F

Question 1804

Deck 4

labor usage variance

Answer 1804

Syn: labor efficiency variance.L

Question 1805

Deck 4

strategic sourcing

Answer 1805

A comprehensive approach for locating and sourcing key material suppliers, which often includes the business process of analyzing total-spendfor- material spend categories. There is a focus on the development of long-term relationships with trading partners who can help the purchaser meet profitability and customer satisfaction goals. From an information technology applications perspective, strategic sourcing includes automation of request for quote (RFQ), request for proposal (RFP), electronic auctioning (e-auction or reverse auction), and contract management processes.S

Question 1806

Deck 4

pilot

Answer 1806

Syn: pilot test.P

Question 1807

Deck 4

e-form

Answer 1807

Abbreviation for electronic form.E

Question 1808

Deck 4

transportation cycle time

Answer 1808

A logistics performance measure of the lead time required for a product to reach its final destination; the time between leaving a warehouse and arriving at the destination.T

Question 1809

Deck 4

back room

Answer 1809

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

Question 1810

Deck 4

open system architecture

Answer 1810

The capability of software and diverse hardware environments to communicate with each other through the use of standard messaging and protocols respectively. See: modular system.O

Question 1811

Deck 4

Securities and Exchange Commission (SEC)

Answer 1811

A U.S. government agency that has primary responsibility for enforcing the federal securities laws and regulating the securities industry. The SEC was created by the Securities Exchange Act of 1934 with a mission to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.S

Question 1812

Deck 4

merchants

Answer 1812

Buyers who purchase for the purpose of reselling.M

Question 1813

Deck 4

gross profit

Answer 1813

Sales minus cost of goods sold.G

Question 1814

Deck 4

ideal quality

Answer 1814

A term used by Genichi Taguchi to refer to the target value of a particular measure. Loss to society increases with the square of the deviation of an actual product from this ideal point.I

Question 1815

Deck 4

drum schedule

Answer 1815

The detailed production schedule for a resource that sets the pace for the entire system. The drum schedule must reconcile the customer requirements with the system’s constraint(s).D

Question 1816

Deck 4

LTL

Answer 1816

Abbreviation for less than truckload.L

Question 1817

Deck 4

improve phase

Answer 1817

One of the six sigma phases of quality. In this phase, the improvements to products and/or processes are adopted. See: design-measure-analyzeimprove- control process.I

Question 1818

Deck 4

probability tree

Answer 1818

A graphic display of all possible outcomes of an event based on the possible occurrences and their associated probabilities.P

Question 1819

Deck 4

LSL

Answer 1819

Abbreviation for lower specification limit.L

Question 1820

Deck 4

molds

Answer 1820

Tools for plastic or chemical production. A mold is the term used for the tools that shape plastic or other soft material parts.M

Question 1821

Deck 4

fabrication

Answer 1821

Manufacturing operations for making components, as opposed to assembly operations.F

Question 1822

Deck 4

escalation

Answer 1822

An amount or percentage by which a contract price may be adjusted if specified contingencies occur, such as changes in the supplier’s raw material or labor costs.E

Question 1823

Deck 4

employee assistance program (EAP)

Answer 1823

Employer-provided service aimed at helping employees and their families with personal and work-related problems. Examples inemployee E clude financial counseling and chemical-dependency rehabilitation programs.E

Question 1824

Deck 4

inspection order

Answer 1824

An authorization to an inspection department or group to perform an inspection operation.I

Question 1825

Deck 4

Cpk

Answer 1825

An index method of the variability of a process. A widely used process capability index. It is expressed as: C

Question 1826

Deck 4

extrapolation

Answer 1826

Estimation of the future value of some data series based on past observations. Statistical forecasting is a common example. Syn: projection.E

Question 1827

Deck 4

work teams

Answer 1827

Teams of employees formed to shepherd a particular work area or function.W

Question 1828

Deck 4

overpack

Answer 1828

Reducing total shipping costs by reducing the per-item shipping cost. This is done by including multiple smaller items in one larger box.O

Question 1829

Deck 4

catchball

Answer 1829

A business process of floating ideas and comments around in an iterative manner, much like tossing a ball back and forth.C

Question 1830

Deck 4

public ownership

Answer 1830

A business formed under law as a separate legal entity and where stock is publicly traded. See: partnership, private ownership.P

Question 1831

Deck 4

DMAIC

Answer 1831

Acronym for define-measure-analyze-improvecontrol. D

Question 1832

Deck 4

customer service ratio

Answer 1832

1) A measure of delivery performance of finished goods, usually expressed as a percentage. In a make-to-stock company, this percentage usually represents the number of items or dollars (on one or more customer orders) that were shipped on schedule for a specific time period, compared with the total that were supposed to be shipped in that time period. Syn: customer service level, fill rate, order-fill ratio, percent of fill. Ant: stockout percentage. 2) In a maketo- order company, it is usually some comparison of the number of jobs or dollars shipped in a given time period (e.g., a week) compared with the number of jobs or dollars that were supposed to be shipped in that time period.C

Question 1833

Deck 4

process hours

Answer 1833

The time required at any specific operation or task to process the product.P

Question 1834

Deck 4

interactive system

Answer 1834

Refers to those computer applications in which a user communicates with a computer program via a system, entering data and receiving responses from the computer. See: interactive computer system.I

Question 1835

Deck 4

green supply chain

Answer 1835

A supply chain that considers environmental impacts on its operations and takes action H along the supply chain to comply with environmental safety regulations and communicate this to customers and partners. See: environmentally responsible business.G

Question 1836

Deck 4

server factory

Answer 1836

A facility making minor improvements to products; set up primarily to avoid the host country’s barriers to trade.S

Question 1837

Deck 4

URL

Answer 1837

Abbreviation for uniform resource locator.U

Question 1838

Deck 4

cash flow management

Answer 1838

Syn: funds flow management.C

Question 1839

Deck 4

firm planned order (FPO)

Answer 1839

A planned order that can be frozen in quantity and time. The computer is not allowed to change it automatically; this is the responsibility of the planner in charge of the item that is being planned. This technique can aid planners working with MRP systems to respond to material and capacity problems by firming up selected planned orders. In addition, firm planned orders are the normal method of stating the master production schedule. See: planning time fence.F

Question 1840

Deck 4

server

Answer 1840

A computer, or software package, that provides a specific kind of service to client software running on other computers. The term can refer to a particular piece of software, for example a web server, or to the machine on which the software is running. A single server machine could have several different server software packages running on it, thus providing many different servers to clients on the network.S S

Question 1841

Deck 4

fabrication level

Answer 1841

The lowest production level. The only components at this level are parts (as opposed to assemblies or subassemblies). These parts are either procured from outside sources or fabricated within the manufacturing organization.F

Question 1842

Deck 4

standard

Answer 1842

1) An established norm against which measurements are compared. 2) An established norm of productivity defined in terms of units of output per set time (units/hour) or in standard time (minutes per unit). 3) The time allowed to perform a specific job including quantity of work to be produced. See: standard time.S

Question 1843

Deck 4

experimental order

Answer 1843

An order generated by the laboratory, research and development, or engineering group that must be run through regular production facilities with potential future product or market development as a project or team goal. Syn: engineering order, laboratory order, pilot order, R&D order.E

Question 1844

Deck 4

plan

Answer 1844

A predetermined course of action over a specified period of time that represents a projected response to an anticipated environment to accomplish a specific set of adaptive objectives.P

Question 1845

Deck 4

cost element

Answer 1845

In activity-based cost accounting, the lowest subdivision of a resource, activity, or cost object.C

Question 1846

Deck 4

stakeholders

Answer 1846

People with a vested interest in a company, including managers, employees, stockholders, customers, suppliers, and others.S

Question 1847

Deck 4

delay reporting

Answer 1847

Reporting against an operation status of a manufacturing order on an exception basis, when delays are anticipated.D

Question 1848

Deck 4

demand risk

Answer 1848

The risk that declining economic activity substantially reduces the demand for a firm’s products or services.D

Question 1849

Deck 4

material review board (MRB)

Answer 1849

An organization within a company, often a standing committee, that determines the resolution or disposition of items that have questionable quality or other attributes.M

Question 1850

Deck 4

aggregate reporting

Answer 1850

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

Question 1851

Deck 4

return disposal costs

Answer 1851

The costs that occur from discarding or recycling products that are returned because they have reached the end of their useful life or are obsolete. Commonplace in consumer goods industry.R

Question 1852

Deck 4

market segmentation

Answer 1852

A marketing strategy in which the total market is disaggregated into submarkets, or segments, that share some measurable characteristic based on demographics, psychographics, lifestyle, geography, benefits, and so forth.M

Question 1853

Deck 4

design

Answer 1853

quality is measured by the degree of customer satisfaction with a product’s characteristics and features.Q

Question 1854

Deck 4

order cycle

Answer 1854

The progression used by a company starting with receipt of a customer’s order and ending with delivery to that customer.O

Question 1855

Deck 4

hopper cars

Answer 1855

Rail cars that permit bulk commodities to be loaded at the top and removed from the bottom of the car. Some hopper cars have permanent tops that provide protection from bad weather.H

Question 1856

Deck 4

production plan

Answer 1856

The agreed-upon plan that comes from the production planning (sales and operations planning) process, specifically the overall level of manufacturing output planned to be produced, usually stated as a monthly rate for each product family (group of products, items, options, features, and so on). Various units of measurement can be used to express the plan: units, tonnage, standard hours, number of workers, and so on. The production plan is management’s authorization for the master scheduler to convert it into a more detailed plan, that is, the master production schedule. See: sales and operations planning, sales plan.P

Question 1857

Deck 4

disintermediation

Answer 1857

The process of eliminating an intermediate stage or echelon in a supply chain. Total supply chain operating expense is reduced, total supply chain inventory is reduced, total cycle time is reduced, and profits increase among the remaining echelons. See: echelon.D

Question 1858

Deck 4

continuous replenishment

Answer 1858

A process by which a supplier is notified daily of actual sales or warehouse shipments and commits to replenishing these sales (by size, color, and so on) without stockouts and without receiving replenishment orders. The result is a lowering of associated costs and an improvement in inventory turnover. See: rapid replenishment, vendor-managed inventory.C

Question 1859

Deck 4

second-tier suppliers (or customers)

Answer 1859

A supplier’s suppliers (or customer’s customers).S

Question 1860

Deck 4

match capacity strategy

Answer 1860

A capacity strategy that strikes a balance between the lead and lag capacity strategies by adding capacity at approximately the rate of actual demand increase.M

Question 1861

Deck 4

upgrade

Answer 1861

Improvement in operating characteristics.U

Question 1862

Deck 4

growth-share matrix

Answer 1862

In marketing, a division of products by relative market share and market growth rate.

Question 1863

Deck 4

module

Answer 1863

A self-contained unit of a computer program that communicates with other parts of the program solely through inputs and outputs.M

Question 1864

Deck 4

supply chain execution

Answer 1864

Execution-oriented software applications for effective procurement and supply of goods and services across a supply chain. It includes manufacturing, warehouse, and transportation execution systems, and systems providing visibility across the supply chain.S

Question 1865

Deck 4

barrier to entry

Answer 1865

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

Question 1866

Deck 4

holonic network

Answer 1866

1) A network of autonomous, distributed human or computer systems with the capability to act in an integrated manner. 2) A network of companies dynamically interacting to act as one system. Each company or holon has a different process and core competency. Virtual enterprises are created by organizing the holons, to take advantage of core competencies.H

Question 1867

Deck 4

traffic management

Answer 1867

Control of transportation carriers, modes, and services.T

Question 1868

Deck 4

obsolescence

Answer 1868

1) The condition of being out of date. A loss of value occasioned by new developments that place the older property at a competitive disadvantage. A factor in depreciation. 2) A decrease in the value of an asset brought about by the development of new and more economical methods, processes, or machinery. 3) The loss of usefulness or worth of a product or facility as a result of the appearance of better or more economical products, methods, or facilities.O

Question 1869

Deck 4

universe

Answer 1869

The population, or large set of data, from which samples are drawn. Usually assumed to be infinitely large or at least very large relative to the sample.U

Question 1870

Deck 4

production order

Answer 1870

Syn: manufacturing order.P

Question 1871

Deck 4

modular system

Answer 1871

A system architecture design in which related tasks are grouped in self-contained packages. Each package, or module, of tasks performs all of the tasks related to a specific function and advances in functions can be implemented without affecting other packages or modules because of the loose coupling with other modules. One example is a multitiered architecture in which application business rules are separated from the data management rules. Another example is a client-server architecture in which user interface tasks are separated from the application software. See: open system architecture.M

Question 1872

Deck 4

interarrival time

Answer 1872

Time between the arrival of two sequential customers or events.I

Question 1873

Deck 4

product plan

Answer 1873

Syn: market plan.P

Question 1874

Deck 4

historical analogy

Answer 1874

A judgmental forecasting technique based on identifying a sales history that is analogous to a present situation, such as the sales history of a similar product, and using that past pattern to predict future sales. See: management estimation.H

Question 1875

Deck 4

TQC

Answer 1875

Abbreviation for total quality control.T

Question 1876

Deck 4

deterioration

Answer 1876

Product spoilage, damage to the package, and so forth. This is one of the considerations in inventory carrying cost.D

Question 1877

Deck 4

glocalization

Answer 1877

A combination of “globalization” and “localization.” When used in a supply chain context, glocalization is a form of postponement where a product or service is developed for distribution globally but is modified to meet the needs of a local market. The modifications are made to conform with local laws, customs, cultures or preferences.G

Question 1878

Deck 4

liabilities

Answer 1878

An accounting/financial term (balance sheet classification of accounts) representing debts or obligations owed by a company to creditors. Liabilities may have a short-term time horizon, such as accounts payable, or a longer-term obligation, such as mortgage payable or bonds payable. See: assets, balance sheet, debt, owner’s equity.L

Question 1879

Deck 4

capacity pegging

Answer 1879

Displaying the specific sources of capacity requirements. This is analogous to pegging in MRP, which displays the source of material requirements.C

Question 1880

Deck 4

ASN

Answer 1880

Abbreviation for advance ship notice.A

Question 1881

Deck 4

unit of driver measure

Answer 1881

The common unit of measure used to group similar processes, so that comparisons can be made easily.U

Question 1882

Deck 4

cost accounting

Answer 1882

The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products.C

Question 1883

Deck 4

order priority

Answer 1883

The scheduled due date to complete all the operations required for a specific order.O

Question 1884

Deck 4

carload lot

Answer 1884

A shipment that qualifies for a reduced freight rate because it is greater than a specified minimum weight. Since carload rates usually include minimum rates per unit of volume, the higher LCL (less than carload) rate may be less expensive for a heavy but relatively small shipment.C

Question 1885

Deck 4

multiple-channel queuing system

Answer 1885

A waiting line system that has parallel waiting lines with queues.M

Question 1886

Deck 4

net income (loss)

Answer 1886

The final figure in the income statement.N

Question 1887

Deck 4

multiprocessing

Answer 1887

The simultaneous use by a computer of two or more central processing units, with each executing its own instruction set and each controlled by a single operating system.M

Question 1888

Deck 4

stores

Answer 1888

1) Stored materials used in making a product. 2) The room where stored components, parts, assemblies, tools, fixtures, and so forth are kept.S

Question 1889

Deck 4

single-period inventory models

Answer 1889

Inventory models used to define economical or profit maximizing lot-size quantities when an item is ordered or produced only once (e.g., newspapers, calendars, tax guides, greeting cards, or periodicals) while facing uncertain demands. Syn: static inventory models.S

Question 1890

Deck 4

scheduler

Answer 1890

A general term that can refer to a material planner, dispatcher, or a combined function.S

Question 1891

Deck 4

place

Answer 1891

One of the four Ps (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Place is the distribution tactic used to provide the product to the customer. Distribution answers the questions of where, when, and how the product is made available. See: four Ps.P

Question 1892

Deck 4

external factory

Answer 1892

A situation where suppliers are viewed as an extension of the firm’s manufacturing capabilities and capacities. The same practices and concerns that are commonly applied to the management of the firm’s manufacturing system should also be applied to the management of the external factory.E

Question 1893

Deck 4

EPM

Answer 1893

Abbreviation for enterprise performance management.E

Question 1894

Deck 4

labor productivity

Answer 1894

A partial productivity measure, the rate of output of a worker or group of workers per unit of time compared to an established standard or rate of output. Labor productivity can be expressed as output per unit of time or output per labor hour. See: machine productivity, productivity.L

Question 1895

Deck 4

aggregate inventory management

Answer 1895

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

Question 1896

Deck 4

backroom costs

Answer 1896

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

Question 1897

Deck 4

multicurrency

Answer 1897

Having the capability to handle orders using monies from several countries for billing purposes.M

Question 1898

Deck 4

CPI

Answer 1898

1) Abbreviation for continuous process improvement. 2) Abbreviation for cost performance index.C

Question 1899

Deck 4

tangibles

Answer 1899

Things that can be quantitatively measured or valued, such as the costs of physical assets. A dimension of service quality referring to the physical appearance of the service facility, including the personnel and equipment.T

Question 1900

Deck 4

reverse logistics service

Answer 1900

A service that arranges for the disposal of returned products.R

Question 1901

Deck 4

output control

Answer 1901

A technique for controlling output where actual output is compared to planned output to identify problems at the work center or facility.O

Question 1902

Deck 4

economic indicator

Answer 1902

An index of total business activities at the regional, national, and global levels.E

Question 1903

Deck 4

limited access

Answer 1903

Securing inventory, usually in a locked environment, to protect it from theft and to help improve inventory count accuracy.L

Question 1904

Deck 4

queue time

Answer 1904

The amount of time a job waits at a work center before setup or work is performed on the job. Queue time is one element of total manufacturing lead time. Increases in queue time result in direct increases to manufacturing lead time and work-in-process inventories.Q

Question 1905

Deck 4

applications software

Answer 1905

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 1906

Deck 4

expected completion quantity

Answer 1906

The planned quantity of a manufacturing order after expected scrap.E

Question 1907

Deck 4

throughput

Answer 1907

The rate at which the system generates “goal units.” Because throughput is a rate, it is always

Question 1908

Deck 4

load profile

Answer 1908

A display of future capacity requirements based on released and/or planned orders over a given span of time. Syn: load projection. See: capacity requirements plan.L

Question 1909

Deck 4

Delphi method

Answer 1909

A qualitative forecasting technique where the opinions of experts are combined in a series of iterations. The results of each iteration are used to develop the next, so that convergence of the experts’ opinions is obtained. See: management estimation, panel consensus.D

Question 1910

Deck 4

outlier

Answer 1910

A data point that differs significantly from other data for a similar phenomenon. For example, if the average sales for a product were 10 units per month, and one month the product had sales of 500 units, this sales point might be considered an outlier. See: abnormal demand.O

Question 1911

Deck 4

warehousing

Answer 1911

The activities related to receiving, storing, and shipping materials to and from production or distribution locations.W

Question 1912

Deck 4

available inventory

Answer 1912

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

Question 1913

Deck 4

level

Answer 1913

Every part or assembly in a product structure is assigned a level code signifying the relative level in which that part or assembly is used within the product structure. Often times the end items are assigned level 0 with the components and subassemblies going into it assigned to level 1 and so on. The MRP explosion process starts from level 0 and proceeds downward one level at a time.L

Question 1914

Deck 4

overall factors

Answer 1914

Syn: capacity planning using overall factors.O P

Question 1915

Deck 4

split delivery

Answer 1915

A method by which a larger quantity is ordered on a purchase order to secure a lower price, but delivery is divided into smaller quantities and spread out over several dates to control inventory investment, save storage space, and so forth.S

Question 1916

Deck 4

production cycle

Answer 1916

Syn: manufacturing lead time.P

Question 1917

Deck 4

ship-age limit

Answer 1917

The date after which a product cannot be shipped to a customer.S

Question 1918

Deck 4

life cycle assessment (LCA)

Answer 1918

Understanding the human and environmental aspects and impacts during the life of a product, process, or service, including energy, material, and environmental inputs and outputs. Sometimes called cradle-to-grave analysis, LCA includes raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.L

Question 1919

Deck 4

transit inventory

Answer 1919

Inventory in transit between manufacturing and stocking locations. See: transportation inventory.T

Question 1920

Deck 4

commercial speech

Answer 1920

Communication that is primarily for a business purpose. Such speech is protected under the First Amendment to the U.S. Constitution but less so than is noncommercial speech.C

Question 1921

Deck 4

package to order

Answer 1921

A production environment in which a good or service can be packaged after receipt of a customer order. The item is common across many different customers; packaging determines the end product.P

Question 1922

Deck 4

continuous improvement

Answer 1922

The act of making incremental, regular improvements and upgrades to a process or product in the search for excellence.C

Question 1923

Deck 4

customs broker

Answer 1923

A person who manages the paperwork required for international shipping and tracks and moves the shipments through the proper channels.C

Question 1924

Deck 4

adaptive control

Answer 1924

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

Question 1925

Deck 4

attribute inspection

Answer 1925

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

Question 1926

Deck 4

vendor scheduler

Answer 1926

Syn: supplier scheduler.V

Question 1927

Deck 4

blanket routing

Answer 1927

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

Question 1928

Deck 4

surrogate driver

Answer 1928

In activity-based cost accounting, a substitute for the best possible driver that is useful because it is less costly and almost as accurate.S

Question 1929

Deck 4

shop committee

Answer 1929

That committee that represents the union in its relations and negotiations with a company or plant. This is the first stage for the unionized employees to vet complaints.S

Question 1930

Deck 4

inactive inventory

Answer 1930

Stock designated as in excess of consumption within a defined period or stocks of items that have not been used for a defined period.I

Question 1931

Deck 4

discontinuous demand

Answer 1931

A demand pattern that is characterized by large demands interrupted by periods with no demand, as opposed to a continuous or steady (e.g., daily) demand. Syn: lumpy demand.D

Question 1932

Deck 4

defamation

Answer 1932

Injury to another’s reputation by a public utterance: print (libel) or oral (slander).D

Question 1933

Deck 4

bin reserve system

Answer 1933

Syn: two-bin inventory system.B

Question 1934

Deck 4

facilities

Answer 1934

The physical plant, distribution centers, service centers, offices, laboratories, and related equipment.F

Question 1935

Deck 4

vertical merger

Answer 1935

An alliance of two firms where one firm is a supplier to the other.V

Question 1936

Deck 4

strict liability

Answer 1936

A tort doctrine requiring those engaging in very hazardous activities or those manufacturing very hazardous items be held to a high standard of conduct.S

Question 1937

Deck 4

supplier alternate

Answer 1937

A seller other than the primary one. The supplier alternate may or may not supply the items purchased, but is usually approved to supply those items.S

Question 1938

Deck 4

stratification analysis

Answer 1938

A statistical tool for determining root causes in which observed historical data are separated by particular characteristics to determine the effect of each characteristic upon the observed results. See: root cause analysis.S

Question 1939

Deck 4

centralized dispatching

Answer 1939

The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function, which usually reports to the production control department, and the shop manufacturing departments.C

Question 1940

Deck 4

yellow belt

Answer 1940

One who has completed six sigma training in certain hands-on tools.Y

Question 1941

Deck 4

inventory valuation

Answer 1941

The value of the inventory at either its cost or its market value. Because inventory value can change with time, some recognition is taken of the age distribution of inventory. Therefore, the cost value of inventory is usually computed on a FIFO basis, LIFO basis, or a standard cost basis to establish the cost of goods sold.I

Question 1942

Deck 4

exposures

Answer 1942

The number of times per year that the system risks a stockout. The number of exposures is arrived at by dividing the lot size into the annual usage.E

Question 1943

Deck 4

decentralized dispatching

Answer 1943

The organization of the dispatching function into individual departmental dispatchers.D

Question 1944

Deck 4

modal split

Answer 1944

The breakdown of use of transportation modes. Statistics used for the calculation include passenger-miles, ton-miles, and revenue.M

Question 1945

Deck 4

conformance

Answer 1945

An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation.C

Question 1946

Deck 4

cage

Answer 1946

A secure area used to store valuable items.C

Question 1947

Deck 4

inflation

Answer 1947

An ongoing rise in the overall level of prices. Inflation reduces the purchasing power of money.I

Question 1948

Deck 4

visibility

Answer 1948

The ability to view important information throughout a facility or supply chain no matter where in the facility or supply chain the information is located.V

Question 1949

Deck 4

valve inventory

Answer 1949

In a just-in-time context, inventory at a stockpoint that is too large to be located next to the point of use of the material, and from which material is drawn by a pull system. The valve inventory is often located at a stockpoint in the plant’s receiving area.V

Question 1950

Deck 4

composition

Answer 1950

The makeup of an item, typically expressing chemical properties rather than physical properties.C

Question 1951

Deck 4

capital

Answer 1951

Money or resources used to invest in assets that produce products.C

Question 1952

Deck 4

supply

Answer 1952

1) The quantity of goods available for use. 2) The actual or planned replenishment of a product or component. The replenishment quantities are created in response to a demand for the product or component or in anticipation of such a demand.S

Question 1953

Deck 4

imperfection

Answer 1953

A quality characteristic’s departure from its intended level or state without any association to conformance to specification requirements or to the usability of a product or service. See: blemish, defect, nonconformity.I

Question 1954

Deck 4

supply chain inventory visibility

Answer 1954

Software applications that permit monitoring events across a supply chain. These systems track and trace inventory globally on a line-item level and notify the user of significant deviations from plans. Companies are provided with realistic estimates of when material will arrive.S

Question 1955

Deck 4

flow rate

Answer 1955

Running rate; the inverse of cycle time; for example, 360 units per shift (or 0.75 units per minute).F

Question 1956

Deck 4

CAE

Answer 1956

Abbreviation for computer-aided engineering.C

Question 1957

Deck 4

(ASCII)

Answer 1957

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

Question 1958

Deck 4

regression analysis

Answer 1958

A statistical technique for determining the best mathematical expression describing the functional relationship between one response and one or more independent variables. See: least-squares method.R

Question 1959

Deck 4

modification flexibility

Answer 1959

The capability of the transformation process to quickly implement minor product design changes.M

Question 1960

Deck 4

information visibility

Answer 1960

How extensive information is shared throughout a firm and with other stakeholders.I

Question 1961

Deck 4

seven new tools (N7)

Answer 1961

A set of quality improvement tools developed by the Japanese Society for QC Technique Development. The N7 are affinity diagram, interrelationship digraph, matrix diagram, tree diagram, prioritization matrix, process decision program chart, and activity network diagram. See: basic seven tools of quality.S

Question 1962

Deck 4

tardiness

Answer 1962

For jobs that are late, the delivery date minus the due date. See: earliness, lateness.T

Question 1963

Deck 4

and (5) Pure competition

Answer 1963

Many competitors offer undifferentiated products or services.I

Question 1964

Deck 4

operations sequencing

Answer 1964

A technique for short-term planning of actual jobs to be run in each work center based upon capacity (i.e., existing workforce and machine availability) and priorities. The result is a set of projected completion times for the operations and simulated queue levels for facilities.O

Question 1965

Deck 4

house of quality (HOQ)

Answer 1965

A structured process that relates customer-defined attributes to the product’s technical features needed to support and generate these attributes. This technique achieves this mapping by means of a six-step process: (1) identification of customer attributes; (2) identification of supporting technical features; (3) correlation of the customer attributes with the supporting technical features; (4) assignment of priorities to the customer requirements and technical features; (5) evaluation of competitive stances and competitive products; and (6) identification of those technical features to be used (deployed) in the final dehub ● ICC I sign of the product. HOQ is part of the quality function deployment (QFD) process and forces designers to consider customer needs and the degree to which the proposed designs satisfy these needs. See: customerdefined attributes, quality function deployment.H

Question 1966

Deck 4

parameter

Answer 1966

A coefficient appearing in a mathematical expression, each value of which determines the specific form of the expression. Parameters define or determine the characteristics or behavior of something, as when the mean and standard deviation are used to describe a set of data.P

Question 1967

Deck 4

grandfather clause

Answer 1967

A provision that exempts existing entities from a newly created regulation.G

Question 1968

Deck 4

general and administrative expenses (G&A)

Answer 1968

The category of expenses on an income statement that includes the costs of general managers, computer systems, research and development, and more.G generally accepted accounting principles (GAAP) Accounting practices that conform to conventions, rules, and procedures that have general acceptability by the accounting profession.G

Question 1969

Deck 4

rationing

Answer 1969

The allocation of product among consumers. When price is used to allocate product, it is allocated to those willing to pay the most.R

Question 1970

Deck 4

surplus

Answer 1970

A situation in which an oversupply exists.S

Question 1971

Deck 4

alternate part

Answer 1971

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 1972

Deck 4

selling expense

Answer 1972

An expense or class of expense incurred in selling or marketing (e.g., salespersons’ salaries and commissions, advertising, samples, shipping costs).S selling, general, and administrative (SG&A) expenses The fixed costs associated with a company. Examples are salaries, marketing costs, customer service, occupancy expenses, and other overhead. In retail this is called the “cost of selling.”S

Question 1973

Deck 4

production capability

Answer 1973

1) The highest sustainable output rate that could be achieved for a given product mix, raw materials, worker effort, plant, and equipment. 2) The collection of personnel, equipment, material, and process segment capabilities. 3) The total of the current committed, available, and unattainable capability of the production facility. The capability includes the capacity of the resource.P

Question 1974

Deck 4

freight bill

Answer 1974

A freight carrier’s invoice for a shipment.F

Question 1975

Deck 4

price protection

Answer 1975

An agreement by a supplier with a purchaser to grant the purchaser any reduction in price that the supplier may establish on its goods before shipment of the purchaser’s order or to grant the purchaser the lower price should the price increase before shipment. Price protection is sometimes extended for an additional period beyond the date of shipment.P

Question 1976

Deck 4

sample range

Answer 1976

The largest value in a sample minus the smallest value in the sample.S

Question 1977

Deck 4

statistical control

Answer 1977

The situation where variations among the observed samples can be attributed to a constant system of chance causes.S

Question 1978

Deck 4

would like to get

Answer 1978

and the floor is the total variable costs of the product using traditional accounting.C

Question 1979

Deck 4

closed-loop MRP

Answer 1979

A system built around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control processes of input-output (capacity) measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times.C

Question 1980

Deck 4

flexible capacity

Answer 1980

The ability to operate manufacturing equipment at different production rates by varying staffing levels and operating hours or starting and stopping at will.F

Question 1981

Deck 4

team design/engineering

Answer 1981

Syn: participative design/ engineering.T T

Question 1982

Deck 4

in-process waiver requests

Answer 1982

Requests for waivers on normal production procedures because of deviations in materials, equipment, or quality metrics, where normal product specifications are maintained.I

Question 1983

Deck 4

customer satisfaction

Answer 1983

The results of delivering a good or service that meets customer requirements.C

Question 1984

Deck 4

lead capacity strategy

Answer 1984

A capacity strategy in which, as demand increases and is expected to increase, capacity is added prior to the realization of demand.L

Question 1985

Deck 4

logistics channel

Answer 1985

A set of supply chain partners who participate in storage, transportation, and communications that contribute to the flow of goods.L

Question 1986

Deck 4

multimedia files

Answer 1986

Digitized image, video, and audio files that can be retrieved and converted to a form usable by a human.M

Question 1987

Deck 4

contract accounting

Answer 1987

The function of collecting costs incurred on a given job or contract, usually in a progress payment situation. Certain U.S. government contracting procedures require contract accounting.C

Question 1988

Deck 4

laboratory order

Answer 1988

Syn: experimental order.L

Question 1989

Deck 4

POP

Answer 1989

Acronym for point of purchase.P

Question 1990

Deck 4

hold order

Answer 1990

A written order directing that certain operations or work be interrupted or terminated pending a change in design or other disposition of the material. Syn: stop work order.H

Question 1991

Deck 4

labor cost

Answer 1991

The dollar amount of labor performed during manufacturing. This amount is added to direct material cost and overhead cost to obtain total manufacturing cost.L

Question 1992

Deck 4

manufacturing philosophy

Answer 1992

The set of guiding principles, driving forces, and ingrained attitudes that helps communicate goals, plans, and policies to all employees and that is reinforced through conscious and subconscious behavior within the manufacturing organization.M

Question 1993

Deck 4

inventory optimization software

Answer 1993

A computer application having the capability of finding optimal inventory strategies and policies related to customer service and return on investment over several echelons of a supply chain.I

Question 1994

Deck 4

assets

Answer 1994

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

Question 1995

Deck 4

early finish date (EF)

Answer 1995

In the critical path method of project management, the earliest time at which a given activity is estimated to be completed. This date can change as the project is executed.E

Question 1996

Deck 4

tact time

Answer 1996

Syn: takt time.T

Question 1997

Deck 5

order backlog

Answer 1997

Syn: backlog, past due order.O

Question 1998

Deck 5

work package

Answer 1998

In project management, a deliverable at the bottom of a work breakdown structure. This may be treated as a subproject to be assigned to a project manager to plan and execute, in which case this manager will define new activities.W

Question 1999

Deck 5

technology transfer

Answer 1999

The transmission of technology (e.g., knowledge, skills, software, hardware) from one country, organization, business, or entity to another country, organization, business, or entity.T

Question 2000

Deck 5

end-user computing

Answer 2000

Use of computer resources by non-information-system personnel to enter, retrieve, manipulate, or print data.E

Question 2001

Deck 5

SEC

Answer 2001

Abbreviation for the Securities and Exchange Commission (U.S.).S

Question 2002

Deck 5

predictable maintenance

Answer 2002

Syn: predictive maintenance.P

Question 2003

Deck 5

description by market grade/industry standard

Answer 2003

A method to identify a product or service required when there is a high level of understanding between user and supplier.D

Question 2004

Deck 5

days outstanding

Answer 2004

A term used to imply the amount of an asset or liability measured in days of sales. For example, accounts payable days are the typical number of days that a firm delays payments of invoices to its suppliers.D

Question 2005

Deck 5

risk category

Answer 2005

A cluster of risk causes with a label such as external, environmental, technical, or organizational.R

Question 2006

Deck 5

body of knowledge

Answer 2006

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

Question 2007

Deck 5

indicator

Answer 2007

An index of business activities.I

Question 2008

Deck 5

control limit

Answer 2008

A statistically determined line on a control chart (upper control limit or lower control limit). If a value occurs outside of this limit, the process is deemed to be out of control.C

Question 2009

Deck 5

seller’s market

Answer 2009

A market condition in which goods cannot easily be secured (purchased) and when the economic forces of business tend to cause goods to be priced at the supplier’s estimate of value.S

Question 2010

Deck 5

logistics system

Answer 2010

The planning and coordination of the physical movement aspects of a firm’s operations such that a flow of raw materials, parts, and finished goods is achieved in a manner that minimizes total costs for the levels of service desired.L L

Question 2011

Deck 5

off-grade

Answer 2011

A product whose physical or chemical properties fall outside the acceptable ranges.O

Question 2012

Deck 5

perceived quality

Answer 2012

One of the eight dimensions of quality that refers to a subjective assessment of a product’s quality based on criteria defined by the observer.P

Question 2013

Deck 5

contactless

Answer 2013

Using radio frequency identification or similar technologies to record data about an item electronically without physical contact with the item.C

Question 2014

Deck 5

process capability

Answer 2014

Refers to the ability of the process to produce parts that conform to (engineering) specifications. Process capability relates to the inherent variability of a process that is in a state of statistical control. See: Cp, Cpk, process capability analysis.P

Question 2015

Deck 5

run-out list

Answer 2015

1) A list of items to be scheduled into production in sequence by the dates at which the present available stock is expected to be exhausted. 2) A statement of ingredients required to use up an available S resource (e.g., how much “a” resource is required to consume 300 pounds of “x”).R

Question 2016

Deck 5

functional manager

Answer 2016

A manager responsible for a specialized department, such as accounting or engineering.F

Question 2017

Deck 5

P:D ratio

Answer 2017

A ratio where P is the manufacturing lead time and D is the customer required delivery time. If the P:D ratio exceeds 1.00, either a customer’s order will be delayed or production will start as the result of a forecast (make-to-stock) or an anticipated customer order (make-to-order).P

Question 2018

Deck 5

B2B

Answer 2018

Abbreviation for business-to-business commerce.B

Question 2019

Deck 5

specification

Answer 2019

A clear, complete, and accurate statement of the technical requirements of a material, an item, or a service, and of the procedure to determine if the requirements are met.S

Question 2020

Deck 5

RAM

Answer 2020

Abbreviation for responsibility assignment matrix.R

Question 2021

Deck 5

accreditation

Answer 2021

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

Question 2022

Deck 5

just in time (JIT)

Answer 2022

A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery, and includes all stages of conversion from raw material onward. The primary elements of just in time are to have only the required inventory when needed; to improve quality to zero defects; to reduce lead times by reducing setup times, queue lengths, and lot sizes; to incrementally revise the operations themselves; and to accomplish these activities at minimum cost. In the broad sense, it applies to

Question 2023

Deck 5

vendor-managed inventory (VMI)

Answer 2023

A means of optimizing supply chain performance in which the supplier has access to the customer’s inventory data and is responsible for maintaining the inventory level required by the customer. This activity is accomplished by a process in which resupply is done by the vendor through regularly scheduled reviews of the on-site inventory. The on-site inventory is counted, damaged or outdated goods are removed, and the inventory is restocked to predefined V levels. The vendor obtains a receipt for the restocked inventory and accordingly invoices the customer. See: continuous replenishment.V

Question 2024

Deck 5

centralized computer network

Answer 2024

A network in which there is one computer (or possibly more) linked to all others in a given enterprise.C

Question 2025

Deck 5

bin

Answer 2025

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

Question 2026

Deck 5

contribution margin pricing

Answer 2026

A method of setting prices based on the contribution margin. It provides a ceiling and a floor between which the price setter operates.

Question 2027

Deck 5

cost, insurance, freight (CIF)

Answer 2027

A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.C

Question 2028

Deck 5

serial number

Answer 2028

A unique number assigned for identification to a single piece that will never be repeated for similar pieces. Serial numbers are usually applied by the manufacturer but can be applied at other points, including by the distributor or wholesaler.S

Question 2029

Deck 5

economic infrastructure

Answer 2029

A nation’s networks for supporting commerce, including transportation, communications, and finance.E

Question 2030

Deck 5

backflush costing

Answer 2030

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

Question 2031

Deck 5

KPI

Answer 2031

Abbreviation for key performance indicator.K L

Question 2032

Deck 5

units-of-production depreciation

Answer 2032

A method of depreciation whereby the amount to be recovered (written off as a period expense) is calculated based on estimated life of the equipment in units to be produced over the life and the number of units produced in a given time period. See: depreciation.U

Question 2033

Deck 5

reverse engineering

Answer 2033

The process of disassembling, evaluating, and redesigning a competitor’s product for the purpose of manufacturing a product with similar characteristics without violating any of the competitor’s proprietary manufacturing technologies.R

Question 2034

Deck 5

XML

Answer 2034

Abbreviation for extensible markup language.X Y

Question 2035

Deck 5

common material

Answer 2035

Readily available items used in industry that require no special handling.C

Question 2036

Deck 5

business unit

Answer 2036

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

Question 2037

Deck 5

purchase consolidation

Answer 2037

The pooling of purchasing requirements by multiple areas in a company, or even across companies.P

Question 2038

Deck 5

data transfer

Answer 2038

The movement by electronic means of data from one location to another. The data can take the form of voice, text, image, or others. The movement is accomplished by communication links between computers and a variety of input/output devices.D

Question 2039

Deck 5

automatic rescheduling

Answer 2039

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

Question 2040

Deck 5

shop traveler

Answer 2040

Syn: traveler.S

Question 2041

Deck 5

obligated material

Answer 2041

Syn: reserved material.O

Question 2042

Deck 5

block stacking

Answer 2042

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 2043

Deck 5

schedule control

Answer 2043

Control of a plant floor by schedules rather than by job orders (called order control). Schedules are derived by taking requirements over a period of time and dividing by the number of workdays allowed to run the parts or assemblies. Production completed is compared with the schedule to provide control. This type of control is most frequently used in repetitive and process manufacturing.S

Question 2044

Deck 5

slack time rule

Answer 2044

A dispatching rule that directs the sequencing of jobs based on slack time. Slack time is equal to (days left until due date × hrs/day) minus standard hours of work left on this specific job; for example, (5 × 8) – 12 = 28 hours of slack. The lower the amount of slack time, the higher the priority in sequencing of jobs.S

Question 2045

Deck 5

purchase requisition

Answer 2045

An authorization to the purchasing department to purchase specified materials in specified quantities within a specified time. See: parts requisition.P

Question 2046

Deck 5

technical components

Answer 2046

Parts that are difficult to make, have long lead times, and require expert knowledge to produce. They are parts that are produced by only a few suppliers because of these characteristics. Tooling to produce these products usually is owned by the customer to avoid proprietary or patent issues.T

Question 2047

Deck 5

probable scheduling

Answer 2047

A variant of scheduling that considers slack time to increase or decrease the calculated lead time of an order. Interoperation and administrative lead time components are expanded or compressed by a uniform “stretching factor” until no difference exists between the schedule of operations obtained by forward and backward scheduling. See: lead time scheduling.P

Question 2048

Deck 5

integrated resource management (IRM)

Answer 2048

Syn: resource management.I

Question 2049

Deck 5

EAC

Answer 2049

Abbreviation for estimate at completion.E

Question 2050

Deck 5

scrap rate

Answer 2050

Syn: scrap factor.S

Question 2051

Deck 5

lading

Answer 2051

The cargo being transported by a vehicle.L

Question 2052

Deck 5

clicks and mortar

Answer 2052

Refers to a brick and mortar company that also has succeeded in making online sales. Ant: bricks and mortar.C

Question 2053

Deck 5

foreign freight forwarder

Answer 2053

An entity that picks up goods at the production site and coordinates transport to the foreign customer’s location.F

Question 2054

Deck 5

uniform product code

Answer 2054

A retail product numbering and bar coding system that identifies the item and the manufacturer. U

Question 2055

Deck 5

requirements definitions

Answer 2055

Specifying the inputs, files, processing, and outputs for a new system, but without expressing computer alternatives and technical details.R

Question 2056

Deck 5

point-of-use storage

Answer 2056

Keeping inventory in specified locations on a plant floor near the operation where it is to be used.P

Question 2057

Deck 5

customer service representative (CSR)

Answer 2057

Personnel assigned to customer relations who answer customer questions and who provide technical support.C

Question 2058

Deck 5

point-of-use inventory

Answer 2058

Inventory placed in the production process near where it is used. See: dock-to-stock inventory.P P

Question 2059

Deck 5

cycle time

Answer 2059

1) In industrial engineering, the time between completion of two discrete units of production. For example, the cycle time of motors assembled at a rate of 120 per hour would be 30 seconds. 2) In materials management, it refers to the length of time from when material enters a production facility until it exits. Syn: throughput time.C

Question 2060

Deck 5

deficiency

Answer 2060

Failure to meet quality standards.D

Question 2061

Deck 5

military standards

Answer 2061

Product standards and specifications for military or defense contractors, units, suppliers, and so forth. These standards sometimes become de facto standards within the civilian community.M

Question 2062

Deck 5

work measurement

Answer 2062

Estimating how long it takes for an employee to produce one unit of output.W

Question 2063

Deck 5

cost-benefit ratio

Answer 2063

A ratio of total measurable benefits to the initial capital cost. This might be used in deciding which projects to pursue in a continuous improvement effort.C

Question 2064

Deck 5

cybermarketing

Answer 2064

Any type of internet-based promotion. Many marketing managers use the term to refer to any type of computer-based marketing.C D

Question 2065

Deck 5

green manufacturing

Answer 2065

A method of producing a good or service that minimizes external cost and pollution. It includes design for reuse, design for disassembly, and design for remanufacture. See: environmentally responsible business.G

Question 2066

Deck 5

automated information system (AIS)

Answer 2066

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

Question 2067

Deck 5

T&M

Answer 2067

Abbreviation for time and materials.T

Question 2068

Deck 5

warrant of merchantability

Answer 2068

An implied warranty that goods are fit for the use to which they are generally applied.W

Question 2069

Deck 5

acid test

Answer 2069

Syn: quick asset ratio.A

Question 2070

Deck 5

service rate

Answer 2070

In queuing theory, the rate at which arrivals are processed through the production or service system, in arrivals per unit of time. See: queuing theory.S

Question 2071

Deck 5

inventory pooling

Answer 2071

The act of holding inventory in a single location instead of multiple locations.I

Question 2072

Deck 5

multiple sourcing

Answer 2072

Syn: multisourcing. See: dual sourcing.M

Question 2073

Deck 5

CSCMP

Answer 2073

Abbreviation for Council of Supply Chain Management Professionals.C

Question 2074

Deck 5

multiskilled

Answer 2074

Individuals who are capable of carrying out a variety of tasks.M N

Question 2075

Deck 5

supplier base

Answer 2075

The group of suppliers from which a firm acquires goods and services. Syn: supply base.S

Question 2076

Deck 5

inventory adjustment

Answer 2076

A change made to an inventory record to correct the balance, to bring it in line with actual physical inventory balances. The adjustment either increases or decreases the item record on-hand balance.I

Question 2077

Deck 5

ceteris paribus

Answer 2077

Latin for all other things being the same.C

Question 2078

Deck 5

acceptable outgoing quality level (AOQL)

Answer 2078

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

Question 2079

Deck 5

operation description

Answer 2079

The details or description of an activity or operation to be performed. The operation description is normally contained in the routing document and could include setup instructions, operating instructions (feeds, speeds, heats, pressure, etc.), and required product specifications or tolerances.O

Question 2080

Deck 5

optical scanning

Answer 2080

A technique for machine recognition of characters by their images.O

Question 2081

Deck 5

maximum allowable cost

Answer 2081

In service organizations, the limit of reimbursement allowed by an agency for the cost of a supply item.M

Question 2082

Deck 5

repair factor

Answer 2082

The percentage of time on average that an item must be repaired for return to a serviceable condition. The repair factor is also expressed as a percentage applied to the quantity per assembly on the bill of material. It is useful for forecasting materials and capacity requirements for planning purposes. Syn: frequency of repair. See: occurrence factor, replacement factor.R

Question 2083

Deck 5

retrofit

Answer 2083

An item that replaces components originally installed on equipment; a modification to in-service equipment.R

Question 2084

Deck 5

replenishment interval

Answer 2084

Syn: replenishment period.R

Question 2085

Deck 5

analytic workplace design

Answer 2085

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

Question 2086

Deck 5

R&D

Answer 2086

Abbreviation for research and development.R

Question 2087

Deck 5

plant rate

Answer 2087

The total value added by a plant divided by the total direct labor hours in particular time period. This percentage allows the scheduling at the rough cut and capacity requirements level of the plan.P

Question 2088

Deck 5

materials requisition

Answer 2088

1) An authorization that identifies the items and quantities to be withdrawn from inventory. 2) An authorization that identifies the items and quantities to be included in a purchase order. Syn: production materials requisition.M

Question 2089

Deck 5

base stock system

Answer 2089

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

Question 2090

Deck 5

methods analysis

Answer 2090

That part of methods engineering normally involving an examination and analysis of an operation or a work cycle broken down into its constituent parts to improve the operation, eliminate unnecessary steps, and/or establish and record in detail a proposed method of performance.M

Question 2091

Deck 5

direct truck shipment

Answer 2091

Shipment made without any additional stops, such as for loading or changing trucks.D

Question 2092

Deck 5

alternate work center

Answer 2092

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

Question 2093

Deck 5

channel partners

Answer 2093

Suppliers, manufacturers, distributors, and retailers who form a supply chain to make and distribute a set of products.C

Question 2094

Deck 5

seven categories of waste: (1) overproduction

Answer 2094

excess

Question 2095

Deck 5

manufacturing instruction

Answer 2095

A set of detailed instructions for carrying out a manufacturing process. It is usually referenced by the routing and thus can simplify the content of the routing.M

Question 2096

Deck 5

licensing

Answer 2096

Paying a fee for permission to manufacture and sell a product created by another.L

Question 2097

Deck 5

turnover

Answer 2097

1) Syn: inventory turnover. 2) In the United Kingdom and certain other countries, annual sales volume.T

Question 2098

Deck 5

inventory turnover

Answer 2098

The number of times that an inventory cycles, or “turns over,” during the year. A frequently used method to compute inventory turnover is to divide the average inventory level into the annual cost of sales. For example, an average inventory of $3 million divided into an annual cost of sales of $21 million means that inventory turned over seven times. Syn: inventory turns, turnover. See: inventory velocity.I

Question 2099

Deck 5

Taguchi methodology

Answer 2099

A concept of off-line quality control methods conducted at the product and process design stages in the product development cycle. This concept, expressed by Genichi Taguchi, encompasses three phases of product design: system design, parameter design, and tolerance design. The goal is to reduce quality loss by reducing the variability of the product’s characteristics during the parameter phase of product development. Syn: Taguchi methods.T

Question 2100

Deck 5

certification audits

Answer 2100

Audits occurring within registration processes (e.g., for ISO 9000:2000).C Certified Fellow in Production and Inventory

Question 2101

Deck 5

scheduled load

Answer 2101

The standard hours of work required by scheduled receipts (i.e., open production orders).S

Question 2102

Deck 5

warehouse

Answer 2102

A place to receive, store, and ship materials.W

Question 2103

Deck 5

center-of-gravity approach

Answer 2103

A methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.C

Question 2104

Deck 5

decoupling points

Answer 2104

The locations in the product structure or distribution network where inventory is placed to create independence between processes or entities. Selection of decoupling points is a strategic decision that determines customer lead times and inventory investment. See: control points.D

Question 2105

Deck 5

industrial buyers

Answer 2105

Buyers who purchase materials mainly for conversion.I

Question 2106

Deck 5

logistics data interchange (LDI)

Answer 2106

The electronic transmission of logistics information via computer systems.L

Question 2107

Deck 5

current start date

Answer 2107

In project management, the present estimate of an activity’s start date.C

Question 2108

Deck 5

planned order

Answer 2108

A suggested order quantity, release date, and due date created by the planning system’s logic when it encounters net requirements in processing MRP. In some cases, it can also be created by a master scheduling module. Planned orders are created by the computer, exist only within the computer, and may be changed or deleted by the computer during subsequent processing if conditions change. Planned orders at one level will be exploded into gross requirements for components at the next level. Planned orders, along with released orders, serve as input to capacity requirements planning to show the total capacity requirements by work center in future time periods. See: planning time fence.P

Question 2109

Deck 5

forecast management

Answer 2109

The process of making, checking, correcting, and using forecasts. It also includes determination of the forecast horizon.F forecast mean absolute percentage of error (FMAPE) The absolute error divided by actual demand for “n” periods. Where absolute error is the variation between the actual demand and the forecast for the period expressed as a positive value (without regard for sign).F

Question 2110

Deck 5

backsourcing

Answer 2110

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

Question 2111

Deck 5

move card

Answer 2111

In a just-in-time context, a card or other signal indicating that a specific number of units of a particular item are to be taken from a source (usually an outbound stockpoint) and taken to a point of use (usually an inbound stockpoint). It authorizes the movement of one part number between a single pair of work centers. The card circulates between the outbound stockpoint of the supplying work center and the inbound stockpoint of the using work center. Syn: move signal. See: kanban.M

Question 2112

Deck 5

ethical standards

Answer 2112

A set of guidelines for proper conduct by business professionals. For example, the ISM (formerly NAPM) provides a set of principles and standards for the proper conduct of purchasing activities.E

Question 2113

Deck 5

first-mover advantage

Answer 2113

The phenomenon of market leadership being gained through market innovation.F

Question 2114

Deck 5

control

Answer 2114

Comparing actual to planned performance and taking corrective action, as needed, to align performance with plan.C

Question 2115

Deck 5

inventory costs

Answer 2115

Costs associated with ordering and holding inventory. See: carrying costs, ordering cost.I

Question 2116

Deck 5

interplant transfer

Answer 2116

The shipment of a part or product by one plant to another plant or division within the corporation. See: interplant demand, transfer pricing.I

Question 2117

Deck 5

lot splitting

Answer 2117

Dividing a lot into two or more sublots and simultaneously processing each sublot on identical (or very similar) facilities as separate lots, usually to compress lead time or to expedite a small quantity. Syn: operation splitting.L M

Question 2118

Deck 5

retainage

Answer 2118

A percentage of a contract value that is withheld pending project completion and approval.R

Question 2119

Deck 5

attractor

Answer 2119

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

Question 2120

Deck 5

price

Answer 2120

One of the four Ps (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Price is the amount charged for the product offering. The price set must take into account competition, substitute products, and internal business costs to return a desirable product margin. See: four Ps.P

Question 2121

Deck 5

business-to-consumer sales (B2C)

Answer 2121

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

Question 2122

Deck 5

direct sales

Answer 2122

Sales from the manufacturer to the ultimate consumer without going through a distributor or retailer.D

Question 2123

Deck 5

intermodal transport

Answer 2123

1) Shipments moved by different types of equipment combining the best features of each mode. 2) The use of two or more different carrier modes in the through movement of a shipment.I

Question 2124

Deck 5

mixed-model production

Answer 2124

Making several different parts or products in varying lot sizes so that a factory produces close to the same mix of products that will be sold that day. The mixed-model schedule governs the making and the delivery of component parts, including those provided by outside suppliers. The goal is to build every model every day, according to daily demand.M

Question 2125

Deck 5

scientific management

Answer 2125

Managing a production system using scientific principles. Usually refers to the principles established by Frederick Taylor.S

Question 2126

Deck 5

marginal pricing

Answer 2126

Pricing products at a markup over the marginal cost of producing the next item. Marginal costs generally include the variable cost of producing and selling an additional item.M

Question 2127

Deck 5

green belt

Answer 2127

A manager or team member who has been trained in six sigma improvement methods and will have full-time responsibilities for process and quality improvement.G

Question 2128

Deck 5

project duration

Answer 2128

The elapsed duration from project start date through project finish date.P

Question 2129

Deck 5

relationship map

Answer 2129

A graphic map of the relationship between the business functions. It shows the inputs and outputs flow across functions. It is useful to show how processes are currently performed, disconnections in processes, and proposed processes. Relationship maps show the products and services of a given unit, how work flows through organizational boundaries, and the relationships between functions represented by boxes in the map.R

Question 2130

Deck 5

days of supply

Answer 2130

Inventory-on-hand metric converted from units to how long the units will last. For example, if there are 2,000 units on hand and the company is using 200 per day, than there are 10 days of supply.D

Question 2131

Deck 5

for loss

Answer 2131

either money, property, or human life.C

Question 2132

Deck 5

critical chain method

Answer 2132

In the theory of constraints, a network planning technique for the analysis of a project’s completion time, used for planning and controlling project activities. The critical chain, which determines project duration, is based on technological and resource constraints. Strategic buffering of paths and resources is used to increase project completion success. See: critical chain, critical path method.C

Question 2133

Deck 5

national stock number (NSN)

Answer 2133

The individual identification number assigned to an item to permit inventory management in the U.S. supply system.N

Question 2134

Deck 5

strategic mission

Answer 2134

A statement of the future business scope of an enterprise. The statement incorporates what is being satisfied (customer needs), who is being satisfied (customer groups), and how the company creates value for the customer (processes, technologies, and core competencies).S

Question 2135

Deck 5

early start date (ES)

Answer 2135

In the critical path method of project management, the earliest time at which a given activity is estimated to begin. This date can change as the project is executed.E

Question 2136

Deck 5

matrix diagram

Answer 2136

A graphical technique used to analyze the relationship between two related groups of ideas.M

Question 2137

Deck 5

store

Answer 2137

A storage point located upstream of a work station intended to make it easier to see customer requirements.S

Question 2138

Deck 5

wave picking

Answer 2138

A method of selecting and sequencing picking lists to minimize the waiting time of the delivered material. Shipping orders may be picked in waves combined by common carrier or destination, and manufacturing orders in waves related to work centers.W

Question 2139

Deck 5

fluctuation inventory

Answer 2139

Inventory that is carried as a cushion to protect against forecast error. Syn: fluctuation stock. See: inventory buffer.F

Question 2140

Deck 5

smoothing models

Answer 2140

Another name for forecasting models that utilize moving averages. The forecast is “smoothed” in the sense that averages have less variability than individual periods.S

Question 2141

Deck 5

MAP

Answer 2141

Acronym for manufacturing automation protocol.M

Question 2142

Deck 5

reorder cycle

Answer 2142

Syn: replenishment lead time.R

Question 2143

Deck 5

available capacity

Answer 2143

Syn: capacity available.A

Question 2144

Deck 5

co-destiny

Answer 2144

The evolution of a supply chain from intraorganizational management to interorganizational management.C

Question 2145

Deck 5

composite lead time

Answer 2145

Syn: cumulative lead time.C

Question 2146

Deck 5

cargo

Answer 2146

A product shipped in an aircraft, railroad car, ship, barge, or truck.C

Question 2147

Deck 5

actual duration

Answer 2147

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

Question 2148

Deck 5

hard copy

Answer 2148

A printed report, message, or special listing.H

Question 2149

Deck 5

goodwill

Answer 2149

An intangible item that is only recorded on a company’s books as the result of a purchase. Generally, it is inseparable from the enterprise but makes the company more valuable, for example, a good reputation.G

Question 2150

Deck 5

first-come-first-served rule

Answer 2150

A dispatching rule under which the jobs are sequenced by their arrival times. See: first-in, first-out.F

Question 2151

Deck 5

operation chart

Answer 2151

Syn: routing.O

Question 2152

Deck 5

human factors engineering

Answer 2152

A merging of those branches of engineering and the behavioral sciences that concern themselves principally with the human component in the design and operation of humanmachine systems. Human factors engineering is based on a fundamental knowledge and study of human physical and mental abilities and emotional characteristics.H

Question 2153

Deck 5

lot number

Answer 2153

A unique identification assigned to a homogeneous quantity of material. Syn: batch number, mix number.L

Question 2154

Deck 5

predictive maintenance

Answer 2154

A type of preventive maintenance based on nondestructive testing and statistical analysis, used to predict when required maintenance should be scheduled. Syn: predictable maintenance.P

Question 2155

Deck 5

delivery reliability

Answer 2155

A performance criterion that measures how consistently goods and services are delivered on, or before, the promised time.D

Question 2156

Deck 5

two-level master schedule

Answer 2156

A master scheduling approach in which a planning bill of material is used to master schedule an end product or family, along with selected key features (options and accessories). See: hedge, multilevel master schedule, production forecast.T

Question 2157

Deck 5

PPAP

Answer 2157

Abbreviation for production part approval process.P

Question 2158

Deck 5

demographic segmentation

Answer 2158

In marketing, dividing potential markets by characteristics of potential customers, such as age, sex, income, and education.D

Question 2159

Deck 5

touch labor

Answer 2159

Syn: direct labor.T T

Question 2160

Deck 5

hierarchical database

Answer 2160

A method of constructing a database that requires that related record types be linked in tree-like structures, where no child record can have more than one physical parent record.H

Question 2161

Deck 5

batch card

Answer 2161

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

Question 2162

Deck 5

yield factor

Answer 2162

A measurement of the yield of a process. For a specific process or operation, yield factor + scrap factor = 1. See: scrap factor, yield.Y

Question 2163

Deck 5

operating characteristic curve (OC curve)

Answer 2163

A graph used to determine the probability of accepting lots as a function of the quality level of the lots or processes when using various sampling plans. There are three types: Type A curves, which give the probability of acceptance for an individual lot coming from finite production (will not continue in the future); Type B curves, which give the probability of acceptance for lots coming from a continuous process; and Type C curves, which, for a continuous sampling plan, give the long-run percentage of product accepted during the sampling phase.O

Question 2164

Deck 5

collaborative forecasting

Answer 2164

The process for collecting and reconciling information from within and outside the organization to come up with a single projection of demand.C

Question 2165

Deck 5

continuous process improvement (CPI)

Answer 2165

A never-ending effort to expose and eliminate root causes of problems: small-step improvement as opposed to big-step improvement. Syn: continuous improvement. See: kaizen.C

Question 2166

Deck 5

target costing

Answer 2166

The process of designing a product to meet a specific cost objective. Target costing involves setting the planned selling price, subtracting the desired profit as well as marketing and distribution costs, thus leaving the required manufacturing or target cost.T

Question 2167

Deck 5

on-demand

Answer 2167

Work is completed only when demand occurs. More specifically, it is a process in which a product or service is made only after an order is placed for that product or service.O

Question 2168

Deck 5

VBM

Answer 2168

Abbreviation for value-based management.V

Question 2169

Deck 5

metered issues

Answer 2169

Issues of parts or materials from stores in quantities that correspond to the rate at which materials are used.M

Question 2170

Deck 5

secure electronic transaction (SET)

Answer 2170

In e-commerce, a system for guaranteeing the security of financial transactions conducted over the internet.S

Question 2171

Deck 5

(NAPM)

Answer 2171

A nonprofit society for purchasing managers and others, now known as the Institute for Supply Management (ISM).N

Question 2172

Deck 5

systems analysis

Answer 2172

1) The analyzing in detail of the information needed for an organization, the characteristics and components of the current information system, and the requirements of any proposed changes to the information system. 2) A method of problem solving that encompasses the identification, study, and evaluation of interdependent parts and their attributes that function in an ongoing process and that constitute an organic whole.S

Question 2173

Deck 5

automated assembly system

Answer 2173

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

Question 2174

Deck 5

machine-limited capacity

Answer 2174

A production environment where a specific machine limits throughput of the process. See: constraint, throughput.M

Question 2175

Deck 5

price break

Answer 2175

A discount given for paying early, buying in quantity, and so forth. See: discount.P P

Question 2176

Deck 5

stockless production

Answer 2176

Syn: just in time.S

Question 2177

Deck 5

analog

Answer 2177

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

Question 2178

Deck 5

turnover ratio

Answer 2178

An indicator of whether or not a company is using its assets efficiently. It is measured by dividing sales by average assets during a particular period.T

Question 2179

Deck 5

chain reaction

Answer 2179

A chain of events proposed by W. Edwards Deming: improve quality, and costs will go down because of less scrap and rework, while revenues will go up because the company will be able to sell more product at higher prices. Thus, better quality means more profitability.C

Question 2180

Deck 5

activity-on-arrow network (AOA)

Answer 2180

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

Question 2181

Deck 5

cellular manufacturing

Answer 2181

A manufacturing process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell.C

Question 2182

Deck 5

QRP

Answer 2182

Abbreviation for quick-response program.Q

Question 2183

Deck 5

SET

Answer 2183

Acronym for secure electronic transaction.S

Question 2184

Deck 5

capacity available

Answer 2184

The capability of a system or resource to produce a quantity of output in a particular time period. Syn: available capacity. See: capacity, available time.C

Question 2185

Deck 5

operation number

Answer 2185

A sequential number, usually two, three, or four digits long, such as 010, 020, 030, that indicates the sequence in which operations are to be performed within an item’s routing.O

Question 2186

Deck 5

infinite scheduling

Answer 2186

Syn: infinite loading.I

Question 2187

Deck 5

job

Answer 2187

1) The combination of tasks, duties, and responsibilities assigned to an individual employee and usually considered his or her work assignment. 2) The contents of a work order.J

Question 2188

Deck 5

layoff

Answer 2188

The process by which employees that are not needed for some extended amount of time are given notice that their services are not needed. Benefits may or may not continue in a layoff.L

Question 2189

Deck 5

deposition

Answer 2189

The sworn questioning, outside of court, of a potential witness by the other side’s attorney.D

Question 2190

Deck 5

exit interview

Answer 2190

An interview given to an employee who is leaving the company. The purpose is to find out why a person is leaving, what was liked and disliked about the job and the company, and what changes would make the department and the company a better place to work.E

Question 2191

Deck 5

moving average forecast

Answer 2191

A forecasting technique that uses a simple moving average or a weighted moving average projected forward as a forecast.M

Question 2192

Deck 5

planned order release

Answer 2192

A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time. See: order release.P

Question 2193

Deck 5

random component

Answer 2193

A component of demand usually describing the impact of uncontrollable variation on demand. See: decomposition, time series analysis.R

Question 2194

Deck 5

(CPIM)

Answer 2194

The APICS designation that is a recognition of a high level of professional knowledge in production and inventory management.C

Question 2195

Deck 5

total quality control (TQC)

Answer 2195

The process of creating and producing the total composite good and service characteristics (by marketing, engineering, manufacturing, purchasing, etc.) through which the good and service will meet the expectations of customers.T

Question 2196

Deck 5

American customer satisfaction index

Answer 2196

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

Question 2197

Deck 5

absentee rate

Answer 2197

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

Question 2198

Deck 5

baud

Answer 2198

The number of bits transmitted per second.B

Question 2199

Deck 5

terminal delivery allowance

Answer 2199

A discount provided if freight is delivered to or picked up from the carrier’s terminal.T

Question 2200

Deck 5

mura

Answer 2200

A Japanese word meaning unevenness or variability.M

Question 2201

Deck 5

harmonized system classification codes

Answer 2201

An internationally standardized description of goods that uses a system of numbers to provide increasingly detailed classification and descriptions.H

Question 2202

Deck 5

affinity diagram

Answer 2202

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

Question 2203

Deck 5

fixed-asset turnover

Answer 2203

Sales divided by net fixed assets. Fixed assets reflect asset acquisition price less depreciation.F

Question 2204

Deck 5

just-in-time purchasing

Answer 2204

This type of purchasing uses few suppliers who have long-term commitments with the organization. Long-term contracts are used, which enable the purchaser to develop and certify the quality process at the supplier.J K

Question 2205

Deck 5

local area network (LAN)

Answer 2205

A high-speed data communication system for linking computer terminals, programs, storage, and graphic devices at multiple workstations distributed over a relatively small geographic area such as a building or campus.L

Question 2206

Deck 5

undesirable effects (UDE)

Answer 2206

In theory of constraints: Those negative aspects of an environment that are noted so that a current reality tree may be constructed.U

Question 2207

Deck 5

email

Answer 2207

Acronym for electronic mail.E

Question 2208

Deck 5

profitability

Answer 2208

A measure of the excess income over expenditure during a given period of time.P

Question 2209

Deck 5

product group

Answer 2209

Syn: product line.P

Question 2210

Deck 5

change agent

Answer 2210

A person who facilitates change within an organization. This person may or may not be within the organization and may or may not be the initiator of the change.C

Question 2211

Deck 5

bottleneck operation

Answer 2211

Syn: bottleneck.B

Question 2212

Deck 5

capacity

Answer 2212

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

Question 2213

Deck 5

demand management

Answer 2213

1) The function of recognizing all demands for goods and services to support the marketplace. It involves prioritizing demand when supply is lacking. Proper demand management facilitates the planning and use of resources for profitable business results. 2) In marketing, the process of planning, executing, controlling, and monitoring the design, pricing, promotion, and distribution of products and services to bring about transactions that meet organizational and individual needs. Syn: marketing management. See: demand planning.D

Question 2214

Deck 5

virtual organization

Answer 2214

Short-term alliances between independent organizations in a potentially long-term relationship to design, produce, and distribute a product. Organizations cooperate based on mutual values and act as a single entity to third parties.V W

Question 2215

Deck 5

M-day calendar

Answer 2215

Syn: manufacturing calendar.M

Question 2216

Deck 5

queue

Answer 2216

A waiting line. In manufacturing, the jobs at a given work center waiting to be processed. As queues increase, so do average queue time and work-inprocess inventory.Q

Question 2217

Deck 5

replanning frequency

Answer 2217

In an MRP system, the amount of time between successive runs of the MRP model. If the planner does not run MRP frequently enough, the material plan becomes inaccurate as material requirements and inventory status change with the passage of time.R

Question 2218

Deck 5

layout

Answer 2218

Physical arrangement of resources or centers of economic activity (machines, groups of people, workstations, storage areas, aisles, etc.) within a facility. Layouts include product (linear or line), functional (job shop or process), cellular, and fixed position.L

Question 2219

Deck 5

limited partnership

Answer 2219

A partnership having two types of partners: (1) limited partners contribute assets to the company without participating in management and (2) general partners manage the company and are responsible for all debts.L

Question 2220

Deck 5

total costs

Answer 2220

Considering all cost impacts, rather than just one cost impact, on customer service improvement.T

Question 2221

Deck 5

project

Answer 2221

An endeavor with a specific objective to be met within predetermined time and dollar limitations and that has been assigned for definition or execution. See: project manufacturing, project management.P

Question 2222

Deck 5

front room

Answer 2222

The place where the customer comes into contact with the service operation. Many service operations contain front room and back room operations. See: back room.F

Question 2223

Deck 5

count-per-unit chart

Answer 2223

Syn: U chart.C

Question 2224

Deck 5

product diversification

Answer 2224

A marketing strategy that seeks to develop new products to supply current markets.P

Question 2225

Deck 5

outbound consolidation

Answer 2225

The gathering of a number of small shipments to a variety of customers into a larger load, which is then shipped to a point near the customers where it is broken down for delivery.O

Question 2226

Deck 5

optical character

Answer 2226

A printed character frequently used in utilities billing and credit applications that can be read by a machine without the aid of magnetic ink.O

Question 2227

Deck 5

quotation

Answer 2227

A statement of price, terms of sale, and description of goods or services offered by a supplier to a prospective purchaser; a bid. When given in response to an inquiry, it is usually considered an offer to sell. See: bid.Q

Question 2228

Deck 5

statistical order point system

Answer 2228

Syn: order point system.S

Question 2229

Deck 5

order point system

Answer 2229

The inventory method that places an order for a lot whenever the quantity on hand is reduced to a predetermined level known as the order point. Syn: statistical order point system. See: fixed reorder quantity inventory model, hybrid system.O

Question 2230

Deck 5

histogram

Answer 2230

A graph of contiguous vertical bars representing a frequency distribution in which the groups or classes of items are marked on the x axis and the number of items in each class is indicated on the y axis. The pictorial nature of the histogram lets people see patterns that are difficult to see in a simple table of numbers. The histogram is one of the seven tools of quality.H

Question 2231

Deck 5

current assets

Answer 2231

An accounting/financial term (balance sheet classification of accounts) representing the shortterm resources owned by a company, including cash, accounts receivable, and inventories. See: assets, balance sheet.C

Question 2232

Deck 5

operation sheet

Answer 2232

Syn: routing.O

Question 2233

Deck 5

FMEA

Answer 2233

Abbreviation for failure mode effects analysis.F F

Question 2234

Deck 5

sales promotion

Answer 2234

1) Sales activities that supplement both personal selling and marketing, coordinate the two, and help to make them effective (e.g., displays). 2) More loosely, the combination of personal selling, advertising, and all supplementary selling activities. 3)

Question 2235

Deck 5

pick on receipt

Answer 2235

Similar to cross-docking, a product is unloaded from an inbound vehicle and loaded directly on an outbound vehicle. Product is received and picked simultaneously, never becoming set in the warehouse.P

Question 2236

Deck 5

percent chart

Answer 2236

Syn: P chart.P

Question 2237

Deck 5

jobbing

Answer 2237

Syn: job shop.J

Question 2238

Deck 5

business-to-business commerce (B2B)

Answer 2238

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

Question 2239

Deck 5

under-capacity scheduling

Answer 2239

Allowing more time than should be necessary to complete a day’s work. As a result, a daily quota is met more often and workers have time to cross-train or perform maintenance on their tools and machines.U

Question 2240

Deck 5

order point/order quantity system

Answer 2240

Syn: fixed reorder quantity inventory model.O

Question 2241

Deck 5

customer-as-product

Answer 2241

A service system designed to actually perform the service on the customer, such as in health care or hair salons.C

Question 2242

Deck 5

baseline measures

Answer 2242

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

Question 2243

Deck 5

risk response plan

Answer 2243

A document defining known risks including description, cause, likelihood, costs, and proposed responses. It also identifies current status on each risk.R

Question 2244

Deck 5

nonconforming material

Answer 2244

Any raw material, part, component, or product with one or more characteristics that depart from the specifications, drawing, or other approved product description.N

Question 2245

Deck 5

business process outsourcing

Answer 2245

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

Question 2246

Deck 5

OCR

Answer 2246

Abbreviation for optical character recognition.O

Question 2247

Deck 5

modular architecture

Answer 2247

A type of product architecture where the functional pieces correspond to physical pieces. The different physical pieces have their own function, and there is little interaction between them.M

Question 2248

Deck 5

manufacturer’s agent

Answer 2248

Syn: manufacturer’s representative.M

Question 2249

Deck 5

activity level

Answer 2249

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

Question 2250

Deck 5

multifactor productivity

Answer 2250

A productivity score that measures output levels relative to more than one input, such as labor or capital.M

Question 2251

Deck 5

drum-buffer-rope (DBR)

Answer 2251

The theory of constraints method for scheduling and managing operations that have an internal constraint or capacity-constrained resource.D

Question 2252

Deck 5

operations research

Answer 2252

1) The development and application of quantitative techniques to the solution of problems. More specifically, theory and methodology in mathematics, statistics, and computing are adapted and applied to the identification, formulation, solution, validation, implementation, and control of decisionmaking problems. 2) An academic field of study concerned with the development and application of quantitative analysis to the solution of problems faced by management in public and private organizations. Syn: management science.O

Question 2253

Deck 5

passive data gathering

Answer 2253

Data gathered when a customer initiates the process by filling out a card or sending an email. The firm develops the feedback form but the customer initiates the use of it.P

Question 2254

Deck 5

balking

Answer 2254

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

Question 2255

Deck 5

production card

Answer 2255

In a just-in-time context, a card or other signal for indicating that items should be made for use or to replace some items removed from pipeline stock. See: kanban.P

Question 2256

Deck 5

hi-low

Answer 2256

A forklift truck with a standing operator.H

Question 2257

Deck 5

times interest earned

Answer 2257

Ratio of profits before payment of interest and income taxes (EBIT) to interest on debt.T

Question 2258

Deck 5

actual start date

Answer 2258

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

Question 2259

Deck 5

nonexempt employee

Answer 2259

A person filling a nonexempt position. See: nonexempt positions.N

Question 2260

Deck 5

customer relationship management (CRM)

Answer 2260

A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support (as contrasted to enterprise resources planning information) to understand and support existing and potential customer needs. It includes account management, catalog and order entry, payment processing, credits and adjustments, and other functions. Syn: customer relations management.C

Question 2261

Deck 5

enforced problem solving

Answer 2261

The methodology of intentionally restricting a resource (e.g., inventory, storage space, number of workers) to expose a problem that must then be resolved.E

Question 2262

Deck 5

upside flexibility

Answer 2262

The ability of a facility to increase their output and ability to deliver, for the foreseeable future, because of a non-forecasted increase in demand. The main drivers of this flexibility are the availability of direct labor and/ or direct materials and the actual production capacity of the facility.U

Question 2263

Deck 5

value stream mapping

Answer 2263

A lean production tool to visually understand the flow of materials from supplier to customer that includes the current process and flow as well as the value-added and non-value-added time of all the process steps. Used to lead to reduction of waste, decrease flow time, and make the process flow more efficient and effective.V

Question 2264

Deck 5

ABM

Answer 2264

Abbreviation for activity-based management.A

Question 2265

Deck 5

units

Answer 2265

scrap or rework.M

Question 2266

Deck 5

burden rate

Answer 2266

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

Question 2267

Deck 5

consumer price index

Answer 2267

A measure of the overall level of prices. It attempts to relate the cost of buying a specific set of goods and services with the cost of buying the same set of goods and services during an earlier time period.C

Question 2268

Deck 5

supply chain management

Answer 2268

The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.S

Question 2269

Deck 5

arrow diagram method

Answer 2269

Syn: activity-on-arrow network.A

Question 2270

Deck 5

data warehouse

Answer 2270

A repository of data that has been specially prepared to support decision-making applications. Syn: decision-support data. See: information data warehouse.D

Question 2271

Deck 5

second-order smoothing

Answer 2271

A method of exponential smoothing for trend situations that employs two previously computed averages, the singly and doubly smoothed values, to extrapolate into the future. Syn: double smoothing.S

Question 2272

Deck 5

WTO

Answer 2272

Abbreviation for World Trade Organization.W

Question 2273

Deck 5

ABB

Answer 2273

Abbreviation for activity-based budgeting.A

Question 2274

Deck 5

direct materials purchasing

Answer 2274

Purchasing from suppliers on a contractual basis for a fixed period of time or amount of product. For job shops, the purchasing contract can be only for one job. For repetitive manufacturing, the materials are usually purchased on contracts that last for a model run or at least a year.D

Question 2275

Deck 5

type I error

Answer 2275

An incorrect decision to reject something (such as a statistical hypothesis or a lot of products) when it is acceptable. See: producer’s risk.T

Question 2276

Deck 5

heuristics

Answer 2276

A form of problem solving in which the results or rules have been determined by experience or intuition instead of by optimization. Heuristics can be used in such areas as forecasting; lot sizing; or determining production, staff, or inventory levels.H

Question 2277

Deck 5

level strategy

Answer 2277

Syn: level production method.L

Question 2278

Deck 5

network chain

Answer 2278

A route through a chain involving multiple network paths, with switching of paths due to resource conflicts.N

Question 2279

Deck 5

ASCII

Answer 2279

Acronym for American Standard Code for Information Interchange.A

Question 2280

Deck 5

CAIT

Answer 2280

Abbreviation for computer-aided inspection and test.C

Question 2281

Deck 5

service level agreement (SLA)

Answer 2281

A document that represents the terms of performance for organic support.S

Question 2282

Deck 5

variation

Answer 2282

A change in data, a characteristic, or a function that is caused by one of four factors: special causes, common causes, tampering, or structural variation.V

Question 2283

Deck 5

control points

Answer 2283

In the theory of constraints, strategic locations in the logical product structure for a product or family that simplify the planning, scheduling, and control functions. Control points include gating operations, convergent points, divergent points, constraints, and shipping points. Detailed scheduling instructions are planned, implemented, and monitored at these locations. Other work centers are instructed to “work if they have work; otherwise, be prepared for work.” In this manner, materials flow rapidly through the facility without detailed work center scheduling and control.C

Question 2284

Deck 5

blocked operations

Answer 2284

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

Question 2285

Deck 5

quality costs

Answer 2285

The overall costs associated with prevention activities and the improvement of quality throughout the firm before, during, and after production of a product. These costs fall into four recognized categories: internal failure costs, external failure costs, appraisal costs, and prevention costs. Internal failure costs relate to problems before the product reaches the customer. These usually include rework, scrap, downgrades, reinspection, retest, and process losses. External failure costs relate to problems found after the product reaches the customer. These usually include such costs as warranty and returns. Appraisal costs are associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time. Prevention costs are those caused by improvement activities that focus on reducing failure and appraisal costs. Typical costs include education, quality training, and supplier certification.Q

Question 2286

Deck 5

out-of-control process

Answer 2286

A process in which the statistical measure being evaluated is not in a state of statistical control (i.e., the variations among the observed sampling results can be attributed to a constant system of chance causes). Ant: in-control process.O

Question 2287

Deck 5

Poisson distribution

Answer 2287

A type of statistical distribution frequently used to model the arrival of customers or entities into a queuing system.P

Question 2288

Deck 5

ISP

Answer 2288

An abbreviation for internet service provider.I

Question 2289

Deck 5

data element

Answer 2289

A group of characters that defines an item at a basic level. Syn: data field.D

Question 2290

Deck 5

batch formula

Answer 2290

Syn: batch bill of materials.B

Question 2291

Deck 5

historical labor standard

Answer 2291

Determined by studying actual past labor data for the operation of interest.H

Question 2292

Deck 5

modem

Answer 2292

A device that converts digital signals to analog signals (and vice versa) so they can be sent over phone lines.M

Question 2293

Deck 5

path float

Answer 2293

Syn: float.P

Question 2294

Deck 5

acceptance criteria

Answer 2294

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

Question 2295

Deck 5

critical-to-quality characteristics (CTQs)

Answer 2295

Critical-toquality characteristics (CTQs) are the important and measurable traits of a product or process whose performance targets must be met to satisfy the customer. They adjust improvement efforts to meet consumer requirements. CTQs represent customer expectations for a product.C

Question 2296

Deck 5

operations plan

Answer 2296

Syn: production plan.O

Question 2297

Deck 5

PDM

Answer 2297

Abbreviation for product data management.P

Question 2298

Deck 5

blanket purchase order

Answer 2298

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

Question 2299

Deck 5

financial leverage management ratios

Answer 2299

A set of measurements of the degree to which a firm is financing assets with fixed-charge instruments such as debt or preferred stock.F

Question 2300

Deck 5

convergent point

Answer 2300

An operation in a production process where multiple materials/parts/components are combined into a single component. An assembly operation is an example of a convergent point.C

Question 2301

Deck 5

periodic inventory

Answer 2301

A physical inventory taken at some recurring interval (e.g., monthly, quarterly, or annual physical inventory). See: physical inventory.P

Question 2302

Deck 5

basic stock

Answer 2302

Syn: base inventory level.B

Question 2303

Deck 5

planning

Answer 2303

The process of setting goals for the organization and choosing various ways to use the organization’s resources to achieve the goals.P

Question 2304

Deck 5

capacity-related costs

Answer 2304

Costs generally related to increasing (or decreasing) capacity in the medium-to longrange time horizon. Personnel costs include hiring and training of direct laborers, supervisors, and support personnel in the areas related to the capacity increase. Equipment purchases to increase capacity are also considered. In contrast, costs related to decreasing capacity include layoffs, the fixed overhead spread over fewer units, the impact of low morale, and the inefficiencies of lower production levels.C

Question 2305

Deck 5

accelerated depreciation

Answer 2305

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

Question 2306

Deck 5

critical activity

Answer 2306

Any activity on the critical path of a project; an activity with no slack time (i.e., any delay in the activity will delay project completion). See: critical path, critical path method.C

Question 2307

Deck 5

bill-back

Answer 2307

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

Question 2308

Deck 5

operations process chart

Answer 2308

Syn: process chart.O

Question 2309

Deck 5

bulk storage

Answer 2309

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 2310

Deck 5

communication management plan

Answer 2310

A document that describes the communications needs and expectations within a project, including format, dates, locations, and responsibilities.C C

Question 2311

Deck 5

process control chart

Answer 2311

Syn: control chart.P

Question 2312

Deck 5

world-class company

Answer 2312

An organization that has reached a level of excellence due to superior products or services and customer satisfaction; best of the best.W

Question 2313

Deck 5

flexible benefits/cafeteria plans

Answer 2313

Plans designed to give employees a core of minimum basic coverage with the option to choose additional coverage or, sometimes, cash. Employees can customize their benefits packages to suit their personal needs.F

Question 2314

Deck 5

reserve stock

Answer 2314

Syn: safety stock.R

Question 2315

Deck 5

serial shipping container code

Answer 2315

An 18-character designation identifying boxes or pallets that are part of a shipment covered by an automated shipment notice.S

Question 2316

Deck 5

unplanned receipt

Answer 2316

A receipt transaction that updates the quantity on hand but for which no order exists.U

Question 2317

Deck 5

price discrimination

Answer 2317

Selling the same products to different buyers at different prices.P

Question 2318

Deck 5

dock-to-stock time

Answer 2318

Syn: put-away time.D

Question 2319

Deck 5

market penetration

Answer 2319

The degree to which a product has been accepted by the marketplace. Syn: market reach.M

Question 2320

Deck 5

complete and on-time delivery (COTD)

Answer 2320

A metric defining customer service. To be considered as complete and on

Question 2321

Deck 5

capacity buying

Answer 2321

A purchasing practice whereby a company commits to a supplier for a given amount of its capacity per unit of time. Subsequently, schedules for individual items are given to the supplier in quantities to match the committed level of capacity. Syn: buying capacity.C C

Question 2322

Deck 5

place utility

Answer 2322

Usefulness to the customer created by having the product delivered to a desired location.P

Question 2323

Deck 5

learning management system

Answer 2323

A software system for delivering and managing education and training within an organization.L

Question 2324

Deck 5

transparency

Answer 2324

A company allows outsiders, typically customers, to see some internal information, typically regarding an order, without giving any more than the outsider requires.T

Question 2325

Deck 5

gain sharing

Answer 2325

A method of incentive compensation where employees share collectively in savings from productivity improvements. Syn: gain sharing plans.G

Question 2326

Deck 5

legal environment

Answer 2326

The governmental restrictions placed on an organization regarding the goods and services provided by the business, for example, environmental regulations, export/import restrictions, safety regulations, and mandated deregulations.L

Question 2327

Deck 5

demand during lead time

Answer 2327

The quantity of a product expected to be withdrawn from stock or to be consumed during its replenishment lead time when usage is at the forecasted rate. See: expected demand.D

Question 2328

Deck 5

free trade zone (FTZ)

Answer 2328

The international term for what is known in the United States as a foreign trade zone. See: foreign trade zone.F

Question 2329

Deck 5

allowance

Answer 2329

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

Question 2330

Deck 5

department overhead rate

Answer 2330

The overhead rate applied to jobs passing through a department.D

Question 2331

Deck 5

statistical safety stock calculations

Answer 2331

The mathematical determination of safety stock quantities considering forecast errors, lot sizes, desired customer service levels, and the ratio of lead time to the length of the forecast period. Safety stock is frequently the product of the appropriate safety factor and the standard deviation or mean absolute deviation of the distribution of demand forecast errors.S

Question 2332

Deck 5

shelf life

Answer 2332

The amount of time an item may be held in inventory before it becomes unusable.S

Question 2333

Deck 5

total waste management (TWM)

Answer 2333

A methodology that enables finding solutions to waste issues while keeping in mind financial elements and the business case.T

Question 2334

Deck 5

rate-based scheduling

Answer 2334

A method for scheduling and producing based on a periodic rate (e.g., daily, weekly, monthly). This method has traditionally been applied to high-volume and process industries. The concept has also been applied within job shops using cellular layouts and mixed-model level schedules where the production rate is matched to the selling rate.R

Question 2335

Deck 5

productivity

Answer 2335

1) An overall measure of the ability to produce a good or a service. It is the actual output of production compared to the actual input of resources. Productivity is a relative measure across time or against common entities (labor, capital, etc.). In the production literature, attempts have been made to define total productivity where the effects of labor and capital are combined and divided into the output. One example is a ratio that is calculated by adding the dollar value of labor, capital equipment, energy, and material, and so forth and dividing it into the dollar value of output in a given time period. This is one measure of total factor productivity. See: efficiency, labor productivity, machine productivity, utilization. 2) In economics, the ratio of output in terms of dollars of sales to an input such as direct labor in terms of the total wages. This is called single factor productivity or partial factor productivity.P

Question 2336

Deck 5

tracing

Answer 2336

In activity-based cost accounting, connecting resources to activities to cost objects using underlying causal drivers to understand how costs occur during normal business activities.T

Question 2337

Deck 5

lessee

Answer 2337

An entity to which a lease is given.L

Question 2338

Deck 5

materials efficiency

Answer 2338

A concept that addresses the efficiency with which materials are obtained, converted, and shipped in the overall purchasing, production, and distribution process. It can be considered as a companion concept to labor efficiency, and it is potentially more significant as the materials portion of cost of goods sold continues to grow.M

Question 2339

Deck 5

consumer surplus

Answer 2339

The difference between the highest price a consumer is willing to pay for a good or service and the price actually paid.C

Question 2340

Deck 5

keiretsu

Answer 2340

A form of cooperative relationship among companies in Japan where the companies largely remain legally and economically independent, even though they work closely in various ways such as financial backing. A member of a keiretsu generally owns a limited amount of stock in other member companies. A keiretsu generally forms around a bank and a trading company, but “distribution” (supply chain) keiretsu alliances have been formed of companies ranging from raw material suppliers to retailers.K

Question 2341

Deck 5

matrix bill of material

Answer 2341

A chart made up from the bills of material for a number of products in the same or similar families. It is arranged in a matrix with components in M columns and parents in rows (or vice versa) so that requirements for common components can be summarized conveniently.M

Question 2342

Deck 5

obsolete inventory

Answer 2342

Inventory items that have met the obsolescence criteria established by the organization. For example, inventory that has been superseded by a new model or otherwise made obsolescent. Obsolete inventory will never be used or sold at full value. Disposing of the inventory may reduce a company’s profit.O

Question 2343

Deck 5

incentive arrangements

Answer 2343

The incentive contract allows for the sharing of the cost responsibility between the buyer and seller. Incentives are incorporated into the contracts to motivate the supplier to improve its performance in areas such as quality, on-time delivery, and customer satisfaction. There are three elements of an incentive agreement: target cost, target profit, and the sharing agreement.I

Question 2344

Deck 5

TPS

Answer 2344

Abbreviation for Toyota Production System.T

Question 2345

Deck 5

city driver

Answer 2345

A delivery person who drives a local route, as opposed to long-haul route.C

Question 2346

Deck 5

third-party warehousing

Answer 2346

The outsourcing of the warehousing function by the seller of the goods.T

Question 2347

Deck 5

direct costs

Answer 2347

1) In traditional cost accounting, variable costs that can be directly attributed to a particular job or operation. Direct material and direct labor are traditionally considered direct costs. 2) In activity-based cost (ABC) accounting, a cost that can specifically be traced and is economically feasible to track to a particular cost object (e.g., the units produced, a production line, a department, a manufacturing plant). In contrast, if the cost must be allocated across various cost objects, it is an indirect cost. Based on the cost object under consideration, the classification of direct and indirect can change. ABC accounting assumes that more costs traditionally viewed as fixed costs are variable and can be traced to cost objects.D

Question 2348

Deck 5

web services

Answer 2348

A common internet or intranet framework that enables the movement of data from one application to another, without the requirement for a direct connection between two supply chain applications and without regard to the underlying operating system for those applications.W

Question 2349

Deck 5

commonality

Answer 2349

A condition where given raw materials or ingredients are used in multiple parents.C

Question 2350

Deck 5

AIDC

Answer 2350

Abbreviation for automatic identification and data capture.A

Question 2351

Deck 5

operating assets

Answer 2351

An accounting/financial term representing the resources owned by a company for productive purposes (to generate a profit) including cash, accounts receivable, inventories, equipment, and facilities.O O

Question 2352

Deck 5

land bridge

Answer 2352

Moving goods over water, then land, and then water again to the final point.L

Question 2353

Deck 5

sole-source supplier

Answer 2353

The only supplier capable of meeting (usually technical) requirements for an item. See: single-source supplier.S

Question 2354

Deck 5

indirect labor cost

Answer 2354

The compensation paid to workers whose activities are not related to a specific product.I

Question 2355

Deck 5

threshold costs

Answer 2355

A company’s variable costs, which must be covered for a company to continue to stay in business.T

Question 2356

Deck 5

application system

Answer 2356

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

Question 2357

Deck 5

after-sale service

Answer 2357

Syn: field service.A

Question 2358

Deck 5

service

Answer 2358

Sometimes used to describe those activities that support the production or distribution functions in any organization, such as customer service and field service.S

Question 2359

Deck 5

performing organization

Answer 2359

The enterprise directly involved in the execution of work.P

Question 2360

Deck 5

competitive bid

Answer 2360

A price offering by one company that a buyer will consider along with price offerings from other companies.C

Question 2361

Deck 5

manufacturing cycle

Answer 2361

Syn: manufacturing lead time.M

Question 2362

Deck 5

decoupling

Answer 2362

Creating independence between supply and use of material. Commonly denotes providing inventory between operations so that fluctuations in the production rate of the supplying operation do not constrain production or use rates of the next operation.D

Question 2363

Deck 5

waybill

Answer 2363

A document containing a list of goods with shipping instructions related to a shipment.W

Question 2364

Deck 5

five Ms

Answer 2364

The branches of a cause and effect (fishbone) diagram: manpower, methods, materials, machines, and measurements.F

Question 2365

Deck 5

focus group

Answer 2365

A set of people who are interviewed together for the purpose of collecting marketing data.F

Question 2366

Deck 5

work cell

Answer 2366

Dissimilar machines grouped together into a production unit to produce a family of parts having similar routings.W

Question 2367

Deck 5

computer-integrated manufacturing (CIM)

Answer 2367

The integration of the total manufacturing organization through the use of computer systems and managerial philosophies that improve the organization’s effectiveness; the application of a computer to bridge various computerized systems and connect them into a coherent, integrated whole. For example, budgets, CAD/CAM, process controls, group technology systems, MRP II, and financial reporting systems are linked and interfaced.C

Question 2368

Deck 5

cost management

Answer 2368

Control of activities to eliminate waste, improve cost drivers, and plan operations. This process should affect the organization’s setting of strategy. Factors such as product pricing, introduction of new products, and distribution of existing products are examples of strategic decisions that are affected by cost management.C

Question 2369

Deck 5

flexible specialization

Answer 2369

A strategy based on multi-use equipment, skilled workers, and innovative senior managers to accommodate the continuous change that occurs in the marketplace.F

Question 2370

Deck 5

inventory receipt

Answer 2370

An inventory record transaction that records the receipt or arrival of inventory into physical stores by increasing the inventory on-hand balance by the received quantity. Often associated with receipt of a purchase or production order quantity.I

Question 2371

Deck 5

customer-as-participant

Answer 2371

A service system that contains a high level of customer involvement in part of the service delivery.C

Question 2372

Deck 5

Certified Purchasing Manager

Answer 2372

1) Certification from The Institute for Supply Management (ISM), formerly NAPM. This is no longer being tested (C.P.M.). 2) Certification from the American Purchasing Society (CPM).C

Question 2373

Deck 5

pick and place

Answer 2373

Equipment that picks up parts from one station on an assembly line and places them on the next.P

Question 2374

Deck 5

(CSCMP)

Answer 2374

A not-for-profit worldwide organization of logistics and supply chain managers. It provides educational opportunities through a variety of activities.C

Question 2375

Deck 5

resource driver

Answer 2375

The objects that are linked to an activity that consumes resources at a specified rate. For example, a resource driver is a purchase order (the object) that when placed (the activity) consumes hours (the rate) of purchasing (the resource).R

Question 2376

Deck 5

cumulative available-to-promise

Answer 2376

A calculation based on the available-to-promise (ATP) figure in the master schedule. Two methods of computing the cumulative available-to-promise are used, with and without lookahead calculation. The cumulative with look-ahead ATP equals the ATP from the previous period plus the MPS of the period minus the backlog of the period minus the sum of the differences between the backlogs and MPSs of all future periods until, but not to include, the period where point production exceeds the backlogs. The cumulative without look-ahead procedure equals the ATP in the previous period plus the MPS, minus the backlog in the period being considered. See: available-topromise. C

Question 2377

Deck 5

object-oriented programming (OOP)

Answer 2377

Within computer programming, the use of coding techniques and tools that reflect the concept of viewing the business environment as a set of elements (or objects) with associated properties (e.g., data, data manipulation/actions, inheritance). The objects encapsulate, through data and functions, the properties of the business that are of interest.O

Question 2378

Deck 5

cost pool

Answer 2378

In activity-based cost accounting, an aggregation of resources assigned to activities or activities assigned to cost objects. Items may be aggregated or disaggregated depending on how the data are to be used.C

Question 2379

Deck 5

relationship marketing

Answer 2379

A form of target marketing in which the type and time of communications are determined by the customer. Syn: permission marketing.R

Question 2380

Deck 5

maintainability

Answer 2380

The characteristic of equipment design and installation that provides the ability for the equipment to be repaired easily and efficiently. See: serviceability.M M maintenance, repair, and operating (MRO) supplies Items used in support of general operations and maintenance such as maintenance supplies, spare parts, and consumables used in the manufacturing process and supporting operations.M

Question 2381

Deck 5

available work

Answer 2381

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

Question 2382

Deck 5

information

Answer 2382

Data that have been interpreted and that meet the need of one or more managers.I

Question 2383

Deck 5

lead-time scheduling

Answer 2383

Development of a schedule of start and completion times of planned operations for a manufacturing order by calculation of the lead time. The calculation includes the duration of all operations, interoperation times, and order administration times. See: back scheduling, central point scheduling, forward scheduling, probable scheduling.L

Question 2384

Deck 5

list server

Answer 2384

Software running on a web-accessed computer that facilitates electronic discussions by emailing submissions from one member to all other members of the discussion group. Syn: listserv.L

Question 2385

Deck 5

mixed-flow scheduling

Answer 2385

A procedure used in some process industries for building process train schedules that start at an initial stage and work toward the terminal process stages. This procedure is effective for scheduling where several bottleneck stages may exist. Detailed scheduling is done at each bottleneck stage.M

Question 2386

Deck 5

standard allowance

Answer 2386

The established or accepted amount by which the normal time for an operation is increased within an area, plant, or industry to compensate for the usual amount of personal, fatigue, and unavoidable delay times.S

Question 2387

Deck 5

staging and consolidation

Answer 2387

Physically moving material from the packing area to a staging area, based on a prescribed set of instructions related to a particular outbound vehicle or delivery route, often for shipment consolidation purposes.S

Question 2388

Deck 5

batch production

Answer 2388

Syn: batch processing.B

Question 2389

Deck 5

part

Answer 2389

Generally, a material item that is used as a component and is not an assembly, subassembly, blend, intermediate, etc.P

Question 2390

Deck 5

application-to-application

Answer 2390

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

Question 2391

Deck 5

Q chart

Answer 2391

A control chart for evaluating the stability of a process in terms of a quality score. The quality score is the weighted sum of the count of events of various classifications, where each classification is assigned a weight. Syn: quality chart, quality score chart.Q

Question 2392

Deck 5

income statement

Answer 2392

A financial statement showing the net income for a business over a given period of time. See: balance sheet, funds flow statement.I

Question 2393

Deck 5

perfect order

Answer 2393

An order in which the “seven Rs” are satisfied: the right product, the right quantity, the right condition, the right place, the right time, the right customer, the right cost.P

Question 2394

Deck 5

waterspider

Answer 2394

An expert worker who makes the rounds of workstations and provides assistance, as needed. The waterspider knows all processes well enough to take over if needed. At Toyota, this position is a prerequisite to supervision and management positions.W

Question 2395

Deck 5

hypermedia

Answer 2395

An addition to hypertext to include sound, pictures, or music.H

Question 2396

Deck 5

aggregate production plan (APP)

Answer 2396

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

Question 2397

Deck 5

muda (waste)

Answer 2397

In lean manufacturing, costs are reduced by reducing waste within a system. There are

Question 2398

Deck 5

performance

Answer 2398

1) The degree to which an employee or group applies skill and effort to an operation or task as measured against an established standard. 2) One of the eight dimensions of quality that refers to product attributes pertaining to the functioning of a product (e.g., horsepower, signal-to-noise ratio, decibel output).P

Question 2399

Deck 5

internal customer

Answer 2399

The recipient (person or department) of another person’s or department’s output (good, service, or information) within an organization. See: customer, external customer.I

Question 2400

Deck 5

consumer durable goods

Answer 2400

A division of durable goods for items intended for consumer use, such as refrigerators, as opposed to industrial goods, such as fork lifts. See: durable goods.C

Question 2401

Deck 5

service bureau model

Answer 2401

A business strategy in which a company outsources certain products and services from another company. The company prefers to concentrate on its core business rather than expending resources on the outsourced item.S

Question 2402

Deck 5

capacity simulation

Answer 2402

The ability to do rough-cut capacity planning using a simulated master production schedule or material plan rather than live data.C

Question 2403

Deck 5

government market

Answer 2403

A market in which most or all buyers consist of agencies of federal, state, or local governments. See: consumer market, industrial market, institutional market.G

Question 2404

Deck 5

projected available inventory

Answer 2404

Syn: projected available balance.P

Question 2405

Deck 5

constraint

Answer 2405

1) Any element or factor that prevents a system from achieving a higher level of performance with respect to its goal. Constraints can be physical, such as a machine center or lack of material, but they can also be managerial, such as a policy or procedure. 2) One of a set of equations that cannot be violated in an optimization procedure.C

Question 2406

Deck 5

cell

Answer 2406

A manufacturing or service unit consisting of a number of workstations and the materials transport mechanisms and storage buffers that interconnect them.C

Question 2407

Deck 5

process engineering

Answer 2407

The discipline of designing and improving the manufacturing equipment and production process to support the manufacture of a product line. See: manufacturing engineering.P

Question 2408

Deck 5

blending

Answer 2408

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 2409

Deck 5

executive sales and operations planning

Answer 2409

The portion of sales and operations planning that defines executive decision-making processes to balance supply and demand at the volume level in families, fully integrates financial planning and operational planning, and that provides a forum for establishing and linking high-level strategic plans with day-to-day operations. See: sales and operations planning.E

Question 2410

Deck 5

linear decision rules

Answer 2410

A modeling technique using simultaneous equations (e.g., the establishment of aggregate workforce levels) based upon minimizing the total cost of hiring, firing, holding inventory, backorders, payroll, overtime, and undertime.L

Question 2411

Deck 5

target inventory level

Answer 2411

In a min-max inventory system, the equivalent of the maximum. The target inventory is equal to the order point plus a variable order quantity. It is often called an order-up-to inventory level and is used in a periodic review system. Syn: order-up-to level.T

Question 2412

Deck 5

option

Answer 2412

A choice that must be made by the customer or company when customizing the end product. In many companies, the term option means a mandatory choice from a limited selection. See: feature.O

Question 2413

Deck 5

hazmat

Answer 2413

Hazardous material defined by environmental laws and legal precedents. A product has been defined as hazardous by regulations that impose stiff fines if the regulations are ignored.H

Question 2414

Deck 5

loading port

Answer 2414

The port where cargo is loaded onto an exporting vessel.L

Question 2415

Deck 5

planner intervention

Answer 2415

Syn: manual rescheduling.P P

Question 2416

Deck 5

blemish

Answer 2416

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 2417

Deck 5

IPO

Answer 2417

1) Abbreviation for initial public offering. 2) Abbreviation for international procurement office.I

Question 2418

Deck 5

judgment items

Answer 2418

Those inventory items that cannot be effectively controlled by algorithms because of age (new or obsolete product) or management decision (promotional product).J

Question 2419

Deck 5

value-based management (VBM)

Answer 2419

The concept of satisfying customers to create shareholder wealth.V

Question 2420

Deck 5

gemba

Answer 2420

A Japanese word meaning shop floor.G

Question 2421

Deck 5

basic seven tools of quality (B7)

Answer 2421

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 2422

Deck 5

ABC frequency of access

Answer 2422

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

Question 2423

Deck 5

actual cost of work performed

Answer 2423

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

Question 2424

Deck 5

minimum cost order quantity

Answer 2424

Syn: economic order quantity.M

Question 2425

Deck 5

total cost consideration

Answer 2425

Considering all cost impacts, rather than just one cost impact, on customer service improvement.T

Question 2426

Deck 5

vertical marketplace

Answer 2426

An online marketplace connecting buyers and sellers within the same industry. It enables lower prices by lowering transaction costs.V

Question 2427

Deck 5

third-party transportation services

Answer 2427

Outside firms providing transportation of goods.T

Question 2428

Deck 5

LDI

Answer 2428

Abbreviation for logistics data interchange.L

Question 2429

Deck 5

freight consolidation

Answer 2429

The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third-party pooling services such as public warehouses and freight forwarders.F

Question 2430

Deck 5

rapid replenishment

Answer 2430

A replenishment strategy in which the supplier prepares shipments at predetermined intervals and varies the quantity based on recent sales data. Sales data may be supplied via a point-of-sale system. See: continuous replenishment.R

Question 2431

Deck 5

econometric modeling

Answer 2431

The process of developing econometric models. See: econometric model.E

Question 2432

Deck 5

inventory issue

Answer 2432

1) Items released from an inventory location for use or sale. 2) The inventory record transaction reducing the inventory balance by the amount released.I

Question 2433

Deck 5

input control

Answer 2433

Management of the release of work to a work center or production facility.I

Question 2434

Deck 5

prima facie

Answer 2434

Latin for at first sight or on the face of it. Something is presumed to be true.P

Question 2435

Deck 5

lag capacity strategy

Answer 2435

Not adding capacity until the firm is operating at or beyond full capacity. This keeps unit costs minimized by working at full capacity, but does not satisfy total demand.L

Question 2436

Deck 5

value stream map

Answer 2436

A graph displaying the sequence of operations needed to produce and deliver a product or service.V

Question 2437

Deck 5

centralized inventory control

Answer 2437

Inventory decision making for all stockkeeping units exercised from one office or department for an entire company.C

Question 2438

Deck 5

byte

Answer 2438

A string of 8 bits used to represent a single character in a computer code.B C

Question 2439

Deck 5

lean metric

Answer 2439

A metric that permits a balanced evaluation

Question 2440

Deck 5

clickstream

Answer 2440

The way a customer moves through a website.C

Question 2441

Deck 5

supply base

Answer 2441

Syn: supplier base.S

Question 2442

Deck 5

capital rationing

Answer 2442

In financial management, the process of apportioning capital expenditures among prospective projects to conserve limited investment funds.C

Question 2443

Deck 5

demand-side analysis

Answer 2443

Techniques such as market research, surveys, focus groups, and performance/cost modeling used to identify emerging technologies.D

Question 2444

Deck 5

on-hand balance

Answer 2444

The quantity shown in the inventory records as being physically in stock.O

Question 2445

Deck 5

hoshin

Answer 2445

A Japanese word meaning statement of objectives.H

Question 2446

Deck 5

company culture

Answer 2446

A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.C

Question 2447

Deck 5

union free

Answer 2447

A designation that indicates that a company or operation does not have a union contract.U

Question 2448

Deck 5

protective inventory

Answer 2448

In the theory of constraints, the amount of inventory required relative to the protective capacity in the system to achieve a specific throughput rate at the constraint. See: limiting operation.P

Question 2449

Deck 5

controller

Answer 2449

The person responsible for financial and managerial accounting within a company. Syn: comptroller.C

Question 2450

Deck 5

centralized purchasing

Answer 2450

A system in which all purchasing decisions are made from a corporate purchasing office.C

Question 2451

Deck 5

pure competition

Answer 2451

A market in which many competitors offer undifferentiated products or services within a given geographical area. Competitors are forced to accept the market price for their product. See: industry structure types.P

Question 2452

Deck 5

budgeted capacity

Answer 2452

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

Question 2453

Deck 5

vertical display

Answer 2453

A method of displaying or printing output from an MRP system where requirements, scheduled receipts, projected balance, and so forth are displayed vertically. Vertical displays are often used in conjunction with bucketless systems. Ant: horizontal display.V

Question 2454

Deck 5

traveling purchase requisition

Answer 2454

A purchase requisition designed for repetitive use. After a purchase order has been prepared for the goods requisitioned, the form is returned to the originator, who holds it until a repurchase of the goods is required. The name is derived from the repetitive travel between the originating and purchasing departments. Syn: traveling requisition.T

Question 2455

Deck 5

confidence level

Answer 2455

The probability that a particular value

Question 2456

Deck 5

job lot

Answer 2456

A specific quantity of a part or product that is produced at one time.J

Question 2457

Deck 5

self-directed work team

Answer 2457

Generally, a small, independent, self-organized, and self-controlling group in which members flexibly plan, organize, determine, and manage their duties and actions, as well as perform many other supportive functions. It may work without immediate supervision and can often have authority to select, hire, promote, or discharge its members.S

Question 2458

Deck 5

lessor

Answer 2458

An entity which gives a lease.L

Question 2459

Deck 5

compensation

Answer 2459

The pay and benefits given for services rendered to an organization.C

Question 2460

Deck 5

bucket

Answer 2460

A time period, usually a week.B

Question 2461

Deck 5

cross-functional organization

Answer 2461

Organization where groups of directors, executives, and managers with a C diversity of skills and backgrounds work on problems outside the bounds of their functional responsibilities. See: integrated enterprise.C

Question 2462

Deck 5

forecast bias

Answer 2462

Tendency of a forecast to systematically miss the actual demand (consistently either high or low).F

Question 2463

Deck 5

materials handling time

Answer 2463

The time necessary to move materials from one work center to the next work center. This time includes waiting for the materials handling equipment and actual movement time.M

Question 2464

Deck 5

demand forecasting

Answer 2464

Forecasting the demand for a particular good, component, or service.D

Question 2465

Deck 5

X-bar chart

Answer 2465

Syn: average chart.X

Question 2466

Deck 5

utilization

Answer 2466

1) A measure (usually expressed as a percentage) of how intensively a resource is being used to produce a good or service. Utilization compares actual time used to available time. Traditionally, utilization is the ratio of direct time charged (run time plus setup time) to the clock time available. Utilization is a percentage between 0 percent and 100 percent that is equal to 100 percent minus the percentage of time lost due to the unavailability of machines, tools, workers, and so forth. See: efficiency, lost time factor, productivity. 2) In V the theory of constraints, activation of a resource that productively contributes to reaching the goal. Overactivation of a resource does not productively utilize a resource. See: available time.U V

Question 2467

Deck 5

master planning

Answer 2467

A group of business processes that includes the following activities: demand management (which includes forecasting and order servicing); production and resource planning; and master scheduling (which includes the master schedule and the rough-cut capacity plan).M

Question 2468

Deck 5

value engineering and/or analysis

Answer 2468

A disciplined approach to the elimination of waste from products or processes through an investigative process that focuses on the functions to be performed and whether such functions add value to the good or service.V

Question 2469

Deck 5

vestibule training

Answer 2469

A variant of job rotation in which a separate work area is set up for a trainee so that the actual work situation does not pressure the trainee. Examples are cockpit simulators and other machine simulators. V

Question 2470

Deck 5

overlap quantity

Answer 2470

The number of items that need to be run and sent ahead to the following operation before the following “overlap” operation can begin. Syn: offset quantity. See: process batch, transfer batch.O

Question 2471

Deck 5

pure monopoly

Answer 2471

A market in which only one firm provides a particular product or service within a given area. The monopoly may be regulated or unregulated. See: industry structure types.P

Question 2472

Deck 5

tapering rate

Answer 2472

A rate structure in which a shipping rate increases as the distance shipped increases, but the increases are not directly correlated to the increase in the distance shipped.T

Question 2473

Deck 5

decision support system (DSS)

Answer 2473

A computer system designed to assist managers in selecting and evaluating courses of action by providing a logical, usually quantitative, analysis of the relevant factors.D

Question 2474

Deck 5

measurement ton

Answer 2474

A measurement equivalent to 40 cubic feet. It is a factor in water transportation ratesetting. M

Question 2475

Deck 5

quality assurance/control

Answer 2475

Two terms that have many interpretations because of the multiple definitions for the words “assurance” and “control.” For example, “assurance” can mean the act of giving confidence, the state of being certain, or the act of making certain; “control” can mean an evaluation to indicate needed corrective responses, the act of guiding, or the state of a process in which the variability is attributable to a constant system of chance causes. One definition of quality assurance is all the planned and systematic activities implemented within the quality system that can be demonstrated to provide confidence that a good or service will fulfill requirements for quality. One definition for quality control is the operational techniques and activities used to fulfill requirements for quality. Often, however, quality assurance and quality control are used interchangeably, referring to the actions performed to ensure the quality of a good, service, or process. See: quality control.Q

Question 2476

Deck 5

preferred stock

Answer 2476

A type of stock entitling the owner to dividends before common stockholders are entitled to them.P

Question 2477

Deck 5

variable cost

Answer 2477

An operating cost that varies directly with a change of one unit in the production volume (e.g., direct materials consumed, sales commissions).V

Question 2478

Deck 5

joint replenishment

Answer 2478

Coordinating the lot sizing and order release decision for related items and treating them K as a family of items. The objective is to achieve lower costs because of ordering, setup, shipping, and quantity discount economies. This term applies equally to joint ordering (family contracts) and to composite part (group technology) fabrication scheduling. Syn: joint replenishment system.J

Question 2479

Deck 5

residual inventory

Answer 2479

Inventory created by the canceling or rescheduling of an order or left over because of lot sizing.R

Question 2480

Deck 5

unattainable capability

Answer 2480

The portion of the production capability that cannot be attained. This is typically caused by factors such as equipment unavailability, suboptimal scheduling, or resource limitations.U

Question 2481

Deck 5

flow order

Answer 2481

An order filled, not by moving material through production as an integral lot, but by production made over time and checked by a cumulative count until the flow order quantity is complete.F

Question 2482

Deck 5

lies between an upper and a lower bound

Answer 2482

the confidence limits.C

Question 2483

Deck 5

production planning methods

Answer 2483

The approach taken in setting the overall manufacturing output to meet customer demand by setting production levels, inventory levels, and backlog. Companies can use a chase, level, or hybrid production planning method. See: chase production method, hybrid production method, level production method.P

Question 2484

Deck 5

transition tree (TRT)

Answer 2484

In the theory of constraints, a logic-based tool for identifying and sequencing actions in accomplishing an objective. The transitions represent the states or stages in moving from the present situation to the desired objective.T

Question 2485

Deck 5

ending inventory

Answer 2485

A statement of on-hand quantities or the dollar value of a SKU at the end of a period, often determined by a physical inventory.E

Question 2486

Deck 5

salvage

Answer 2486

Property that, because of its worn, damaged, deteriorated, or incomplete condition or specialized nature has no reasonable prospect of sale or use as serviceable property without major repairs or alterations, but that has some value in excess of its scrap value.S

Question 2487

Deck 5

open-to-receive

Answer 2487

Authorization to receive goods, such as a blanket release, firm purchase order item, or supplier schedule. Open-to-receive represents near-term impact on inventory, and is often monitored as a control technique in aggregate inventory management. The total of open-to-receive, other longer term purchase commitments, and open-to-buy represents the material and services cash exposure of the company.O

Question 2488

Deck 5

perpetual inventory record

Answer 2488

A computer record or manual document on which each inventory transaction is posted so that a current record of the inventory is maintained.P P

Question 2489

Deck 5

JIT

Answer 2489

Acronym for just in time.J

Question 2490

Deck 5

shipper-carriers

Answer 2490

Companies that ship goods in their own vehicles. Many large retailers are shipper-carriers as they own their own fleets.S

Question 2491

Deck 5

islands of automation

Answer 2491

Stand-alone pockets of automation (e.g., robots, CAD/CAM systems, numerical control machines) that are not connected into a cohesive system.I

Question 2492

Deck 5

N7

Answer 2492

Abbreviation for seven new tools of quality.N

Question 2493

Deck 5

decomposition

Answer 2493

A method of forecasting where time series data are separated into up to three components: trend, seasonal, and cyclical; where trend includes the general horizontal upward or downward movement over time; seasonal includes a recurring demand pattern such as day of the week, weekly, monthly, or quarterly; and cyclical includes any repeating, nonseasonal pattern. A fourth component is random, that is, data with no pattern. The new forecast is made by projecting the patterns individually determined and then combining them. See: cyclical component, random component, seasonal component, trend component.D

Question 2494

Deck 5

customer order promising

Answer 2494

Syn: order promising.C

Question 2495

Deck 5

operating profit margin ratio

Answer 2495

Earnings before interest and taxes divided by sales.O

Question 2496

Deck 6

mission

Answer 2496

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

Question 2497

Deck 6

process decision program chart

Answer 2497

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

Question 2498

Deck 6

have a short-term time horizon

Answer 2498

such as cash, accounts

Question 2499

Deck 6

order management

Answer 2499

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

Question 2500

Deck 6

fabricator

Answer 2500

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

Question 2501

Deck 6

ERP

Answer 2501

Abbreviation for enterprise resources planning.E

Question 2502

Deck 6

drum

Answer 2502

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

Question 2503

Deck 6

manufacturer’s representative

Answer 2503

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

Question 2504

Deck 6

acceptable quality level (AQL)

Answer 2504

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

Question 2505

Deck 6

kitting

Answer 2505

The process of constructing and staging kits.K

Question 2506

Deck 6

sales cycle time

Answer 2506

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

Question 2507

Deck 6

classification of defects

Answer 2507

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

Question 2508

Deck 6

period capacity

Answer 2508

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

Question 2509

Deck 6

procurement cycle

Answer 2509

Syn: procurement lead time.P

Question 2510

Deck 6

delivery policy

Answer 2510

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

Question 2511

Deck 6

nominal capacity

Answer 2511

Syn: rated capacity.N

Question 2512

Deck 6

tiger teams

Answer 2512

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

Question 2513

Deck 6

principle of postponement

Answer 2513

Syn: order penetration point.P

Question 2514

Deck 6

order control

Answer 2514

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

Question 2515

Deck 6

smoothing constant

Answer 2515

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

Question 2516

Deck 6

Taguchi methods

Answer 2516

Syn: Taguchi methodology.T

Question 2517

Deck 6

public-private partnering

Answer 2517

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

Question 2518

Deck 6

TRT

Answer 2518

Abbreviation for transition tree.T

Question 2519

Deck 6

therbligs

Answer 2519

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

Question 2520

Deck 6

buyer code

Answer 2520

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

Question 2521

Deck 6

honeycomb loss

Answer 2521

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

Question 2522

Deck 6

information technology

Answer 2522

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

Question 2523

Deck 6

continuous manufacturing

Answer 2523

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

Question 2524

Deck 6

prevention costs

Answer 2524

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

Question 2525

Deck 6

and disposition costs

Answer 2525

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

Question 2526

Deck 6

overhead allocation

Answer 2526

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

Question 2527

Deck 6

transport stocks

Answer 2527

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

Question 2528

Deck 6

frozen zone

Answer 2528

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

Question 2529

Deck 6

job enlargement

Answer 2529

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

Question 2530

Deck 6

make-to-order

Answer 2530

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

Question 2531

Deck 6

price skimming

Answer 2531

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

Question 2532

Deck 6

consumer’s risk (ß)

Answer 2532

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

Question 2533

Deck 6

purchased part

Answer 2533

An item sourced from a supplier.P

Question 2534

Deck 6

range chart

Answer 2534

Syn: R chart.R

Question 2535

Deck 6

rolling wave planning

Answer 2535

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

Question 2536

Deck 6

standard costs

Answer 2536

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

Question 2537

Deck 6

rationalization exercise

Answer 2537

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

Question 2538

Deck 6

price schedule

Answer 2538

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

Question 2539

Deck 6

distributed numerical control

Answer 2539

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

Question 2540

Deck 6

value, (6) inventory

Answer 2540

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

Question 2541

Deck 6

cumulative system

Answer 2541

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

Question 2542

Deck 6

incentive pay system

Answer 2542

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

Question 2543

Deck 6

GT

Answer 2543

Abbreviation for group technology.G

Question 2544

Deck 6

primary work center

Answer 2544

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

Question 2545

Deck 6

burn rate

Answer 2545

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

Question 2546

Deck 6

joint replenishment system

Answer 2546

Syn: joint replenishment.J

Question 2547

Deck 6

min-max system

Answer 2547

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

Question 2548

Deck 6

efficient consumer response (ECR)

Answer 2548

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

Question 2549

Deck 6

reneging

Answer 2549

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

Question 2550

Deck 6

adaptable website

Answer 2550

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

Question 2551

Deck 6

USL

Answer 2551

Abbreviation for upper specification limit.U

Question 2552

Deck 6

FMA

Answer 2552

Abbreviation for failure mode analysis.F

Question 2553

Deck 6

common causes

Answer 2553

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

Question 2554

Deck 6

group classification code

Answer 2554

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

Question 2555

Deck 6

inventory accuracy

Answer 2555

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

Question 2556

Deck 6

DDP

Answer 2556

Abbreviation for distributed data processing.D

Question 2557

Deck 6

assignee

Answer 2557

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

Question 2558

Deck 6

contingency planning

Answer 2558

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

Question 2559

Deck 6

trailer on a flatcar (TOFC)

Answer 2559

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

Question 2560

Deck 6

blanket release

Answer 2560

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

Question 2561

Deck 6

software

Answer 2561

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

Question 2562

Deck 6

value perspective

Answer 2562

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

Question 2563

Deck 6

gross profit margin

Answer 2563

Syn: gross margin.G

Question 2564

Deck 6

action report

Answer 2564

Syn: action message.A

Question 2565

Deck 6

net operating profit after taxes (NOPAT)

Answer 2565

Operating profit less applicable taxes.N

Question 2566

Deck 6

product configurator

Answer 2566

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

Question 2567

Deck 6

business environment

Answer 2567

Syn: operating environment.B

Question 2568

Deck 6

market-positioned strategy

Answer 2568

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

Question 2569

Deck 6

multiple-phase queuing system

Answer 2569

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

Question 2570

Deck 6

RCCP

Answer 2570

Abbreviation for rough-cut capacity planning.R

Question 2571

Deck 6

future value

Answer 2571

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

Question 2572

Deck 6

externality

Answer 2572

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

Question 2573

Deck 6

sensors

Answer 2573

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

Question 2574

Deck 6

contribution relativities

Answer 2574

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

Question 2575

Deck 6

rework order

Answer 2575

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

Question 2576

Deck 6

TOC performance measures

Answer 2576

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

Question 2577

Deck 6

beginning inventory

Answer 2577

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

Question 2578

Deck 6

project schedule

Answer 2578

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

Question 2579

Deck 6

deshi

Answer 2579

A Japanese word meaning student.D

Question 2580

Deck 6

use as is

Answer 2580

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

Question 2581

Deck 6

GPS

Answer 2581

Abbreviation for global positioning system.G

Question 2582

Deck 6

force field analysis

Answer 2582

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

Question 2583

Deck 6

changeover costs

Answer 2583

Syn: setup costs.C

Question 2584

Deck 6

fill rate

Answer 2584

Syn: customer service ratio.F

Question 2585

Deck 6

UCL

Answer 2585

Abbreviation for upper control limit.U

Question 2586

Deck 6

responsibility assignment matrix (RAM)

Answer 2586

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

Question 2587

Deck 6

requirements explosion

Answer 2587

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

Question 2588

Deck 6

net operating cash flow

Answer 2588

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

Question 2589

Deck 6

of all costs

Answer 2589

including acquisition, operation,

Question 2590

Deck 6

total productive maintenance (TPM)

Answer 2590

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

Question 2591

Deck 6

on-the-job training (OJT)

Answer 2591

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

Question 2592

Deck 6

five-forces model of competition

Answer 2592

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

Question 2593

Deck 6

control decision

Answer 2593

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

Question 2594

Deck 6

resource contention

Answer 2594

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

Question 2595

Deck 6

multiple-item lot-sizing models

Answer 2595

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

Question 2596

Deck 6

planning bill of material

Answer 2596

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

Question 2597

Deck 6

agency tariff

Answer 2597

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

Question 2598

Deck 6

buyer’s market

Answer 2598

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

Question 2599

Deck 6

overall equipment effectiveness (OEE)

Answer 2599

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

Question 2600

Deck 6

and personal selling

Answer 2600

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

Question 2601

Deck 6

assembly lead time

Answer 2601

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

Question 2602

Deck 6

firm offer

Answer 2602

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

Question 2603

Deck 6

management science

Answer 2603

Syn: operations research.M

Question 2604

Deck 6

fixed-interval order system

Answer 2604

Syn: fixed reorder cycle inventory model.F

Question 2605

Deck 6

bubble chart

Answer 2605

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

Question 2606

Deck 6

planning calendar

Answer 2606

Syn: manufacturing calendar.P

Question 2607

Deck 6

hoshin planning

Answer 2607

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

Question 2608

Deck 6

interactive

Answer 2608

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

Question 2609

Deck 6

sunk cost

Answer 2609

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

Question 2610

Deck 6

mistake-proofing

Answer 2610

Syn: failsafe work methods, pokayoke. M

Question 2611

Deck 6

Hawthorne effect

Answer 2611

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

Question 2612

Deck 6

value-of-service pricing

Answer 2612

Allowing the market to determine the price.V

Question 2613

Deck 6

write-off

Answer 2613

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

Question 2614

Deck 6

customer share

Answer 2614

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

Question 2615

Deck 6

FMC

Answer 2615

Abbreviation for flexible machine center.F

Question 2616

Deck 6

operations scheduling

Answer 2616

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

Question 2617

Deck 6

line manufacturing

Answer 2617

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

Question 2618

Deck 6

internal setup time

Answer 2618

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

Question 2619

Deck 6

visual control

Answer 2619

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

Question 2620

Deck 6

payback

Answer 2620

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

Question 2621

Deck 6

hybrid production method

Answer 2621

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

Question 2622

Deck 6

decentralized purchasing

Answer 2622

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

Question 2623

Deck 6

pre-transaction elements

Answer 2623

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

Question 2624

Deck 6

material release

Answer 2624

The introduction of parts into a production process.M

Question 2625

Deck 6

summarized bill of material

Answer 2625

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

Question 2626

Deck 6

freight forwarder

Answer 2626

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

Question 2627

Deck 6

reverse flow scheduling

Answer 2627

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

Question 2628

Deck 6

decisions under certainty

Answer 2628

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

Question 2629

Deck 6

management by objectives (MBO)

Answer 2629

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

Question 2630

Deck 6

expense

Answer 2630

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

Question 2631

Deck 6

peak demand

Answer 2631

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

Question 2632

Deck 6

competitive intelligence

Answer 2632

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

Question 2633

Deck 6

ABC analysis

Answer 2633

Syn: ABC classification.A

Question 2634

Deck 6

certificated carrier

Answer 2634

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

Question 2635

Deck 6

dedicated contract carrier

Answer 2635

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

Question 2636

Deck 6

engineering standard

Answer 2636

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

Question 2637

Deck 6

efficiency

Answer 2637

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

Question 2638

Deck 6

supply chain integration

Answer 2638

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

Question 2639

Deck 6

flexible path equipment

Answer 2639

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

Question 2640

Deck 6

activity-based budgeting (ABB)

Answer 2640

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

Question 2641

Deck 6

TN

Answer 2641

Abbreviation for telnet.T

Question 2642

Deck 6

earliest due date (EDD)

Answer 2642

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

Question 2643

Deck 6

marketing research

Answer 2643

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

Question 2644

Deck 6

differentiated marketing

Answer 2644

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

Question 2645

Deck 6

machine productivity

Answer 2645

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

Question 2646

Deck 6

model

Answer 2646

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

Question 2647

Deck 6

U-lines

Answer 2647

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

Question 2648

Deck 6

return on owner’s equity (ROE)

Answer 2648

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

Question 2649

Deck 6

flextime

Answer 2649

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

Question 2650

Deck 6

chase production method

Answer 2650

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

Question 2651

Deck 6

commercial-off-the-shelf (COTS)

Answer 2651

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

Question 2652

Deck 6

release-to-start manufacturing

Answer 2652

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

Question 2653

Deck 6

release

Answer 2653

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

Question 2654

Deck 6

stock status

Answer 2654

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

Question 2655

Deck 6

transportation mode

Answer 2655

The way an item is transported.T

Question 2656

Deck 6

discount rate

Answer 2656

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

Question 2657

Deck 6

systems

Answer 2657

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

Question 2658

Deck 6

EBIT

Answer 2658

Acronym for earnings before interest and taxesE

Question 2659

Deck 6

four-wall inventory

Answer 2659

Syn: wall-to-wall inventory.F

Question 2660

Deck 6

cost of goods sold

Answer 2660

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

Question 2661

Deck 6

focus-group research

Answer 2661

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

Question 2662

Deck 6

indented tracking

Answer 2662

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

Question 2663

Deck 6

resource calendar

Answer 2663

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

Question 2664

Deck 6

common variation

Answer 2664

Syn: common cause variability.C

Question 2665

Deck 6

virtual factory

Answer 2665

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

Question 2666

Deck 6

mass marketing

Answer 2666

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

Question 2667

Deck 6

Pareto diagram

Answer 2667

Syn: Pareto chart.P

Question 2668

Deck 6

RFM

Answer 2668

Abbreviation for recency, frequency, monetary.R

Question 2669

Deck 6

cost-plus-incentive-fee contract

Answer 2669

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

Question 2670

Deck 6

planning bill

Answer 2670

Syn: planning bill of material.P

Question 2671

Deck 6

order scheduling

Answer 2671

Syn: operations scheduling.O

Question 2672

Deck 6

experience curve pricing

Answer 2672

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

Question 2673

Deck 6

potency

Answer 2673

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

Question 2674

Deck 6

kit

Answer 2674

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

Question 2675

Deck 6

portal

Answer 2675

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

Question 2676

Deck 6

inbound logistics

Answer 2676

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

Question 2677

Deck 6

schedule variance (SV)

Answer 2677

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

Question 2678

Deck 6

replenishment order quantity

Answer 2678

Syn: reorder quantity.R

Question 2679

Deck 6

upstream

Answer 2679

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

Question 2680

Deck 6

single-level bill of material

Answer 2680

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

Question 2681

Deck 6

standing capacity

Answer 2681

Syn: rated capacity.S

Question 2682

Deck 6

manufacturing progress curve

Answer 2682

Syn: learning curve.M

Question 2683

Deck 6

product structure record

Answer 2683

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

Question 2684

Deck 6

systems audit

Answer 2684

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

Question 2685

Deck 6

spend management

Answer 2685

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

Question 2686

Deck 6

less-than-carload (LCL)

Answer 2686

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

Question 2687

Deck 6

operational availability

Answer 2687

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

Question 2688

Deck 6

backward scheduling

Answer 2688

Syn: back scheduling.B

Question 2689

Deck 6

OOP

Answer 2689

Abbreviation for object-oriented programming.O

Question 2690

Deck 6

manufacturing lead time

Answer 2690

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

Question 2691

Deck 6

single-sampling plan

Answer 2691

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

Question 2692

Deck 6

demonstrated capacity

Answer 2692

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

Question 2693

Deck 6

FRT

Answer 2693

Abbreviation for future reality tree.F

Question 2694

Deck 6

certification

Answer 2694

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

Question 2695

Deck 6

regularized schedule

Answer 2695

A schedule having certain items produced at regular intervals.R

Question 2696

Deck 6

skew

Answer 2696

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

Question 2697

Deck 6

exchange unit

Answer 2697

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

Question 2698

Deck 6

assays

Answer 2698

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

Question 2699

Deck 6

cash discount

Answer 2699

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

Question 2700

Deck 6

smart label

Answer 2700

A label with an embedded radio frequency identification tag.S

Question 2701

Deck 6

what-if simulation

Answer 2701

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

Question 2702

Deck 6

marginal product

Answer 2702

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

Question 2703

Deck 6

order-oriented finite loading

Answer 2703

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

Question 2704

Deck 6

assigned material

Answer 2704

Syn: reserved material.A

Question 2705

Deck 6

input

Answer 2705

Work arriving at a work center or production facility.I

Question 2706

Deck 6

simplex method

Answer 2706

An approach to solving linear programming models.S

Question 2707

Deck 6

annual percentage rate

Answer 2707

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

Question 2708

Deck 6

random access

Answer 2708

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

Question 2709

Deck 6

cache

Answer 2709

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

Question 2710

Deck 6

risk acceptance

Answer 2710

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

Question 2711

Deck 6

material control

Answer 2711

Syn: inventory control.M

Question 2712

Deck 6

job order

Answer 2712

Syn: manufacturing order.J

Question 2713

Deck 6

control center

Answer 2713

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

Question 2714

Deck 6

MIS

Answer 2714

Abbreviation for management information system.M M

Question 2715

Deck 6

run sheet

Answer 2715

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

Question 2716

Deck 6

lot sizing

Answer 2716

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

Question 2717

Deck 6

imposed date

Answer 2717

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

Question 2718

Deck 6

flow plant

Answer 2718

Syn: flow shop.F

Question 2719

Deck 6

affirmative action

Answer 2719

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

Question 2720

Deck 6

proprietary assembly

Answer 2720

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

Question 2721

Deck 6

batch manufacturing

Answer 2721

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

Question 2722

Deck 6

Occupational Safety and Health Act (OSHA)

Answer 2722

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

Question 2723

Deck 6

facility planning

Answer 2723

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

Question 2724

Deck 6

offal material

Answer 2724

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

Question 2725

Deck 6

funds flow management

Answer 2725

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

Question 2726

Deck 6

branch and bound

Answer 2726

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

Question 2727

Deck 6

handling cost

Answer 2727

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

Question 2728

Deck 6

normalize

Answer 2728

To adjust observed data to a standard base.N

Question 2729

Deck 6

raw material

Answer 2729

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

Question 2730

Deck 6

continuous variable

Answer 2730

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

Question 2731

Deck 6

workload

Answer 2731

Syn: load.W

Question 2732

Deck 6

PRT

Answer 2732

Abbreviation for prerequisite tree.P

Question 2733

Deck 6

mode

Answer 2733

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

Question 2734

Deck 6

bill of resources

Answer 2734

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

Question 2735

Deck 6

what-if analysis

Answer 2735

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

Question 2736

Deck 6

wholesaler

Answer 2736

Syn: distributor.W

Question 2737

Deck 6

reserved material

Answer 2737

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

Question 2738

Deck 6

run time

Answer 2738

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

Question 2739

Deck 6

uncertainty

Answer 2739

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

Question 2740

Deck 6

bill-of-material processor

Answer 2740

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

Question 2741

Deck 6

carrying cost

Answer 2741

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

Question 2742

Deck 6

tolerance

Answer 2742

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

Question 2743

Deck 6

material list

Answer 2743

Syn: picking list.M

Question 2744

Deck 6

locator system

Answer 2744

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

Question 2745

Deck 6

detention

Answer 2745

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

Question 2746

Deck 6

finished product

Answer 2746

Syn: end item.F

Question 2747

Deck 6

lot-size inventory

Answer 2747

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

Question 2748

Deck 6

workman’s compensation

Answer 2748

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

Question 2749

Deck 6

audit trail

Answer 2749

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

Question 2750

Deck 6

average variable cost

Answer 2750

The ratio of total variable costs over units produced.A

Question 2751

Deck 6

fault isolation

Answer 2751

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

Question 2752

Deck 6

due date rule

Answer 2752

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

Question 2753

Deck 6

tampering

Answer 2753

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

Question 2754

Deck 6

information distribution

Answer 2754

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

Question 2755

Deck 6

resource

Answer 2755

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

Question 2756

Deck 6

type II error

Answer 2756

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

Question 2757

Deck 6

default

Answer 2757

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

Question 2758

Deck 6

(CPFR)

Answer 2758

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

Question 2759

Deck 6

data communications

Answer 2759

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

Question 2760

Deck 6

budget at completion (BAC)

Answer 2760

The total planned budget for a project.B

Question 2761

Deck 6

activity-on-node network (AON)

Answer 2761

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

Question 2762

Deck 6

level loading

Answer 2762

Syn: load leveling.L

Question 2763

Deck 6

network

Answer 2763

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

Question 2764

Deck 6

gauge

Answer 2764

An instrument for measuring or testing.G

Question 2765

Deck 6

policy constraint

Answer 2765

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

Question 2766

Deck 6

market boundary

Answer 2766

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

Question 2767

Deck 6

ISO 26000

Answer 2767

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

Question 2768

Deck 6

start-to-start

Answer 2768

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

Question 2769

Deck 6

TEI

Answer 2769

Abbreviation for total employee involvement.T

Question 2770

Deck 6

shop scheduling

Answer 2770

Syn: operations scheduling.S

Question 2771

Deck 6

operation reporting

Answer 2771

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

Question 2772

Deck 6

sampling

Answer 2772

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

Question 2773

Deck 6

downstream

Answer 2773

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

Question 2774

Deck 6

boilerplate

Answer 2774

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

Question 2775

Deck 6

inventory cycle

Answer 2775

The length of time between two consecutive replenishment shipments.I

Question 2776

Deck 6

decision-support data

Answer 2776

Syn: data warehouse.D

Question 2777

Deck 6

effective interest rate

Answer 2777

Syn: annual percentage rate.E

Question 2778

Deck 6

project model

Answer 2778

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

Question 2779

Deck 6

replacement factor

Answer 2779

The percentage of time on average that an item will require replacement. The replacement factor is also expressed as a percentage applied to the quantity per assembly on the bill of material. It is useful for forecasting materials and capacity requirements for planning purposes. See: occurrence factor, repair factor.R

Question 2780

Deck 6

work center schedule

Answer 2780

Syn: dispatch list.W

Question 2781

Deck 6

hundredweight (cwt)

Answer 2781

One hundred pounds.H

Question 2782

Deck 6

plan source

Answer 2782

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

Question 2783

Deck 6

M-days

Answer 2783

Available manufacturing days excluding holidays and weekends.M

Question 2784

Deck 6

active load

Answer 2784

Work scheduled that may not be on hand.A

Question 2785

Deck 6

design of experiments (DOE)

Answer 2785

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

Question 2786

Deck 6

operation due date

Answer 2786

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

Question 2787

Deck 6

current cost

Answer 2787

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

Question 2788

Deck 6

branding

Answer 2788

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

Question 2789

Deck 6

receipt

Answer 2789

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

Question 2790

Deck 6

defects per unit

Answer 2790

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

Question 2791

Deck 6

one-to-one marketing

Answer 2791

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

Question 2792

Deck 6

cost variance

Answer 2792

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

Question 2793

Deck 6

maverick spending

Answer 2793

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

Question 2794

Deck 6

design for manufacture and assembly (DFMA)

Answer 2794

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

Question 2795

Deck 6

design for remanufacture

Answer 2795

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

Question 2796

Deck 6

balanced scorecard

Answer 2796

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

Question 2797

Deck 6

multisourcing

Answer 2797

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

Question 2798

Deck 6

order quantity modifiers

Answer 2798

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

Question 2799

Deck 6

all forms of manufacturing

Answer 2799

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

Question 2800

Deck 6

transportation method

Answer 2800

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

Question 2801

Deck 6

tool calibration frequency

Answer 2801

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

Question 2802

Deck 6

discrete order quantity

Answer 2802

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

Question 2803

Deck 6

unit load

Answer 2803

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

Question 2804

Deck 6

cumulative sum control chart

Answer 2804

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

Question 2805

Deck 6

start-to-finish

Answer 2805

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

Question 2806

Deck 6

subcontracting

Answer 2806

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

Question 2807

Deck 6

DNC

Answer 2807

Abbreviation for direct numerical control.D

Question 2808

Deck 6

parameter design

Answer 2808

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

Question 2809

Deck 6

fixed-period quantity

Answer 2809

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

Question 2810

Deck 6

product genealogy

Answer 2810

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

Question 2811

Deck 6

cost-plus-fixed-fee contract

Answer 2811

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

Question 2812

Deck 6

die

Answer 2812

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

Question 2813

Deck 6

life cycle analysis

Answer 2813

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

Question 2814

Deck 6

feedstock

Answer 2814

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

Question 2815

Deck 6

pick-to-light

Answer 2815

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

Question 2816

Deck 6

arrow

Answer 2816

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

Question 2817

Deck 6

value-added productivity per employee

Answer 2817

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

Question 2818

Deck 6

telnet (TN)

Answer 2818

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

Question 2819

Deck 6

CPM

Answer 2819

Abbreviation for critical path method.C

Question 2820

Deck 6

cross-sourcing

Answer 2820

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

Question 2821

Deck 6

mixed manufacturing

Answer 2821

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

Question 2822

Deck 6

tolerance limits

Answer 2822

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

Question 2823

Deck 6

process train

Answer 2823

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

Question 2824

Deck 6

pyramid forecasting

Answer 2824

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

Question 2825

Deck 6

psychographics

Answer 2825

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

Question 2826

Deck 6

tool issue order

Answer 2826

Syn: tool order.T

Question 2827

Deck 6

planning and control process

Answer 2827

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

Question 2828

Deck 6

MDS

Answer 2828

Abbreviation for material-dominated scheduling.M

Question 2829

Deck 6

GTS

Answer 2829

Grasps the situation.G

Question 2830

Deck 6

advertising

Answer 2830

Sponsored promotions that are nonpersonal in nature.A

Question 2831

Deck 6

independent project

Answer 2831

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

Question 2832

Deck 6

present value

Answer 2832

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

Question 2833

Deck 6

CPU

Answer 2833

Abbreviation for central processing unit.C

Question 2834

Deck 6

buyer cycle

Answer 2834

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

Question 2835

Deck 6

probability and impact matrix

Answer 2835

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

Question 2836

Deck 6

approved vendor list (AVL)

Answer 2836

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 2837

Deck 6

autonomous work group

Answer 2837

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

Question 2838

Deck 6

traffic

Answer 2838

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

Question 2839

Deck 6

e-learning

Answer 2839

Training or schooling done online.E

Question 2840

Deck 6

reproducibility

Answer 2840

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

Question 2841

Deck 6

derived demand

Answer 2841

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

Question 2842

Deck 6

budgeted cost of work scheduled

Answer 2842

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

Question 2843

Deck 6

may be regulated or unregulated; (2) Pure oligopoly

Answer 2843

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

Question 2844

Deck 6

100 percent inspection

Answer 2844

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

Question 2845

Deck 6

part coding and classification

Answer 2845

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

Question 2846

Deck 6

job shop layout

Answer 2846

Syn: functional layout.J

Question 2847

Deck 6

autonomation

Answer 2847

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

Question 2848

Deck 6

share, high growth rate; (3) Dogs

Answer 2848

low market share, low

Question 2849

Deck 6

World Trade Organization (WTO)

Answer 2849

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

Question 2850

Deck 6

sales forecast

Answer 2850

Syn: forecast accuracy, forecast.S

Question 2851

Deck 6

Operating profit

Answer 2851

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

Question 2852

Deck 6

synchronous control

Answer 2852

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

Question 2853

Deck 6

automated quality control inspection system

Answer 2853

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

Question 2854

Deck 6

fuzzy logic

Answer 2854

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

Question 2855

Deck 6

forecast consumption

Answer 2855

Syn: consuming the forecast.F

Question 2856

Deck 6

detail file

Answer 2856

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

Question 2857

Deck 6

training aid

Answer 2857

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

Question 2858

Deck 6

question mark

Answer 2858

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

Question 2859

Deck 6

explode

Answer 2859

To perform a bill-of-material explosion.E

Question 2860

Deck 6

grid technique

Answer 2860

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

Question 2861

Deck 6

pup

Answer 2861

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

Question 2862

Deck 6

40/30/30 rule

Answer 2862

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

Question 2863

Deck 6

work center where-used

Answer 2863

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

Question 2864

Deck 6

worker efficiency

Answer 2864

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

Question 2865

Deck 6

service response logistics

Answer 2865

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

Question 2866

Deck 6

indented bill of material

Answer 2866

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

Question 2867

Deck 6

current reality tree (CRT)

Answer 2867

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

Question 2868

Deck 6

product layout

Answer 2868

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

Question 2869

Deck 6

hypertext links

Answer 2869

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

Question 2870

Deck 6

customer partnership

Answer 2870

Syn: customer-supplier partnership.C

Question 2871

Deck 6

simulation

Answer 2871

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

Question 2872

Deck 6

number defective chart

Answer 2872

Syn: c chart.N

Question 2873

Deck 6

service phases

Answer 2873

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

Question 2874

Deck 6

discrete issue

Answer 2874

Syn: direct-deduct inventory transaction processing.D

Question 2875

Deck 6

critical process parameters

Answer 2875

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

Question 2876

Deck 6

distribution planning

Answer 2876

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

Question 2877

Deck 6

en route

Answer 2877

A term describing goods in transit.E

Question 2878

Deck 6

integrated internet marketing (I2M)

Answer 2878

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

Question 2879

Deck 6

3PL

Answer 2879

Abbreviation for third-party logistics.3

Question 2880

Deck 6

arbitrage

Answer 2880

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

Question 2881

Deck 6

experimental research

Answer 2881

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

Question 2882

Deck 6

network loop

Answer 2882

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

Question 2883

Deck 6

free on board (FOB)

Answer 2883

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

Question 2884

Deck 6

environmentally responsible manufacturing

Answer 2884

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

Question 2885

Deck 6

service time

Answer 2885

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

Question 2886

Deck 6

commodity buying

Answer 2886

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

Question 2887

Deck 6

feature

Answer 2887

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

Question 2888

Deck 6

agile manufacturing

Answer 2888

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

Question 2889

Deck 6

interplant demand

Answer 2889

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

Question 2890

Deck 6

level schedule

Answer 2890

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

Question 2891

Deck 6

trading partner

Answer 2891

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

Question 2892

Deck 6

cost of capital

Answer 2892

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

Question 2893

Deck 6

branch warehouse

Answer 2893

Syn: distribution center.B

Question 2894

Deck 6

APS

Answer 2894

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

Question 2895

Deck 6

stockless purchasing

Answer 2895

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

Question 2896

Deck 6

product profiling

Answer 2896

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

Question 2897

Deck 6

dual-card kanban system

Answer 2897

Syn: two-card kanban system.D

Question 2898

Deck 6

delivery schedule

Answer 2898

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

Question 2899

Deck 6

time-to-product

Answer 2899

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

Question 2900

Deck 6

configurator

Answer 2900

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

Question 2901

Deck 6

actual finish date

Answer 2901

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

Question 2902

Deck 6

systems thinking

Answer 2902

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

Question 2903

Deck 6

returns processing cost

Answer 2903

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

Question 2904

Deck 6

scheduled receipt

Answer 2904

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

Question 2905

Deck 6

teardown

Answer 2905

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

Question 2906

Deck 6

overhead base

Answer 2906

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

Question 2907

Deck 6

failure mode analysis (FMA)

Answer 2907

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

Question 2908

Deck 6

record accuracy

Answer 2908

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

Question 2909

Deck 6

ETC

Answer 2909

Abbreviation for estimate to complete.E

Question 2910

Deck 6

time fence

Answer 2910

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

Question 2911

Deck 6

marks and numbers

Answer 2911

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

Question 2912

Deck 6

break-even chart

Answer 2912

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

Question 2913

Deck 6

matrix

Answer 2913

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

Question 2914

Deck 6

purchase order

Answer 2914

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

Question 2915

Deck 6

information data warehouse

Answer 2915

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

Question 2916

Deck 6

hypertext

Answer 2916

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

Question 2917

Deck 6

key performance indicator (KPI)

Answer 2917

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

Question 2918

Deck 6

shape

Answer 2918

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

Question 2919

Deck 6

expected demand during lead time

Answer 2919

Syn: demand during lead time.E

Question 2920

Deck 6

seven zeros

Answer 2920

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

Question 2921

Deck 6

order level system

Answer 2921

Syn: fixed reorder cycle inventory model.O

Question 2922

Deck 6

gross requirement

Answer 2922

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

Question 2923

Deck 6

regeneration MRP

Answer 2923

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

Question 2924

Deck 6

fair return

Answer 2924

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

Question 2925

Deck 6

labor-intensive

Answer 2925

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

Question 2926

Deck 6

discounted cash flow

Answer 2926

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

Question 2927

Deck 6

attrition factor

Answer 2927

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

Question 2928

Deck 6

natural variations

Answer 2928

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

Question 2929

Deck 6

business market

Answer 2929

Syn: industrial market.B

Question 2930

Deck 6

initial public offering (IPO)

Answer 2930

A firm’s first sale of common stock.I

Question 2931

Deck 6

value chain initiative

Answer 2931

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

Question 2932

Deck 6

price point

Answer 2932

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

Question 2933

Deck 6

measure phase

Answer 2933

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

Question 2934

Deck 6

idle time

Answer 2934

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

Question 2935

Deck 6

low-level code

Answer 2935

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

Question 2936

Deck 6

containerization

Answer 2936

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

Question 2937

Deck 6

ABC

Answer 2937

Abbreviation for activity-based cost accounting.A

Question 2938

Deck 6

specific identification

Answer 2938

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

Question 2939

Deck 6

gate review

Answer 2939

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

Question 2940

Deck 6

net profit

Answer 2940

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

Question 2941

Deck 6

producibility

Answer 2941

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

Question 2942

Deck 6

market-related criteria

Answer 2942

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

Question 2943

Deck 6

pick-to-trailer

Answer 2943

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

Question 2944

Deck 6

CRT

Answer 2944

Abbreviation for current reality tree.C

Question 2945

Deck 6

strategic quality planning

Answer 2945

Weaving quality considerations into strategic business plans.S

Question 2946

Deck 6

electronic bill presentment and payment (eBPP)

Answer 2946

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

Question 2947

Deck 6

process planning

Answer 2947

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

Question 2948

Deck 6

and technical principles

Answer 2948

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

Question 2949

Deck 6

product cost

Answer 2949

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

Question 2950

Deck 6

freight collect

Answer 2950

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

Question 2951

Deck 6

startup

Answer 2951

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

Question 2952

Deck 6

overload

Answer 2952

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

Question 2953

Deck 6

queue length

Answer 2953

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

Question 2954

Deck 6

kaizen blitz®

Answer 2954

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

Question 2955

Deck 6

direct materials cost

Answer 2955

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

Question 2956

Deck 6

arbitration

Answer 2956

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

Question 2957

Deck 6

dedicated equipment

Answer 2957

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

Question 2958

Deck 6

operational planning

Answer 2958

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

Question 2959

Deck 6

sponsor

Answer 2959

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

Question 2960

Deck 6

walkthrough

Answer 2960

Syn: pilot test.W

Question 2961

Deck 6

vertical dependency

Answer 2961

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

Question 2962

Deck 6

assembly line

Answer 2962

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

Question 2963

Deck 6

homogeneous product

Answer 2963

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

Question 2964

Deck 6

big Q, little q

Answer 2964

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

Question 2965

Deck 6

unit of measure (purchasing)

Answer 2965

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

Question 2966

Deck 6

time phasing

Answer 2966

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

Question 2967

Deck 6

capacity strategy

Answer 2967

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

Question 2968

Deck 6

analyze phase

Answer 2968

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

Question 2969

Deck 6

industry structure types

Answer 2969

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

Question 2970

Deck 6

HOQ

Answer 2970

Abbreviation for house of quality.H

Question 2971

Deck 6

lot number traceability

Answer 2971

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

Question 2972

Deck 6

safety time

Answer 2972

Syn: safety lead time.S

Question 2973

Deck 6

management information system (MIS)

Answer 2973

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

Question 2974

Deck 6

telescoping

Answer 2974

Syn: overlapped schedule.T

Question 2975

Deck 6

SOA

Answer 2975

Abbreviation for service-oriented architecture.S

Question 2976

Deck 6

orthogonal arrays

Answer 2976

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

Question 2977

Deck 6

expensed stocks

Answer 2977

Syn: floor stocks.E

Question 2978

Deck 6

production planning and control strategies

Answer 2978

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

Question 2979

Deck 6

assignment

Answer 2979

Syn: allocation.A

Question 2980

Deck 6

expendables

Answer 2980

Syn: consumables.E

Question 2981

Deck 6

milestone chart

Answer 2981

Syn: Gantt chart.M

Question 2982

Deck 6

smoothing

Answer 2982

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

Question 2983

Deck 6

weighted moving average

Answer 2983

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

Question 2984

Deck 6

manufacturing environment

Answer 2984

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

Question 2985

Deck 6

stores issue order

Answer 2985

Syn: picking list.S

Question 2986

Deck 6

least unit cost

Answer 2986

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

Question 2987

Deck 6

functional layout

Answer 2987

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

Question 2988

Deck 6

critical point backflush

Answer 2988

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

Question 2989

Deck 6

operation overlapping

Answer 2989

Syn: overlapped schedule.O

Question 2990

Deck 6

marketing cost analysis

Answer 2990

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

Question 2991

Deck 6

failure analysis

Answer 2991

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

Question 2992

Deck 6

remote diagnostics

Answer 2992

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

Question 2993

Deck 6

direct store delivery (DSD)

Answer 2993

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

Question 2994

Deck 6

parking lot

Answer 2994

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

Question 2995

Deck 7

monopolistic competition

Answer 2995

A market in which many competitors offer partially differentiated products or services within a given geographical area. Most competitors focus on market segments where they can meet customers’ needs somewhat better than their competitors. See: industry structure types.M

Question 2996

Deck 7

related, they might not be

Answer 2996

those who know most about the variables must make that evaluation). The scatter chart is one of the seven tools of quality. Syn: cross plot, scatter diagram, scatterplot.S

Question 2997

Deck 7

connectivity

Answer 2997

The ability to communicate effectively with supply chain partners to facilitate interorganization synchronization. C

Question 2998

Deck 7

hash total

Answer 2998

A control process used to ensure that all documents in a group are present or processed. In practice, the arithmetic sum of data not normally added together is found, the checking (audit) process adds the same data, and a comparison is made. If the sums do not agree, an error exists. Example: the last digit of every part number in an assembly is added, and the last digit of the sum becomes the last digit of the assembly. If the last digit of an assembly is not the same as the sum of the last digit of the components’ sum, the assembly must be missing a part or must have the wrong combination of parts.H

Question 2999

Deck 7

percent completed

Answer 2999

A comparison of work completed to the current projection of total work.P

Question 3000

Deck 7

franchise extension

Answer 3000

The placement of a brand name on products outside the company’s present sphere of activity.F

Question 3001

Deck 7

organizational environment

Answer 3001

Consists of an external environment (e.g., laws and regulations, technology, economy, competition) and an internal environment (e.g., the domain of products and services to be provided, the processes to be executed, the organizational structure). See: external environment, internal environment.O

Question 3002

Deck 7

seasonal stock

Answer 3002

Syn: seasonal inventory.S

Question 3003

Deck 7

wandering bottleneck

Answer 3003

An undesirable effect in which the bottleneck moves relatively frequently from one resource to another.W

Question 3004

Deck 7

facilitating products

Answer 3004

Products that support the operations of a firm but are not sold externally, such as furniture and computers.F

Question 3005

Deck 7

return on investment (ROI)

Answer 3005

A relative measure of financial performance that provides a means for comparing various investments by calculating the profits returned during a specified time period. In the theory of constraints, ROI is calculated as throughput minus operating expense divided by investment.R

Question 3006

Deck 7

file structure

Answer 3006

The manner in which records are stored within a file (e.g., sequential, random, indexsequential). F

Question 3007

Deck 7

control levels

Answer 3007

systems capable of providing longterm planning and short-term control capabilities for strategic and operational considerations by management. Production planning and control strategies help firms develop systems that enable them to exploit market opportunities while satisfying manufacturing process requirements.P

Question 3008

Deck 7

profit center

Answer 3008

An assigned responsibility center that has authority to affect both the revenues earned and the costs incurred by and allocated to the center. Operational effectiveness is evaluated in terms of the amount of profit generated.P P

Question 3009

Deck 7

beginning available balance

Answer 3009

Syn: available inventory.B

Question 3010

Deck 7

catalog channel

Answer 3010

A facility that receives orders based on a published book of offerings and ships from its warehouse to the customer.C

Question 3011

Deck 7

receiving report

Answer 3011

A document used by the receiving function of a company to inform others of the receipt of goods purchased.R

Question 3012

Deck 7

supplier clustering

Answer 3012

Deliberately sole sourcing remote suppliers within a small geographical area to facilitate joint shipments of what would otherwise be less-thantruckload quantities.S

Question 3013

Deck 7

eurobond

Answer 3013

An internationally marketed bond.E

Question 3014

Deck 7

dispatcher

Answer 3014

1) A production control person whose primary function is dispatching. 2) A transportation worker who sends out and tracks cars, buses, trucks, railcars, and other vehicles.D

Question 3015

Deck 7

activity-based costing (ABC)

Answer 3015

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

Question 3016

Deck 7

demand time fence (DTF)

Answer 3016

1) That point in time inside of which the forecast is no longer included in total demand and projected available inventory calculations; inside this point, only customer orders are considered. Beyond this point, total demand is a combination of acdemand D tual orders and forecasts, depending on the forecast consumption technique chosen. 2) In some contexts, the demand time fence may correspond to that point in the future inside which changes to the master schedule must be approved by an authority higher than the master scheduler. Note, however, that customer orders may still be promised inside the demand time fence without higher authority approval if there are quantities available-to-promise (ATP). Beyond the demand time fence, the master scheduler may change the MPS within the limits of established rescheduling rules, without the approval of higher authority. See: option overplanning, planning time fence, time fence.D

Question 3017

Deck 7

declared value

Answer 3017

The value of goods declared on a bill of lading, used to determine a freight rate or limit the carrier’s liability.D

Question 3018

Deck 7

simple regression

Answer 3018

Regression analysis involving only one independent variable.S

Question 3019

Deck 7

lot cost

Answer 3019

In cost accounting, those costs associated with processing a common lot or quantity of parts having the same specifications.L

Question 3020

Deck 7

B7

Answer 3020

Abbreviation for the basic seven tools of quality.B

Question 3021

Deck 7

storage

Answer 3021

The retention of parts or products for future use or shipment.S

Question 3022

Deck 7

jig

Answer 3022

A device that holds a piece of work in a desired position and guides the tool or tools that perform the necessary operations. See: fixture.J

Question 3023

Deck 7

mainframe

Answer 3023

Large computer system, typically with a separate central processing unit. This high-level computer is designed for the most intensive computational tasks.M

Question 3024

Deck 7

level of effort

Answer 3024

In project management, support activity (e.g., customer liaison) that is not easily measured by discrete accomplishment. It usually has a uniform work rate.L

Question 3025

Deck 7

pull-through distributions

Answer 3025

Supply chain activities that are started by the consumer. Instead of the manufacturer “pushing” products to stores, in a pull-through distribution consumers purchase items, which signals the manufacturer to produce more of that product. This is effectively the consumer “pulling” products to the store.P

Question 3026

Deck 7

voice of the customer (VOC)

Answer 3026

Actual customer descriptions in words for the functions and features customers desire for goods and services. In the strict definition, as relates to quality function deployment (QFD), the term customer indicates the external customer of the supplying entity.V

Question 3027

Deck 7

substitution

Answer 3027

The use of a nonprimary product or component, normally when the primary item is not available.S

Question 3028

Deck 7

AIS

Answer 3028

Abbreviation for automated information system.A

Question 3029

Deck 7

innovation risk

Answer 3029

The risk of losing customers because another firm creates more innovative products.I

Question 3030

Deck 7

lot traceability

Answer 3030

The ability to identify the lot or batch number of product in terms of one or all of the following: its composition, purchased parts, manufacturing date, or shipped items. In certain regulated industries, lot traceability may be a legislative requirement.L

Question 3031

Deck 7

buyer/planner

Answer 3031

A buyer who also does material planning. This term should not be confused with planner/ buyer, which is a synonym for supplier scheduler.B

Question 3032

Deck 7

producer’s risk (α)

Answer 3032

For a given sampling plan, the probability of not accepting a lot, the quality of which P has a designated numerical value representing a level that is generally desired to accept. Usually the designated value will be the acceptable quality level (AQL). See: type I error.P

Question 3033

Deck 7

safety stock

Answer 3033

1) In general, a quantity of stock planned to be in inventory to protect against fluctuations in demand or supply. 2) In the context of master production scheduling, the additional inventory and capacity planned as protection against forecast errors and shortterm changes in the backlog. Overplanning can be used to create safety stock. Syn: buffer stock, reserve stock. See: hedge, inventory buffer.S

Question 3034

Deck 7

early supplier involvement (ESI)

Answer 3034

The process of involving suppliers early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and designs that are easier to manufacture with high quality. See: participative design/engineering.E

Question 3035

Deck 7

supply rate

Answer 3035

Production rate, or quantity of units per unit of time, sent to inventory.S

Question 3036

Deck 7

collaboration

Answer 3036

Joint work among people to achieve common business objectives.C

Question 3037

Deck 7

insourcing

Answer 3037

Using the firm’s internal resources to provide goods and services. See: make-or-buy decision.I

Question 3038

Deck 7

resource profile

Answer 3038

The standard hours of load placed on a resource by time period. Production lead-time data are taken into account to provide time-phased projections of the capacity requirements for individual production facilities. See: bill of resources, capacity planning using overall factors, product load profile, rough-cut capacity planning.R

Question 3039

Deck 7

average collection period

Answer 3039

Syn: receivables conversion period.A

Question 3040

Deck 7

collective bargaining

Answer 3040

A highly regulated system established to control conflict between labor and management. It defines and specifies the rules and procedures of initiating, negotiating, maintaining, changing, and terminating the labor-management relationship.C

Question 3041

Deck 7

precedence relationship

Answer 3041

In the critical path method of project management, a logical relationship that one node has to the succeeding node. The terms precedence relationship, logical relationship, and dependency are used somewhat interchangeably.P

Question 3042

Deck 7

tracer

Answer 3042

A request to a transportation line to trace a shipment to expedite its movement or to verify delivery.T

Question 3043

Deck 7

availability

Answer 3043

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

Question 3044

Deck 7

robotics

Answer 3044

Replacing activities previously performed by humans with mechanical devices or robots that can be either operated by humans or run by computer. Difficultto- do, dangerous, or monotonous tasks are likely candidates for robots to perform.R

Question 3045

Deck 7

promissory note

Answer 3045

An agreement to pay a stipulated amount during an agreed time period.P

Question 3046

Deck 7

surge capacity

Answer 3046

The ability to meet sudden, unexpected increases in demand by expanding production with existing personnel and equipment.S

Question 3047

Deck 7

sweepstakes

Answer 3047

A marketing promotion in which prizes are awarded, usually by chance.S

Question 3048

Deck 7

ISDN

Answer 3048

Abbreviation for integrated services digital network.I

Question 3049

Deck 7

information flow profile

Answer 3049

A graph of the performance of information flow compared to some set of performance criteria.I

Question 3050

Deck 7

market share, low growth rate; (2) Stars

Answer 3050

high market

Question 3051

Deck 7

block system

Answer 3051

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

Question 3052

Deck 7

DSS

Answer 3052

Abbreviation for decision support system.D

Question 3053

Deck 7

servo system

Answer 3053

A control mechanism linking a system’s input and output, designed to feed back data on system output to regulate the operation of the system.S S

Question 3054

Deck 7

current ratio

Answer 3054

Current assets divided by current liabilities.C

Question 3055

Deck 7

cancellation charge

Answer 3055

A fee charged by a seller to cover its costs associated with a customer’s cancellation of an order. If the seller has started engineering work, purchased raw materials, or started manufacturing operations, these charges could also be included in the cancellation charge.C

Question 3056

Deck 7

consignment inventory

Answer 3056

Syn: consigned stocks. See: consignment.C C

Question 3057

Deck 7

leg

Answer 3057

A portion of a complete trip.L

Question 3058

Deck 7

high-level language (HLL)

Answer 3058

Relatively sophisticated computer language that allows users to employ a notation with which they are already familiar. For example: COBOL (business), ALGOL (mathematical and scientific), FORTRAN, BASIC, Java, and Visual Basic.H H

Question 3059

Deck 7

driver

Answer 3059

1) In activity-based cost accounting, an operation that influences the quantity of work required and cost of an activity. Syn: cost driver. 2) In the theory of constraints, an underlying cause that is responsible for several observed effects.D

Question 3060

Deck 7

FLSA

Answer 3060

Abbreviation for Fair Labor Standards Act.F

Question 3061

Deck 7

exempt carrier

Answer 3061

A for-hire carrier that is free from economic regulation.E

Question 3062

Deck 7

demand chain

Answer 3062

1) A demand chain is composed of the enterprises that sell a business’s goods or services. 2) Supply chain as seen from the viewpoint of the customer, the entity who chooses among competing products and services and thus controls the demand.D

Question 3063

Deck 7

strategic drivers

Answer 3063

Factors that influence business unit and manufacturing strategies.S

Question 3064

Deck 7

browser

Answer 3064

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

Question 3065

Deck 7

executive dashboard

Answer 3065

A set of cross-functional metrics for measuring company performance that indicates the health of the company. It usually includes the company’s key performance indicators. See: dashboard.E

Question 3066

Deck 7

web directory

Answer 3066

A list of web pages that is structured hierarchically. W

Question 3067

Deck 7

job grade

Answer 3067

A form of job evaluation that assigns jobs to predetermined job classifications according to the job’s relative worth to the organization. Pay scales are usually set for each job grade.J

Question 3068

Deck 7

qualifiers

Answer 3068

Syn: order qualifiers. See: order losers, order winners.Q

Question 3069

Deck 7

capital expenditure

Answer 3069

Money invested in a long-term asset, one that is expected to last longer than one year. The investment is expected to generate a stream of future benefits.C

Question 3070

Deck 7

mix control

Answer 3070

The control of the individual items going through the plant.M

Question 3071

Deck 7

service reliability

Answer 3071

A dimension of service quality referring to the capability of a service provider to perform dependably and accurately.S

Question 3072

Deck 7

turns

Answer 3072

Syn: inventory turnover.T

Question 3073

Deck 7

work center

Answer 3073

A specific production area, consisting of one or more people and/or machines with similar capabilities, that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling. Syn: load center.W

Question 3074

Deck 7

shrinkage factor

Answer 3074

A percentage factor used to compensate for the expected loss during the manufacturing cycle of an item. This factor differs from the scrap factor in that it affects all components of the item, where the scrap factor relates to only one component’s usage. Syn: shrinkage rate.S

Question 3075

Deck 7

open master production schedule

Answer 3075

The part of the master production schedule that still has available capacity for assigning new orders.O

Question 3076

Deck 7

statement of work

Answer 3076

1) A description of products to be supplied under a contract. 2) In projection management, the first project planning document that should S be prepared. It describes the purpose, history, deliverables, and measurable success indicators for a project. It captures the support required from the customer and identifies contingency plans for events that could throw the project off course. Because the project must be sold to management, staff, and review groups, the statement of work should be a persuasive document.S

Question 3077

Deck 7

prioritization matrix

Answer 3077

A special type of matrix chart used to show the priorities of items by applying criteria and weighting factors to each item.P

Question 3078

Deck 7

incremental available-to-promise

Answer 3078

Syn: discrete available-to-promise.I

Question 3079

Deck 7

quasi manufacturing

Answer 3079

A type of service operation that closely resembles a manufacturing process; focus is on production process, technology, costs, and quality.Q

Question 3080

Deck 7

machining center

Answer 3080

A machine capable of performing a variety of metal, wood, or plastic removal operations on a part, usually operated by numerical control.M

Question 3081

Deck 7

trend analysis

Answer 3081

An analysis to determine whether trend (general upward or downward change) exists in data. See: trend forecasting models.T

Question 3082

Deck 7

rough-cut capacity planning (RCCP)

Answer 3082

The process of converting the master production schedule into requirements for key resources, often including labor; machinery; warehouse space; suppliers’ capabilities; and, in some cases, money. Comparison to available or demonstrated capacity is usually done for each key resource. This comparison assists the master scheduler in establishing a feasible master production schedule. Three approaches to performing RCCP are the bill of labor (resources, capacity) approach, the capacity planning using overall factors approach, and the resource profile approach. See: bill of resources, capacity planning, capacity planning using overall factors, product load profile, resource profile.R

Question 3083

Deck 7

Cp

Answer 3083

A widely used process capability index. It is calculated by dividing the difference between the upper specification limit (USL) and the lower specification limit (LSL) by 6 times the standard deviation (s) or C

Question 3084

Deck 7

cybercash

Answer 3084

The technology that enables online acceptance of credit cards, approving customers for payment before delivery is made.C

Question 3085

Deck 7

bottom-up planning

Answer 3085

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 3086

Deck 7

contingent project

Answer 3086

A project that can be accepted only if one or more other projects are accepted first. See: independent project, mutually exclusive project.C

Question 3087

Deck 7

global measurements

Answer 3087

Measurements used to judge the performance of the system as a whole.G

Question 3088

Deck 7

incentive contract

Answer 3088

A contract where the buyer and seller agree to a target cost and maximum price. Cost savings below the target are shared between buyer and seller. If actual cost exceeds the target cost, the cost overrun is shared between buyer and seller up to the maximum price.I

Question 3089

Deck 7

critical mass

Answer 3089

Individuals who add value to the product or service. These individuals include personnel working directly on the product, personnel providing a service to the customer, and personnel who provide support for the product or service (e.g., after-sale service).C

Question 3090

Deck 7

theoretical capacity

Answer 3090

The maximum output capability, allowing no adjustments for preventive maintenance, unplanned downtime, shutdown, and so forth.T

Question 3091

Deck 7

consortium

Answer 3091

A group of companies that work together to jointly produce a product, service, or project.C

Question 3092

Deck 7

production and inventory management

Answer 3092

General term referring to the body of knowledge and activities concerned with planning and controlling rates of purchasing, production, distribution, and related capacity resources to achieve target levels of customer service, backlogs, operating costs, inventory investment, manufacturing efficiency, and ultimately, profit and return on investment.P production and operations management (POM) Managing an organization’s production of goods or services; managing the process of taking inputs and creating outputs.P

Question 3093

Deck 7

mix number

Answer 3093

Syn: lot number.M

Question 3094

Deck 7

incentive rate

Answer 3094

In transportation, a discounted rate designed to convince a shipper to ship a higher volume in a particular load.I

Question 3095

Deck 7

nonproduction material

Answer 3095

Items (indirect materials and supplies) in the manufacturing process or in the maintenance or operation of a facility that do not generally become part of the final product.N

Question 3096

Deck 7

delivery appointment

Answer 3096

The time for goods to arrive at a selected location.D

Question 3097

Deck 7

computer numerical control (CNC)

Answer 3097

A technique in which a machine tool controller uses a computer or microprocessor to store and execute numerical instructions.C

Question 3098

Deck 7

time stamping

Answer 3098

Tracking with each transaction the time of occurrence. It is used in period closings and to tie end items to samples for certification of item properties.T

Question 3099

Deck 7

carbon footprint

Answer 3099

A measure of carbon emissions from a person, organization, building, or operation.C

Question 3100

Deck 7

delay report

Answer 3100

Syn: anticipated delay report.D

Question 3101

Deck 7

measure of service

Answer 3101

Syn: level of service.M

Question 3102

Deck 7

internal controls

Answer 3102

The policies and procedures, the documentation, and the plan for an organization that authorize transactions, safeguard assets, and maintain the accuracy of financial records.I

Question 3103

Deck 7

stockout costs

Answer 3103

The costs associated with a stockout. Those costs may include lost sales, backorder costs, expediting, and additional manufacturing and purchasing costs.S

Question 3104

Deck 7

schedule harmony

Answer 3104

In supply chains, the arrival of goods at a transfer point with a small buffer time in front of their departure via a different transportation mode.S

Question 3105

Deck 7

material class

Answer 3105

A means to describe a grouping of materials with similar characteristics for planning and scheduling purposes.M

Question 3106

Deck 7

demand filter

Answer 3106

A standard that is set to monitor sales data for individual items in forecasting models. It is usually set to be tripped when the demand for a period differs from the forecast by more than some number of mean absolute deviations.D

Question 3107

Deck 7

request for information (RFI)

Answer 3107

An inquiry to a potential supplier about that supplier’s product or service for potential use in the business. The inquiry can provide certain business requirements or be of a more general exploratory nature. See: request for proposal (RFP).R

Question 3108

Deck 7

product flexibility

Answer 3108

The ease with which current designs can be modified in response to changing market demands.P

Question 3109

Deck 7

SDS

Answer 3109

Abbreviation for single-digit setup.S

Question 3110

Deck 7

pallet jack

Answer 3110

A type of materials handling equipment that combines pallets horizontally but has no lifting capability.P

Question 3111

Deck 7

ISO 31000

Answer 3111

A standard adopted by the International Standards Organization that outlines principles and a set of guidelines to manage risk in any endeavor. The standard includes guidelines for understanding risk, developing a risk management policy, integrating risk management into organizational processes (including accountability and responsibility), and establishing internal and external risk communication processes. ISO 31000 is not a management system standard and is not intended or appropriate for certification purposes or regulatory or contractual use.I

Question 3112

Deck 7

gateway

Answer 3112

The connection that allows data and other information to flow between two networks.G

Question 3113

Deck 7

echelon

Answer 3113

A level of supply chain nodes. For example, a supply chain with two independent factory warehouses and nine wholesale warehouses delivering product to 350 retail stores is a supply chain with three echelons between the factory and the end customer. One echelon consists of the two independent factory warehouses, one echelon consists of the nine wholesale warehouses, and one echelon consists of the 350 retail stores. Each echelon adds operating expense, holds inventory, adds to the cycle time, and expects to make a profit. See: disintermediation.E

Question 3114

Deck 7

run

Answer 3114

A quantity of production being processed.R

Question 3115

Deck 7

interrupt

Answer 3115

A break in the normal flow of a computer routine such that the flow can be resumed from that point at a later time. An interrupt is usually caused by a signal from an external source.I

Question 3116

Deck 7

standard deviation

Answer 3116

A measurement of dispersion of data or of a variable. The standard deviation is computed by finding the differences between the average and actual observations, squaring each difference, adding the squared differences, dividing by n – 1 (for a sample), and taking the square root of the result. See: estimate of error.S

Question 3117

Deck 7

BAC

Answer 3117

Acronym for budget at completion.B

Question 3118

Deck 7

scrap

Answer 3118

Material outside of specifications and possessing characteristics that make rework impractical.S

Question 3119

Deck 7

order shipment

Answer 3119

Activity that extends from the time the order is placed upon the vehicle for movement until the order is received, verified, and unloaded at the buyer’s destination.O

Question 3120

Deck 7

service capacity

Answer 3120

The number of daily customers a firm is designed to serve; actual throughput may be larger or smaller.S

Question 3121

Deck 7

supplier relationship management (SRM)

Answer 3121

A comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services the enterprise uses. The goal of SRM is to streamline and make more effective the processes between an enterprise and its suppliers. SRM is often associated with automating procure-to-pay business processes, evaluating supplier performance, and exchanging information with suppliers. An e-procurement system often comes under the umbrella of a supplier relationship management family of applications.S

Question 3122

Deck 7

common carrier duties

Answer 3122

The requirements of common carriers to offer reasonable services and rates and to avoid discrimination.C

Question 3123

Deck 7

contact efficiency

Answer 3123

A measure of how well an organization transforms website hits into visits.C

Question 3124

Deck 7

DFMA

Answer 3124

Abbreviation for design for manufacture and assembly.D

Question 3125

Deck 7

TBC

Answer 3125

Abbreviation for time-based competition.T

Question 3126

Deck 7

VAN

Answer 3126

Acronym for value-added network.V

Question 3127

Deck 7

estimate to complete (ETC)

Answer 3127

Expected cost to complete all remaining work for an activity or project.E

Question 3128

Deck 7

corporate purchasing cards

Answer 3128

Syn: procurement credit card.C

Question 3129

Deck 7

goodness of fit

Answer 3129

The degree to which a model complies with observed data.G

Question 3130

Deck 7

last in, first out (LIFO)

Answer 3130

A method of inventory valuation for accounting purposes. The accounting assumption is that the most recently received (last in) is the first to be used or sold (first out) for costing purposes, but there is no necessary relationship with the actual physical L movement of specific items. See: average cost systems.L

Question 3131

Deck 7

GDSS

Answer 3131

Abbreviation for group decision support system.G

Question 3132

Deck 7

product-mix flexibility

Answer 3132

The ability to change over quickly to other products produced in a facility, as required by demand shifts in mix.P

Question 3133

Deck 7

stock dividend

Answer 3133

A dividend paid to shareholders in stock rather than cash.S

Question 3134

Deck 7

automated guided vehicle system (AGVS)

Answer 3134

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

Question 3135

Deck 7

staged material

Answer 3135

Syn: kit.S

Question 3136

Deck 7

fixed cost

Answer 3136

An expenditure that does not vary with the production volume; for example, rent, property tax, and salaries of certain personnel.F

Question 3137

Deck 7

independent trading exchange

Answer 3137

A business-to-business marketplace ownership model. These are public sites often used for indirect materials and commodity purchases where the price is the primary factor and where any buyers and sellers for a particular market meet to gain access to a wider market to find the best deals. See: public marketplaces.I I

Question 3138

Deck 7

stock number

Answer 3138

Syn: item number.S

Question 3139

Deck 7

locational determinants

Answer 3139

Information or factors considered in determining where to put a facility.L

Question 3140

Deck 7

stores requisition

Answer 3140

Syn: picking list.S

Question 3141

Deck 7

delivery speed

Answer 3141

A performance criterion that measures how quickly a product or service can be delivered once the demand is identified.D

Question 3142

Deck 7

sourcing

Answer 3142

The process of identifying a company that provides a needed good or service.S

Question 3143

Deck 7

manufacturing volume strategy

Answer 3143

An element of manufacturing strategy that includes a series of assumptions and predictions about long-term market, technology, and competitive behavior in the following areas: (1) the predicted growth and variability of demand, (2) the costs of building and operating different sized plants, (3) the rate and direction of technological improvement, (4) the likely behavior of competitors, and (5) the anticipated impact of international competitors, markets, and sources of supply. It is the sequence of specific volume decisions over time that determines an organization’s long-term manufacturing volume strategy.M

Question 3144

Deck 7

performance benchmarking

Answer 3144

Syn: competitive benchmarking. See: benchmarking, process benchmarking.P

Question 3145

Deck 7

rated capacity

Answer 3145

The expected output capability of a resource or system. Capacity is traditionally calculated from such data as planned hours, efficiency, and utilization. The rated capacity is equal to hours available × efficiency × utilization. Syn: calculated capacity, effective capacity, nominal capacity, standing capacity.R

Question 3146

Deck 7

sample average

Answer 3146

A key measure that represents the central tendency of a sample.S

Question 3147

Deck 7

offer

Answer 3147

A contractual communication that proposes definite terms. A contract is created if the other party accepts those terms.O

Question 3148

Deck 7

public relations

Answer 3148

The function that oversees a program to earn public understanding and acceptance.P

Question 3149

Deck 7

data collection

Answer 3149

The act of compiling data for recording, analysis, or distribution.D

Question 3150

Deck 7

pace rating

Answer 3150

Estimating the level of effort of a subject of methods study, where 100 percent would be the sustainable pace of an average skilled worker.P

Question 3151

Deck 7

mean time for failures (MTFF)

Answer 3151

Average time for failure of a nonrepairable product (expected life) or average time to first failure of a repairable product. See: reliability.M

Question 3152

Deck 7

mystery shoppers

Answer 3152

People who pose as customers but who are really studying an organization’s service quality to provide feedback to the organization for improvement purposes.M N

Question 3153

Deck 7

quality control

Answer 3153

The process of measuring quality conformance by comparing the actual with a standard for the characteristic and acting on the difference. See: quality assurance/control.Q

Question 3154

Deck 7

organization chart

Answer 3154

A graphical depiction of relationships between people who work together.O

Question 3155

Deck 7

least-squares method

Answer 3155

A method of curve fitting that selects a line of best fit through a plot of data to minimize the sum of squares of the deviations of the given points from the line. See: regression analysis.L

Question 3156

Deck 7

go/no-go

Answer 3156

The state of a unit or product. Two parameters are possible: go (conforms to specification) and no-go (does not conform to specification).G

Question 3157

Deck 7

vendor

Answer 3157

Any seller of an item in the marketplace. See: supplier.V

Question 3158

Deck 7

operations planning

Answer 3158

The planning of activities that transform inputs into finished goods and services.O

Question 3159

Deck 7

automated process controls system

Answer 3159

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

Question 3160

Deck 7

acid test ratio

Answer 3160

Syn: quick asset ratio.A

Question 3161

Deck 7

stock order

Answer 3161

An order to replenish stock, as opposed to a production order to make a particular product for a specific customer.S

Question 3162

Deck 7

bill of operations

Answer 3162

Syn: routing.B

Question 3163

Deck 7

or too early, (2) waiting

Answer 3163

queuing delays, (3) transportation

Question 3164

Deck 7

product-positioned warehouse

Answer 3164

The warehouse located close to the manufacturing plants that acts as a consolidation point for products.P

Question 3165

Deck 7

feasible economic order quantity

Answer 3165

When solving a quantity discount problem, the economic order quantity is feasible if the computed number can be purchased at the cost used in the EOQ problem rather than at some other discount quantity. For example, consider a product that sells for $10 for 1 to 99 units, $9 for 100 to 499 units, and $8 for 500 for more units. If the quantity discount solution calls for purchasing 800 units at the $8 value, the solution is feasible; however if the quantity discount solution calls for purchasing 250 units at this cost the solution is not feasible, because the purchase quantity is not consistent with the purchase price for that quantity.F

Question 3166

Deck 7

production

Answer 3166

The conversion of inputs into finished products.P

Question 3167

Deck 7

scheduling algorithm

Answer 3167

Syn: scheduling rules.S

Question 3168

Deck 7

procurement lead time

Answer 3168

The time required to design a product, modify or design equipment, conduct market research, and obtain all necessary materials. Lead time begins when a decision has been made to accept an order to produce a new product and ends when production commences. Syn: procurement cycle, total procurement lead time. See: time-to-market.P

Question 3169

Deck 7

crashing

Answer 3169

In project management, adding resources to critical path or near-critical path activities on a project to shorten project duration after analyzing the project to identify the most cost-effective course of action.C

Question 3170

Deck 7

CIF

Answer 3170

Abbreviation for cost, insurance, freight.C

Question 3171

Deck 7

human resource utilization

Answer 3171

Using labor to its fullest potential to maximize product or service output.H

Question 3172

Deck 7

milestone

Answer 3172

In project management, an important event in a project, usually the realization of a significant deliverable.M

Question 3173

Deck 7

work order

Answer 3173

1) An order to the machine shop for tool manufacture or equipment maintenance; not to be confused with a manufacturing order. Syn: manufacturing order, work ticket. 2) An authorization to start work on an activity (e.g., maintenance) or product.W

Question 3174

Deck 7

predecessor activity

Answer 3174

1) In project management, in an activity-on-arrow network, the activity that enters a node. 2) In project management, in an activity-on-node network, the node at the tail of the arrow.P

Question 3175

Deck 7

passenger-mile

Answer 3175

One passenger transported one mile. For example, a bus carrying forty passengers for one hundred miles would accrue 4,000 passenger miles.P

Question 3176

Deck 7

configuration system

Answer 3176

Syn: customer order servicing system.C

Question 3177

Deck 7

dock-to-stock

Answer 3177

A program by which specific quality and packaging requirements are met before the product is released. Prequalified product is shipped directly into the customer’s inventory. Dock-to-stock eliminates the costly handling of components, specifically in receiving and inspection and enables product to move directly into production.D

Question 3178

Deck 7

carcass

Answer 3178

A nonserviceable item obtained from a customer which is intended for use in remanufacturing.C

Question 3179

Deck 7

business strategy

Answer 3179

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

Question 3180

Deck 7

earmarked material

Answer 3180

The reserved material on hand that is physically identified, rather than merely reserved in a balance-of-stores record.E

Question 3181

Deck 7

startup audit

Answer 3181

The technique of having an implementation team tour or visit the implementation site on a frequent basis and use the “management by walking around” technique to identify problems and solutions.S

Question 3182

Deck 7

shop planning

Answer 3182

The function of coordinating the availability of material handling, material, resources, setup, and tooling so that an operation or job can be done on a particular machine. Shop planning is often part of the dispatching function. The term shop planning is sometimes used interchangeably with dispatching, although dispatching does not necessarily include shop planning. For example, the selection of jobs might be handled by the centralized dispatching function, while the actual shop planning might be done by the foreman or a representative. S

Question 3183

Deck 7

industrial revolution

Answer 3183

A movement to the use of factories and machines and away from activities done by hand without mechanical assistance.I

Question 3184

Deck 7

bill of capacity

Answer 3184

Syn: bill of resources.B

Question 3185

Deck 7

hedging

Answer 3185

The practice of entering into contracts on a commodity exchange to protect against future fluctuations in the commodity. This practice allows a company to isolate profits to the value-added process rather than to uncontrolled pricing factors. See: speculative buying.H

Question 3186

Deck 7

effective capacity

Answer 3186

Syn: rated capacity.E

Question 3187

Deck 7

EIPP

Answer 3187

Abbreviation for electronic invoice presentment and payment.E

Question 3188

Deck 7

GNP

Answer 3188

Abbreviation for gross national product.G

Question 3189

Deck 7

lightless plant

Answer 3189

Syn: dark factory.L

Question 3190

Deck 7

time series

Answer 3190

A set of data that is distributed over time, such as demand data in monthly time periods. Various patterns of demand must be considered in time series analysis: seasonal, trend, cyclical, and random.T

Question 3191

Deck 7

trade secret

Answer 3191

Knowledge of a manufacturing process that gives the owner an advantage over competitors who do not have it. Trade secrets are legally protectable.T

Question 3192

Deck 7

excess inventory

Answer 3192

Any inventory in the system that exceeds the minimum amount necessary to achieve the desired throughput rate at the constraint or that exceeds the minimum amount necessary to achieve the desired due date performance. Total inventory = productive inventory + protective inventory + excess inventory.E

Question 3193

Deck 7

control chart

Answer 3193

A graphic comparison of process performance data with predetermined computed control limits. The process performance data usually consist of groups of measurements selected in regular sequence of production that preserve the order. The primary use of control charts is to detect assignable causes of variation in the process as opposed to random variations. The control chart is one of the seven tools of quality. Syn: process control chart.C

Question 3194

Deck 7

D chart

Answer 3194

A control chart for evaluating a process in terms of a demerit (or quality score); for example, a weighted sum of counts of various classified nonconformities. Syn: demerit chart.D

Question 3195

Deck 7

seasonal harmonics

Answer 3195

Syn: harmonic smoothing.S

Question 3196

Deck 7

event-based marketing

Answer 3196

Promoting goods or services through specific events.E

Question 3197

Deck 7

service vs. investment chart

Answer 3197

A curve showing the amount of inventory that will be required to give various levels of customer service.S

Question 3198

Deck 7

Promotion activities

Answer 3198

other than advertising, publicity,

Question 3199

Deck 7

blend off

Answer 3199

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

Question 3200

Deck 7

nomogram

Answer 3200

A computational aid consisting of two or more scales drawn and arranged so that the results of calculations may be found by the linear connection of points on them. Historically, it was used for calculating economic lot sizes or sample sizes for work measurement observations. Also called an alignment chart.N N

Question 3201

Deck 7

sorting

Answer 3201

The function of physically separating a homogeneous subgroup from a heterogeneous population of items.S

Question 3202

Deck 7

bundle

Answer 3202

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

Question 3203

Deck 7

scenario forecasts

Answer 3203

Plans for how an organization will respond to anticipated future situations.S

Question 3204

Deck 7

equity

Answer 3204

The part of a company’s total assets not provided by creditors; owner-invested funds.E

Question 3205

Deck 7

EFT

Answer 3205

Abbreviation for electronic funds transfer.E

Question 3206

Deck 7

operating decision

Answer 3206

Planning operations to meet demand in the short-term or intermediate-term.O

Question 3207

Deck 7

profound knowledge

Answer 3207

A quality-related concept created by W. Edwards Deming. The four aspects of profound knowledge are appreciation of a system, knowledge about variation, theory of knowledge, and psychology.P

Question 3208

Deck 7

scrap factor

Answer 3208

A factor that expresses the quantity of a particular component that is expected to be scrapped upon receipt from a vendor, completion of production, or while that component is being built into a given assembly. It is usually expressed as a decimal value. For a given operation or process, the scrap factor plus the yield factor is equal to one. If the scrap factor is 30 percent (or .3), then the yield is 70 percent (or .7). In manufacturing planning and control systems, the scrap factor is usually related to a specific item in the item master, but may be related to a specific component in the product structure. For example, if 50 units of a product are required by a customer and a scrap factor of 30 percent (a yield of 70 percent) is expected, then 72 units (computed as 50 units divided by .7) should be started in the manufacturing process. Syn: scrap rate. See: yield, yield factor.S

Question 3209

Deck 7

combined lead time

Answer 3209

Syn: cumulative lead time.C

Question 3210

Deck 7

stockout probability

Answer 3210

Syn: cycle service level.S

Question 3211

Deck 7

AVL

Answer 3211

Abbreviation for approved vendor list.A

Question 3212

Deck 7

scalability

Answer 3212

1) How effectively a company can grow its business in order to meet demand. 2) How effectively the solution to a problem can be scaled up as the problem’s size increases.S

Question 3213

Deck 7

categorical plan

Answer 3213

A method of selecting and evaluating suppliers that considers input from many departments and functions within the buyer’s organization and systematically categorizes that input. Engineering, production, quality assurance, and other functional areas evaluate all suppliers for critical factors within their respective scopes of responsibility. For example, engineering would develop a category evaluating suppliers’ design flexibility. Rankings are developed across categories, performance ratings are obtained, and supplier selections are made. See: weighted-point plan.C

Question 3214

Deck 7

Scanlon plan

Answer 3214

A system of group incentives on a company-wide or plant-wide basis that sets up one measure that reflects the results of all efforts. The universal standard is the ratio of labor costs to sales value added by production. If there is an increase in production sales value with no change in labor costs, productivity has increased while unit cost has decreased.S S

Question 3215

Deck 7

zero inventories

Answer 3215

Syn: just in time.Z Z

Question 3216

Deck 7

stacked lead time

Answer 3216

Syn: cumulative lead time.S

Question 3217

Deck 7

data cleansing

Answer 3217

Sifting through a database to find and fix mistakes such as misspelling, missing information, and false data.D

Question 3218

Deck 7

equivalent units

Answer 3218

A translation of inventories into equivalent finished goods units or of inventories exploded back to raw materials for period end valuation of inventories. An equivalent unit can be the sum of several partially completed units. Two units 50 percent completed are equivalent to one unit 100 percent completed.E

Question 3219

Deck 7

personnel class

Answer 3219

A means to describe a grouping of people with similar characteristics for purposes of scheduling and planning.P

Question 3220

Deck 7

total cumulative manufacturing cycle time

Answer 3220

Average time between a part entering a manufacturing system and completion of final packaging.T

Question 3221

Deck 7

current liabilities

Answer 3221

The debts owed by a company and expected to be paid within 12 months. See: liabilities, balance sheet.C

Question 3222

Deck 7

task

Answer 3222

1) In project management, the lowest level to which work can be subdivided on a project. 2) In activity-based cost accounting, a task, a subdivision of an activity, is the least amount of work. Tasks are used to describe activities.T

Question 3223

Deck 7

customer surveys

Answer 3223

Devices such as interviews or questionnaires that aim to collect user data and preferences about product or service characteristics.C

Question 3224

Deck 7

mean time to repair (MTTR)

Answer 3224

The average time that it takes to repair a product.M

Question 3225

Deck 7

smoothing factor

Answer 3225

Syn: smoothing constant.S

Question 3226

Deck 7

group technology work cells

Answer 3226

A concentrated area for producing parts based on similar operations and/or characteristics to use equipment and labor more efficiently.G

Question 3227

Deck 7

activity identifier

Answer 3227

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

Question 3228

Deck 7

autodiscrimination

Answer 3228

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

Question 3229

Deck 7

VOC

Answer 3229

Abbreviation for voice of the customer.V

Question 3230

Deck 7

refurbished parts

Answer 3230

Syn: remanufactured parts.R

Question 3231

Deck 7

rejection

Answer 3231

The act of identifying an item as not meeting quality specifications.R

Question 3232

Deck 7

direct costing

Answer 3232

Syn: variable costing.D

Question 3233

Deck 7

rework

Answer 3233

Reprocessing to salvage a defective item or part.R

Question 3234

Deck 7

costed bill of material

Answer 3234

A form of bill of material that extends the quantity per of every component in the bill by the cost of the components.C

Question 3235

Deck 7

electronic data interchange (EDI)

Answer 3235

The paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized document formats.E

Question 3236

Deck 7

event-on-arrow network

Answer 3236

Syn: activity-on-arrow network.E

Question 3237

Deck 7

single-level where-used

Answer 3237

Single-level where-used for a component lists each parent in which that component is directly used and in what quantity. This information is usually made available through the technique known as implosion.S

Question 3238

Deck 7

benchmark measures

Answer 3238

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

Question 3239

Deck 7

activity resource estimating

Answer 3239

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

Question 3240

Deck 7

deliverable

Answer 3240

Any unique and verifiable product or result that is needed to complete a process or project.D

Question 3241

Deck 7

customer coproduction

Answer 3241

The customer is part of the service delivery process. For example, in grocery stores customers often have the option to use the self checkout. C

Question 3242

Deck 7

gapped schedule

Answer 3242

A schedule in which every piece in a lot is finished at one work center before any piece in the lot can be processed at the succeeding work center; the movement of material in complete lots, causing time gaps between the end of one operation and the beginning of the next. It is a result of using a batched schedule at each operation (work center), where process batch and transfer batch are assumed to be the same or equal. Syn: gap phasing, straight-line schedule. Ant: overlapped schedule.G

Question 3243

Deck 7

consumption

Answer 3243

The amount of each bill-of-material component used in the production process to make the parent.C

Question 3244

Deck 7

budgeted cost of work performed

Answer 3244

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

Question 3245

Deck 7

beta test

Answer 3245

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

Question 3246

Deck 7

operating cycle

Answer 3246

The three primary activities of a company are purchasing, producing, and selling a product. The operating cycle is calculated by adding the inventory conversion period to the receivables conversion period.O

Question 3247

Deck 7

RFQ

Answer 3247

Abbreviation for request for quote.R

Question 3248

Deck 7

key success factors

Answer 3248

The product attributes, organizational strengths, and accomplishments with the greatest impact on future success in the marketplace.K

Question 3249

Deck 7

interactive scheduling

Answer 3249

Computer scheduling where the process is either automatic or manually interrupted to allow the scheduler the opportunity to review and change the schedule.I

Question 3250

Deck 7

pledging of accounts receivable

Answer 3250

The act of securing a loan by pledging a company’s accounts receivable.P

Question 3251

Deck 7

controlled issue

Answer 3251

Syn: planned issue.C

Question 3252

Deck 7

pilot lot

Answer 3252

A relatively small preliminary order for a product. The purpose of this small lot is to correlate the product design with the development of an efficient manufacturing process.P

Question 3253

Deck 7

TPM

Answer 3253

Abbreviation for total productive maintenance.T

Question 3254

Deck 7

queue discipline

Answer 3254

A parameter in queuing theory that determines the order in which customers are to be served.Q

Question 3255

Deck 7

attractability efficiency

Answer 3255

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

Question 3256

Deck 7

design for the environment (DFE)

Answer 3256

Considering health, safety, and environmental aspects of a product during the design and development phase of product development.D

Question 3257

Deck 7

visual inspection

Answer 3257

Inspection performed without test instruments.V

Question 3258

Deck 7

order

Answer 3258

The average time starting when an order is ready for delivery to a customer and when the customer actually receives the delivery.O

Question 3259

Deck 7

time-phased order point (TPOP)

Answer 3259

MRP-like time planning logic for independent demand items, where gross requirements come from a forecast, not via explosion. This technique can be used to plan distribution center inventories as well as to plan for service (repair) parts, because MRP logic can readily handle items with dependent demand, independent demand, or a combination of both. Time-phased order point is an approach that uses time periods, thus allowing for lumpy withdrawals instead of average demand. When used in distribution environments, the planned order releases are input to the master schedule dependent demands. See: fixed reorder quantity inventory model.T

Question 3260

Deck 7

PDCA

Answer 3260

Abbreviation for plan-do-check-action.P

Question 3261

Deck 7

floating storage location

Answer 3261

Syn: random-location storage.F

Question 3262

Deck 7

issue

Answer 3262

1) The physical movement of items from a stocking location. See: disbursement. 2) Often, the transaction reporting of this activity.I

Question 3263

Deck 7

TBL

Answer 3263

Abbreviation for triple bottom line.T

Question 3264

Deck 7

AI

Answer 3264

Abbreviation for artificial intelligence.A

Question 3265

Deck 7

stockchase

Answer 3265

Syn: expedite.S

Question 3266

Deck 7

matrix organizational structure

Answer 3266

An organizational structure in which two (or more) channels of command, budget responsibility, and performance measurement exist simultaneously. For example, both product and functional forms of organization could be implemented simultaneously, that is, the product and functional managers have equal authority and employees report to both managers.M

Question 3267

Deck 7

extranet

Answer 3267

A network connection to a partner’s network using secure information processing and internet protocols to do business.E

Question 3268

Deck 7

special cause

Answer 3268

Syn: assignable cause.S

Question 3269

Deck 7

third-party logistics (3PL)

Answer 3269

A buyer and supplier team with a third party that provides product delivery services. This third party may provide added supply chain expertise.T

Question 3270

Deck 7

source inspection

Answer 3270

Inspection at the source of supply or production (e.g., the supplier or the work center) as opposed to inspection following receipt from the supplier or following transfer of the items from one work center to another.S

Question 3271

Deck 7

Ishikawa diagram

Answer 3271

Syn: cause-and-effect diagram.I

Question 3272

Deck 7

engineering change

Answer 3272

A revision to a drawing or design released by engineering to modify or correct a part. The request for the change can be from a customer or from production, quality control, another department, or a supplier. Syn: engineering change notice, engineering change order.E

Question 3273

Deck 7

horizontal merger

Answer 3273

An alliance of two or more competing firms.H

Question 3274

Deck 7

feedback

Answer 3274

The flow of information back into the control system so that actual performance can be compared with planned performance.F

Question 3275

Deck 7

actual volume

Answer 3275

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

Question 3276

Deck 7

Certified Supply Chain Professional

Answer 3276

The APICS designation that recognizes a high level of professional knowledge in supply chain management.C

Question 3277

Deck 7

international company

Answer 3277

Company that uses production sharing and sells its products in a different country.I

Question 3278

Deck 7

cyclical demand

Answer 3278

Demand influenced by the increases and decreases in the economy over time.C D

Question 3279

Deck 7

TS 16949

Answer 3279

Syn: ISO/TS 16949.T

Question 3280

Deck 7

arrival date

Answer 3280

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

Question 3281

Deck 7

Dewey’s reflective thinking

Answer 3281

A problem solving technique with a formal sequence of (1) problem definition, (2) problem analysis, (3) brainstorming solutions, (4) development of proposed solutions, and (5) solution testing and validation.D

Question 3282

Deck 7

CPFR

Answer 3282

Abbreviation for collaborative planning, forecasting, and replenishment.C

Question 3283

Deck 7

right the first time

Answer 3283

A term used to convey the concept that it is beneficial and more cost-effective to take the necessary steps the first time to ensure that a good or service meets its requirements than to provide a good or service that will need rework or not meet customers’ needs. In other words, an organization should engage in defect prevention rather than defect detection.R

Question 3284

Deck 7

graphical evaluation and review technique (GERT)

Answer 3284

A network analysis technique that allows for probability distributions of activity durations and also conditions under which some activities may not be carried out. See: critical path method, network analysis, program evaluation and review technique.G

Question 3285

Deck 7

RFP

Answer 3285

Abbreviation for request for proposal.R

Question 3286

Deck 7

exclusive use

Answer 3286

Carrier vehicles assigned for the exclusive use of a particular shipper.E

Question 3287

Deck 7

net inventory

Answer 3287

Syn: available inventory.N

Question 3288

Deck 7

return on net assets

Answer 3288

Profit divided by assets excluding depreciation.R

Question 3289

Deck 7

MPC

Answer 3289

Abbreviation for manufacturing planning and control.M

Question 3290

Deck 7

facility layout

Answer 3290

Describes where machines and utilities will be located in a facility, as well as the arrangement of processes.F

Question 3291

Deck 7

firms. These types are (1) Pure monopoly

Answer 3291

Only one firm provides a particular product or service. The monopoly

Question 3292

Deck 7

production lot

Answer 3292

A group of material that is processed in one stage of production and put in inventory for further production (or for shipment to customers).P

Question 3293

Deck 7

gray box design

Answer 3293

A situation in which the supplier and client jointly design a product or service. See: black box design.G

Question 3294

Deck 7

baseline

Answer 3294

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

Question 3295

Deck 7

andon

Answer 3295

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

Question 3296

Deck 7

inventory tax

Answer 3296

Tax based on the value of inventory on hand at a particular time.I

Question 3297

Deck 7

advance ship notice (ASN)

Answer 3297

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

Question 3298

Deck 7

multicountry strategy

Answer 3298

A strategy in which each country market is self-contained. Customers have unique product expectations that are addressed by local production capabilities. Syn: multidomestic strategy.M

Question 3299

Deck 7

secular trend

Answer 3299

The general direction of the long-run change in the value of a particular time series.S

Question 3300

Deck 7

withdrawal

Answer 3300

1) Removal of material from stores. 2) A transaction issuing material to a specific location, run, or schedule.W

Question 3301

Deck 7

value added

Answer 3301

1) In accounting, the addition of direct labor, direct material, and allocated overhead assigned at an operation. It is the cost roll-up as a part goes through a manufacturing process to finished inventory. 2) In current manufacturing terms, the actual increase of utility from the viewpoint of the customer as a part is transformed from raw material to finished inventory. It is the contribution made by an operation or a plant to the final usefulness and value of a product, as seen by the customer. The objective is to eliminate all nonvalue- added activities in producing and providing a good or service.V

Question 3302

Deck 7

artificial intelligence (AI)

Answer 3302

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

Question 3303

Deck 7

methods study

Answer 3303

An analysis to improve the efficiency of work by studying the existing method to identify and eliminate wasted motion.M

Question 3304

Deck 7

configuration management system

Answer 3304

Formal procedures to identify and document the physical characteristics of a product or project, control changes, and support an audit to verify conformance.C

Question 3305

Deck 7

overhead pool

Answer 3305

The collection of overhead costs that are to be allocated over a specified group of products.O

Question 3306

Deck 7

mutually exclusive project

Answer 3306

In capital budgeting, a project that will not be accepted if a competing project is accepted. See: contingent project, independent project.M

Question 3307

Deck 7

discrete manufacturing

Answer 3307

The production of distinct items such as automobiles, appliances, or computers.D

Question 3308

Deck 7

express

Answer 3308

1) Carrier payment to its customers when ships, rail cars, or trailers are unloaded or loaded in less than the time allowed by contract and returned to the carrier for use. See: demurrage, detention. 2) The use of priority package delivery to achieve overnight or secondday delivery.E

Question 3309

Deck 7

of the following phases

Answer 3309

identification; research and analysis of market opportunities; selection of target markets; development of marketing strategies; development of the marketing plans, programs, and projects; and management, execution, and control of the market plans, programs, and projects.M M

Question 3310

Deck 7

vehicle

Answer 3310

Carrying and power unit to move goods over ways. Includes all forms of transportation means except pipeline. The carrier generally owns or leases the vehicles, but a shipper also may own or lease.V

Question 3311

Deck 7

OD

Answer 3311

Abbreviation for organizational development.O

Question 3312

Deck 7

super bill of material

Answer 3312

A type of planning bill, located at the top level in the structure, that ties together various modular bills (and possibly a common parts bill) to define an entire product or product family. The quantity per relationship of the super bill to its modules represents the forecasted percentage of demand of each module. The master-scheduled quantities of the super bill explode to create requirements for the modules that also are master scheduled. See: pseudo bill of material.S

Question 3313

Deck 7

green logistics

Answer 3313

A purchasing firm has the responsibility to properly dispose of packaging supplies received with items ordered.G

Question 3314

Deck 7

shelf life control

Answer 3314

A technique of physical first-in, firstout usage aimed at minimizing stock obsolescence.S

Question 3315

Deck 7

mini-land-bridge traffic

Answer 3315

A multimodal transportation solution that moves goods over water and then land, with the final destination being on the opposite coast. See: micro-land-bridge traffic.M

Question 3316

Deck 7

deviation

Answer 3316

The difference, usually the absolute difference, between a number and the mean of a set of numbers, or between a forecast value and the actual value.D

Question 3317

Deck 7

weighted-factor rating model

Answer 3317

A method to analyze the advantages of various locations along several qualitative and quantitative dimensions.W

Question 3318

Deck 7

minor setup

Answer 3318

The incremental setup activities required when changing from one item to another within a group of items.M

Question 3319

Deck 7

groupthink

Answer 3319

A situation in which a team seizes on one solution to a problem and does not consider other viable solutions either because members are afraid of confrontation or because they convince themselves that other ideas aren’t worth discussing.G

Question 3320

Deck 7

distribution channel

Answer 3320

The distribution route, from raw materials through consumption, along which products travel. See: channels of distribution, marketing channel.D

Question 3321

Deck 7

time study

Answer 3321

Timing employees as they accomplish jobs for the purpose of setting time standards.T

Question 3322

Deck 7

CIRM

Answer 3322

Acronym for Certified in Integrated Resource Management.C

Question 3323

Deck 7

parallel schedule

Answer 3323

The use of two or more machines or job centers to perform identical operations on a lot of material. Duplicate tooling and setup are required.P

Question 3324

Deck 7

inventory effectiveness index

Answer 3324

A system to identify nonvalue- adding inventory and make it visible and provide a process to measure non-value adding inventory and sell or write it off to keep working capital in control.I I

Question 3325

Deck 7

repeatability of measurement

Answer 3325

The variation in measurements obtained when one measurement instrument is used several times by an appraiser while measuring the identical characteristic on the same part.R

Question 3326

Deck 7

disability

Answer 3326

A limitation of capability that limits functioning within a plant or a company.D

Question 3327

Deck 7

released order

Answer 3327

Syn: open order.R

Question 3328

Deck 7

DMAIC process

Answer 3328

Acronym for define, measure, analyze, improve, and control process.D

Question 3329

Deck 7

specific performance

Answer 3329

A contract remedy requiring defendants to do what they have contracted to do.S

Question 3330

Deck 7

broadband

Answer 3330

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

Question 3331

Deck 7

demand pull

Answer 3331

The triggering of material movement to a work center only when that work center is ready to begin the next job. In effect, it shortens or eliminates the queue from in front of a work center, but it can cause a queue at the end of a previous work center. Demand pull also can occur within a supply chain, in which case it often is called a demand chain.D

Question 3332

Deck 7

stable demand

Answer 3332

Products that keep a similar demand pattern no matter what the season or time. Staple products fall into this category.S

Question 3333

Deck 7

cascaded systems

Answer 3333

Multistage operations. The input to each stage is the output of a preceding stage, thereby causing interdependencies among the stages.C

Question 3334

Deck 7

SMED

Answer 3334

Abbreviation for single-minute exchange of die.S

Question 3335

Deck 7

deseasonalized data

Answer 3335

Data from which seasonality has been removed using annual moving averages.D

Question 3336

Deck 7

operations sequence

Answer 3336

The sequential steps for an item to follow in its flow through the plant. For instance, operation 1: cut bar stock; operation 2: grind bar stock; operation 3: shape; operation 4: polish; operation 5: inspect and send to stock. This information is normally maintained in the routing file.O

Question 3337

Deck 7

networking

Answer 3337

Developing relationships with people who may be able to enhance the performance of duties or responsibilities.N

Question 3338

Deck 7

cost object

Answer 3338

In activity-based cost accounting, anything for which a separate cost measurement is desirable. This may include a product, a customer, a project, or other work unit.C

Question 3339

Deck 7

finite scheduling

Answer 3339

Syn: finite loading.F

Question 3340

Deck 7

pacemaker

Answer 3340

In lean, the resource that is scheduled based on the customer demand rate for that specific value stream. It is that resource which performs an operation or process that governs the flow of materials along the value stream. Its purpose is to maintain a smooth flow through the manufacturing plant; a larger buffer is provided for the pacemaker than other resources so that it can maintain continuous operation. See: constraint.P

Question 3341

Deck 7

open period

Answer 3341

Accounting time period for which the books will still accept adjusting entries and postings. Ant: closed period.O

Question 3342

Deck 7

skill-based compensation

Answer 3342

A method of employee compensation that bases the employee’s wage rate on the number of skills the employee is qualified to perform. People who are qualified to do a wider variety of skills are paid more. See: labor grade.S

Question 3343

Deck 7

online receiving

Answer 3343

An unloading process characterized by computers or terminals wherever shipments are received and employees enter delivery data into the system as the shipments are unloaded.O

Question 3344

Deck 7

period costs

Answer 3344

All costs related to a period of time rather than a unit of product (e.g., marketing costs, property taxes).P

Question 3345

Deck 7

sustainability

Answer 3345

Activities that provide present benefit without compromising the needs of future generations.S T

Question 3346

Deck 7

international procurement office (IPO)

Answer 3346

Establishes a global presence for a company by providing localized supply management services in a region that is strategically important. This management approach is a longterm commitment that takes advantage of a region’s language and cultural capabilities to use trusted local staff to execute procurement activities that add value to the overall supply chain. Such tasks as local supplier development, contract negotiations, quality audits, and best practice operations provide reduced dependence on third parties and improve overall efficiency and costs.I

Question 3347

Deck 7

on-order stock

Answer 3347

The total of all outstanding replenishment orders. The on-order balance increases when a new order is released, and it decreases when material is received against an order or when an order is canceled.O

Question 3348

Deck 7

quality audit

Answer 3348

A systematic, independent examination and review to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve the objectives.Q

Question 3349

Deck 7

capacity-constrained resource (CCR)

Answer 3349

A resource that is not a constraint but will become a constraint unless scheduled carefully. Any resource that, if its capacity is not carefully managed, is likely to compromise the throughput of the organization. (Also called capacity constraint resource.)C

Question 3350

Deck 7

master production schedule (MPS)

Answer 3350

The master production schedule is a line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler. The master scheduler maintains this schedule, and in turn, it becomes a set of planning numbers that drives material requirements planning. It represents what the company plans to produce expressed in specific configurations, quantities, and dates. The master production schedule is not a sales item forecast that represents a statement of M demand. The master production schedule must take into account the forecast, the production plan, and other important considerations such as backlog, availability of material, availability of capacity, and management policies and goals. See: master schedule.M

Question 3351

Deck 7

yield management

Answer 3351

An approach commonly used by services with highly perishable products, in which prices are regularly adjusted to maximize total profit.Y

Question 3352

Deck 7

workaround

Answer 3352

A project management technique that provides a response to a negative risk that has happened. A workaround is different from a contingency plan because a workaround is not planned before the risk event occurs.W

Question 3353

Deck 7

internet service provider (ISP)

Answer 3353

A business or organization that sells access to the internet and related services to consumers. For a monthly fee, the service provider offers a software package, username, password, and access to the internet (via various technologies such as dial-up and DSL), which enables users to browse the World Wide Web and USENET and send and receive email. The ISP may also provide a combination of services, including internet transit, domain name registration and hosting, web hosting, and colocation.I

Question 3354

Deck 7

assumed receipt

Answer 3354

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 3355

Deck 7

consortia trade exchanges (CTX)

Answer 3355

An online marketplace, usually owned by a third party, that allows members to trade with each other. This site lowers members search costs and enables lower prices for the buyer.C

Question 3356

Deck 7

failure costs

Answer 3356

A term used within the cost of poor quality model to include both internal and external failure costs. See: cost of poor quality, external failure costs, internal failure costs.F

Question 3357

Deck 7

laid-down cost

Answer 3357

The sum of the product and transportation costs. The laid-down cost is useful in comparing the total cost of a product shipped from different supply sources to a customer’s point of use.L

Question 3358

Deck 7

finish-to-start

Answer 3358

activity A must be finished before activity

Question 3359

Deck 7

TOP

Answer 3359

Acronym for technical/office protocol.T

Question 3360

Deck 7

plant within a plant

Answer 3360

Syn: factory within a factory.P

Question 3361

Deck 7

noise

Answer 3361

The unpredictable or random difference between the observed data and the “true process.”N

Question 3362

Deck 7

operating system

Answer 3362

A set of software programs that control the execution of the hardware and application programs. The operating system manages the computer and network resources through storage management, disk input/output, communications linkages, program scheduling, and monitoring system usage for performance and cost allocations.O

Question 3363

Deck 7

I2M

Answer 3363

Abbreviation for integrated internet marketing.I

Question 3364

Deck 7

point-of-purchase (POP) display

Answer 3364

A sales promotion tool located at a checkout counter.P

Question 3365

Deck 7

red bead experiment

Answer 3365

An experiment developed by W. Edwards Deming to illustrate the impossibility of putting employees in rank order of performance. The experiment shows that it would be a waste of management’s time to try to find out why one worker produced more errors than another; management should instead improve the system, making it possible for everyone to achieve higher quality.R

Question 3366

Deck 7

activation

Answer 3366

Putting a resource to work.A

Question 3367

Deck 7

passive tag

Answer 3367

A RFID tag which does not send out data and is not self-powered. See: radio frequency identification (RFID) tag.P

Question 3368

Deck 7

critical processes

Answer 3368

Processes that have large potential

Question 3369

Deck 7

correlation coefficient

Answer 3369

A measure of the degree of correlation between two values, which has a range from -1 to 1.C

Question 3370

Deck 7

parallel engineering

Answer 3370

Syn: participative design/ engineering.P

Question 3371

Deck 7

start manufacture to order complete manufacture

Answer 3371

The time from when the manufacturing of an order starts until an order is ready to be shipped to the customer.S

Question 3372

Deck 7

product-focused production

Answer 3372

A type of operation designed to process only a few different products, which are usually produced for inventory; production rates tend to be greater than the demand rate.P

Question 3373

Deck 7

repetitive process

Answer 3373

Syn: repetitive manufacturing.R

Question 3374

Deck 7

yard management system (YMS)

Answer 3374

A system that organizes and directs the traffic of all vehicles in the parking yards located at various industrial buildings, like warehouses, distribution centers and manufacturing plants.Y

Question 3375

Deck 7

priority rules

Answer 3375

Simple heuristics used to select the order in which jobs will be processed.P

Question 3376

Deck 7

move ticket

Answer 3376

A document used in dispatching to authorize or record movement of a job from one work center to another. It may also be used to report other information, such as the actual quantity or the material storage location.M

Question 3377

Deck 7

sample size

Answer 3377

The number of elements selected for analysis from the population.S

Question 3378

Deck 7

diagram

Answer 3378

A high-level process map that shows substantial subprocesses in an organization’s process together with the structure of the process represented by the suppliers, inputs, outputs, and customers. A SIPOC diagram defines the critical aspects of a process without losing the overall perspective.S

Question 3379

Deck 7

quality circle

Answer 3379

A small group of people who normally work as a unit and meet frequently to uncover and solve problems concerning the quality of items produced, process capability, or process control. Syn: quality control circle. See: small group improvement activity.Q

Question 3380

Deck 7

downtime

Answer 3380

Time when a resource is scheduled for operation but is not producing for reasons such as maintenance, repair, or setup.D

Question 3381

Deck 7

labor grade

Answer 3381

A classification of workers whose capability indicates their skill level or craft. See: skill-based compensation, skills inventories.L

Question 3382

Deck 7

sales order configuration

Answer 3382

Syn: customer order servicing system.S

Question 3383

Deck 7

production standard

Answer 3383

A time standard to produce piece parts and assemblies.P

Question 3384

Deck 7

density

Answer 3384

A measure of the weight of an item compared to its volume. Because density can influence the number of units that can be carried by a particular truck, this is a factor in defining transportation charges.D

Question 3385

Deck 7

G&A

Answer 3385

Abbreviation for general and administrative expenses.G

Question 3386

Deck 7

process flowchart

Answer 3386

Syn: flow process chart.P

Question 3387

Deck 7

design for the supply chain

Answer 3387

Enhancement of a firm’s product design in consideration of the issues that will arise in the supply chain, from raw materials to the final stage of the product’s life cycle.D

Question 3388

Deck 7

ergonomics

Answer 3388

Approach to job design that focuses on the interactions between the human operator and such traditional environmental elements as atmospheric contaminants, heat, light, sound, and all tools and equipment.E

Question 3389

Deck 7

turnaround costs

Answer 3389

Syn: setup costs.T

Question 3390

Deck 7

employee stock ownership plan (ESOP)

Answer 3390

In the United States, a program that encourages workers to purchase

Question 3391

Deck 7

master scheduler

Answer 3391

Often the job title of the person charged with the responsibility of managing, establishing, reviewing, and maintaining a master schedule for select items. Ideally, the person should have substantial product, plant, process, and market knowledge because the consequences of this individual’s actions often have a great impact on customer service, material, and capacity planning. See: master production schedule.M

Question 3392

Deck 7

static inventory models

Answer 3392

Syn: single-period inventory models.S

Question 3393

Deck 7

sales planning

Answer 3393

The process of determining the overall sales plan to best support customer needs and operations capabilities while meeting general business objectives of profitability, productivity, competitive customer lead times, and so on, as expressed in the overall business plan. See: production planning, sales and operations planning.S

Question 3394

Deck 7

cost-plus contract

Answer 3394

A pricing method where the buyer agrees to pay the seller all the acceptable costs of the product or service up to a maximum cost plus a fixed fee. Syn: cost-type contract.C

Question 3395

Deck 7

search engines

Answer 3395

Web software that enables a user to find a page or website devoted to a particular topic.S

Question 3396

Deck 7

joint order

Answer 3396

An order on which several items are combined to obtain volume or transportation discounts.J

Question 3397

Deck 7

cost of quality

Answer 3397

Syn: cost of poor quality.C

Question 3398

Deck 7

data

Answer 3398

Any representations, such as alphabetic or numeric characters, to which meaning can be assigned.D

Question 3399

Deck 7

packaging

Answer 3399

Materials surrounding an item to protect it from damage during transportation. The type of packaging influences the danger of such damage.P

Question 3400

Deck 7

design phase

Answer 3400

One of the six sigma phases of quality. It involves improvement project identification and selection. See: design-measure-analyze-improve-control process.D

Question 3401

Deck 7

usage rate

Answer 3401

Demand per product per unit of time.U

Question 3402

Deck 7

GRI

Answer 3402

Abbreviation for Global Reporting Initiative.G

Question 3403

Deck 7

free float

Answer 3403

In the critical path method of project management, the amount of time that a given activity can be delayed without delaying an immediately subsequent activity’s early start time. See: float, independent float, total float.F

Question 3404

Deck 7

attachment

Answer 3404

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

Question 3405

Deck 7

focused low-cost strategy

Answer 3405

Targeting a market with a low-cost product line in order to lower the cost of sales and increase gross margin.F

Question 3406

Deck 7

blue sky

Answer 3406

Goodwill associated with the acquisition of a company asset.B

Question 3407

Deck 7

general warranty

Answer 3407

An assurance that the product is fit for use. See: special warranty, warranty.G

Question 3408

Deck 7

recycle

Answer 3408

1) The reintroduction of partially processed product or carrier solvents from one operation or task into a previous operation. 2) A recirculation process.R

Question 3409

Deck 7

guarantee

Answer 3409

A contractual obligation by one entity to another that a fact regarding a product is true. See: warranty.G

Question 3410

Deck 7

item record

Answer 3410

The “master” record for an item. Typically, it contains identifying and descriptive data and control values (lead times, lot sizes, etc.) and may contain data on inventory status, requirements, planned orders, and costs. Item records are linked by bill of material records (or product structure records), thus defining the bill of material. Syn: item master record, part master record, part record.I J J

Question 3411

Deck 7

variables data

Answer 3411

Measurement information. Control charts based on variables data include average (X-bar) charts, range (R) charts, and sample standard deviations charts.V

Question 3412

Deck 7

plan for every part (PFEP)

Answer 3412

Consolidated information stored in a single record that contains everything needed to know about a part to plan it effectively. It includes usage, container information, storage location, item description, and supplier or procurement information.P

Question 3413

Deck 7

exempt

Answer 3413

Generally, a classification of employees/jobs for which compensation is not determined by extending the recorded hours worked by an hourly rate (e.g., pay is specified at an annual or monthly rate). Exempt employees include most professionals, administrative and management personnel, and sales representatives. Specifically, the term refers to and is fully defined by the U.S. Department of Labor Fair Labor Standards Act, which regulates minimum wages and overtime for nonexempt employees. See: exempt positions, nonexempt positions.E

Question 3414

Deck 7

product group forecast

Answer 3414

A forecast for a number of similar products. See: aggregate forecast, product group.P

Question 3415

Deck 7

product manager

Answer 3415

Syn: brand manager.P

Question 3416

Deck 7

inventory planning

Answer 3416

The activities and techniques of determining the desired levels of items, whether raw materials, work in process, or finished products including order quantities and safety stock levels. Syn: material planning.I

Question 3417

Deck 7

risk response planning

Answer 3417

The process of developing a plan to avoid risks and to mitigate the effect of those that cannot be avoided.R

Question 3418

Deck 7

probabilistic demand models

Answer 3418

Statistical procedures that represent the uncertainty of demand by a set of possible outcomes (i.e., a probability distribution) and that suggest inventory management strategies under probabilistic demands.P

Question 3419

Deck 7

value stream

Answer 3419

The processes of creating, producing, and delivering a good or service to the market. For a good, the value stream encompasses the raw material supplier, the manufacture and assembly of the good, and the distribution network. For a service, the value stream consists of suppliers, support personnel and technology, the service “producer,” and the distribution channel. The value stream may be controlled by a single business or a network of several businesses.V V

Question 3420

Deck 7

kaizen

Answer 3420

The Japanese term for improvement; continuing

Question 3421

Deck 7

check sheet

Answer 3421

A simple data-recording device. The check sheet is designed by the user to facilitate the user’s interpretation of the results. The check sheet is one of the seven tools of quality. Check sheets are often confused with data sheets and checklistsC

Question 3422

Deck 7

numerical control (NC)

Answer 3422

A means of operating a machine tool automatically by the use of coded numerical instructions.N O

Question 3423

Deck 7

IRM

Answer 3423

Abbreviation for integrated resource management.I

Question 3424

Deck 7

activity-on-arc network

Answer 3424

Syn: activity-on-arrow network.A

Question 3425

Deck 7

production forecast

Answer 3425

A projected level of customer demand for a feature (option, accessory, etc.) of a maketo- order or an assemble-to-order product. Used in twolevel master scheduling, it is calculated by netting customer backlog against an overall family or product line master production schedule and then factoring this product’s available-to-promise by the option percentage in a planning bill of material. See: assemble-to-order, planning bill of material, two-level master schedule.P

Question 3426

Deck 7

run-out method

Answer 3426

A method of assigning available production or storage capacity to products based on the product’s demand and inventory level.R

Question 3427

Deck 7

group replacement

Answer 3427

Replacing an entire set of components, whether failed or not, all at one time (e.g., replacing all the light bulbs in a ceiling fixture).G

Question 3428

Deck 7

bid

Answer 3428

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

Question 3429

Deck 7

planning fence

Answer 3429

Syn: planning time fence.P

Question 3430

Deck 7

certificate of public convenience and necessity

Answer 3430

A certificate that grants authority to a particular carrier, enabling that carrier to act as a common carrier in serving and transporting commodities to a specific area.C

Question 3431

Deck 7

critical path method (CPM)

Answer 3431

A network planning technique for the analysis of a project’s completion time used for planning and controlling the activities in a project. By showing each of these activities and their associated times, the critical path, which identifies those elements that actually constrain the total time for the project, can be determined. See: critical chain method, network analysis, critical activity, critical path.C

Question 3432

Deck 7

clerical/administration

Answer 3432

Several related activities necessary for the organization’s operation, generally including but not limited to the following: updating records and files based on receipts, shipments, and adjustments; maintaining labor and equipment records; and performing locating, order consolidation, correspondence preparation, and similar activities.C

Question 3433

Deck 7

product-positioned strategy

Answer 3433

Locating operations close to the sources of supply. See: market-positioned strategy.P

Question 3434

Deck 7

explosion

Answer 3434

Syn: requirements explosion. Ant: implosion.E

Question 3435

Deck 7

count chart

Answer 3435

Syn: c chart.C

Question 3436

Deck 7

planner/buyer

Answer 3436

Syn: supplier scheduler.P

Question 3437

Deck 7

committed capability

Answer 3437

The portion of the production capability that is currently in use or is scheduled for use.C

Question 3438

Deck 7

ingredient

Answer 3438

In the process industries, the raw material or component of a mixture. See: component.I

Question 3439

Deck 7

decisions under risk

Answer 3439

Decision problems in which the analyst elects to consider several possible futures, the probabilities of which can be estimated.D

Question 3440

Deck 7

FTC

Answer 3440

Abbreviation for Federal Trade Commission.F

Question 3441

Deck 7

periodic maintenance

Answer 3441

Syn: preventive maintenance.P

Question 3442

Deck 7

uncontrollable factors

Answer 3442

In the environment of a production system, those factors that cannot be changed (e.g., temperature, natural causes, weather, vibration).U

Question 3443

Deck 7

base point pricing

Answer 3443

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

Question 3444

Deck 7

leveraged buyout (LBO)

Answer 3444

A takeover of a company using borrowed funds where assets of the acquired company are used as partial collateral for the loan.L

Question 3445

Deck 7

random variation

Answer 3445

A fluctuation in data that is caused by uncertain or random occurrences. See: random events.R

Question 3446

Deck 7

Environmental Protection Agency (EPA)

Answer 3446

A U.S. agency with regulatory authority over matters affecting the environment, including waste generation and habitat destruction.E

Question 3447

Deck 7

activity list

Answer 3447

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

Question 3448

Deck 7

duration

Answer 3448

In project management, the length of time an activity is estimated to require.D

Question 3449

Deck 7

fluctuation stock

Answer 3449

Syn: fluctuation inventory.F

Question 3450

Deck 7

capacity planning using overall factors (CPOF)

Answer 3450

A roughcut capacity planning technique. The master schedule items and quantities are multiplied by the total time required to build each item to provide the total number of hours to produce the schedule. Historical work center percentages are then applied to the total number of hours to provide an estimate of the hours per work center to support the master schedule. This technique eliminates the need for engineered time standards. Syn: overall factors. See: bill of resources, capacity planning, resource profile, rough-cut capacity planning.C

Question 3451

Deck 7

process-focused organization

Answer 3451

An organization that is oriented toward executing linked activities that constitute a given end-to-end business process with a given set of resources. Responsibilities of the members of the organization are oriented toward the performance of the process that creates the product or service and not toward a product or functional silo. See process focused, product focused.P

Question 3452

Deck 7

accidental death and disability (AD&D)

Answer 3452

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

Question 3453

Deck 7

step budget

Answer 3453

A budget that establishes anticipated targets at which an operation will perform for each step or level of production. A step budget can be likened to several different fixed budgets. This method of budgeting is useful because most of the manufacturing overhead expenditures vary in steps, not as a straight line. See: flexible budget.S

Question 3454

Deck 7

project summary work breakdown structure

Answer 3454

A work breakdown structure that is developed down to the subproject level of detail. See: work breakdown structure.P

Question 3455

Deck 7

push system

Answer 3455

1) In production, the production of items at times required by a given schedule planned in advance. 2) In material control, the issuing of material according to a given schedule or issuing material to a job order at its start time. 3) In distribution, a system for replenishing field warehouse inventories where replenishment decision making is centralized, usually at the manufacturing site or central supply facility. See: pull system.P

Question 3456

Deck 7

opportunity cost

Answer 3456

1) The return on capital that could have resulted had the capital been used for some purpose other than its present use. 2) The rate of return investors must earn to continue to supply capital to a firm.O

Question 3457

Deck 7

edutainment

Answer 3457

Mixing entertainment and education elements to make learning more fun.E

Question 3458

Deck 7

production control

Answer 3458

The function of directing or regulating the movement of goods through the entire manufacturing cycle from the requisitioning of raw material to the delivery of the finished products.P

Question 3459

Deck 7

picking

Answer 3459

The process of withdrawing from stock the components to make assemblies or finished goods. In distribution, the process of withdrawing goods from stock to ship to a distribution warehouse or to a customer.P

Question 3460

Deck 7

equilibrium point

Answer 3460

The point in a market where the demand for a product and the supply of that product are exactly equal. If supply were greater, the price would fall. If demand were greater, the price would rise. Free markets tend to move toward their equilibrium point.E

Question 3461

Deck 7

arithmetic mean

Answer 3461

Syn: mean.A

Question 3462

Deck 7

earnings before interest and taxes (EBIT)

Answer 3462

Syn: net operating income.E

Question 3463

Deck 7

line scrap

Answer 3463

The worth of work in process and raw materials scrapped because of faulty processing as a percentage of the total value of production at standard cost.L

Question 3464

Deck 7

follow-up

Answer 3464

Monitoring of job progress to see that operations are performed on schedule or that purchased material or products will be received on schedule.F

Question 3465

Deck 7

preferred supplier

Answer 3465

The supplier of choice.P

Question 3466

Deck 7

alpha release

Answer 3466

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

Question 3467

Deck 7

QS 9000

Answer 3467

A variation of ISO 9000 certification with additional requirements tailored for the automobile industry, including suppliers. QS 9000 is being superseded by ISO/ TS 16949, which incorporates many European standards. See: ISO 9000, ISO/TS 16949.Q

Question 3468

Deck 7

successor activity

Answer 3468

1) In project management, in an activity-on-arrow network, the activity (arrow) that departs a node. 2) In project management, in an activityon- node network, the activity at the tip of the arrow.S

Question 3469

Deck 7

shipping manifest

Answer 3469

A document that lists the pieces in a shipment. A manifest usually covers an entire load regardless of whether the load is to be delivered to a single destination or too many destinations. Manifests usually list the items, piece count, total weight, and the destination name and address for each destination in the load.S

Question 3470

Deck 7

PPB

Answer 3470

Abbreviation for part period balancing.P

Question 3471

Deck 7

decision matrix

Answer 3471

A matrix used by teams to evaluate problems or possible solutions. After a matrix is drawn to evaluate possible solutions, for example, the team lists the solutions in the far left vertical column. Next, the team selects criteria to rate the possible solutions, writing them across the top row. Third, each possible solution is rated on a scale of 1 to 5 for each criterion and the rating recorded in the corresponding grid. Finally, the ratings of all the criteria for each possible solution are added to determine its total score. The total D score is then used to help decide which solution deserves the most attention.D

Question 3472

Deck 7

apparent authority

Answer 3472

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

Question 3473

Deck 7

burden

Answer 3473

Syn: overhead.B

Question 3474

Deck 7

critical path activity

Answer 3474

In project management, any activity on a network’s critical path as determined by the critical path method.C

Question 3475

Deck 7

job analysis

Answer 3475

A process of gathering (by observation, interview, or recording systems) significant taskoriented activities and requirements about work required of employees.J

Question 3476

Deck 7

infinite loading

Answer 3476

Calculation of the capacity required at work centers in the time periods required regardless of the capacity available to perform this work. Syn: infinite scheduling.I

Question 3477

Deck 7

shortest processing time (SPT) rule

Answer 3477

A dispatching rule that directs the sequencing of jobs in ascending order by processing time. If this rule is followed, the most jobs at a work center per time period will be processed. As a result, the average lateness of jobs at that work center is minimized, but some jobs will be very late. Syn: smallest processing time rule.S

Question 3478

Deck 7

production activity control (PAC)

Answer 3478

The function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control. PAC encompasses the principles, approaches, and techniques needed to schedule, control, measure, and evaluate the effectiveness of production operations. See: shop floor control.P

Question 3479

Deck 7

ASP

Answer 3479

Abbreviation for application service provider.A

Question 3480

Deck 7

human resources

Answer 3480

The portion or department of a company that sets personnel policies and practices.H

Question 3481

Deck 7

inventory drivers

Answer 3481

Those conditions that would lead a company to hold inventory.I

Question 3482

Deck 7

replenishment lead time

Answer 3482

The total period of time that elapses from the moment it is determined that a product should be reordered until the product is back on the shelf available for use. Syn: reorder cycle.R

Question 3483

Deck 7

supplier scheduling

Answer 3483

A purchasing approach that provides suppliers with schedules rather than with individual hard-copy purchase orders. Normally, a supplier scheduling system will include a business agreement (contract) for each supplier, a weekly (or more frequent) schedule for each supplier extending for some time into the future, and individuals called supplier schedulers. Also required is a formal priority planning system that works well, because it is essential in this arrangement to provide the supplier with valid due dates. Syn: vendor scheduling.S

Question 3484

Deck 7

flow control

Answer 3484

A specific production control system that is based primarily on setting production rates and feeding work into production to meet these planned rates, then monitoring and controlling production. See: shop floor control.F

Question 3485

Deck 7

on order

Answer 3485

The number or value of goods or services that have been ordered but not received at a location.O

Question 3486

Deck 7

capital asset

Answer 3486

A physical object that is held by an organization for its production potential and that costs more than some threshold value.C

Question 3487

Deck 7

multimodal solutions

Answer 3487

Transportation plans that involve multiple means of transportation and coordinate the physical and information requirements.M

Question 3488

Deck 7

seiketsu

Answer 3488

A term that refers to standardization (e.g., standard locations for tools and equipment). See: five Ss.S

Question 3489

Deck 7

production sharing

Answer 3489

A network of companies that participates in product design, production, marketing, distribution, and service.P

Question 3490

Deck 7

delivery window

Answer 3490

A time frame for when goods or services should be delivered.D

Question 3491

Deck 7

cash spin or free cash spin

Answer 3491

The advantage of reducing inventory in the supply chain and reallocating the saved capital in a more profitable direction.C

Question 3492

Deck 7

out of spec

Answer 3492

A term used to indicate that a unit does not meet a given specification.O

Question 3493

Deck 7

negative float

Answer 3493

In project management, the amount of time that must be made up on an activity to get the project back on schedule. See: float.N

Question 3494

Deck 8

shipping

Answer 3494

The function that performs tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.S

Question 3495

Deck 8

non-vessel-operating common carrier (NVOCC)

Answer 3495

Carrier that uses ocean liners and works similarly to freight forwarders.N

Question 3496

Deck 8

tactical buying

Answer 3496

The purchasing process focused on transactions and nonstrategic material buying. It is closely aligned with the “ordering” portion of executing the purchasing transaction process. The characteristics for tactical buying include stable, limited fluctuations, defined standard specifications, noncritical to production, no delivery issues, and high reliability concerning quality-standard material with very little concern for rejects. See: strategic sourcing.T

Question 3497

Deck 8

block scheduling

Answer 3497

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

Question 3498

Deck 8

perpetual inventory

Answer 3498

An inventory recordkeeping system where each transaction in and out is recorded and a new balance is computed.P

Question 3499

Deck 8

purchasing performance measurement

Answer 3499

Syn: supplier measurement.P

Question 3500

Deck 8

lean

Answer 3500

Syn: lean production.L

Question 3501

Deck 8

two-card kanban system

Answer 3501

A kanban system where a move card and production card are employed. The move card authorizes the movement of a specific number of parts from a source to a point of use. The move card is attached to the standard container of parts during movement to the point of use of the parts. The production card authorizes the production of a given number of parts for use or replenishment. Syn: dualcard kanban system. See: one-card kanban system.T

Question 3502

Deck 8

automated storage/retrieval system (AS/RS)

Answer 3502

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

Question 3503

Deck 8

planning board

Answer 3503

Syn: control board.P

Question 3504

Deck 8

single-factor productivity

Answer 3504

The average amount of a given product (output) attributed to a unit of a given resource (input). Factors include labor and capital. Syn: partial productivity factor. See: multiple-factor productivity.S

Question 3505

Deck 8

correlation

Answer 3505

The relationship between two sets of data such that when one changes, the other is likely to make a corresponding change. If the changes are in the same direction, there is positive correlation. When changes tend to occur in opposite directions, there is negative correlation. When there is little correspondence or random changes, there is no correlation.C

Question 3506

Deck 8

single smoothing

Answer 3506

Syn: first-order smoothing.S

Question 3507

Deck 8

level of service

Answer 3507

A measure (usually expressed as a percentage) of satisfying demand through inventory or by the current production schedule in time to satisfy the customers’ requested delivery dates and quantities. In a make-to-stock environment, level of service is sometimes calculated as the percentage of orders picked complete from stock upon receipt of the customer order, the percentage of line items picked complete, or the percentage of total dollar demand picked complete. In make-to-order and design-to-order environments, levlevel L el of service is the percentage of times the customerrequested or acknowledged date was met by shipping complete product quantities. Syn: measure of service, service level. See: cycle service level.L

Question 3508

Deck 8

process average

Answer 3508

Expected value of the percentage defective of a given manufacturing process.P

Question 3509

Deck 8

average payment period

Answer 3509

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

Question 3510

Deck 8

manufacturing automation protocol (MAP)

Answer 3510

An application-specific protocol based on the International Standards Organization’s open systems interconnection (OSI) standards. It is designed to allow communication between a company’s computers and computers from different vendors in the manufacturing shop floor environment.M

Question 3511

Deck 8

cost-based contract

Answer 3511

A type of purchasing contract where the price of goods or services is tied to the cost of key inputs or other economic factors, such as interest rates.C

Question 3512

Deck 8

functional silo syndrome

Answer 3512

Suboptimization of an organization’s goals due to members of specific functions developing more loyalty to the function’s group goals than to the organization’s goals.F

Question 3513

Deck 8

supplier measurement

Answer 3513

The act of measuring the supplier’s performance to a contract. Measurements usually cover delivery reliability, lead time, and price. Syn: purchasing performance measurement. See: vendor measurement.S S

Question 3514

Deck 8

jury of executive opinion

Answer 3514

A forecast given by a group of executives who are knowledgeable about the industry, competition, and the firm.J

Question 3515

Deck 8

law of diminishing marginal returns

Answer 3515

A principle that as the quantity of a variable factor applied to a fixed factor is increased, the additional units of the variable factor will result in smaller and smaller increases in output. See: marginal product.L

Question 3516

Deck 8

TEU

Answer 3516

Abbreviation for twenty-foot equivalent unit.T

Question 3517

Deck 8

time-now date

Answer 3517

Syn: data date.T

Question 3518

Deck 8

tactical plan(s)

Answer 3518

The set of functional plans (e.g., production plan, sales plan, marketing plan) synchronizing activities across functions that specify production levels, capacity levels, staffing levels, funding levels, and so on, for achieving the intermediate goals and objectives to support the organization’s strategic plan. See: aggregate planning, operational plan, production plantactical T ning, sales and operations planning, strategic plan, tactical planning.T

Question 3519

Deck 8

time to reliably replenish (TRR)

Answer 3519

The time in which a part can reliably be obtained if necessary.T

Question 3520

Deck 8

modular bill of material

Answer 3520

A type of planning bill that is arranged in product modules or options. It is often used in companies where the product has many optional features (e.g., assemble-to-order companies such as automobile manufacturers). See: pseudo bill of material.M

Question 3521

Deck 8

quality tree

Answer 3521

An analytical tool that visualizes that quality is composed of four layers of achievement: (1) inspection, (2) process measurement and improvement, (3) process control, and (4) design for quality.Q

Question 3522

Deck 8

demand rate

Answer 3522

A statement of requirements in terms of quantity per unit of time (hour, day, week, month, etc.).D

Question 3523

Deck 8

bin transfer

Answer 3523

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

Question 3524

Deck 8

stock

Answer 3524

1) Items in inventory. 2) Stored products or service parts ready for sale, as distinguished from stores, which are usually components or raw materials.S

Question 3525

Deck 8

earned volume

Answer 3525

Syn: earned hours.E

Question 3526

Deck 8

certificate of compliance

Answer 3526

A supplier’s certification that the supplies or services in question meet specified requirements. C

Question 3527

Deck 8

virtual trading exchange

Answer 3527

An online trading exchange that enables both information integration and collaboration between multiple trading partners.V

Question 3528

Deck 8

receivable, and inventory

Answer 3528

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

Question 3529

Deck 8

materials handling

Answer 3529

Movement and storage of goods inside the distribution center. This represents a capital cost and is balanced against the operating costs of the facility.M

Question 3530

Deck 8

mission statement

Answer 3530

The company statement of purpose.M

Question 3531

Deck 8

zone picking

Answer 3531

A method of subdividing a picking list by areas within a storeroom for more efficient and rapid order picking. A zone-picked order must be grouped to a single location before delivery or must be delivered to different locations, such as work centers. See: batch picking, discrete order picking, order picking.Z

Question 3532

Deck 8

GATT

Answer 3532

Acronym for general agreement on tariffs and trade.G

Question 3533

Deck 8

appraisal

Answer 3533

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

Question 3534

Deck 8

online service

Answer 3534

The processing of transaction data as soon as the transaction occurs. It is real-time processing as opposed to batch processing. See: real time.O

Question 3535

Deck 8

SCEM

Answer 3535

Abbreviation for supply chain event management.S

Question 3536

Deck 8

quantity-based order system

Answer 3536

Syn: fixed reorder quantity inventory model.Q

Question 3537

Deck 8

current price

Answer 3537

The price currently being paid as opposed to standard cost.C

Question 3538

Deck 8

process stocks

Answer 3538

Raw ingredients or intermediates available for further processing into marketable products.P

Question 3539

Deck 8

bullwhip effect

Answer 3539

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

Question 3540

Deck 8

lead-time offset

Answer 3540

A technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on the lead time for the item. Syn: component lead-time offset, offsetting.L

Question 3541

Deck 8

CAM

Answer 3541

Acronym for computer-aided manufacturing.C

Question 3542

Deck 8

core process

Answer 3542

That unique capability that is central to a company’s competitive strategy.C

Question 3543

Deck 8

short shipment

Answer 3543

A situation in which a piece of freight designated by the shipping document is missing from delivery.S

Question 3544

Deck 8

paperless purchasing

Answer 3544

A purchasing operation that does not employ purchase requisitions or hard-copy purchase orders. In actual practice, a small amount of paperwork usually remains, normally in the form of the supplier schedule.P

Question 3545

Deck 8

product structure

Answer 3545

The sequence of operations that components follow during their manufacture into a product. A typical product structure would show raw material converted into fabricated components, components put together to make subassemblies, subassemblies going into assemblies, and so forth.P

Question 3546

Deck 8

with the correct line items

Answer 3546

must arrive on time.C

Question 3547

Deck 8

ASQ

Answer 3547

Abbreviation for American Society for Quality.A

Question 3548

Deck 8

turnaround

Answer 3548

Syn: setup.T

Question 3549

Deck 8

composite yield

Answer 3549

A condition where loss occurs along several operations resulting in a decreased yield for the end item. Syn: cumulative yield.C

Question 3550

Deck 8

constant

Answer 3550

A quantity that has a fixed value. Ant: variable.C

Question 3551

Deck 8

lap phasing

Answer 3551

Syn: overlapped schedule.L

Question 3552

Deck 8

late finish date (LF)

Answer 3552

In the critical path method of project management, the last date upon which a given activity can be completed without delaying the completion date of the project.L

Question 3553

Deck 8

activity ratio

Answer 3553

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

Question 3554

Deck 8

factory within a factory

Answer 3554

A technique to improve management focus and overall productivity by creating autonomous business units within a larger physical plant. Syn: plant within a plant.F

Question 3555

Deck 8

calendar unit

Answer 3555

The smallest unit of time in a project plan.C

Question 3556

Deck 8

design for maintainability

Answer 3556

Syn: design for service.D

Question 3557

Deck 8

clock card

Answer 3557

Syn: time card.C

Question 3558

Deck 8

purchasing capacity

Answer 3558

The act of buying capacity or machine time from a supplier. A company can then schedule and use the capacity of the machine or a part of the capacity of the machine as if it were in its own plant.P

Question 3559

Deck 8

intermediately positioned warehouse

Answer 3559

A warehouse located between customers and manufacturing plants to provide increased customer service and reduced distribution cost.I

Question 3560

Deck 8

order losers

Answer 3560

Capabilities of an organization in which poor performance can cause loss of business. Failure to meet customer expectations with delivery of the product is an order loser. See: order qualifiers, order winners.O

Question 3561

Deck 8

venture team

Answer 3561

A set of individuals assigned outside normal channels to develop ideas for new products.V

Question 3562

Deck 8

safety capacity

Answer 3562

In the theory of constraints: The planned amount by which the available capacity exceeds current productive capacity. This capacity provides protection from planned activities, such as resource contention, and preventive maintenance and unplanned activities, such as resource breakdown, poor quality, rework, or lateness. Safety capacity plus productive capacity plus excess capacity is equal to 100 percent of capacity. Syn: capacity cushion. See: protective capacity.S

Question 3563

Deck 8

ABP

Answer 3563

Abbreviation for activity-based planning.A

Question 3564

Deck 8

balancing operations

Answer 3564

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

Question 3565

Deck 8

common-size income statement

Answer 3565

In accounting, an income statement having values expressed as a percentage of sales rather than dollar values.C

Question 3566

Deck 8

billing and collection costs

Answer 3566

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

Question 3567

Deck 8

block diagram

Answer 3567

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 3568

Deck 8

heel

Answer 3568

In the process industry, an item used in the manufacture of itself. For example, in the manufacture of plastic, the ingredients will include the parent as well as the components.H

Question 3569

Deck 8

virtual reality

Answer 3569

Hardware and software that create an apparently real environment.V

Question 3570

Deck 8

concurrency

Answer 3570

Syn: resource contention.C

Question 3571

Deck 8

frozen master production schedule

Answer 3571

The parts of a master production schedule that should not be changed or should be changed rarely.F

Question 3572

Deck 8

lighter

Answer 3572

A short-haul flat-bottomed barge.L

Question 3573

Deck 8

shop floor control

Answer 3573

A system for using data from the shop floor to maintain and communicate status information on shop orders (manufacturing orders) and on work centers. Shop floor control can use order control or flow control to monitor material movement through the facility. The major subfunctions of shop floor control are (1) assigning priority of each shop order; (2) maintaining working-process quantity information; (3) conveying shop order status information to the office; (4) providing actual output data for capacity control purposes; (5) providing quantity by location by shop order for work-in-process inventory and accounting purposes; and (6) providing measurement of efficiency, utilization, and productivity of the workforce and machines. The major subfunctions for flow control are based primarily on production rates and feeding work into production to meet these planned rates, then monitoring and controlling production. See: flow control, order control, production activity control.S

Question 3574

Deck 8

counterpurchase

Answer 3574

When an exporter buys unrelated goods or services from an importer.C

Question 3575

Deck 8

NAFTA

Answer 3575

Acronym for North American Free Trade Agreement.N National Association of Purchasing Management

Question 3576

Deck 8

producer market

Answer 3576

Syn: industrial market.P

Question 3577

Deck 8

computer-aided process planning (CAPP)

Answer 3577

A method of process planning in which a computer system assists in the development of manufacturing process plans (defining operation sequences, machine and tooling requirements, cut parameters, part tolerances, inspection criteria, and other items). Artificial intelligence and classification and coding systems may be used in the generation of the process plan.C

Question 3578

Deck 8

warranty

Answer 3578

A commitment, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. The word should be distinguished from guarantee, which means a contract or promise by an entity to answer for the performance of a product or person. See: general warranty, guarantee, special warranty.W

Question 3579

Deck 8

multicriteria decision models

Answer 3579

Models that enable decision makers to evaluate various alternatives across several decision criteria.M

Question 3580

Deck 8

credit period

Answer 3580

The time allowed a customer to pay an invoice in full.C

Question 3581

Deck 8

focused factory

Answer 3581

A plant established to focus the entire manufacturing system on a limited, concise, manageable set of products, technologies, volumes, and markets precisely defined by the company’s competitive strategy, technology, and economics. See: cellular manufacturing.F

Question 3582

Deck 8

core team

Answer 3582

A cross-functional team of specialists formed to manage new product introduction. See: crossfunctional team.C

Question 3583

Deck 8

mixed-model scheduling

Answer 3583

The process of developing one or more schedules to enable mixed-model production. The goal is to achieve a day’s production each day. See: mixed-model production.M

Question 3584

Deck 8

batch

Answer 3584

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

Question 3585

Deck 8

spot demand

Answer 3585

Demand, having a short lead time, that is difficult to estimate. Usually supply for this demand is provided at a premium price.S

Question 3586

Deck 8

supermarket approach

Answer 3586

A way of managing inventory and improving picking by making all parts easy to take off of a shelf, much like the shelves of a supermarket. Inventory is then restocked in such a way that employees always have easy access.S

Question 3587

Deck 8

supplier partner

Answer 3587

A supplier organization with which a company has formed a customer-supplier partnership. See: outpartnering.S

Question 3588

Deck 8

confirming order

Answer 3588

A purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.C

Question 3589

Deck 8

fully qualified domain name

Answer 3589

The complete, registered address (URL) of an internet site.F

Question 3590

Deck 8

cartel

Answer 3590

A group of companies that agree to cooperate, rather than compete, in producing a product or service, thus limiting or regulating competition.C

Question 3591

Deck 8

competitive advantage

Answer 3591

The advantage a company has over its rivals in attracting customers and defending against competitors. Sources of the advantage include characteristics that a competitor cannot duplicate without substantial cost and risk, such as a manufacturing technique, brand name, or human skill set. Syn: competitive edge.C

Question 3592

Deck 8

theoretical cycle time

Answer 3592

The amount of time, eliminating all stops, waiting, and additional time due to error, that is needed for one item to go through an entire process.T

Question 3593

Deck 8

product configuration catalog

Answer 3593

A listing of all upper level configurations contained in an end-item product family. Its application is most useful when there are multiple end-item configurations in the same product family. It is used to provide a transition linkage between the enditem level and a two-level master production schedule. It also provides a correlation between the various units of upper level product definition.P

Question 3594

Deck 8

contract carrier

Answer 3594

A carrier that does not serve the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract.C C

Question 3595

Deck 8

product life cycle

Answer 3595

1) The stages a new product goes through from beginning to end (i.e., the stages that a product passes through from introduction through growth, maturity, and decline). 2) The time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) The period of time during which a product can be produced and marketed profitably.P

Question 3596

Deck 8

public key

Answer 3596

In information systems, a system where one person holds a private key (an encryption code defining access rights) but shares another key with a set of people with whom that person will communicate. See: private key.P

Question 3597

Deck 8

accounts payable

Answer 3597

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

Question 3598

Deck 8

net assets

Answer 3598

Total assets minus total liabilities.N

Question 3599

Deck 8

movement inventory

Answer 3599

A type of in-process inventory that arises because of the time required to move goods from one place to another.M

Question 3600

Deck 8

kanban

Answer 3600

A method of just-in-time production that uses standard containers or lot sizes with a single card attached to each. It is a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers. The Japanese word kanban, loosely translated, means card, billboard, or sign but other signaling devices such as colored golf balls have also been used. The term is often used synonymously for the specific scheduling system developed and used by the Toyota Corporation in Japan. See: move card, production card, synchronized production.K

Question 3601

Deck 8

pseudo bill of material

Answer 3601

An artificial grouping of items that facilitates planning. See: modular bill of material, phantom bill of material, planning bill of material, super bill of material.P

Question 3602

Deck 8

nationalization

Answer 3602

public ownership and operation of a business enterprise.N

Question 3603

Deck 8

checklist

Answer 3603

A tool used to ensure that important steps or actions in an operation have been taken. Checklists contain items that are important or relevant to an issue or situation.C

Question 3604

Deck 8

forecast

Answer 3604

An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and it can be based on extrinsic (external) or intrinsic (internal) factors. Various forecasting techniques attempt to predict one or more of the four components of demand: cyclical, random, seasonal, and trend. Syn: sales forecast. See: Box-Jenkins model, exponential smoothing forecast, extrinsic forecasting method, intrinsic forecasting method, moving average forecast, qualitative forecasting method, quantitative forecasting method.F

Question 3605

Deck 8

nervousness

Answer 3605

The characteristic in an MRP system when minor changes in higher level (e.g., level 0 or 1) records or the master production schedule cause significant timing or quantity changes in lower level (e.g., level 5 or 6) schedules and orders. Syn: system nervousness.N

Question 3606

Deck 8

gross weight

Answer 3606

Vehicle weight including freight or passengers.G

Question 3607

Deck 8

synchronous manufacturing

Answer 3607

Syn: synchronized production.S

Question 3608

Deck 8

engineering characteristics

Answer 3608

The technical features designed into a product.E

Question 3609

Deck 8

focus forecasting

Answer 3609

A system that allows the user to simulate the effectiveness of numerous forecasting techniques, enabling selection of the most effective one.F

Question 3610

Deck 8

netting

Answer 3610

The process of calculating net requirements.N

Question 3611

Deck 8

capacity planning

Answer 3611

The process of determining the amount of capacity required to produce in the future. This process may be performed at an aggregate or product-line level (resource requirements planning), at the master-scheduling level (rough-cut capacity planning), and at the material requirements planning level (capacity requirements planning). See: capacity requirements planning, resource planning, rough-cut capacity planning.C

Question 3612

Deck 8

TCO

Answer 3612

Abbreviation for total cost of ownership.T

Question 3613

Deck 8

multilinear regression analysis

Answer 3613

Model used for forecasting with more than one independent variable.M

Question 3614

Deck 8

startup costs

Answer 3614

The extra operating costs to bring the plant or product on-stream incurred between the completion of construction and the start of normal operations. In addition to the difference between actual operating costs during that period and normal costs, they include employee training, equipment tests, process adjustments, salaries and travel expense of temporary labor staff and consultants, report writing, post-startup monitoring, and associated overhead. Additional capital required to correct plant problems may be included. Startup costs are sometimes capitalized.S

Question 3615

Deck 8

liquidity ratio

Answer 3615

Financial ratios that are indicators of a firm’s ability to retire short-term financial obligations.L

Question 3616

Deck 8

rejected inventory

Answer 3616

Inventory that does not meet quality requirements but has not yet been sent to rework, scrapped, or returned to a supplier.R

Question 3617

Deck 8

negotiation

Answer 3617

The process by which a buyer and a supplier agree upon the conditions surrounding the purchase of an item or a service.N

Question 3618

Deck 8

fixed-interval review system

Answer 3618

A hybrid inventory system in which the inventory analyst reviews the inventory position at fixed time periods. If the inventory level is found to be above a preset reorder point, no action is taken. If the inventory level is at or below the reorder point, the analyst orders a variable quantity equal to M – x where M is a maximum stock level and x is the current quantity on hand and on order (if any). This hybrid system does not reorder every review interval. It therefore differs from the fixed-interval order system, which F automatically places an order whenever inventory is reviewed.F

Question 3619

Deck 8

production process

Answer 3619

The activities involved in converting inputs into finished goods. See: manufacturing process, transformation process.P

Question 3620

Deck 8

CLIN

Answer 3620

Abbreviation for contract line items number.C

Question 3621

Deck 8

advance material request

Answer 3621

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

Question 3622

Deck 8

aggregate demand

Answer 3622

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

Question 3623

Deck 8

cumulative sum

Answer 3623

The accumulated total of all forecast errors, both positive and negative. This sum will approach zero if the forecast is unbiased. Syn: sum of deviations.C

Question 3624

Deck 8

priority

Answer 3624

In a general sense, the relative importance of jobs (i.e., the sequence in which jobs should be worked on). It is a separate concept from capacity.P

Question 3625

Deck 8

supply chain network design systems

Answer 3625

Systems created among all members of the supply chain in order to get all members on the same page and with the same goals in order to promote efficiency.S

Question 3626

Deck 8

calibration

Answer 3626

The comparison of a measurement instrument or system of unverified accuracy with a measurement instrument or system of a known accuracy to detect any variation from the required performance specification.C

Question 3627

Deck 8

consumable tooling, supplies

Answer 3627

Syn: consumables.C

Question 3628

Deck 8

forensic procurement

Answer 3628

Analyzing root cause-and-effect troubleshooting.F

Question 3629

Deck 8

aggregate inventory

Answer 3629

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

Question 3630

Deck 8

reliability engineering

Answer 3630

The function responsible for the determination and application of appropriate reliability tasks and criteria during the design, development, manufacture, test, and support of a product that will result in achieving of the specified product reliability.R

Question 3631

Deck 8

viral marketing

Answer 3631

An advertisement that is embedded into web-based technology, e.g., email or pop-up ads, that can easily move through the internet and get in front of the target audience who may never have seen it otherwise.V

Question 3632

Deck 8

cross-subsidy

Answer 3632

In activity-based cost accounting, the situation of assigning too much or too little cost to a cost object. This may lead to poor decision making relative to the economic goals of the organization.C

Question 3633

Deck 8

available time

Answer 3633

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

Question 3634

Deck 8

slow-moving items

Answer 3634

Those inventory items with a low turnover; items in inventory that have a relatively low rate of usage compared to the normal amount of inventory carried.S

Question 3635

Deck 8

usage

Answer 3635

The number of units or dollars of an inventory item consumed over a period of time.U

Question 3636

Deck 8

alpha factor

Answer 3636

Syn: smoothing constant.A

Question 3637

Deck 8

processing (DDP)

Answer 3637

A data processing organizational concept under which computer resources of a company are installed at more than one location with appropriate communication links. Processing is performed at the user’s location generally on a smaller computer and under the user’s control and scheduling, as opposed to processing for all users being done on a large, centralized computer system.D

Question 3638

Deck 8

dedicated line

Answer 3638

A production line permanently configured to run well-defined parts, one piece at a time, from station to station.D

Question 3639

Deck 8

shipping order debit memo

Answer 3639

The document used to authorize the shipment of rejected material back to the supplier and create a debit entry in accounts payable.S

Question 3640

Deck 8

LBO

Answer 3640

Abbreviation for leveraged buyout.L

Question 3641

Deck 8

running sum of forecast errors

Answer 3641

The arithmetic sum of the differences between actual and forecasted demand for the periods being evaluated.R

Question 3642

Deck 8

frequency distribution

Answer 3642

A table that indicates the frequency with which data fall into each of any number of subdivisions of the variable. The subdivisions are usually called classes.F

Question 3643

Deck 8

Products are divided as follows: (1) Cash cows

Answer 3643

high

Question 3644

Deck 8

time buffer

Answer 3644

Protection against uncertainty that takes the form of time.T

Question 3645

Deck 8

equipment class

Answer 3645

A means to describe a group of equipment with similar characteristics for purposes of planning and scheduling.E

Question 3646

Deck 8

flow time efficiency

Answer 3646

The ratio of theoretical flow time to the actual flow time through a process.F

Question 3647

Deck 8

material requirements plan

Answer 3647

The result from the process of material requirements planning.M

Question 3648

Deck 8

imports

Answer 3648

Products bought in one country and produced in another.I

Question 3649

Deck 8

material definition

Answer 3649

A definition of the properties and characteristics of a substance. material-dominated

Question 3650

Deck 8

market value-added

Answer 3650

In financial management, the surplus of a firm’s equity over the capital that has been invested in the firm.M

Question 3651

Deck 8

dunnage

Answer 3651

The packing material used to protect a product from damage during transport.D

Question 3652

Deck 8

advanced production system (APS)

Answer 3652

Syn: advanced planning and scheduling.A

Question 3653

Deck 8

random cause

Answer 3653

Syn: common causes.R

Question 3654

Deck 8

piece rate

Answer 3654

The amount of money paid for a unit of production. It serves as the basis for determining the total pay for an employee working in a piecework system.P

Question 3655

Deck 8

milk run

Answer 3655

A regular route for pickup of mixed loads from several suppliers. For example, instead of each of five suppliers sending a truckload per week to meet the weekly needs of the customer, one truck visits each of the suppliers on a daily basis before delivering to the customer’s plant. Five truckloads per week are still shipped, but each truckload contains the daily requirement from each supplier. See: consolidation.M

Question 3656

Deck 8

Equal Employment Opportunity Commission (EEOC)

Answer 3656

An administrative agency in the United States that oversees Title VII of the Civil Rights Act, which prohibits employment discrimination based on race, color, religion, sex, or national origin.E

Question 3657

Deck 8

activity duration

Answer 3657

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

Question 3658

Deck 8

lost time factor

Answer 3658

The complement of utilization, that is one minus the utilization factor. It is the percentage of time lost to machine, tool, and worker unavailability. It can be calculated as the planned hours minus actual hours used, divided by the planned hours. See: balance delay, utilization.L

Question 3659

Deck 8

dispute resolution

Answer 3659

The process of arbitration or mediation to settle arguments without going to court.D

Question 3660

Deck 8

intangible costs

Answer 3660

Those costs that are difficult to quantify such as the cost of poor quality or of high employee turnover.I

Question 3661

Deck 8

excess capacity

Answer 3661

Capacity that is not used to either produce or protect the creation of throughput.E

Question 3662

Deck 8

reach

Answer 3662

The percentage of target customers who receive an advertising message.R

Question 3663

Deck 8

LTT

Answer 3663

Abbreviation for longest-task-time.L

Question 3664

Deck 8

in-control process

Answer 3664

A process in which the statistical measure being evaluated is in a state of statistical control (i.e., the variations among the observed sampling results can be attributed to a constant system of chance causes). Ant: out-of-control process.I

Question 3665

Deck 8

risk breakdown structure

Answer 3665

A tool that helps identify potential project risks, organized by risk categories and subcategories.R

Question 3666

Deck 8

operation duration

Answer 3666

The total time that elapses between the start of the setup of an operation and the completion of the operation. Syn: operation time.O

Question 3667

Deck 8

par level

Answer 3667

In service operations, the maximum supply volume based on established quotas from previous use for a particular supply item, in a particular department, for a specified time period.P

Question 3668

Deck 8

fixed-location storage

Answer 3668

A method of storage in which a relatively permanent location is assigned for the storage of each item in a storeroom or warehouse. Although more space is needed to store parts than in a randomlocation storage system, fixed locations become familiar, and therefore a locator file may not be needed. See: random-location storage.F

Question 3669

Deck 8

capital budgeting

Answer 3669

Actions relating to the planning and financing of capital outlays for such purposes as the purchase of new equipment, the introduction of new product lines, and the modernization of plant facilities.C

Question 3670

Deck 8

dispatching

Answer 3670

The selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers.D

Question 3671

Deck 8

planner

Answer 3671

Syn: material planner.P

Question 3672

Deck 8

capital-intensive

Answer 3672

A situation in which the largest expenditure in an operation is capital as opposed to labor. See: labor-intensive.C

Question 3673

Deck 8

job status

Answer 3673

A periodic report showing the plan for completing a job (usually the requirements and completion date) and the progress of the job against that plan.J

Question 3674

Deck 8

enterprise resources management

Answer 3674

The planning, execution, control, and measurement functions required to effectively operate an enterprise.E

Question 3675

Deck 8

distributed inventory

Answer 3675

Maintaining inventory in a variety of locations to provide better customer service.D

Question 3676

Deck 8

absorption costing

Answer 3676

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

Question 3677

Deck 8

capital recovery

Answer 3677

1) Charging periodically to operations amounts that will ultimately equal the amount of capital expenditure. See: amortization, depletion, depreciation. 2) The replacement of the original cost of an asset plus interest. 3) The process of regaining the net investment in a project by means of revenue in excess of the cost from the project. (Usually implies amortization of principal plus interest on the diminishing unrecovered balance.)C

Question 3678

Deck 8

picking list

Answer 3678

A document that lists the material to be picked for manufacturing or shipping orders. Syn: disbursement list, material list, stores issue order, stores requisition.P

Question 3679

Deck 8

annualized contract

Answer 3679

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

Question 3680

Deck 8

semiworks

Answer 3680

Syn: pilot plant.S

Question 3681

Deck 8

predetermined time standards

Answer 3681

A table of times of basic motions used to prepare artificial standards (i.e., without direct observation of a worker). See: therbligs.P

Question 3682

Deck 8

maximum demonstrated capacity

Answer 3682

The highest amount of actual output produced in the past when all efforts have been made to optimize the resource; for instance, overtime, additional personnel, extra hours, extra shifts, reassignment of personnel, or use of any related equipment. Maximum demonstrated capacity is the most one could ever expect to produce in a short period of time but represents a rate that cannot be maintained over a long period of time. See: demonstrated capacity.M

Question 3683

Deck 8

semiprocess flow

Answer 3683

A manufacturing configuration in which most jobs go through the same sequence of operations even though production is in job lots.S

Question 3684

Deck 8

projection

Answer 3684

Syn: extrapolation.P

Question 3685

Deck 8

churn

Answer 3685

The process of customers changing their buying preferences because they find better and/or cheaper products and services elsewhere. The internet makes it easy for customers to shop electronically in search of a better deal.C

Question 3686

Deck 8

and response

Answer 3686

quality without sacrificing quantity objectives. The types of metrics are financial, behavioral, and core-process performance.L

Question 3687

Deck 8

experimental design

Answer 3687

A formal plan that details the specifics for conducting an experiment, such as which statistical techniques and responses, factors, levels, blocks, and treatments, are to be used.E

Question 3688

Deck 8

environmentally responsible purchasing

Answer 3688

Syn: responsible procurement.E

Question 3689

Deck 8

functional organization

Answer 3689

A hierarchical organization in which each individual has one clear superior and staff areas are well defined.F G

Question 3690

Deck 8

define phase

Answer 3690

A step in the six sigma DMAIC process in which project goals and customer deliverables are identified. See: design-measure-analyze-improve-control process.D

Question 3691

Deck 8

general warehouse

Answer 3691

A location where goods usually are stored for long periods of time. The primary purpose is to protect goods until they are needed. The general warehouse is used because the producer or owner either does not have the necessary warehouse space or the cost of storage is better off-site. Usually use of a general warehouse involves minimal handling, movement, and transportation.G

Question 3692

Deck 8

substitutability

Answer 3692

When a buyer can purchase similar products from different suppliers. This increases the buyer’s power as the buyer doesn’t have to rely on just one supplier.S

Question 3693

Deck 8

empowerment

Answer 3693

A condition whereby employees have the authority to make decisions and take action in their work areas without prior approval. For example, an operator can stop a production process if a problem is detected, or a customer service representative can send out a replacement product if a customer calls with a problem.E

Question 3694

Deck 8

transfer price

Answer 3694

Price that one segment (subunit, department, division, etc.) of an organization charges for a good or service supplied to another segment of the same organization.T

Question 3695

Deck 8

BOM

Answer 3695

Abbreviation for bill of material.B

Question 3696

Deck 8

operating environment

Answer 3696

The global, domestic, environmental, and stakeholder influences that affect the key competitive factors, customer needs, culture, and philosophy of each individual company. This environment becomes the framework in which business strategy is developed and implemented. Syn: business environment.O

Question 3697

Deck 8

distribution center

Answer 3697

A location used to store inventory. Decisions driving warehouse management include site selection, number of facilities in the system, layout, and methods of receiving, storing, and retrieving goods.D

Question 3698

Deck 8

lot operation cycle time

Answer 3698

The length of time required from the start of setup to the end of cleanup for a production lot at a given operation, including setup, production, and cleanup.L

Question 3699

Deck 8

muri

Answer 3699

A Japanese word meaning strain or overburden.M

Question 3700

Deck 8

bottom-up estimating

Answer 3700

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

Question 3701

Deck 8

productive inventory

Answer 3701

In the theory of constraints: The inventory required to meet production requirements without allowance for unplanned delays. See: idle inventory, protective inventory.P

Question 3702

Deck 8

tracking signal

Answer 3702

The ratio of the cumulative algebraic sum of the deviations between the forecasts and the actual values to the mean absolute deviation. Used to signal when the validity of the forecasting model might be in doubt. See: forecast error, mean absolute deviation.T

Question 3703

Deck 8

knowledge worker

Answer 3703

A worker whose job is the accumulation, transfer, validation, analysis, and creation of information. K

Question 3704

Deck 8

cash conversion cycle

Answer 3704

1) In retailing, the length of time between the sale of products and the cash payments for a company’s resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services.C

Question 3705

Deck 8

seasonal index

Answer 3705

A number used to adjust data to seasonal demand. Syn: seasonal adjustment. See: base series.S

Question 3706

Deck 8

partial order

Answer 3706

Any shipment received or shipped that is less than the amount ordered.P

Question 3707

Deck 8

MTM

Answer 3707

Abbreviation for methods-time measurement.M

Question 3708

Deck 8

customer service level

Answer 3708

Syn: customer service ratio.C

Question 3709

Deck 8

physical supply

Answer 3709

The movement and storage of goods from suppliers to manufacturing. The cost of physical supply is ultimately passed on to the customer.P

Question 3710

Deck 8

institutional market

Answer 3710

A market in which most or all customers are one of the following: schools, hospitals, prisinstruction I ons, and other institutions that provide products and services to individuals who are under their care. See: consumer market, government market, industrial market.I

Question 3711

Deck 8

many-to-many communication

Answer 3711

Communication that enables many people to exchange information with many other people.M

Question 3712

Deck 8

gap

Answer 3712

When the actual performance level is not equal to the expected performance level.G

Question 3713

Deck 8

intellectual property

Answer 3713

Various legal entitlements that attach to certain names, written and recorded media, and inventions.I

Question 3714

Deck 8

aggregate planning

Answer 3714

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

Question 3715

Deck 8

heijunka

Answer 3715

In just-in-time philosophy, an approach to level production throughout the supply chain to match the planned rate of end product sales.H

Question 3716

Deck 8

group decision support system (GDSS)

Answer 3716

The software designed to support groups in unstructured decision making by supporting brainstorming, conflict resolution, voting, and other techniques.G

Question 3717

Deck 8

misguided capacity plans

Answer 3717

Plans for capacity utilization that are based on erroneous data or assumptions.M

Question 3718

Deck 8

single-card kanban system

Answer 3718

Syn: one-card kanban system.S

Question 3719

Deck 8

CAD/CAM

Answer 3719

The integration of computer-aided design and computer-aided manufacturing to achieve automation from design through manufacturing.C

Question 3720

Deck 8

nonconformity

Answer 3720

Failure to fulfill a specified requirement. See: blemish, defect, imperfection.N

Question 3721

Deck 8

product

Answer 3721

1) Any good or service produced for sale, barter, or internal use. 2) One of the four Ps (product, price, place, and promotion) that constitute the set of tools for directing the business offering to the customer. The product can be promoted as a distinctive item. See: four Ps.P

Question 3722

Deck 8

simultaneous engineering

Answer 3722

Syn: participative design/ engineering.S

Question 3723

Deck 8

life cycle analogy method

Answer 3723

A method for forecasting the life cycle of a new product or service, including the introduction, growth, maturity, and decline phases. In addition to time frames, this qualitative technique tries to estimate demand levels.L

Question 3724

Deck 8

fixed overhead

Answer 3724

Traditionally, all manufacturing costs

Question 3725

Deck 8

basic producer

Answer 3725

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

Question 3726

Deck 8

materials

Answer 3726

The components that are processed by an operation.M

Question 3727

Deck 8

CSR

Answer 3727

Abbreviation for customer service representative.C

Question 3728

Deck 8

divergent point

Answer 3728

An operation in a production process in which a single material/component enters and, after processing, can then be routed to a number of different downstream operations.D

Question 3729

Deck 8

degrees of freedom

Answer 3729

A statistical term indicating the number of variables or data points used for testing a relationship. The greater the degrees of freedom, the greater the confidence that can be placed on the statistical significance of the results.D

Question 3730

Deck 8

European Union (EU)

Answer 3730

An economic and political union of European countries, created to strengthen economies and lower trade barriers.E

Question 3731

Deck 8

CMI

Answer 3731

Abbreviation for co-managed inventory.C

Question 3732

Deck 8

influence filter

Answer 3732

In e-commerce, a device to make stakeholders better satisfied with a website.I

Question 3733

Deck 8

coefficient of determination

Answer 3733

Used to measure the expected accuracy of a forecast; measures the variation in one variable due to a different variable.C

Question 3734

Deck 8

buying capacity

Answer 3734

Syn: capacity buying.B

Question 3735

Deck 8

stop sequence

Answer 3735

A loading procedure in which the first stop is loaded last.S

Question 3736

Deck 8

routing sheet

Answer 3736

Syn: routing.R

Question 3737

Deck 8

service level

Answer 3737

Syn: level of service.S

Question 3738

Deck 8

part record

Answer 3738

Syn: item record.P

Question 3739

Deck 8

EF

Answer 3739

Abbreviation for early finish date.E

Question 3740

Deck 8

4PL

Answer 3740

Abbreviation for fourth-party logistics.F

Question 3741

Deck 8

risk analysis

Answer 3741

A review of the uncertainty associated with the research, development, and production of a product, service, or project.R

Question 3742

Deck 8

involuntary services

Answer 3742

Services that are not sought by customers. These include hospitals and prisons.I

Question 3743

Deck 8

record

Answer 3743

1) A collection of data fields arranged in a predefined format. 2) A set of related data that a computer program treats as a unit.R

Question 3744

Deck 8

capability study

Answer 3744

Syn: process capability analysis.C

Question 3745

Deck 8

kaizen event

Answer 3745

A time-boxed set of activities carried out by the cell team during the week of cell implementation. The kaizen event is an implementation arm of a lean manufacturing program. See: kaizen blitz.K

Question 3746

Deck 8

stockout

Answer 3746

A lack of materials, components, or finished goods that are needed. See: backorder.S

Question 3747

Deck 8

receiving point

Answer 3747

The location to which material is being shipped. Ant: shipping point.R

Question 3748

Deck 8

reprocessed material

Answer 3748

Goods that have gone through selective rework or recycle.R

Question 3749

Deck 8

bottom-up replanning

Answer 3749

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

Question 3750

Deck 8

processor-dominated scheduling

Answer 3750

A technique that schedules equipment (processor) before materials. This technique facilitates scheduling equipment in economic run lengths and the use of low-cost production sequences. This scheduling method is used in some process industries. See: material-dominated scheduling.P

Question 3751

Deck 8

supply chain community

Answer 3751

The set of trading partners and nominal trading partners that define a complete supply chain.S

Question 3752

Deck 8

finished good

Answer 3752

Syn: end item.F

Question 3753

Deck 8

employee involvement (EI)

Answer 3753

The concept of using the experience, creative energy, and intelligence of all employees by treating them with respect, keeping them informed, and including them and their ideas in decision-making processes appropriate to their areas of expertise. Employee involvement focuses on quality and productivity improvements. Syn: people involvement.E

Question 3754

Deck 8

stabilization stock

Answer 3754

An inventory that is carried on hand above the base inventory level to provide protection against incurring overtime or downtime.S

Question 3755

Deck 8

material yield

Answer 3755

Syn: yield.M

Question 3756

Deck 8

bid pricing

Answer 3756

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

Question 3757

Deck 8

rope

Answer 3757

One of the three devices required for proper management of operations. (The other two are drum and buffer.) The rope is the information flow from the drum to the front of the line (material release), which chokes the release of materials to match the flow through the constraint.R

Question 3758

Deck 8

standard time

Answer 3758

The length of time that should be required to (1) set up a given machine or operation and (2) run one batch or one or more parts, assemblies, or end products through that operation. This time is used in determining machine requirements and labor requirements. Standard time assumes an average worker following prescribed methods and allows time for personal rest to overcome fatigue and unavoidable delays. It is also frequently used as a basis for incentive pay systems and as a basis of allocating overhead in cost accounting systems. Syn: standard hours. See: standard.S

Question 3759

Deck 8

blanket rate

Answer 3759

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

Question 3760

Deck 8

nonrecurring material

Answer 3760

Tooling, gauges, and facilities necessary in the manufacturing of the final product and not consumed during manufacturing or shipped with the final product.N

Question 3761

Deck 8

stockout percentage

Answer 3761

A measure of the effectiveness with which a company responds to actual demand or requirements. The stockout percentage can be a measurement of total orders containing a stockout to total orders, or of line items incurring stockouts to total line items ordered during a period. One formula is: stockout percentage = (1 – customer service ratio) × 100 percent. Ant: customer service ratio.S

Question 3762

Deck 8

fault tolerance

Answer 3762

The ability of a system to avoid or minimize the disruptive effects of defects by using some form of redundancy or extra design margins.F

Question 3763

Deck 8

consignee

Answer 3763

The receiver of a shipment of freight.C

Question 3764

Deck 8

issue cycle time

Answer 3764

The time required to generate a requisition for material, pull the material from an inventory location, and move it to its destination.I

Question 3765

Deck 8

simple moving average

Answer 3765

A moving average where the oldest data point is dropped and the newest data point is included in the calculation. All data points are assigned equal weights. See: moving average, weighted moving average.S

Question 3766

Deck 8

direct delivery

Answer 3766

The consignment of goods directly from the supplier to the buyer, frequently used where a third party acts as intermediary between supplier and buyer.D

Question 3767

Deck 8

structured problem solving

Answer 3767

a defined process applied to determine, evaluate and resolve an identified problem. The methodology includes (1) the collection of factual data, (2) defining why the situation is a problem, (3) defining a concise definition of what the problem is, (4) generation of possible solutions, without discussing solutions at this time, and (5) evaluation of the pros and cons of each option within the organization’s objectives and feasibility, (6) implementation of the solution selected.S

Question 3768

Deck 8

adjudicate

Answer 3768

To hear and decide an issue under legal dispute.A

Question 3769

Deck 8

LCL

Answer 3769

1) Abbreviation for less than carload (lot shipment). 2) Abbreviation for lower control limit.L

Question 3770

Deck 8

sensitivity analysis

Answer 3770

A technique for determining how much an expected outcome or result will change in response to a given change in an input variable. For example, given a projected level of resources, what would be the effect on net income if variable costs of production increased 20 percent?S

Question 3771

Deck 8

book inventory

Answer 3771

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

Question 3772

Deck 8

lead-time inventory

Answer 3772

Inventory that is carried to cover demand during the lead time.L

Question 3773

Deck 8

SRM

Answer 3773

Abbreviation for supplier relationship management.S

Question 3774

Deck 8

pickup and delivery costs

Answer 3774

Carrier charges for each shipment pickup and the weight of that shipment. Costs can be reduced if several smaller shipments are consolidated and picked up in one trip.P

Question 3775

Deck 8

order penetration point

Answer 3775

The key variable in a logistics configuration; the point (in time) at which a product becomes earmarked for a particular customer. Downstream from this point, the system is driven by customer orders; upstream processes are driven by forecasts and plans. Syn: principle of postponement. See: booked orders.O

Question 3776

Deck 8

market targeting

Answer 3776

The process of developing measurements of the desirability of given market segments and deciding in which market segments to compete.M

Question 3777

Deck 8

put-away

Answer 3777

Removing the material from the dock (or other location of receipt), transporting the material to a storage area, placing that material in a staging area and then moving it to a specific location, and recording the movement and identification of the location where the material has been placed.P

Question 3778

Deck 8

ABC classification

Answer 3778

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

Question 3779

Deck 8

process organization structure

Answer 3779

An organizational structure in which people are removed from their functional departments and placed into a group that works as a single unit to perform the entire linked process. This is in contrast to a functional organization in which the activities that make up the process are performed by people in multiple functionally oriented departments.P

Question 3780

Deck 8

fixed budget

Answer 3780

A budget of expected costs based on a specific level of production or other activity.F

Question 3781

Deck 8

queue ratio

Answer 3781

The ratio of the hours of slack within the job to the queue originally scheduled.Q

Question 3782

Deck 8

MAPI method

Answer 3782

1) A procedure for equipment replacement analysis sponsored by the Machinery and Allied Products Institute. 2) A method of capital investment analysis that has been formulated by the Machinery and Allied Products Institute. This method uses a fixed format and provides charts and graphs to facilitate calculations. A prominent feature of this method is that it explicitly includes obsolescence.M

Question 3783

Deck 8

metrics

Answer 3783

Syn: performance measurement system.M

Question 3784

Deck 8

hypertext markup language (HTML)

Answer 3784

A language used to create web pages that permits the user to create text, hypertext links, and multimedia elements within the page. HTML is not a programming language, but a way to format text.H

Question 3785

Deck 8

finish-to-finish

Answer 3785

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

Question 3786

Deck 8

electronic signature

Answer 3786

An authentication that validates a transaction by means of an authorization code to identify an individual or group.E

Question 3787

Deck 8

recovery time

Answer 3787

In periods of insufficient capacity, jobs back up indefinitely. This leads to increased lead times and missed due dates. Recovery time is a period of time when capacity exceeds demand to allow the system to empty out. If there is not enough recovery time before the next episode of insufficient capacity, in-process inventory and lead times continue to grow.R

Question 3788

Deck 8

profit margin

Answer 3788

1) The difference between the sales and cost of goods sold for an organization, sometimes expressed as a percentage of sales. 2) In traditional accounting, the product profit margin is the product selling price minus the direct material, direct labor, and allocated overhead for the product, sometimes expressed as a percentage of selling price.P

Question 3789

Deck 8

everyday low prices (EDLP)

Answer 3789

A retail strategy of keeping prices low across all products or services as opposed to having sales at certain times.E

Question 3790

Deck 8

owner’s equity

Answer 3790

An accounting/financial term (balance sheet classification of accounts) representing the residual claim by the company’s owners or shareholders, or both, to the company’s assets less its liabilities. See: assets, balance sheet, liabilities.O P

Question 3791

Deck 8

flowchart

Answer 3791

The output of a flowcharting process, a chart that shows the operations, transportation, storages, delays, inspections, and so on related to a process. Flowcharts are drawn to better understand processes. The flowchart is one of the seven tools of quality. Syn: flow diagram. See: block diagram, flow process chart.F

Question 3792

Deck 8

weighted-point plan

Answer 3792

A supplier selection and rating approach that uses the input gathered in the categorical plan approach and assigns weights to each evaluation category. A weighted sum for each supplier is obtained and a comparison made. The weights used should sum to 100 percent for all categories. See: categorical plan.W W

Question 3793

Deck 8

certified fixtures

Answer 3793

The inspection models that conform to known specifications.C Certified in Integrated Resource Management (CIRM) The APICS designation that is a recognition of a high level of professional knowledge in enterprise-wide processes and activities.C Certified in Production and Inventory Management

Question 3794

Deck 8

withdrawal kanban

Answer 3794

An indicator that a container can be transported between work areas.W

Question 3795

Deck 8

fixed property

Answer 3795

Property attached to, and not easily removed from, the location.F

Question 3796

Deck 8

EOQ

Answer 3796

Abbreviation for economic order quantity.E

Question 3797

Deck 8

over, short, and damaged (OS&D) report

Answer 3797

A report submitted by a freight agent showing discrepancies in billing received and actual merchandise received.O

Question 3798

Deck 8

vital few, useful many

Answer 3798

A term used by J.M. Juran to describe his use of the Pareto principle in quality management, which he first described in 1950. (The principle was used much earlier in economics and inventory control methodologies.) The principle suggests that most effects come from relatively few causes; that is, 80 percent of the effects come from 20 percent of the possible causes. The 20 percent of the possible causes are referred to as the “vital few”; the remaining causes are referred to as the “useful many.” When Juran first defined this principle, he referred to the remaining causes as the “trivial many,” but since no problems are trivial in quality assurance, he changed it to “useful many.”V

Question 3799

Deck 8

lot-size system

Answer 3799

Syn: fixed reorder quantity inventory model.L

Question 3800

Deck 8

request for quote (RFQ)

Answer 3800

A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.R

Question 3801

Deck 8

dumping

Answer 3801

Selling goods below costs in selected markets.D E

Question 3802

Deck 8

first-order smoothing

Answer 3802

A single exponential smoothing; a weighted moving average approach that is applied to forecasting problems where the data do not exhibit significant trend or seasonal patterns. Syn: single exponential smoothing, single smoothing.F

Question 3803

Deck 8

knowledge management tool

Answer 3803

Provides an assortment of information quickly to stakeholders for faster and better decisions.K

Question 3804

Deck 8

cost analysis

Answer 3804

A review and an evaluation of actual or anticipated cost data.C

Question 3805

Deck 8

salvage value

Answer 3805

1) The cost recovered or that could be recovered from used property when removed, sold, or scrapped. A factor in appraisal of property value and in computing depreciation. 2) The market value of a machine or facility at any point in time. Normally, an estimate of an asset’s net value at the end of its estimated life.S

Question 3806

Deck 8

exports

Answer 3806

Products produced in one country and sold in another.E

Question 3807

Deck 8

order policy

Answer 3807

A set of procedures for determining the lot size and other parameters related to an order. See: lot sizing.O O

Question 3808

Deck 8

changeover flexibility

Answer 3808

Syn: setup flexibility.C

Question 3809

Deck 8

private trading exchange (PTX)

Answer 3809

A trade exchange hosted by a single company to facilitate collaborative ecommerce with its trading partners. As opposed to public e-marketplaces, a private exchange provides the host company with control over many factors, including who may participate (and in what manner), how participants may be connected, and what contents should be presented (and to whom). The ultimate goal might be to improve supply chain efficiencies and responsiveness through improved process visibility and collaboration, advanced integration platforms, and customization capabilities. P

Question 3810

Deck 8

market share

Answer 3810

The actual portion of current market demand that a company or product achieves.M

Question 3811

Deck 8

master planning of resources

Answer 3811

A grouping of business processes that includes the following activities: demand management, which includes the forecasting of sales, the planning of distribution, and the servicing of customer orders; sales and operations planning, which includes sales planning, production planning, inventory planning, backlog planning, and resource planning; master scheduling, which includes the preparation of the master production schedule and the rough-cut capacity plan.M

Question 3812

Deck 8

assurance

Answer 3812

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

Question 3813

Deck 8

inspection

Answer 3813

Measuring, examining, testing, or gauging one or more characteristics of a good or service and comparing the results with specified requirements to determine whether conformity is achieved for each characteristic. I

Question 3814

Deck 8

assured source of supply

Answer 3814

A guaranteed supply source generally created by a contract.A

Question 3815

Deck 8

send ahead

Answer 3815

The movement of a portion of a lot of material to a subsequent operation before completion of the current operation for all units of the lot. The purpose of sending material ahead is to reduce the manufacturing lead time. See: overlapped schedule.S

Question 3816

Deck 8

DRP II

Answer 3816

Abbreviation for distribution resource planning.D

Question 3817

Deck 8

virtual supply chain

Answer 3817

A collection of firms that typically exists for only a short period. Virtual supply chains are more flexible than traditional supply chains, but less efficient.V

Question 3818

Deck 8

product and market focus

Answer 3818

Developing products based on dimensions like service to similar customers, volume, or customization.P

Question 3819

Deck 8

distribution resource planning (DRP II)

Answer 3819

The extension of distribution requirements planning into the planning of the key resources contained in a distribution system (warehouse space, workforce, money, trucks, freight cars, etc).D

Question 3820

Deck 8

finishing lead time

Answer 3820

1) The time that is necessary to finish manufacturing a good after receipt of a customer order. 2) The time allowed for completing the good based on the final assembly schedule.F

Question 3821

Deck 8

linear trend forecasting

Answer 3821

Using simple linear regression to estimate future trends.L

Question 3822

Deck 8

critical chain

Answer 3822

The longest sequence of dependent events through a project network, considering both technical and resource dependencies in completing the project. The critical chain is the constraint of a project.C

Question 3823

Deck 8

visits

Answer 3823

In e-commerce, the set of requests made by one user at one website. If there is no activity within a given time frame (usually 30 minutes), the visit is considered closed.V

Question 3824

Deck 8

vendor lead time

Answer 3824

Syn: supplier lead time.V

Question 3825

Deck 8

brand name

Answer 3825

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

Question 3826

Deck 8

flatcar

Answer 3826

A railroad car without sides used for hauling machinery.F

Question 3827

Deck 8

failsafe techniques

Answer 3827

Syn: failsafe work methods, pokayoke. F

Question 3828

Deck 8

global supply chains

Answer 3828

Supply chains that include international partners or markets.G

Question 3829

Deck 8

Monte Carlo simulation

Answer 3829

A subset of digital simulation models based on random or stochastic processes.M

Question 3830

Deck 8

target marketing

Answer 3830

The process of focusing marketing activities specifically on those people who are most likely to buy a company’s products and services. Data gathered on people who use the internet are enabling companies to identify and focus on more likely candidates.T

Question 3831

Deck 8

shared services

Answer 3831

Consolidation of support processes to form a separate unit to provide services to the parent company and external customers. This lowers costs and may improve support because the shared-services unit is more focused.S

Question 3832

Deck 8

random sample

Answer 3832

A selection of observations taken from all the observations of a phenomenon in such a way that each chosen observation has the same possibility of selection.R

Question 3833

Deck 8

virtual cell

Answer 3833

A logical rather than physical grouping of manufacturing resources. Resources in virtual cells can be dispersed throughout a facility. Product mix changes may change the layout of a virtual cell. This technique is used when it is not practical to move the equipment.V

Question 3834

Deck 8

management

Answer 3834

The functions of planning, organizing, and controlling the transformation process and its utility in providing a good or service to customers.M

Question 3835

Deck 8

strategy

Answer 3835

The strategy of an enterprise identifies how a company will function in its environment. The strategy specifies how to satisfy customers, how to grow the business, how to compete in its environment, how to manage the organization and develop capabilities within the business, and how to achieve financial objectives. See: strategic plan.S

Question 3836

Deck 8

flexibility responsiveness

Answer 3836

The ability of the firm and its management to change rapidly in response to changes taking place in the marketplace.F

Question 3837

Deck 8

formulation

Answer 3837

Syn: formula.F

Question 3838

Deck 8

generally accepted manufacturing practices (GAMP)

Answer 3838

A group of practices and principles, independent of any one set of techniques, that define how a manufacturing company should be managed. Included are such elements as the need for data accuracy, frequent communication between marketing and manufacturing, top management control of the production planning process (sales and operations planning process), systems capable of validly translating high-level plans into detailed schedules, and so on. Today GAMP includes such paradigms as just-in-time, theory of constraints, total quality management, business process reengineering, and supply chain management.G

Question 3839

Deck 8

supplier footprint

Answer 3839

Describes the supply base for a particular material, component, or service. When stratified properly for leverage, cost impact, risk, and performance can lead to a supplier footprint transition plan for consolidated leverage, supply-base reduction, and focused effort.S supplier-input-process-output-customer (SIPOC)

Question 3840

Deck 8

upper control limit (UCL)

Answer 3840

Control limit for points above the central line in a control chart.U

Question 3841

Deck 8

market reach

Answer 3841

Syn: market penetration.M

Question 3842

Deck 8

pilot order

Answer 3842

Syn: experimental order.P

Question 3843

Deck 8

service industry

Answer 3843

1) In its narrowest sense, an organization that provides an intangible product (e.g., medical or legal advice). 2) In its broadest sense, all organizations except farming, mining, and manufacturing. This definition of service industry includes retail trade; wholesale trade; transportation and utilities; finance, insurance, and real estate; construction; professional, personal, and social services; and local, state, and federal governments.S

Question 3844

Deck 8

tolerance stack up

Answer 3844

When two or more components, all within tolerance limits but some distance from the specification itself, are assembled together the assembly may be subject to early failure because of the interaction between the components.T

Question 3845

Deck 8

invoice

Answer 3845

A list of goods shipped by the supplier to the buyer stating prices, quantities, and other costs.I

Question 3846

Deck 8

newsvendor problem

Answer 3846

A problem inventory management dealing with determining the single period (e.g., day or week) order quantity which will minimize the cost of sometimes having too much inventory and sometimes having too little.N

Question 3847

Deck 8

job rotation

Answer 3847

The practice of an employee periodically changing job responsibilities to provide a broader perspective and a view of the organization as a total system, to enhance motivation, and to provide cross-training.J

Question 3848

Deck 8

C.P.M.

Answer 3848

Abbreviation for Certified Purchasing Manager.C

Question 3849

Deck 8

live load

Answer 3849

Syn: available work.L

Question 3850

Deck 8

authentication

Answer 3850

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

Question 3851

Deck 8

CASE

Answer 3851

Acronym for computer-assisted software engineering.C

Question 3852

Deck 8

median

Answer 3852

The middle value in a set of measured values when the items are arranged in order of magnitude. If there is no single middle value, the median is the mean of the two middle values.M

Question 3853

Deck 8

major components: (1) quality of conformance

Answer 3853

quality is defined by the absence of defects, and (2) quality of

Question 3854

Deck 8

accessorial charges

Answer 3854

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

Question 3855

Deck 8

distribution network structure

Answer 3855

The planned channels of inventory disbursement from one or more sources to field warehouses and ultimately to the customer. There may be one or more levels in the disbursement system. Syn: bill of distribution.D

Question 3856

Deck 8

server address

Answer 3856

The internet address of a server.S

Question 3857

Deck 8

interrogate

Answer 3857

Retrieve information from computer files by use of predefined inquiries or unstructured queries handled by a high-level retrieval language.I

Question 3858

Deck 8

product grade

Answer 3858

The categorization of goods based upon the range of specifications met during the manufacturing process.P

Question 3859

Deck 8

quantity discount

Answer 3859

A price reduction allowance determined by the quantity or value of a purchase.Q

Question 3860

Deck 8

classification

Answer 3860

The designation of the job function that

Question 3861

Deck 8

double-sampling plan

Answer 3861

A way to control quality by taking one sample and making an accept or reject decision, and, if the decision cannot be made, taking a second sample and making the accept or reject decision by combining the results of both samples.D

Question 3862

Deck 8

common cost

Answer 3862

A cost that is incurred by the business as a whole.C

Question 3863

Deck 8

negligence

Answer 3863

The causing of injury to another by failure to use reasonable care.N

Question 3864

Deck 8

prediction

Answer 3864

An intuitive estimate of demand taking into account changes and new factors influencing the market, as opposed to a forecast, which is an objective projection of the past into the future.P

Question 3865

Deck 8

cost-type contract

Answer 3865

Syn: cost-plus contract.C

Question 3866

Deck 8

EI

Answer 3866

Abbreviation for employee involvement.E

Question 3867

Deck 8

EOQ tables

Answer 3867

Tables listing several ranges of monthly usages in dollars and the appropriate order size in dollars or monthly usage for each usage range.E

Question 3868

Deck 8

preventive maintenance

Answer 3868

The activities, including adjustments, replacements, and basic cleanliness, that forestall machine breakdowns. The purpose is to ensure that production quality is maintained and that delivery schedules are met. In addition, a machine that is well cared for will last longer and cause fewer problems. Syn: periodic maintenance.P

Question 3869

Deck 8

equal protection clause

Answer 3869

A part of the Fourteenth Amendment to the U.S. Constitution requiring similar treatment of citizens in similar circumstances.E

Question 3870

Deck 8

consignment

Answer 3870

1) A shipment that is handled by a common carrier. 2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. See: consigned stocks.C

Question 3871

Deck 8

NC

Answer 3871

Abbreviation for numerical control.N

Question 3872

Deck 8

hybrid inventory system

Answer 3872

An inventory system combining features of the fixed reorder quantity inventory model and the fixed reorder cycle inventory model. Features of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model can be combined in many different ways. For example, in the order pointperiodic review combination system, an order is placed if the inventory level drops below a specified level before the review date; if not, the order quantity is determined at the next review date. Another hybrid inventory system is the optional replenishment model. See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, optional replenishment model, order point system.H

Question 3873

Deck 8

truckload lot

Answer 3873

A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.T

Question 3874

Deck 8

overlapped schedule

Answer 3874

A manufacturing schedule that “overlaps” successive operations. Overlapping occurs when the completed portion of an order at one work center is processed at one or more succeeding work centers before the pieces left behind are finished at the preceding work centers. Syn: lap phasing, operation overlapping, telescoping. See: send ahead. Ant: gapped schedule, overlapped production.O

Question 3875

Deck 8

stockkeeping unit (SKU)

Answer 3875

1) An inventory item. For example, a shirt in six colors and five sizes would represent 30 different SKUs. 2) In a distribution system, an item at a particular geographic location. For example, one product stocked at the plant and at six different distribution centers would represent seven SKUs.S

Question 3876

Deck 8

strategic business unit (SBU)

Answer 3876

An approach to strategic planning that develops a plan based on products. A company’s products are typically grouped into strategic business units (SBUs) with each SBU evaluated in terms of strengths and weaknesses vis-à-vis similar business units made and marketed by competitors. The units are evaluated in terms of their competitive strengths, their relative advantages, life cycles, and cash flow patterns.S

Question 3877

Deck 8

manufacturing order

Answer 3877

A document, group of documents, or schedule conveying authority for the manufacture of specified parts or products in specified quantities. Syn: M job order, manufacturing authorization, production order, production release, run order, shop order, work order. See: assembly parts list, batch card, blend order, fabrication order, mix ticket, work order.M

Question 3878

Deck 8

machine attachments

Answer 3878

Additional machine parts that decrease the time needed to complete a task and the level of human involvement.M

Question 3879

Deck 8

concept phase

Answer 3879

In project management, the first phase in which a project is defined and the scope is planned.C

Question 3880

Deck 8

implied warranty

Answer 3880

A warranty imposed on sellers beyond any express agreement in the contract.I

Question 3881

Deck 8

lean production

Answer 3881

A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply L chain management, and dealing with customers. Lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in potentially enormous variety. It contains a set of principles and practices to reduce cost through the relentless removal of waste and through the simplification of all manufacturing and support processes. Syn: lean, lean manufacturing.L

Question 3882

Deck 8

Supply Chain Operations Reference (SCOR®) model

Answer 3882

A process reference model developed and endorsed by the Supply Chain Council as the cross-industry, standard diagnostic tool for supply chain management. The SCOR model describes the business activities associated with satisfying a customer’s demand, which include plan, source, make, deliver, and return. Use of the model includes analyzing the current state of a company’s processes and goals, quantifying operational performance, and comparing company performance to benchmark data. SCOR has developed a set of metrics for supply chain performance, and Supply Chain Council members have formed industry groups to collect best practices information that companies can use to evaluate their supply chain performance.S

Question 3883

Deck 8

carrier

Answer 3883

A company that provides air, sea, or land transportation services.C

Question 3884

Deck 8

e-cash

Answer 3884

An electronic system that provides for deposits and withdrawals of digital money. It permits a payer using it to remain anonymous.E

Question 3885

Deck 8

aggregate forecast

Answer 3885

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

Question 3886

Deck 8

distinctive competency

Answer 3886

A sustainable advantage that a company has over its competitors. distributed data

Question 3887

Deck 8

capacity smoothing

Answer 3887

Syn: load leveling.C

Question 3888

Deck 8

flowcharting

Answer 3888

A systems analysis tool that graphically presents a procedure. Symbols are used to represent operations, transportations, inspections, storages, delays, and equipment.F

Question 3889

Deck 8

project phase

Answer 3889

In project management, a set of related project activities that usually go together to define a project deliverable.P

Question 3890

Deck 8

push-back rack

Answer 3890

Palletized materials are stored on a wheeled rack structure and pushed up a slightly sloping ramp from which they can eventually slide down to an aisle.P

Question 3891

Deck 8

bar graph

Answer 3891

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

Question 3892

Deck 8

multivariate control chart

Answer 3892

A control chart for evaluating the stability of a process in terms of the levels of two or more variables or characteristics.M

Question 3893

Deck 8

downgrade

Answer 3893

The substitution of a product of lower quality, value, or status for another either in planning or in fact.D

Question 3894

Deck 8

flatbed

Answer 3894

A type of truck trailer that has a floor but no enclosure. Sideboards or tie-downs are used to prevent cargo from falling off.F

Question 3895

Deck 8

serviceability

Answer 3895

1) Design characteristic that facilitates the easy and efficient performance of service activities. Service activities include those activities required to keep equipment in operating condition, such as lubrication, fueling, oiling, and cleaning. 2) A measurement of the degree to which servicing of an item will be accomplished within a given time under specified conditions. See: maintainability. 3) The competitive advantage gained when an organization focuses on aspects such as the speed and courtesy in which customer complaints and questions are answered, following up with customers after the sale to ensure satisfaction, and offering on-site service for product repairs. 4) Measure of repairs and maintenance based on cost, speed, and convenience.S

Question 3896

Deck 8

mean time between failures (MTBF)

Answer 3896

The average time interval between failures for repairable product for a defined unit of measure (e.g., operating hours, cycles, miles). See: reliability.M

Question 3897

Deck 8

programmable logic controller (PLC)

Answer 3897

An electronic device that is programmed to test the state of input process data and to set output lines in accordance with the input state, thus providing control instructions or branching to another set of tests. Programmable controllers provide factory floor operations with the ability to monitor and rapidly control hundreds of parameters, such as temperature and pressure.P

Question 3898

Deck 8

repair parts demand

Answer 3898

Syn: service parts demand.R

Question 3899

Deck 8

product tree

Answer 3899

A graphical (or tree) representation of the bill of material such as is shown below: A Parent | ______________________ | | | B C(2) D(5) Components (Quantities per parent)P

Question 3900

Deck 8

plan stability

Answer 3900

The percent difference between the production that was planned and the production that was actually completed. The numerator is the difference between actual and planned production, divided by the planned production. This information then is used to adjust production standards.P

Question 3901

Deck 8

design for manufacturability

Answer 3901

Simplification of parts, products, and processes to improve quality and reduce manufacturing costs.D

Question 3902

Deck 8

I/O

Answer 3902

Abbreviation for input/output control.I

Question 3903

Deck 8

APICS

Answer 3903

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

Question 3904

Deck 8

sales mix

Answer 3904

The proportion of individual product-type sales volumes that make up the total sales volume.S

Question 3905

Deck 8

unit of issue

Answer 3905

The standard issue quantity of an item from stores (e.g., pounds, each, box of 12, package of 20, case of 144).U

Question 3906

Deck 8

technologies

Answer 3906

The terms, concepts, philosophies, hardware, software, and other attributes used in a field, industrial sector, or business function.T

Question 3907

Deck 8

genchi genbutsu

Answer 3907

A Japanese phrase meaning visit the shop floor to observe what is occurring.G

Question 3908

Deck 8

Boolean algebra

Answer 3908

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

Question 3909

Deck 8

process time

Answer 3909

The time during which the material is being changed, whether it is a machining operation or an assembly. Syn: residence time.P

Question 3910

Deck 8

duty-free zone

Answer 3910

An area where merchandise is brought into the country for further work to be done. Duty is paid only on the items brought in, normally at a lower rate than finished goods, and paid only at the time of sale.D

Question 3911

Deck 8

program directive

Answer 3911

A report by the program manager to inform supporting departments concerning an active or planned program or project.P

Question 3912

Deck 8

appraisal costs

Answer 3912

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

Question 3913

Deck 8

COTD

Answer 3913

Abbreviation for complete and on-time delivery.C

Question 3914

Deck 8

business process

Answer 3914

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

Question 3915

Deck 8

cycle inventory

Answer 3915

Syn: cycle stock.C

Question 3916

Deck 8

allocative efficiency

Answer 3916

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

Question 3917

Deck 8

capacity management

Answer 3917

The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules (i.e., the production plan, master production schedule, material requirements plan, and dispatch list). Capacity management is executed at four levels: resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control.C

Question 3918

Deck 8

process list

Answer 3918

A list of operations and procedures in the manufacture of a product. It may also include a statement of material requirements.P

Question 3919

Deck 8

silo effect

Answer 3919

A departmental organization with poor communication between departments.S

Question 3920

Deck 8

customer service

Answer 3920

1) The ability of a company to address the needs, inquiries, and requests from customers. 2) A measure of the delivery of a product to the customer at the time the customer specified.C

Question 3921

Deck 8

supplier

Answer 3921

1) Provider of goods or services. See: vendor. 2) Seller with whom the buyer does business, as opposed to vendor, which is a generic term referring to all sellers in the marketplace.S

Question 3922

Deck 8

functionality

Answer 3922

The degree to which a product achieves its designed purpose.F

Question 3923

Deck 8

manufacturing capital asset value

Answer 3923

The depreciated value of manufacturing fixed assets.M

Question 3924

Deck 8

FOB

Answer 3924

Abbreviation for free on board.F

Question 3925

Deck 8

prerequisite tree (PRT)

Answer 3925

A necessity-based logic diagram that facilitates answering the third question in the change sequence: How do we effect the change? A PRT shows the relationship between the injections, desirable effects or ambitious target, and the obstacles that block the implementation of the injections. A PRT includes the intermediate objectives required to overcome the obstacles and shows the sequence in which they must be achieved for successful implementation.P

Question 3926

Deck 8

big data

Answer 3926

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

Question 3927

Deck 8

product specification

Answer 3927

A statement of acceptable physical, electrical, and/or chemical properties or an acceptable range of properties that distinguish one product or grade from another.P

Question 3928

Deck 8

no-touch exchange of dies (NTED)

Answer 3928

The exchange of dies without human intervention.N

Question 3929

Deck 8

standardization

Answer 3929

1) The process of designing and altering products, parts, processes, and procedures to establish and use standard specifications for them and their components. 2) Reduction of the total numbers of parts and materials used and products, models, or grades produced. 3) The function of bringing a raw ingredient into standard (acceptable) range per the specification before introduction to the main process.S

Question 3930

Deck 8

search models

Answer 3930

Operations research models that attempt to find optimal solutions with adaptive searching approaches.S

Question 3931

Deck 8

shop packet

Answer 3931

A package of documents used to plan and control the shop floor movement of an order. The packet may include a manufacturing order, operations sheets, engineering blueprints, picking lists, move tickets, inspection tickets, and time tickets.S

Question 3932

Deck 8

load

Answer 3932

The amount of planned work scheduled for and actual work released to a facility, work center, or operation for a specific span of time. Usually expressed in terms of standard hours of work or, when items consume similar resources at the same rate, units of production. Syn: workload.L

Question 3933

Deck 8

scheduled start date

Answer 3933

In project management, an activity’s planned start time, normally between the early start time and the late start time. It may reflect resource limitations. Syn: planned start date.S

Question 3934

Deck 8

pay for knowledge

Answer 3934

A pay restructuring scheme by which competent employees are rewarded for the knowledge they acquire before or while working for an organization, regardless of whether such knowledge is actually being used at any given time.P

Question 3935

Deck 8

administrative contracting officer

Answer 3935

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

Question 3936

Deck 8

manufacturing ramp-up

Answer 3936

The final phase of new product and process development, whereby the new product moves from pilot production to full-scale manufacturing.M

Question 3937

Deck 8

labor

Answer 3937

The people who produce value in a product stream.L

Question 3938

Deck 8

OEM

Answer 3938

Abbreviation for original equipment manufacturer.O

Question 3939

Deck 8

network diagram

Answer 3939

A graphical tool that shows the dependencies between activities in a project, i.e., which activities precede other activities and which can be done in parallel.N

Question 3940

Deck 8

GERT

Answer 3940

Acronym for graphical evaluation and review technique.G

Question 3941

Deck 8

platform products

Answer 3941

A grouping of products to share common parts, components, and characteristics (a common platform), so that design and production resources can be used to reduce cost and time to market.P

Question 3942

Deck 8

vertical marketing system

Answer 3942

A marketing system that focuses on the means to reduce the traditional independence of indirect channels. The system strategically seeks to increase the integration and interdependence of channels by uniting them with common objectives and team management (e.g., franchising, cooperatives, vertical integration).V

Question 3943

Deck 8

sales representative

Answer 3943

An employee authorized to accept a customer’s order for a product. Sales representatives usually go to the customer’s location when industrial products are being marketed.S

Question 3944

Deck 8

engineer-to-order

Answer 3944

Products whose customer specifications require unique engineering design, significant customization, or new purchased materials. Each customer order results in a unique set of part numbers, bills of material, and routings. Syn: design-to-order.E

Question 3945

Deck 8

horizontal marketplace

Answer 3945

An online marketplace used by buyers and sellers from multiple industries. This marketplace lowers prices by lowering transaction costs.H

Question 3946

Deck 8

dimensions of quality

Answer 3946

An aspect of quality that is specified to enhance the ability to define quality. The most commonly used list for products was created by David Garvin. His dimensions are aesthetics, conformance, durability, features, perceived quality, performance, reliability, and serviceability. The most commonly used list for service quality was created by Parasuraman, Zeithamel, and Berry. This list is assurance, availability, completeness, empathy, pleasantness, professionalism, responsiveness, service reliability, tangibles, and timeliness.D

Question 3947

Deck 8

plant layout

Answer 3947

Configuration of the plant site with lines, buildings, major facilities, work areas, aisles, and other pertinent data, such as department boundaries.P

Question 3948

Deck 8

automated flow line

Answer 3948

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

Question 3949

Deck 8

Baldrige Award

Answer 3949

Syn: Malcolm Baldrige National Quality Award.B

Question 3950

Deck 8

economy of scope

Answer 3950

Using one versatile plant to produce many different products at a lower cost than making each product in different plants at a higher cost. See: economy of scale.E

Question 3951

Deck 8

intrinsic forecast method

Answer 3951

A forecast based on internal factors, such as an average of past sales. Ant: extrinsic forecast.I

Question 3952

Deck 8

electronic product codes (EPCs)

Answer 3952

Codes that are used with RFID tags to carry information on the product that will support warranty programs.E

Question 3953

Deck 8

early manufacturing involvement

Answer 3953

The process of involving manufacturing personnel early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and to generate designs that are easier to manufacture. Early involvement of manufacturing, field service, suppliers, customers, and so on means drawing on their expertise, knowledge, and insight to improve the design. Benefits include increased functionality, increased quality, ease of manufacture and assembly, ease of testing, better testing procedures, ease of service, decreased cost, and improved aesthetics. See: design for manufacture and assembly, participative design/engineering.E

Question 3954

Deck 8

operational plan(s)

Answer 3954

The set of short-range plans and schedules detailing specific actions. Operational plans are more detailed than strategic and tactical plans and cover a shorter time horizon. See: operational planning, strategic plan, tactical plan.O

Question 3955

Deck 8

skills matrix

Answer 3955

A visual tool to show the skills/skill levels of employees. This is mostly used when forming a team so the leader knows what skills are necessary to accomplish the team’s goals. This also is used when using a full-cross training process to ensure that all workers are cross trained to the same levels.S

Question 3956

Deck 8

fishbone chart

Answer 3956

Syn: cause-and-effect diagram.F

Question 3957

Deck 8

expressed for a given time period

Answer 3957

such as, per month, week, day, or even minute. If the goal units are money, throughput will be an amount of money per time period. In that case, throughput is calculated as revenues received minus totally variable costs divided for the chosen time period.T

Question 3958

Deck 8

cumulative MRP

Answer 3958

The planning of parts and subassemblies by exploding a master schedule, as in MRP, except that the master-scheduled items and therefore the exploded requirements are time phased in cumulative form. Usually these cumulative figures cover a planning year.C

Question 3959

Deck 8

truckload carriers

Answer 3959

Carriers that deliver/charge only for full truckload shipments.T

Question 3960

Deck 8

job order costing

Answer 3960

Syn: job costing.J

Question 3961

Deck 8

probability

Answer 3961

Mathematically, a number between 0 and 1 that estimates the fraction of experiments (if the same experiment were being repeated many times) in which a particular result would occur. This number can be either subjective or based upon the empirical results of experimentation. It can also be derived for a process to give the probable outcome of experimentation.P

Question 3962

Deck 8

durability

Answer 3962

1) A measurement of time or amount of use before a product needs repair or replacement. 2) One of the eight dimensions of quality that refers to the length of a product’s economic life.D

Question 3963

Deck 8

reconsignment

Answer 3963

Permission by a carrier to alter the destination and/or consignee after the shipment has reached its original destination.R

Question 3964

Deck 8

product positioning

Answer 3964

The marketing effort involved in placing a product in a market to serve a particular niche or function. Syn: service positioning.P

Question 3965

Deck 8

product focused

Answer 3965

A type of manufacturing organization in which both plant and staff responsibilities are delineated by product, product line, or market segment. Management authority is highly decentralized, which tends to make the company more responsive to market needs and more flexible when introducing new products. This type of organization is best suited to companies whose dominant orientation is to a market or consumer group and where flexibility and innovation are more important than coordinated planning and tight control. See: process focused, process-focused organization.P

Question 3966

Deck 8

Bayesian analysis

Answer 3966

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

Question 3967

Deck 8

constraint theory

Answer 3967

Syn: theory of constraints.C

Question 3968

Deck 8

performance objectives

Answer 3968

Measurements that enable the firm to monitor whether or not the firm’s strategy is being accomplished. Thus, the measurement should be aligned to strategy. Performance objectives may differ based on the hierarchical level of the firm (e.g., department, business unit, corporation) and should be aligned with the corresponding strategy for that level.P

Question 3969

Deck 8

cascading yield loss

Answer 3969

The condition where yield loss happens in multiple operations or tasks, resulting in a compounded yield loss. Syn: cumulative yield. See: composite yield.C

Question 3970

Deck 8

SG&A

Answer 3970

Abbreviation for selling, general and administrative.S

Question 3971

Deck 8

co-managed inventory (CMI)

Answer 3971

Continuous replenishment where the manufacture is responsible for managing the inventory of standard merchandise and the retailer manages promotional items.C

Question 3972

Deck 8

pay point

Answer 3972

Syn: count point.P

Question 3973

Deck 8

bill of distribution

Answer 3973

Syn: distribution network structure.B

Question 3974

Deck 8

source document

Answer 3974

An original written or printed record of some type that is to be converted into machinereadable form.S

Question 3975

Deck 8

accountability

Answer 3975

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

Question 3976

Deck 8

standard ratio

Answer 3976

A relationship based on a sample distribution by value for a particular company. When the standard ratio for a particular company is known, certain aggregate inventory predictions can be made (e.g., the amount of inventory increase that would be required to provide a particular increase in customer service).S

Question 3977

Deck 8

MPS

Answer 3977

Abbreviation for master production schedule.M

Question 3978

Deck 8

indented where-used

Answer 3978

A listing of every parent item, and the respective quantities required, as well as each of their respective parent items, continuing until the ultimate end item or level-0 item is referenced. Each of these parent items calls for a given component item in a bill-of-material file. The component item is shown closest to the left margin of the listing, with each parent indented to the right, and each of their respective parents indented even further to the right.I

Question 3979

Deck 8

superflush

Answer 3979

A technique to relieve all components down to the lowest level using the complete bill of material, based on the count of finished units produced or transferred to finished goods inventory.S

Question 3980

Deck 8

rate of return on investment

Answer 3980

The efficiency ratio relating profit or cash flow incomes to investments. Several different measures of this ratio are in common use.R

Question 3981

Deck 8

industrial facilities management

Answer 3981

The installation and maintenance of the physical plant, its surroundings, and the physical assets of an organization.I

Question 3982

Deck 8

planned finish date

Answer 3982

Syn: scheduled finish date.P

Question 3983

Deck 8

milestone schedule

Answer 3983

In project management, a highlevel schedule displaying important deliverables.M

Question 3984

Deck 8

United Nations Global Compact

Answer 3984

A voluntary initiative whereby companies embrace, support, and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment, and anticorruption.U

Question 3985

Deck 8

out of stock

Answer 3985

A situation in which there is no inventory at a location available for sale to the customer. See: stockout.O

Question 3986

Deck 8

enterprise performance management (EPM)

Answer 3986

The process of monitoring performance across the enterprise with the goal of improving business performance. An EPM system integrates and analyzes data from many sources, including e-commerce systems, front- and E back-office applications, data warehouses, and external data sources. Advanced EPM systems can support many performance methodologies, such as the balanced scorecard.E

Question 3987

Deck 8

uniform warehouse receipts act

Answer 3987

An act that regulates public warehousing; it sets up the legal responsibilities of warehouse managers and determines the receipts that can be issued.U

Question 3988

Deck 8

final assembly schedule (FAS)

Answer 3988

A schedule of end items to finish the product for specific customers’ orders in a make-to-order or assemble-to-order environment. It is also referred to as the finishing schedule because it may involve operations other than the final assembly; also, it may not involve assembly (e.g., final mixing, cutting, packaging). The FAS is prepared after receipt of a customer order as constrained by the availability of material and capacity, and it schedules the operations required to complete the product from the level where it is stocked (or master scheduled) to the end-item level.F

Question 3989

Deck 8

product or service liability

Answer 3989

The obligation of a company to make restitution for loss related to personal injury, property damage, or other harm caused by its goods or services.P

Question 3990

Deck 8

internal supply chain

Answer 3990

A structure for sharing information within a firm and creating an atmosphere for cooperation between functions to strengthen the firm.I

Question 3991

Deck 8

demand-based order quantity

Answer 3991

An order system using forecast or derived demand for one or more future periods (rather than a fixed quantity as in economic order quantity).D

Question 3992

Deck 8

predetermined motion time

Answer 3992

An organized body of information, procedures, techniques, and motion times employed in the study and evaluation of manual work elements. It is useful in categorizing and analyzing all motions into elements whose unit times are computed according to such factors as length, degree of muscle control, and precision. The element times provide the basis for calculating a time standard for the operations. Syn: synthetic time standard.P

Question 3993

Deck 9

uniform-delivered pricing

Answer 3993

A type of geographic pricing policy in which all customers pay the same delivered price regardless of their location. A company allocates the total transportation cost among all customers.U

Question 3994

Deck 9

prototyping

Answer 3994

1) A specialized product design and development process for developing a working model of a product. 2) A specialized system development process for performing a determination where user needs are extracted, presented, and developed by building a working model of the system. Generally, these tools make it possible to create all files and processing programs needed for a business application in a matter of days or hours for evaluation purposes.P

Question 3995

Deck 9

shortage cost

Answer 3995

The marginal profit that is lost when a customer orders an item that is not immediately available in stock.S

Question 3996

Deck 9

excess issue

Answer 3996

The removal from stock and assignment to a schedule of a quantity higher than the schedule quantity. Syn: overissue.E

Question 3997

Deck 9

Baldrige lite

Answer 3997

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

Question 3998

Deck 9

run diagram

Answer 3998

Syn: run chart.R

Question 3999

Deck 9

accident prevention

Answer 3999

The application of basic scientific

Question 4000

Deck 9

planned start date

Answer 4000

Syn: scheduled start date.P

Question 4001

Deck 9

semipassive tag

Answer 4001

An RFID tag that sends out data, is self-powered, and widens its range by harnessing power from the reader. See: radio frequency identification (RFID).S

Question 4002

Deck 9

fixed order quantity

Answer 4002

A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a predetermined fixed quantity, or multiples thereof, if net requirements for the period exceed the fixed order quantity.F

Question 4003

Deck 9

checking

Answer 4003

Verifying and documenting the order selection in terms of both product number and quantity.C

Question 4004

Deck 9

support costs

Answer 4004

In activity-based cost accounting, activity costs not directly related with producing a product, such as the cost of the information system.S

Question 4005

Deck 9

cost equalization point (CEP)

Answer 4005

A point or quantity at which the cost curves of two manufacturing methods have an equal value.C

Question 4006

Deck 9

least total cost

Answer 4006

A dynamic lot-sizing technique that calculates the order quantity by comparing the setup (or ordering) costs and the carrying cost for various lot sizes and selects the lot size where these costs are most nearly equal. See: discrete order quantity, dynamic lot sizing.L

Question 4007

Deck 9

redundant component

Answer 4007

A backup part of a machine or product.R

Question 4008

Deck 9

operation/process yield

Answer 4008

The ratio of usable output from a process, process stage, or operation to the input quantity, usually expressed as a percentage.O

Question 4009

Deck 9

unplanned repair

Answer 4009

Repair and replacement requirements that are unknown until remanufacturing teardown and inspection.U

Question 4010

Deck 9

OEE

Answer 4010

Abbreviation for overall equipment effectiveness.O

Question 4011

Deck 9

critical ratio

Answer 4011

A dispatching rule that calculates a priority index number by dividing the time to due date remaining by the expected elapsed time to finish the job. For example, critical ratio

Question 4012

Deck 9

SWOT

Answer 4012

Abbreviation for strengths, weaknesses, opportunities, and threats.S

Question 4013

Deck 9

pre-expediting

Answer 4013

The function of following up on open orders before the scheduled delivery date, to ensure the timely delivery of materials in the specified quantity.P

Question 4014

Deck 9

process flow production

Answer 4014

A production approach with minimal interruptions in the actual processing in any one production run or between production runs of similar products. Queue time is virtually eliminated by integrating the movement of the product into the actual operation of the resource performing the work.P

Question 4015

Deck 9

split-case order picking

Answer 4015

A process for filling less-thanfull- case orders. This requires items to be picked from a case or other container.S

Question 4016

Deck 9

JIT master schedule

Answer 4016

Syn: level schedule (second definition).J

Question 4017

Deck 9

import broker or sales agent

Answer 4017

Purchasing agent who charges a fee for transactions but does not take the title of the goods.I

Question 4018

Deck 9

tool number

Answer 4018

The identification number assigned to reference and control a specific tool.T

Question 4019

Deck 9

fault tree analysis

Answer 4019

A logical approach to identify the probabilities and frequencies of events in a system that are most critical to uninterrupted and safe operation. This analysis may include failure mode effects analysis (determining the result of component failure interactions toward system safety) and techniques for human error prediction.F

Question 4020

Deck 9

order preparation

Answer 4020

All activities relating to the administration, picking, and packaging of individual customer or work orders.O

Question 4021

Deck 9

six sigma quality

Answer 4021

The six sigma approach is a set of concepts and practices that key on reducing variability in processes and reducing deficiencies in the product. Important elements are (1) Producing only 3.4 defects for every one million opportunities or operations; (2) Process improvement initiatives striving for six sigmalevel performance. Six sigma is a business process that permits organizations to improve bottom-line performance, creating and monitoring business activities to reduce waste and resource requirements while increasing customer satisfaction.S

Question 4022

Deck 9

survey research

Answer 4022

A form of research (frequently used in marketing research) where data are collected by mailing questionnaires to a group of people within a target audience. See: marketing research.S

Question 4023

Deck 9

debt-to-equity ratio

Answer 4023

The amount of bonds and preferred stocks relative to the owners’ equity position. The debt to equity ratio is a measurement of the use of borrowed funds to leverage owners’ equity.D

Question 4024

Deck 9

observational research

Answer 4024

A form of research (frequently used in marketing research) where data are gathered by direct observation of consumers in the market place. See: marketing research.O

Question 4025

Deck 9

total float

Answer 4025

In project management, the length of time an activity can be late without delaying succeeding activities. See: float, free float, independent float.T

Question 4026

Deck 9

demand-driven supply network

Answer 4026

A situation where a customer purchase initiates real-time information flows through the supply chain which then causes movement of product through the network.D

Question 4027

Deck 9

cash cow

Answer 4027

A highly profitable product in a low-growth market. See: growth-share matrix.C

Question 4028

Deck 9

plan-do-check-act cycle

Answer 4028

Syn: plan-do-check-action.P

Question 4029

Deck 9

upcharges

Answer 4029

Additional charges that are added to a delivered bill that are not included in the original contract. These occur because of unforeseen increases to the deliverer’s cost base.U

Question 4030

Deck 9

deployment planning and scheduling

Answer 4030

Planning how to use existing inventory to meet demand requirements.D

Question 4031

Deck 9

deterministic models

Answer 4031

Models where no uncertainty is included (e.g., inventory models without safety stock considerations).D

Question 4032

Deck 9

annual inventory count

Answer 4032

Syn: physical inventory.A

Question 4033

Deck 9

anticipation inventories

Answer 4033

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

Question 4034

Deck 9

promotional product

Answer 4034

A product that is subject to wide fluctuations in sales because it is usually sold at a reduced price or with some other sales incentive.P

Question 4035

Deck 9

cost estimation

Answer 4035

(1) Specification of the relationship between cost and the underlying cost drivers. (2) In project management, creating an approximation of the resources and associated costs needed to complete a project.C

Question 4036

Deck 9

confidence interval

Answer 4036

The range on either side of an estimated value from a sample that is likely to contain the true value for the whole population.C

Question 4037

Deck 9

net sales

Answer 4037

Sales dollars the company receives; gross sales minus returns and allowances.N

Question 4038

Deck 9

National Labor Relations Board (NLRB)

Answer 4038

In the United States, the federal agency that regulates labor law.N

Question 4039

Deck 9

branch warehouse demand

Answer 4039

Syn: warehouse demand.B

Question 4040

Deck 9

pick date

Answer 4040

The start date of picking components for a production order. On or before this date, the system produces a list of orders due to be picked, pick lists, tags, and turnaround cards.P

Question 4041

Deck 9

indirect materials

Answer 4041

Syn: supplies.I

Question 4042

Deck 9

bill of lading (uniform)

Answer 4042

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

Question 4043

Deck 9

five Ws

Answer 4043

Syn: five whys.F

Question 4044

Deck 9

short-cycle manufacturing

Answer 4044

Syn: just in time.S

Question 4045

Deck 9

diversification strategy

Answer 4045

An expansion of the scope of the product line to exploit new markets. A key objective of a diversification strategy is to spread the company’s risk over several product lines in case there should be a downturn in any one product’s market.D

Question 4046

Deck 9

labor efficiency variance

Answer 4046

Labor efficiency variance is (actual number of hours worked minus standard number of hours worked) multiplied by standard labor wage rate. The variance is unfavorable if the actual hours exceed the standard hours. Syn: labor usage variance.L

Question 4047

Deck 9

UN Global Compact Management Model

Answer 4047

A framework for guiding companies through the process of formally committing to, assessing, defining, implementing, measuring, and communicating the United Nations Global Compact and its principles.U

Question 4048

Deck 9

competitive differentiator

Answer 4048

A characteristic that makes a company or product unique within a marketplace.C

Question 4049

Deck 9

euro

Answer 4049

Official currency of the Eurozone, which forms a large part of the European Union.E

Question 4050

Deck 9

inspection ticket

Answer 4050

Frequently used as a synonym for an inspection order; more properly a reporting of an inspection function performed.I

Question 4051

Deck 9

backup support

Answer 4051

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

Question 4052

Deck 9

routing

Answer 4052

1) Information detailing the method of manufacture of a particular item. It includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. In some companies, the routing also includes information on tooling, operator skill levels, inspection operations and testing requirements, and so on. Syn: bill of operations, instruction sheet, manufacturing data sheet, operation chart, operation list, operation sheet, route sheet, routing sheet. See: bill of labor, bill of resources. 2) In information systems, the process of defining the path a message will take from one computer to another computer.R

Question 4053

Deck 9

process batch

Answer 4053

The quantity or volume of output that is to be completed at a workstation before switching to a different type of work or changing an equipment setup.P

Question 4054

Deck 9

FEFO

Answer 4054

Abbreviation for first expiry first out.F

Question 4055

Deck 9

setup time

Answer 4055

The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B. Syn: setup lead time.S

Question 4056

Deck 9

total employee involvement (TEI)

Answer 4056

An empowerment program in which employees are invited to participate in actions and decision making that were traditionally reserved for management.T

Question 4057

Deck 9

inventory balance location accuracy

Answer 4057

When the inventory count is accurate at specific locations.I

Question 4058

Deck 9

productive capacity

Answer 4058

In the theory of constraints: The maximum of the output capabilities of a resource (or series of resources) or the market demand for that output for a given time period. See: excess capacity, idle capacity, protective capacity.P

Question 4059

Deck 9

outsourcing

Answer 4059

The process of having suppliers provide goods and services that were previously provided internally.

Question 4060

Deck 9

MTBF

Answer 4060

Abbreviation for mean time between failures.M

Question 4061

Deck 9

procedure manual

Answer 4061

A formal organization and indexing of a firm’s procedures. Manuals are usually printed and distributed to the appropriate functional areas.P

Question 4062

Deck 9

total quality engineering (TQE)

Answer 4062

The discipline of designing quality into the product and manufacturing processes by understanding the needs of the customer and performance capabilities of the equipment. See: design for quality.T

Question 4063

Deck 9

caveat emptor

Answer 4063

A Latin phrase meaning “Let the buyer beware.” (i.e., the purchase is at the buyer’s risk.)C

Question 4064

Deck 9

problems. In the first phase

Answer 4064

the diagnostic journey team journeys from the symptom of a chronic problem

Question 4065

Deck 9

stockpoint

Answer 4065

A designated location in an active area of operation into which material is placed and from which it is taken. Not necessarily a stockroom isolated from activity, it is a way of tracking and controlling active material.S

Question 4066

Deck 9

sole source

Answer 4066

The situation where the supply of a product is available from only one organization. Usually technical barriers such as patents preclude other suppliers from offering the product. See: single sourcing.S

Question 4067

Deck 9

earnings before taxes (EBT)

Answer 4067

Earnings before interest and taxes minus interest charges.E

Question 4068

Deck 9

distributed systems

Answer 4068

Computer systems in multiple locations throughout an organization, working in a cooperative fashion, with the system at each location primarily serving the needs of that location but also able to receive and supply information from other systems within a network.D

Question 4069

Deck 9

near-critical activity

Answer 4069

In project management, a project activity with a low slack or float value.N

Question 4070

Deck 9

moving average

Answer 4070

An arithmetic average of a certain number (n) of the most recent observations. As each new observation is added, the oldest observation is dropped. The value of n (the number of periods to use for the average) reflects responsiveness versus stability in the same way that the choice of smoothing constant does in exponential smoothing. There are two types of moving average, simple and weighted. See: simple moving average, weighted moving average.M

Question 4071

Deck 9

schedule chart

Answer 4071

Usually a large piece of graph paper used in the same manner as a control board. Where the control board often uses strings and markers to represent plans and progress, the schedule chart is typically filled in with pencil. See: control board.S

Question 4072

Deck 9

random-location storage

Answer 4072

A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom. Although this random method requires the use of a locator file to identify part locations, it often requires less storage space than a fixedrandom R location storage method. Syn: floating inventory location system, floating storage location. See: fixed-location storage.R

Question 4073

Deck 9

margin

Answer 4073

A ratio of an organization’s operating profit to revenues, measuring management’s ability to control operating expenses.M

Question 4074

Deck 9

acquisition cost

Answer 4074

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

Question 4075

Deck 9

cybernetic system

Answer 4075

The information flow or information system (electronic, mechanical, logical) that controls an industrial process.C

Question 4076

Deck 9

order-fill ratio

Answer 4076

Syn: customer service ratio.O

Question 4077

Deck 9

transmission acknowledgement

Answer 4077

The receiver of a transmission notifies the sender that the transmission was received error free.T transmission control protocol/internet protocol (TCP/

Question 4078

Deck 9

cleanup

Answer 4078

The neutralizing of the effects of production just completed. It may involve cleaning residues, sanitation, equipment refixturing, and so on.C

Question 4079

Deck 9

supplier quality assurance

Answer 4079

The confidence that a supplier’s goods or services will fulfill its customers’ needs. This confidence is achieved by creating a relationship between the customer and supplier that ensures that the product will be fit for use with minimal corrective action and inspection. According to J.M. Juran, nine primary activities are needed: (1) define product and program quality requirements, (2) evaluate alternative suppliers, (3) select suppliers, (4) conduct joint quality planning, (5) cooperate with the supplier during the execution of the contract, (6) obtain proof of conformance to requirements, (7) certify qualified suppliers, (8) conduct quality improvement programs as required, and (9) create and use supplier quality ratings.S

Question 4080

Deck 9

The ceiling is the target selling price

Answer 4080

what the seller

Question 4081

Deck 9

pro forma financial statements

Answer 4081

Financial statements that are based on an assumed scenario rather than an actual experience.P

Question 4082

Deck 9

independent float

Answer 4082

In project management, the amount of float on an activity that does not affect float on preceding or succeeding activities. See: float, free float, total float.I

Question 4083

Deck 9

production network

Answer 4083

The complete set of all work centers, processes, and inventory points, from raw materials sequentially to finished products and product families. It represents the logical system that provides the framework to attain the strategic objectives of the firm based on its resources and the products’ volumes and processes. It provides the general sequential flow and capacity requirement relationships among raw materials, parts, resources, and product families.P

Question 4084

Deck 9

fabrication order

Answer 4084

A manufacturing order to a component-making department authorizing it to produce component parts. See: batch card, manufacturing order.F

Question 4085

Deck 9

cross-selling

Answer 4085

Occurs when customers buy additional products or services after the initial purchase.C

Question 4086

Deck 9

total variable costs

Answer 4086

Costs that vary in total in proportion to changes in activity.T

Question 4087

Deck 9

replacement order

Answer 4087

An order for the replacement of material that has been scrapped.R

Question 4088

Deck 9

s-curve

Answer 4088

In project management, graphic display of cumulative project attributes such as costs, labor hours, or percentage of work. The name derives from the typical shape of the curve.S

Question 4089

Deck 9

CIM

Answer 4089

Acronym for computer-integrated manufacturing.C

Question 4090

Deck 9

marketing strategy

Answer 4090

The basic plan marketing expects to use to achieve its business and marketing objectives in a particular market. This plan includes marketing expenditures, marketing mix, and marketing allocation.M

Question 4091

Deck 9

projected start date

Answer 4091

The current estimate of the date when an activity will begin.P

Question 4092

Deck 9

production calendar

Answer 4092

Syn: manufacturing calendar.P

Question 4093

Deck 9

customer segmentation

Answer 4093

The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing. Traditional segmentation focuses on identifying customer groups based on demographics and attributes such as attitude and psychological profiles.C

Question 4094

Deck 9

direct numerical control (DNC)

Answer 4094

A system in which sets of numerical control machines are connected to a computer, allowing direct control of machines by the computer without use of external storage media.D

Question 4095

Deck 9

bond

Answer 4095

A long-term debt of a firm.B

Question 4096

Deck 9

ABC inventory control

Answer 4096

An inventory control approach based on the ABC classification.A

Question 4097

Deck 9

quality chart

Answer 4097

Syn: Q chart.Q

Question 4098

Deck 9

other than direct labor and direct materials

Answer 4098

that continue even if products are not produced. Although fixed overhead is necessary to produce the product, it cannot be directly traced to the final product.F

Question 4099

Deck 9

monopoly

Answer 4099

Sole control of a market by a company. In the United States, a monopoly is a violation of Article 2 of the Sherman Act.M

Question 4100

Deck 9

Federal Trade Commission (FTC)

Answer 4100

The United States governmental agency charged with protecting businesses and consumers from unfair business practices. It also regulates advertising and promotion at the national level.F

Question 4101

Deck 9

field warehouse

Answer 4101

Syn: distribution center.F

Question 4102

Deck 9

order picking

Answer 4102

Selecting or “picking” the required quantity of specific products for movement to a packaging area (usually in response to one or more shipping orders) and documenting that the material was moved from one location to shipping. Syn: order selection. See: batch picking, discrete order picking, zone picking.O

Question 4103

Deck 9

time period safety stock

Answer 4103

A safety stock that is based on usage over a designated time frame. The period can be set as days, weeks, or months. Safety stock varies directly with the demand. This differs from statisticalbased safety stocks in that the amount is not based on deviation from demand.T

Question 4104

Deck 9

warehouse demand

Answer 4104

The need for an item to replenish stock at a branch warehouse. Syn: branch warehouse demand.W warehouse management and transportation execution

Question 4105

Deck 9

reverse supply chain

Answer 4105

The planning and controlling of the processes of moving goods from the point of consumption back to the point of origin for repair, reclamation, recycling, or disposal. See: reverse logistics.R

Question 4106

Deck 9

TOC

Answer 4106

Abbreviation for theory of constraints.T

Question 4107

Deck 9

job shop scheduling

Answer 4107

The production planning and control techniques used to sequence and prioritize production quantities across operations in a job shop.J

Question 4108

Deck 9

backlog

Answer 4108

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

Question 4109

Deck 9

start-to-finish

Answer 4109

activity A must start before activity B can finish.L

Question 4110

Deck 9

statistical control charts

Answer 4110

Data are collected from physical measurements, or customer surveys, and plotted on a chart so that conformance to specifications or customer satisfaction can be tracked and improved.S

Question 4111

Deck 9

ICC

Answer 4111

Abbreviation for Interstate Commerce Commission.I I

Question 4112

Deck 9

order point

Answer 4112

A set inventory level where, if the total stock on hand plus on order falls to or below that point, action is taken to replenish the stock. The order point is normally calculated as forecasted usage during the replenishment lead time plus safety stock. Syn: reorder point, statistical order point, trigger level. See: fixed reorder quantity inventory model.O

Question 4113

Deck 9

discrete available-to-promise

Answer 4113

A calculation based on the available-to-promise figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For all other periods, if a quantity has been scheduled for that time period then the ATP is this quantity minus all customer commitments for this and other periods until another quantity are scheduled in the MPS. For those periods where the quantity scheduled is zero, the ATP is zero (even if deliveries have been promised). The promised customer commitments are accumulated and shown in the period where the item was most recently scheduled. Syn: incremental available-to-promise. See: available-to-promise.D

Question 4114

Deck 9

trade bloc

Answer 4114

An agreement between countries intended to reduce or remove barriers to trade within member countries. Frequently, but not always, those countries are geographically close. Examples of trade blocs are the European Economic Community and the North American Free Trade Agreement (NAFTA). Syn: trading bloc.T

Question 4115

Deck 9

constraint accounting

Answer 4115

Syn: theory of constraints accounting.C

Question 4116

Deck 9

change order

Answer 4116

A formal notification that a purchase order or shop order must be modified in some way. This change can result from modifications such as a revised quantity, date, or customer specification; an engineering change; or a change in inventory requirement date.C

Question 4117

Deck 9

change management

Answer 4117

The business process that coordinates and monitors all changes to the business processes and applications operated by the business as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk C of problems that will affect the operating environment and service delivery to the users.C

Question 4118

Deck 9

asynchronous process

Answer 4118

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

Question 4119

Deck 9

line

Answer 4119

1) A specific physical space for the manufacture of a product that in a flow shop layout is represented by a straight line. In actuality, this may be a series of pieces of equipment connected by piping or conveyor systems. 2) A type of manufacturing process used to produce a narrow range of standard items with identical or highly L similar designs. Production volumes are high, production and material handling equipment is specialized, and all products typically pass through the same sequence of operations. See: assembly line.L

Question 4120

Deck 9

partial productivity factor

Answer 4120

Syn: single-factor productivity.P

Question 4121

Deck 9

competitive edge

Answer 4121

Syn: competitive advantage.C

Question 4122

Deck 9

allowed time

Answer 4122

A normal time value increased by appropriate allowances.A

Question 4123

Deck 9

resource requirements planning

Answer 4123

Syn: resource planning.R

Question 4124

Deck 9

DTF

Answer 4124

Abbreviation for demand time fence.D

Question 4125

Deck 9

supplier scheduler

Answer 4125

A person whose main job is working with suppliers regarding what is needed and when. Supplier schedulers are in direct contact with both MRP and the suppliers. They do the material planning for the items under their control, communicate the resultant schedules to their assigned suppliers, do follow-up, resolve problems, and advise other planners and the master scheduler when purchased items will not arrive on time to support the schedule. The supplier schedulers are normally organized by commodity, as are the buyers. By using the supplier scheduler approach, the buyers are freed from day-to-day order placement and expediting, and therefore have the time to do cost reduction, negotiation, supplier selection, alternate sourcing, and so forth. Syn: planner/buyer, vendor scheduler.S

Question 4126

Deck 9

accuracy

Answer 4126

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

Question 4127

Deck 9

incremental analysis

Answer 4127

A method of economic analysis in which the cost of a single additional unit is compared to its revenue. When the net contribution of an additional unit is zero, total contribution is maximized.I

Question 4128

Deck 9

offload

Answer 4128

To reschedule or use alternate routings to reduce the workload on a machine, work center, or facility.O

Question 4129

Deck 9

American Society for Quality (ASQ)

Answer 4129

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

Question 4130

Deck 9

OS&D

Answer 4130

Abbreviation for over, short, and damaged.O

Question 4131

Deck 9

contract

Answer 4131

An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.C

Question 4132

Deck 9

listserv

Answer 4132

Syn: listserver.L L

Question 4133

Deck 9

nonscheduled hours

Answer 4133

Hours when a machine is not generally available to be scheduled for operation; for example, nights, weekends, holidays, lunch breaks, major repair, and rebuilding.N

Question 4134

Deck 9

SIC

Answer 4134

Abbreviation for standard industrial classification.S S

Question 4135

Deck 9

new product development team

Answer 4135

Syn: participative design/engineering.N

Question 4136

Deck 9

interstate commerce

Answer 4136

The movement of persons or property across one or more state lines for business purposes.I

Question 4137

Deck 9

transaction channel

Answer 4137

A distribution network that deals with change of ownership of goods and services including the activities of negotiation, selling, and contracting.T

Question 4138

Deck 9

trend forecasting models

Answer 4138

Methods for forecasting sales data when a definite upward or downward pattern exists. Models include double exponential smoothing, regression, and triple smoothing. See: trend analysis.T

Question 4139

Deck 9

earliest operation due date (ODD)

Answer 4139

A dispatching rule that selects the job having the earliest due date for the impending operation. See: earliest due date.E

Question 4140

Deck 9

finished good waivers

Answer 4140

Approvals for deviation from normal product specifications.F

Question 4141

Deck 9

zone price

Answer 4141

A standard product price which applies to all geographic locations within a zone.Z

Question 4142

Deck 9

pre-deduct inventory transaction processing

Answer 4142

A method of inventory bookkeeping where the book (computer) inventory of components is reduced before issue, at the time a scheduled receipt for their parents or assemblies is created via a bill-of-material explosion. This approach has the disadvantage of a built-in differential between the book record and what is physically in stock. See: backflush.P

Question 4143

Deck 9

VOI

Answer 4143

Abbreviation for vendor-owned inventory.V

Question 4144

Deck 9

interest rate

Answer 4144

The ratio of the interest payment to the principal for a given unit of time. It is usually expressed as a percentage of the principal.I

Question 4145

Deck 9

cost center

Answer 4145

The smallest segment of an organization for which costs are collected and formally reported, typically a department. The criteria in defining cost centers are that the cost be significant and that the area of responsibility be clearly defined. A cost center is not necessarily identical to a work center; normally, a cost center encompasses more than one work center, but this may not always be the case.C

Question 4146

Deck 9

physical inventory

Answer 4146

1) The actual inventory itself. 2) The determination of inventory quantity by actual count. Physical inventories can be taken on a continuous, periodic, or annual basis. Syn: annual inventory count, annual physical inventory. See: periodic inventory.P

Question 4147

Deck 9

MBO

Answer 4147

Abbreviation for management by objectives.M

Question 4148

Deck 9

total lead time

Answer 4148

Syn: lead time.T

Question 4149

Deck 9

indirect labor

Answer 4149

Work required to support production in general without being related to a specific product (e.g., floor sweeping).I

Question 4150

Deck 9

accounting

Answer 4150

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

Question 4151

Deck 9

bucketless system

Answer 4151

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

Question 4152

Deck 9

bit

Answer 4152

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

Question 4153

Deck 9

systems rollup

Answer 4153

Integrating computer systems; this enables faster data retrieval and better information system responsiveness.S

Question 4154

Deck 9

run standards

Answer 4154

Syn: run time.R

Question 4155

Deck 9

summary judgment

Answer 4155

A judicial ruling that no essential facts are in dispute and that one party to the suit merits judgment as a matter of law.S

Question 4156

Deck 9

fixed-period requirements

Answer 4156

A lot-sizing technique that sets the order quantity to the demand for a given number of periods. See: discrete order quantity.F

Question 4157

Deck 9

triple smoothing

Answer 4157

A method of exponential smoothing that accounts for accelerating or decelerating trends, such as would be experienced in a fad cycle. Syn: thirdorder smoothing.T

Question 4158

Deck 9

annuity

Answer 4158

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

Question 4159

Deck 9

law of variability

Answer 4159

The more that variability exists in a process, the less productive that process will be.L

Question 4160

Deck 9

LF

Answer 4160

Abbreviation for late finish date.L

Question 4161

Deck 9

earned hours

Answer 4161

A statement reflecting the standard hour assigned for actual production reported during the period. Syn: earned volume.E

Question 4162

Deck 9

overissue

Answer 4162

Syn: excess issue.O

Question 4163

Deck 9

work breakdown structure

Answer 4163

In project management, a hierarchical description of a project in which each lower level is more detailed. See: project summary work breakdown structure.W

Question 4164

Deck 9

common carrier

Answer 4164

Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Ant: private carrier.C

Question 4165

Deck 9

LIMIT

Answer 4165

Acronym for lot-size inventory management interpolation technique.L

Question 4166

Deck 9

service function

Answer 4166

A mathematical relationship of the safety factor to service level (i.e., the fraction of demand routinely met from stock).S

Question 4167

Deck 9

delivery cycle

Answer 4167

Syn: delivery lead time.D

Question 4168

Deck 9

expansion

Answer 4168

Any increase in the capacity of a plant, facility, or unit, usually by added investment. The scope of this increase extends from the elimination of problem areas to the complete replacement of an existing facility with a larger one.E

Question 4169

Deck 9

cycle reduction stock

Answer 4169

Stock held to reduce delivery time.C

Question 4170

Deck 9

SQL

Answer 4170

Abbreviation for structured query language.S

Question 4171

Deck 9

total value analysis

Answer 4171

A method of economic analysis in which a model expresses the dependent variable of interest as a function of independent variables, some of which are controllable.T

Question 4172

Deck 9

project management

Answer 4172

The use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring, and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are achieved. See: project.P

Question 4173

Deck 9

order processing and communication

Answer 4173

All activities needed to fill customer orders.O

Question 4174

Deck 9

sole proprietorship

Answer 4174

A form of business in which one person has ownership and control. See: corporation, partnership.S

Question 4175

Deck 9

vendor measurement

Answer 4175

The act of measuring the vendor’s performance to a contract. Measurements usually cover delivery reliability, lead time, quality, and price. See: supplier measurement.V

Question 4176

Deck 9

embezzlement

Answer 4176

The fraudulent taking of another’s property while acting in a fiduciary capacity.E

Question 4177

Deck 9

repetitive manufacturing

Answer 4177

The repeated production of the same discrete products or families of products. Repetitive methodology minimizes setups, inventory, and manufacturing lead times by using production lines, assembly lines, or cells. Work orders are no longer necessary; production scheduling and control are based on production rates. Products may be standard or assembled from modules. Repetitive is not a function of speed or volume. Syn: repetitive process, repetitive production. See: project manufacturing.R

Question 4178

Deck 9

vision

Answer 4178

The shared perception of the organization’s future what the organization will achieve and a supporting philosophy. This shared vision must be supported by strategic objectives, strategies, and action plans to move it in the desired direction. See: vision statement.V

Question 4179

Deck 9

value

Answer 4179

The worth of an item, good, or service.V

Question 4180

Deck 9

part family

Answer 4180

A collection of parts grouped for some managerial purpose.P

Question 4181

Deck 9

hedge

Answer 4181

1) An action taken in an attempt to shield the company from an uncertain event such as a strike, price increase, or currency reevaluation. 2) In master scheduling, a scheduled quantity to protect against uncertainty in demand or supply. The hedge is similar to safety stock, except that a hedge has the dimension of timing as well as amount. A volume hedge or market hedge is carried at the master schedule or production plan level. The master scheduler plans excess quantities over and above the demand quantities in given periods beyond some time fence such that, if the hedge is not needed, it can be rolled forward before major resources must be committed to produce the hedge and put it in inventory. A product mix hedge is an approach where several interrelated optional items are overplanned. Sometimes, using a planning bill, the sum of the percent mix can exceed 100 percent by a defined amount, thus triggering additional hedge planning. 3) In purchasing, any purchase or sale transaction having as its purpose the elimination of the negative aspects of price fluctuations. See: market hedge, option overplanning, planning bill of material, safety stock, time fence, two-level master.H

Question 4182

Deck 9

flow manufacturing

Answer 4182

Syn: flow shop.F

Question 4183

Deck 9

logical relationship

Answer 4183

In project management, a dependency between two activities or between a milestone and an activity. The four possible relationships are (1)

Question 4184

Deck 9

material requirements planning (MRP)

Answer 4184

A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the MPS and determines (1) the quantity of all components and materials required to fabricate those items and (2) the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the net requirements by the appropriate lead times.M

Question 4185

Deck 9

late start date (LS)

Answer 4185

In the critical path method of project management, the last date upon which a given activity can be started without delaying the completion date of the project.L

Question 4186

Deck 9

Global Reporting Initiative (GRI)

Answer 4186

A network-based organization that pioneered the world’s most widely used sustainability reporting framework.G Global Reporting Initiative (GRI) Reporting Framework The framework that sets out the principles and perforglobal G mance indicators organizations can use to measure and report their human rights, labor, environment, and anticorruption practices and outcomes.G

Question 4187

Deck 9

contingency reserve

Answer 4187

A budget of money or time allowed over an initial estimate to reduce the likelihood of overruns.C

Question 4188

Deck 9

touches

Answer 4188

A statistic that is used to determine efficiency for costing/pricing functions. A touch is anytime that a labor activity is utilized during the manufacturing or service creation process. This brought about the term “touch labor” for direct labor personnel.T

Question 4189

Deck 9

customer defection analysis

Answer 4189

Analyzing the customers who have stopped buying to determine why.C

Question 4190

Deck 9

standard batch quantity (SBQ)

Answer 4190

The quantity of a parent that is used as the basis for specifying the material requirements for production. The quantity per is expressed as the quantity to make the SBQ, not to make only one of the parent. Often used by manufacturers that use some components in standard quantities or by process-related manufacturers. Syn: run size.S

Question 4191

Deck 9

diseconomies of scale

Answer 4191

Occurs when more outputs are required than the efficient quantity that the facility is designed to produce; this causes an increase in unit cost.D

Question 4192

Deck 9

earliest start date

Answer 4192

The earliest date an operation or order can start. It may be restricted by the current date, material availability, or management-specified “maximum advance.”E

Question 4193

Deck 9

electronic communities

Answer 4193

Communities of people who communicate exclusively electronically.E

Question 4194

Deck 9

offsetting

Answer 4194

Syn: lead-time offset.O

Question 4195

Deck 9

uniform plant loading

Answer 4195

In lean, the distribution of work between work stations so that the time required for each station to complete all tasks is as close to equal as possible. See: line balancing.U

Question 4196

Deck 9

relevant range

Answer 4196

The range of activity planned for a firm.R

Question 4197

Deck 9

raw materials inventory

Answer 4197

Inventory of material that has not undergone processing at a facility.R

Question 4198

Deck 9

short-range planning horizon

Answer 4198

A planning/forecasting time frame encompassing a few days to at most a few weeks.S

Question 4199

Deck 9

service parts

Answer 4199

Those modules, components, and elements that are planned to be used without modification to replace an original part. Syn: repair parts, spare parts.S

Question 4200

Deck 9

indifference point

Answer 4200

The point at which two options create the same costs for a specific output level.I

Question 4201

Deck 9

nonexempt positions

Answer 4201

Employees not meeting the test of executive, supervisory, or administrative personnel who are paid overtime, as defined by the Fair Labor Standards Act. See: nonexempt employee.N

Question 4202

Deck 9

FAQs

Answer 4202

Abbreviation for frequently asked questions.F F

Question 4203

Deck 9

process steps

Answer 4203

The operations or stages within the manufacturing cycle required to transform components into intermediates or finished goods. From a larger perspective, the operations or stages within any business required to turn inputs into outputs.P

Question 4204

Deck 9

component

Answer 4204

The raw material, part, or subassembly that goes into a higher level assembly, compound, or other item. This term may also include packaging materials for finished items. See: ingredient, intermediate part.C

Question 4205

Deck 9

operation start date

Answer 4205

The date when an operation should be started so that its order due date can be met. It can be calculated based on scheduled quantities and lead times or on the work remaining and the time remaining to complete the job.O

Question 4206

Deck 9

transient bill of material

Answer 4206

Syn: phantom bill of material.T

Question 4207

Deck 9

invitation for bid (IFB)

Answer 4207

Syn: request for proposal.I

Question 4208

Deck 9

nominal interest rate

Answer 4208

The noninflation-adjusted interest rate.N

Question 4209

Deck 9

lot-for-lot

Answer 4209

A lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period. See: discrete order quantity.L

Question 4210

Deck 9

profit sharing

Answer 4210

A plan by which employees receive compensation, above their normal wages, based on company profitability. The purpose is to motivate employees and recognize their efforts.P

Question 4211

Deck 9

quality characteristic

Answer 4211

A property of a product or service that is important enough to count or measure. See: performance measurement system.Q

Question 4212

Deck 9

average fixed cost

Answer 4212

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

Question 4213

Deck 9

production scheduling

Answer 4213

The process of developing the production schedule.P

Question 4214

Deck 9

break-bulk

Answer 4214

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

Question 4215

Deck 9

variable yield

Answer 4215

The condition that occurs when the output of a process is not consistently repeatable either in quantity, quality, or combinations of these.V

Question 4216

Deck 9

cumulative yield

Answer 4216

Syn: cascading yield loss, composite yield.C

Question 4217

Deck 9

stock record card

Answer 4217

A ledger card that contains inventory status for a given item.S

Question 4218

Deck 9

CAPP

Answer 4218

Acronym for computer-aided process planning.C

Question 4219

Deck 9

policies

Answer 4219

Definitive statements of what should be done in the business.P

Question 4220

Deck 9

setup flexibility

Answer 4220

The ability for a change to a different product to be made with little delay.S

Question 4221

Deck 9

low-cost-provider strategy

Answer 4221

A strategy of offering the lowest prices in the market to gain share and increase sales volume in industries composed by numerous players offering the same type of products.L

Question 4222

Deck 9

continuous flow distribution

Answer 4222

A pull system diverting products in response to customer requirements while keeping distribution costs low.C

Question 4223

Deck 9

quality control circle

Answer 4223

Syn: quality circle.Q

Question 4224

Deck 9

profit ratio

Answer 4224

Profit divided by sales.P

Question 4225

Deck 9

system nervousness

Answer 4225

See: nervousness.S

Question 4226

Deck 9

operating efficiency

Answer 4226

A ratio (represented as a percentage) of the actual output of a piece of equipment, department, or plant as compared to the planned or standard output.O

Question 4227

Deck 9

closely held

Answer 4227

A description of an organization owned by a small number of people.C

Question 4228

Deck 9

closeness ratings

Answer 4228

In layout analysis, to begin yielding. In layout analysis, measures of how beneficial it would be for one department to be located near another.C

Question 4229

Deck 9

relational database

Answer 4229

A software program that allows users to obtain information drawn from two or more datarelationship R bases that are made up of two-dimensional arrays of data.R

Question 4230

Deck 9

material safety data sheet (MSDS)

Answer 4230

A document that is part of the materials information system and accompanies the product. Prepared by the manufacturer, the MSDS provides information regarding the safety and chemical properties and (if necessary) the long-term storage, handling, and disposal of the product. Among other factors, the MSDS describes the hazardous components of a product; how to treat leaks, spills, and fires; and how to treat improper human contact with the product.M

Question 4231

Deck 9

performance efficiency

Answer 4231

A ratio, usually expressed as a percentage, of the standard processing time for a part divided by its actual processing time. Setups are excluded from this calculation to prevent distortion. A traditional definition includes setup time as part of operation time, but significant distortions can occur as a result of dependent setups.P

Question 4232

Deck 9

scheduling rules

Answer 4232

Basic rules that can be used consistently in a scheduling system. Scheduling rules usually specify the amount of time to allow for a move, queue, load calculation, and so forth. Syn: scheduling algorithm.S

Question 4233

Deck 9

distributor

Answer 4233

A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory. Syn: wholesaler.D

Question 4234

Deck 9

supervisor estimate

Answer 4234

An estimate, made by a knowledgeable manager, of the labor required for an operation.S

Question 4235

Deck 9

shitsuke

Answer 4235

The effort and discipline required to continually enforce changes made in an organization. See: five Ss.S S

Question 4236

Deck 9

alternate feedstock

Answer 4236

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

Question 4237

Deck 9

post-transaction elements

Answer 4237

Customer services that are provided after a product or service is sold, including warranties, returns, and complaint resolution.P

Question 4238

Deck 9

FEU

Answer 4238

An abbreviation for forty-foot equivalent unit.F

Question 4239

Deck 9

cycle service level

Answer 4239

The probability of not having a stockout in any one ordering cycle, which begins at the time an order is placed and ends when the goods are placed in stock. Syn: measure of service, service level.C

Question 4240

Deck 9

machine loading

Answer 4240

The accumulation by workstation, machine, or machine group of the hours generated from the scheduling of operations for released orders by time period. Machine loading differs from capacity requirements planning in that it does not use the planned orders from MRP but operates solely from released orders. It may be of limited value because of its limited visibility of resources.M

Question 4241

Deck 9

internal environment

Answer 4241

The chosen domain or scope of activities within which an organization operates, for example, the tasks associated with goods or services to be delivered by the organization. See: external environment, organizational environment.I

Question 4242

Deck 9

funds flow statement

Answer 4242

A financial statement showing the flow of cash and its timing into and out of an organization or project. Syn: cash flow statement, statement of cash flows.F

Question 4243

Deck 9

expected demand

Answer 4243

The quantity expected to be consumed during a given time period when usage is at the forecast rate. See: demand during lead time.E

Question 4244

Deck 9

customer profitability

Answer 4244

Estimating the profit retained on business with a specific customer.C

Question 4245

Deck 9

safety lead time

Answer 4245

An element of time added to normal lead time to protect against fluctuations in lead time so that an order can be completed before its real need date. When used, the MRP system, in offsetting for lead time, will plan both order release and order completion for earlier dates than it would otherwise. Syn: protection time, safety time.S

Question 4246

Deck 9

finished products inventory

Answer 4246

Syn: finished goods inventory.F

Question 4247

Deck 9

supplier development

Answer 4247

Technical and financial assistance given to existing and potential suppliers to improve quality and/or due date/performance.S

Question 4248

Deck 9

parts planner

Answer 4248

Syn: material planner.P

Question 4249

Deck 9

line manager

Answer 4249

A manager involved in managing a department that is directly involved in making a product.L

Question 4250

Deck 9

international logistics

Answer 4250

All functions concerned with the movement of materials and finished goods on a global scale.I International Organization for Standardization (ISO) Group of cooperating institutes from 155 countries working to develop and publish international standards. It acts as a bridge between public and private sectors.I

Question 4251

Deck 9

additives

Answer 4251

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

Question 4252

Deck 9

tree diagram

Answer 4252

1) A management technique used to analyze a situation in increasing detail. The full range of tasks to be accomplished to achieve a primary goal and supporting subgoal may be illustrated. 2) In the theory of constraints, a diagram relating effects to underlying causes. See: current reality tree, future reality tree.T

Question 4253

Deck 9

diagnostic study

Answer 4253

A brief investigation or cursory methods study of an operation, process, group, or individual to discover causes of operational difficulties or problems for which more detailed remedial studies may be feasible. An appropriate work measurement technique may be used to evaluate alternatives or to locate major areas requiring improvement.D

Question 4254

Deck 9

wall-to-wall inventory

Answer 4254

An inventory management technique in which material enters a plant and is processed through the plant into finished goods without ever having entered a formal stock area. Syn: four-wall inventory.W W

Question 4255

Deck 9

partnership

Answer 4255

1) A form of business ownership that is not organized as a separate legal entity (i.e., unincorporated business), but entailing ownership by two or more persons. See: corporation, private ownership, public ownership, sole proprietorship. 2) In a supply chain, a relationship based on trust, shared risk, and rewards aimed toward achieving a competitive advantage.P

Question 4256

Deck 9

supply chain design

Answer 4256

The determination of how to structure a supply chain. Design decisions include the selection of partners, the location and capacity of warehouse and production facilities, the products, the modes of transportation, and supporting information systems.S

Question 4257

Deck 9

average outgoing quality limit (AOQL)

Answer 4257

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

Question 4258

Deck 9

total make cycle time

Answer 4258

Average cumulative processing time between a part entering a manufacturing system and completion of manufacturing activities (not including packaging).T

Question 4259

Deck 9

machine utilization

Answer 4259

A measure of how intensively a machine is being used. Machine utilization compares the actual machine time (setup and run time) to available time.M

Question 4260

Deck 9

chargeback provisions

Answer 4260

Contractual terms specifying how a company may charge a supplier for failure to perform.C

Question 4261

Deck 9

simple interest

Answer 4261

1) Interest that is not compounded (i.e., interest not added to the income-producing investment or loan). 2) The interest charged under the condition that interest in any time period is only charged on the principal.S

Question 4262

Deck 9

single-level backflush

Answer 4262

A form of backflush that reduces inventory of only the parts used in the next level down in an assembly or subassembly.S

Question 4263

Deck 9

principal

Answer 4263

The party authorizing an agent to act on his or her behalf.P

Question 4264

Deck 9

time-to-market

Answer 4264

The total time required to design, build, and deliver a product (timed from concept to delivery). See: procurement lead time.T

Question 4265

Deck 9

past due order

Answer 4265

A line item on an open customer order that has an original scheduled ship date that is earlier than the current date. Syn: delinquent order, late order, order backlog. See: backlog.P

Question 4266

Deck 9

level production schedule

Answer 4266

Syn: level schedule.L

Question 4267

Deck 9

problem-solving storyboard

Answer 4267

A technique based on the plan/do/check/action problem-solving process. The steps being taken and the progress toward the resolution of a problem are continuously planned and updated.P

Question 4268

Deck 9

OJT

Answer 4268

Abbreviation for on-the-job training.O

Question 4269

Deck 9

freight equalization

Answer 4269

The practice by more distant suppliers of absorbing the additional freight charges to match the freight charges of a supplier geographically closer to the customer. This is done to eliminate the competitive advantage of lower freight charges that the nearest supplier has.F

Question 4270

Deck 9

closed period

Answer 4270

The accounting time period for which the adjusting and closing entries have been posted. Ant: open period.C

Question 4271

Deck 9

critical success factor

Answer 4271

One of a few organizational objectives whose achievement should be sufficient for organizational success.C

Question 4272

Deck 9

beta distribution

Answer 4272

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

Question 4273

Deck 9

forecast period

Answer 4273

Syn: forecast interval.F

Question 4274

Deck 9

network planning

Answer 4274

A generic term for techniques that are used to plan complex projects. Two of the best known network planning techniques are the critical path method (CPM) and the program evaluation and review technique (PERT).N

Question 4275

Deck 9

manufacturing authorization

Answer 4275

Syn: manufacturing order.M

Question 4276

Deck 9

stock code

Answer 4276

Syn: item number.S

Question 4277

Deck 9

AOQL

Answer 4277

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

Question 4278

Deck 9

double order point system

Answer 4278

A distribution inventory management system that has two order points. The smallest equals the original order point, which covers demand during replenishment lead time. The second order point is the sum of the first order point plus normal usage during manufacturing lead time. It enables warehouses to forewarn manufacturing of future replenishment orders.D

Question 4279

Deck 9

custom service

Answer 4279

A service that is created to meet the requirements of specific customers.C

Question 4280

Deck 9

production environment

Answer 4280

Syn: manufacturing environment.P

Question 4281

Deck 9

VATI Analysis

Answer 4281

In the theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished products (logical product structure). A V logical structure starts with one or a few raw materials, and the product expands into a number of different products as it flows through divergent points in its routings. The shape of an A logical structure is dominated by converging points. Many raw materials are fabricated and assembled into a few finished products. A T logical structure consists of numerous similar finished products assembled from common assemblies, subassemblies, and parts. An I logical structure is the simplest of production flows, where resources are shared between different products and the flow is in a straight line sequence, such as an assembly line. Once the general parts flow is determined, the system control points (gating operations, convergent points, divergent points, constraints, and shipping points) can be identified and managed.V

Question 4282

Deck 9

manufacturing execution systems (MES)

Answer 4282

Programs and systems that participate in shop floor control, including programmed logic controllers and process control computers for direct and supervisory control of manufacturing equipment; process information systems that gather historical performance information, then generate reports; graphical displays; and alarms that inform operations personnel what is going on in the plant currently and a very short history into the past. Quality control information is also gathered and a laboratory information management system may be part of this configuration to tie process conditions to the quality data that are generated. Thereby, cause-and-effect relationships can be determined. The quality data at times affect the control parameters that are used to meet product specifications either dynamically or off line.M

Question 4283

Deck 9

profitability ratio

Answer 4283

An indicator of whether or not a company is generating profits at an acceptable rate. It includes such measurements as return on total assets, return on equity, and profit margin.P

Question 4284

Deck 9

balance-of-stores record

Answer 4284

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

Question 4285

Deck 9

SMART

Answer 4285

Abbreviation for simple, measurable, achievable, reasonable, and trackable.S

Question 4286

Deck 9

repair order

Answer 4286

Syn: rework order.R

Question 4287

Deck 9

logbook

Answer 4287

A daily record kept by an interstate driver of driving and duty-related and non-duty-related activities.L

Question 4288

Deck 9

quality

Answer 4288

Conformance to requirements or fitness for use. Quality can be defined through five principal approaches: (1) Transcendent quality is an ideal, a condition of excellence. (2) Product-based quality is based on a product attribute. (3) User-based quality is fitness for use. (4) Manufacturing-based quality is conformance to requirements. (5) Value-based quality is the degree of excellence at an acceptable price. Also, quality has two

Question 4289

Deck 9

explosion level

Answer 4289

Syn: low-level code.E

Question 4290

Deck 9

distribution of forecast errors

Answer 4290

Tabulation of the forecast errors according to the frequency of occurrence of each error value. The errors in forecasting are, in many cases, normally distributed even when the observed data do not come from a normal distribution.D

Question 4291

Deck 9

payback period

Answer 4291

The period of time required for a stream of cash flows resulting from a project to equal the project’s initial investment.P

Question 4292

Deck 9

distribution

Answer 4292

1) The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. It includes all activities related to physical distribution, as well as the return of goods to the manufacturer. In many cases, this movement is made through one or more levels of field warehouses. Syn: physical distribution. 2) The systematic division of a whole into discrete parts having distinctive characteristics.D

Question 4293

Deck 9

political environment

Answer 4293

External factors related to the political process, including laws and regulations, taxation codes, and others, at the local, state, federal, and international levels of government.P

Question 4294

Deck 9

order-up-to level

Answer 4294

Syn: target inventory level.O

Question 4295

Deck 9

time series analysis

Answer 4295

Analysis of any variable classified by time in which the values of the variable are functions of the time periods. Time series analysis is used in forecasting. A time series consists of seasonal, cyclical, trend, and random components. See: cyclical component, random component, seasonal component, trend component.T

Question 4296

Deck 9

yokoten

Answer 4296

A Japanese word meaning sharing information.Y Z

Question 4297

Deck 9

time-based order system

Answer 4297

Syn: fixed reorder cycle inventory model.T T

Question 4298

Deck 9

joint rate

Answer 4298

A rate for a route involving two or more carriers to move a shipment.J

Question 4299

Deck 9

B can start; (2) finish-to-finish

Answer 4299

activity A must be finished before activity B can finish; (3) start-to-start activity A must start before activity B can start; and (4)

Question 4300

Deck 9

performance measurement system

Answer 4300

A system for collecting, measuring, and comparing a measure to a standard for a specific criterion for an operation, item, good, service, business, etc. A performance measurement system consists of a criterion, a standard, and a measure. Syn: metrics. See: performance criterion, performance measure, performance standard.P

Question 4301

Deck 9

partnering

Answer 4301

The act of one organization committing to a long-term relationship with another organization based on trust and a shared concept of how to satisfy the customer.P

Question 4302

Deck 9

trading partner agreement

Answer 4302

A contract between trading partners that describes all facets of their business together. This is a legal and binding agreement suitable for legal purposes as well as standard working agreements.T

Question 4303

Deck 9

input/output devices

Answer 4303

Modems, terminals, or various pieces of equipment whose designed purpose relates to manual, mechanical, electronic, visual, or audio entry to and from the computer’s processing unit.I

Question 4304

Deck 9

hedge inventory

Answer 4304

A form of inventory buildup to buffer against some event that may not happen. Hedge inventory planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair a company’s strategic initiatives. Risk and consequences are unusually high, and top management approval is often required.H

Question 4305

Deck 9

decision table

Answer 4305

A means of displaying logical conditions in an array that graphically illustrates actions associated with stated conditions.D

Question 4306

Deck 9

point-of-use delivery

Answer 4306

Direct delivery of material to a specified location on a plant floor near the operation where it is to be used.P

Question 4307

Deck 9

exception message

Answer 4307

Syn: action message.E

Question 4308

Deck 9

rapid prototyping

Answer 4308

1) The transformation of product designs into physical prototypes. Rapid prototyping relies on techniques such as cross-functional teams, data sharing, and advanced computer and communication technology (e.g., CAD, CAM, stereolithography, data links). Rapid prototyping involves producing the prototype on production equipment as often as possible. It improves product development times and allows for cheaper and faster product testing, assessment of the ease of assembly and costs, and validation before actual production tooling. 2) The transformation of system designs into computer system prototypes with which the users can experiment to determine the adequacy of the design to address their needs. See: 3D printing.R

Question 4309

Deck 9

blocking

Answer 4309

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

Question 4310

Deck 9

process

Answer 4310

1) A planned series of actions or operations (e.g., mechanical, electrical, chemical, inspection, test) that advances a material or procedure from one stage of completion to another. 2) A planned and controlled treatment that subjects materials or procedures to the influence of one or more types of energy (e.g., human, mechanical, electrical, chemical, thermal) for the time required to bring about the desired reactions or results.P

Question 4311

Deck 9

mental model

Answer 4311

A paradigm of how the world works formed by a person’s experiences and assumptions.M

Question 4312

Deck 9

common cause variability

Answer 4312

The variability in product quality that results from numerous uncontrollable everyday factors, such as temperature, humidity, and tool wear. Syn: common variation. See: common causes.C

Question 4313

Deck 9

concurrent engineering

Answer 4313

Syn: participative design/ engineering. C

Question 4314

Deck 9

asset value

Answer 4314

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

Question 4315

Deck 9

inventory management

Answer 4315

The branch of business management concerned with planning and controlling inventories.I

Question 4316

Deck 9

volume flexibility

Answer 4316

The ability of the transformation process to quickly accommodate large variations in production levels.V

Question 4317

Deck 9

lot control

Answer 4317

A set of procedures (e.g., assigning unique batch numbers and tracking each batch) used to maintain lot integrity from raw materials, from the supplier through manufacturing to consumers.L

Question 4318

Deck 9

digital cash or money

Answer 4318

An electronic currency equivalent of currency or coins.D

Question 4319

Deck 9

price to earnings (PE) ratio

Answer 4319

The current price of a stock relative to its earnings per share.P

Question 4320

Deck 9

dispatching rule

Answer 4320

The logic used to assign priorities to jobs at a work center.D

Question 4321

Deck 9

chase strategy

Answer 4321

Syn: chase production method.C

Question 4322

Deck 9

bookings

Answer 4322

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

Question 4323

Deck 9

best practices

Answer 4323

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

Question 4324

Deck 9

operating exposure

Answer 4324

The risk introduced by flexible exchange rates when operating in the global environment, including production, storage, and buying and selling prices.O

Question 4325

Deck 9

order entry complete to start manufacture

Answer 4325

The average time starting when an order is placed by a customer and ending when the manufacturing of that order is completed.O

Question 4326

Deck 9

hurdle rate

Answer 4326

The minimum acceptable rate of return on a project.H

Question 4327

Deck 9

linear production

Answer 4327

Actual production to a level schedule, so that a plotting of actual output versus planned output forms a straight line, even when plotted for a short segment of time.L

Question 4328

Deck 9

risk register

Answer 4328

A report that has summary information on qualitative risk analysis, quantitative risk analysis, and risk response planning. This register contains all identified risks and associated details.R

Question 4329

Deck 9

pacing process

Answer 4329

The process in a production line used to signal all other processes in line of the time to produce another unit. It generally is the final process, but it does not have to be.P

Question 4330

Deck 9

pegged requirement

Answer 4330

A requirement that shows the next-level parent item (or customer order) as the source of the demand.P

Question 4331

Deck 9

line of credit

Answer 4331

A contract that enables a company to borrow funds at any time up to a predetermined limit.L

Question 4332

Deck 9

bucketed system

Answer 4332

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

Question 4333

Deck 9

job description

Answer 4333

A formal statement of duties, qualifications, and responsibilities associated with a particular job.J

Question 4334

Deck 9

response time

Answer 4334

The elapse of time or average delay between the initiation of a transaction and the results of the transaction.R

Question 4335

Deck 9

refurbished goods

Answer 4335

Syn: remanufactured parts.R

Question 4336

Deck 9

event

Answer 4336

An event is an identifiable point in time among a set of related activities. Graphically, an event can be represented by two approaches: (1) in activity-on-node networks, it is represented by a node; (2) in activity-onarrow networks, the event is represented by the arrow.E

Question 4337

Deck 9

quality score chart

Answer 4337

Syn: Q chart.Q

Question 4338

Deck 9

define-measure-analyze-improve-control (DMAIC)

Answer 4338

The sequence of steps for improvement projects within sixsigma quality control.D define, measure, analyze, improve, control (DMAIC)

Question 4339

Deck 9

non-value-added

Answer 4339

An activity that does not add value to a product, for example, moving the product from one work center to another inside a facility. One aspect of continuous improvement is the elimination or reduction of non-value-added activities.N

Question 4340

Deck 9

collaborative supply relationship

Answer 4340

Syn: supplier partnership.C

Question 4341

Deck 9

voluntary layoff

Answer 4341

Layoffs where the employees are given the option of taking a non-paid leave from their work for a short, specified period of time.V

Question 4342

Deck 9

causal forecast

Answer 4342

A type of forecasting that uses causeand- effect associations to predict and explain relationships between the independent and dependent variables. An example of a causal model is an econometric model used to explain the demand for housing starts based on consumer base, interest rates, personal incomes, and land availability.C

Question 4343

Deck 9

program management

Answer 4343

The activities involved in the realization of a product or service offered to customers. The responsibilities include planning, directing, and controlling one or more projects of a new or continuing nature; initiating any acquisition processes necessary to get the project work under way; and monitoring performance. See: program manager.P

Question 4344

Deck 9

simultaneous design/engineering

Answer 4344

Syn: participative design/engineering.S

Question 4345

Deck 9

exponential distribution

Answer 4345

A continuous probability distribution where the probability of occurrence either steadily increases or decreases. The steady increase case (positive exponential distribution) is used to model phenomena such as customer service level versus cost. The steady decrease case (negative exponential distribution) is used to model phenomena such as the weight given to any one time period of demand in exponential smoothing.E

Question 4346

Deck 9

macro environment

Answer 4346

The environment external to a business including technological, economic, natural, and regulatory forces that marketing efforts cannot control.M

Question 4347

Deck 9

description by brand

Answer 4347

A method to identify a product or service required; requesting by brand usually means the product or service provides some advantage over other brands.D

Question 4348

Deck 9

marquis partners

Answer 4348

Key strategic relationships. By partnering with big players, via equity offerings if necessary, a company creates barriers to entry into supply chain relationships for competitors.M

Question 4349

Deck 9

registration to standards

Answer 4349

A process in which an accredited, independent third-party organization conducts an on-site audit of a company’s operations against the requirements of the standard to which the company wants to be registered. Upon successful completion of the audit, the company receives a certificate indicating that it has met the standard requirements.R

Question 4350

Deck 9

line balancing

Answer 4350

1) The balancing of the assignment of the tasks to workstations in a manner that minimizes the number of workstations and minimizes the total amount of idle time at all stations for a given output level. In balancing these tasks, the specified time requirement per unit of product for each task and its sequential relationship with the other tasks must be considered. See: uniform plant loading. 2) A technique for determining the product mix that can be run down an assembly line to provide a fairly consistent flow of work through that assembly line at the planned line rate.L

Question 4351

Deck 9

transfer batch

Answer 4351

The quantity of an item moved between sequential work centers during production. See: batch, overlap quantity.T

Question 4352

Deck 9

SQC

Answer 4352

Abbreviation for statistical quality control.S

Question 4353

Deck 9

marginal cost

Answer 4353

The incremental costs incurred when the level of output of some operation or process is increased by one unit.M

Question 4354

Deck 9

interest

Answer 4354

1) Financial share in a project or enterprise. 2) Periodic compensation for lending money. 3) In an economy study, synonymous with required return, expected profit, or charge for the use of capital. 4) The cost for the use of capital. Sometimes referred to as the time value of money.I

Question 4355

Deck 9

additive manufacturing

Answer 4355

Syn: 3D printing.A

Question 4356

Deck 9

repetitive production

Answer 4356

Syn: repetitive manufacturing.R

Question 4357

Deck 9

bin location file

Answer 4357

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

Question 4358

Deck 9

break-even point

Answer 4358

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

Question 4359

Deck 9

ESI

Answer 4359

Abbreviation for early supplier involvement.E

Question 4360

Deck 9

strategic benchmarking

Answer 4360

Benchmarking how others compete. It often involves benchmarking across industries. See: benchmarking.S

Question 4361

Deck 9

index

Answer 4361

A value, expressed as a percentage, giving the relationship of a measurement to a base value. A result of 100 would be average while numbers greater than 100 would be above average and those less than 100 would be below average.I

Question 4362

Deck 9

control number

Answer 4362

Typically, the manufacturing order or schedule number used to identify a specific instance or period of production.C

Question 4363

Deck 9

product line

Answer 4363

A group of products whose similarity in manufacturing procedures, marketing characteristics, or specifications enables them to be aggregated for planning; marketing; or, occasionally, costing. Syn: product family, product group.P

Question 4364

Deck 9

residence time

Answer 4364

Syn: process time.R

Question 4365

Deck 9

nominal trading partner

Answer 4365

Any organization external to the firm that provides an essential material or service, but whose financial success is largely independent of the financial success of the supply chain community.N

Question 4366

Deck 9

computer-aided inspection and test (CAIT)

Answer 4366

The use of computer technology in the inspection and testing of manufactured products.C

Question 4367

Deck 9

knowledge creation

Answer 4367

The propensity for generating knowledge.K

Question 4368

Deck 9

linear programming

Answer 4368

Mathematical models for solving linear optimization problems through minimization or maximization of a linear function subject to linear constraints. For example, in blending gasoline and other petroleum products, many intermediate distillates may be available. Prices and octane ratings as well as upper limits on capacities of input materials that can be used to produce various grades of fuel are given. The problem is to blend the various inputs in such a way that (1) cost will be minimized (profit will be maximized), (2) specified optimum octane ratings will be met, and (3) the need for additional storage capacity will be avoided.L

Question 4369

Deck 9

service positioning

Answer 4369

Syn: product positioning.S

Question 4370

Deck 9

design simplification

Answer 4370

A process of reducing the number of pieces in a product or machine, eliminating features that are seldom needed, and eliminating steps in the production process.D

Question 4371

Deck 9

technical/office protocol (TOP)

Answer 4371

An application-specific protocol based on open systems interconnection (OSI) standards. It is designed to allow communication between computers from different suppliers in the technical development and office environments.T

Question 4372

Deck 9

abnormal demand

Answer 4372

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

Question 4373

Deck 9

good

Answer 4373

A tangible product, merchandise, or ware.G

Question 4374

Deck 9

associative forecasting

Answer 4374

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

Question 4375

Deck 9

world-class quality

Answer 4375

A term used to indicate a standard of excellence: the best of the best.W

Question 4376

Deck 9

(LIMIT)

Answer 4376

A technique for looking at the lot sizes for groups of similar products to determine the effect economic lot sizes will have on the total inventory, total setup costs, and machine availability.L

Question 4377

Deck 9

inventory control

Answer 4377

The activities and techniques of maintaining the desired levels of items, whether raw materials, work in process, or finished products. Syn: material control.I

Question 4378

Deck 9

dampeners

Answer 4378

User-input parameters to suppress the reporting of insignificant or unimportant action messages.D

Question 4379

Deck 9

mix forecast

Answer 4379

Forecast of the proportion of products that will be sold within a given product family, or the proportion of options offered within a product line. Product and option mix as well as aggregate product families must be forecasted. Even though the appropriate level of units is forecasted for a given product line, an inaccurate mix forecast can create material shortages and inventory problems.M

Question 4380

Deck 9

man-hour

Answer 4380

A unit of measure representing one person working for one hour. The combination of “n” people working for “h” hours produces nh man-hours. Frequent qualifications to the definition include (1) designation of work effort as normal effort; (2) designation of time spent as actual hours.M

Question 4381

Deck 9

item master file

Answer 4381

A file containing all item master records for a product, product line, plant, or company. See: master file.I

Question 4382

Deck 9

progressive operations

Answer 4382

Passing work from station to station.P

Question 4383

Deck 9

bill of batches

Answer 4383

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

Question 4384

Deck 9

terminal value

Answer 4384

The value of an operation or entity at the end of the period considered.T

Question 4385

Deck 9

mix flexibility

Answer 4385

The ability to handle a wide range of products or variants by using equipment that has short setup times.M

Question 4386

Deck 9

continuous review system

Answer 4386

The inventory level on-hand and on-order for this system is checked whenever a change in inventory level occurs and when the reorder point is reached a restocking order is released. See: fixed reorder cycle inventory model.C

Question 4387

Deck 9

environmentally sensitive engineering

Answer 4387

Designing with consideration of how a product or its packaging will ultimately be disposed.E

Question 4388

Deck 9

planning values

Answer 4388

Values that decision makers use to translate the sales forecast into resource requirements to determine the feasibility and costs of alternative approaches.P

Question 4389

Deck 9

remanufacturing resource planning

Answer 4389

A manufacturing resource planning system designed for remanufacturing facilities.R

Question 4390

Deck 9

gap analysis

Answer 4390

A tool designed to assess the distance that exists between a service that is offered and customer expectations.G G

Question 4391

Deck 9

piggyback

Answer 4391

Syn: trailer on a flatcar.P

Question 4392

Deck 9

job sequencing rules

Answer 4392

A set of priorities and conditions that specify the order in which jobs are processed because of scarce resources.J

Question 4393

Deck 9

universality

Answer 4393

The strategy of designing a product initially intended for one market in such a way that it can also be sold in other markets. It is a form of standardization.U

Question 4394

Deck 9

design changeover flexibility

Answer 4394

The capability of the existing production system to accommodate and introduce a large variety of major design changes quickly.D

Question 4395

Deck 9

Shewhart circle of quality

Answer 4395

Syn: plan-do-check-action.S

Question 4396

Deck 9

projected available balance

Answer 4396

An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders. Syn: projected available inventory.P

Question 4397

Deck 9

leveraging purchase volume

Answer 4397

Buying in large quantities to take advantage of volume price or shipping discounts.L

Question 4398

Deck 9

time value of money

Answer 4398

1) The cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds. See: future worth, present value. 2) The interest rate that capital is expected to earn.T

Question 4399

Deck 9

capacity control

Answer 4399

The process of measuring production output and comparing it with the capacity plan, determining if the variance exceeds pre-established limits, and taking corrective action to get back on plan if the limits are exceeded. See: input/output control.C

Question 4400

Deck 9

idle capacity

Answer 4400

The available capacity that exists on nonconstraint resources beyond the capacity required to support the constraint. Idle capacity has two components: protective capacity and excess capacity.I

Question 4401

Deck 9

core competencies

Answer 4401

Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through collective learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers. For example, a core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies. To illustrate, advanced casting processes for making steel require the integration of machine design with sophisticated sensors to track temperature and speed, and the sensors require mathematical modeling of heat transfer. For rapid and effective development of such a process, materials scientists must work closely with machine designers, software engineers, process specialists, and operating personnel. Core competencies are not directly related to the product or market.C

Question 4402

Deck 9

instantaneous receipt

Answer 4402

The receipt of an entire lot-size quantity in a very short period of time.I

Question 4403

Deck 9

four Ps

Answer 4403

A set of marketing tools to direct the business offering to the customer. The four Ps are product, price, place, and promotion.F

Question 4404

Deck 9

publicly traded corporation

Answer 4404

A corporation whose stock is available on a national exchange.P

Question 4405

Deck 9

product/service hierarchy

Answer 4405

In sales and operations planning, a general approach to dividing products or services into families, brands, and subfamilies for various planning levels. This ensures that a correct topdown or bottom-up approach is taken to grouping (or aggregating) demand at each subsequent level. Forecasts are more accurate the higher up the product hierarchy they are developed; consequently, forecasts should usually be driven down from the top.P

Question 4406

Deck 9

outsourced cost of goods sold

Answer 4406

Costs of goods sold that are not created within the producing company’s manufacturing process. Instead, they are outsourced to another company and include the costs of purchasing the service from another company.O

Question 4407

Deck 9

TRR

Answer 4407

Abbreviation for time to reliably replenish.T

Question 4408

Deck 9

B2C

Answer 4408

Abbreviation for business-to-consumer sales.B

Question 4409

Deck 9

public warehouse

Answer 4409

The warehouse space that is rented or leased by an independent business providing a variety of services for a fee or on a contract basis.P

Question 4410

Deck 9

database management system (DBMS)

Answer 4410

The software designed for organizing data and providing the mechanism for storing, maintaining, and retrieving that data on a physical medium (i.e., a database). A DBMS separates data from the application programs and people who use the data and permits many different views of the data.D

Question 4411

Deck 9

return to supplier

Answer 4411

Material that has been rejected by the buyer’s inspection department and is awaiting shipment back to the supplier for repair or replacement.R

Question 4412

Deck 9

visual review system

Answer 4412

A simple inventory control system where the inventory reordering is based on actually looking at the amount of inventory on hand. Usually used for low-value items, such as nuts and bolts. See: two-bin inventory system.V

Question 4413

Deck 9

mix

Answer 4413

A breakdown of the total demand or production that identifies different products in an aggregate demand or production run.M

Question 4414

Deck 9

level-demand strategy

Answer 4414

A strategy of keeping capacity level and not variable with demand.L

Question 4415

Deck 9

sawtooth diagram

Answer 4415

A quantity-versus-time graphic representation of the order point/order quantity inventory system showing inventory being received and then used up and reordered.S

Question 4416

Deck 9

activity sequencing

Answer 4416

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

Question 4417

Deck 9

WMS

Answer 4417

Abbreviation for warehouse management system.W

Question 4418

Deck 9

transactions

Answer 4418

Individual events reported to the system (e.g., issues, receipts, transfers, adjustments).T

Question 4419

Deck 9

DSD

Answer 4419

Abbreviation for direct store delivery.D

Question 4420

Deck 9

robustness

Answer 4420

The condition of a product or process design that remains relatively stable with a minimum of variation even though factors that influence operations or usage, such as environment and wear, are constantly changing.R

Question 4421

Deck 9

anti-dumping duty

Answer 4421

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

Question 4422

Deck 9

LAN

Answer 4422

Acronym for local area network.L

Question 4423

Deck 9

functional strategy

Answer 4423

A strategy that is built from the business strategy for the various business functions, such as finance, marketing, and production. See: strategic planning.F

Question 4424

Deck 9

path divergence

Answer 4424

Having parallel network paths exiting from a single node.P

Question 4425

Deck 9

valid schedule

Answer 4425

A detailed, feasible calendar of specific items flowing into and through a factory.V

Question 4426

Deck 9

automated clearinghouse

Answer 4426

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

Question 4427

Deck 9

Interstate Commerce Commission (ICC)

Answer 4427

A U.S. regulatory agency charged with enforcing regulations controlling railroads, motor carriers, pipelines, domestic water carriers, domestic surface freight forwarders, and brokers.I

Question 4428

Deck 9

job enrichment

Answer 4428

An increase in the number of tasks that an employee performs and an increase in the control over those tasks. It is associated with the design of jobs and especially the production worker’s job. Job enrichment is an extension of job enlargement.J

Question 4429

Deck 9

stop work order

Answer 4429

Syn: hold order.S

Question 4430

Deck 9

local measures

Answer 4430

The set of measurements that relates to a resource, operation, process, or part and usually has low correlation to global organization measures. Examples are errors per printed page, departmental efficiency, and volume discounts.L

Question 4431

Deck 9

systems network

Answer 4431

A group of interconnected nodes. This implies redundancy in connections and some means (e.g., machines) for implementing the connection.S

Question 4432

Deck 9

Malcolm Baldrige National Quality Award (MB QA)

Answer 4432

An award established by Congress in 1987 to raise awareness of quality management and to recognize U.S. companies that have implemented successful quality management systems. Up to four awards may be given annually in each of three categories: manufacturing company, service company, and small business. The award is named after the late Secretary of Commerce, Malcolm Baldrige, a proponent of quality management. The U.S. Commerce Department’s National Institute of Standards and Technology manages the award, and the American Society for Quality (ASQ) administers it. Syn: Baldrige Award.M

Question 4433

Deck 9

step-function scheduling

Answer 4433

Scheduling logic that recognizes run length to be a multiple of the number of batches to be run rather than simply a linear relationship of run time to total production quantity.S

Question 4434

Deck 9

assignor

Answer 4434

One who sells contract rights to a third person.A

Question 4435

Deck 9

project network

Answer 4435

A diagram showing the technological relationships among activities in a project.P

Question 4436

Deck 9

batch picking

Answer 4436

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

Question 4437

Deck 9

inventory conversion period

Answer 4437

The time period needed to produce and sell a product, measured from procurement of raw materials to the sale of the product.I

Question 4438

Deck 9

manufacturing process

Answer 4438

The series of operations performed upon material to convert it from the raw material or a semifinished state to a state of further completion. Manufacturing processes can be arranged in a process layout, product layout, cellular layout, or fixed-position layout. Manufacturing processes can be planned to support make-to-stock, make-to-order, assemble-to-order, and so forth, based on the strategic use and placement of inventories. See: production process, transformation process.M

Question 4439

Deck 9

absentee policy

Answer 4439

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

Question 4440

Deck 9

by-product

Answer 4440

A material of value produced as a residual of or incidental to the production process. The ratio of by-product to primary product is usually predictable. Byproducts may be recycled, sold as-is, or used for other purposes. See: co-product.B

Question 4441

Deck 9

net requirements

Answer 4441

In MRP, the net requirements for a part or an assembly are derived as a result of applying gross requirements and allocations against inventory on hand, scheduled receipts, and safety stock. Net requirements, lot-sized and offset for lead time, become planned orders.N

Question 4442

Deck 9

cross-functional integration

Answer 4442

Thread that weaves the entire organization and manufacturing process into one fabric in which each of the different parts serves and supports the whole. See: integrated enterprise.C

Question 4443

Deck 9

resource management

Answer 4443

1) The planning and validation of all organizational resources. 2) The effective identification, planning, scheduling, execution, and control of all organizational resources to produce a good or service that provides customer satisfaction and supports the organization’s competitive edge and, ultimately, organizational goals. 3) An emerging field of study emphasizing the systems perspective, encompassing both the product and process life cycles, and focusing on the integration of organizational resources toward the effective realization of organizational goals. Resources include materials; maintenance, repair, and operating supplies; production and supporting equipment; facilities; direct and indirect employees; staff; administrative R and professional employees; information; knowledge; and capital. Syn: integrated resource management.R

Question 4444

Deck 9

scheduling

Answer 4444

The act of creating a schedule, such as a shipping schedule, master production schedule, maintenance schedule, or supplier schedule.S

Question 4445

Deck 9

detailed scheduling

Answer 4445

Syn: operations scheduling.D D

Question 4446

Deck 9

marketing management

Answer 4446

Syn: demand management.M

Question 4447

Deck 9

integrating mechanism

Answer 4447

A physical, organizational, or informational entity that allows people and functions to interact freely by transcending boundaries.I

Question 4448

Deck 9

telecommunications

Answer 4448

Transmission of voice and image data at a distance by electronic means.T

Question 4449

Deck 9

ATP

Answer 4449

Abbreviation for available-to-promise.A

Question 4450

Deck 9

supply chain mastery

Answer 4450

A firm’s ability to achieve superior results through exceptional management of revenue generation, segmented supplier and customer management, collaboration and information sharing, risk management, data analysis, and appropriate use of technology.S

Question 4451

Deck 9

primary process

Answer 4451

A process that performs the main value-added activities of an organization.P

Question 4452

Deck 9

market dominance

Answer 4452

When a firm has very little competition.M

Question 4453

Deck 9

SLA

Answer 4453

Abbreviation for service level agreement.S

Question 4454

Deck 9

anticipated delay report

Answer 4454

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

Question 4455

Deck 9

market driven

Answer 4455

Responding to customers’ needs.M

Question 4456

Deck 9

American National Standards Institute (ANSI)

Answer 4456

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

Question 4457

Deck 9

order multiples

Answer 4457

An order quantity modifier applied after the lot size has been calculated that increases the order quantity to a predetermined multiple.O

Question 4458

Deck 9

acceptance number

Answer 4458

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

Question 4459

Deck 9

fixed order period system

Answer 4459

A method of inventory planning that measures actual inventory levels at regular intervals of time; either an order is placed every time or a check of inventory levels is made and an order placed if needed. Often the quantity ordered varies from period to period as inventory is restored to a predetermined level. See: fixed order quantity system.F

Question 4460

Deck 9

organizational change management

Answer 4460

The fostering and support of people who champion new technologies, new operating practices, and new products and services that will transform the organization, maintaining its viability and improving its competitive position in step with the change in the business environment in which it functions.O

Question 4461

Deck 9

prerelease

Answer 4461

The period of product specification, design, and design review.P

Question 4462

Deck 9

order consolidation profile

Answer 4462

The process of filling an entire order of one customer by bringing all parts of their order together in one place. These items may or may not come from different places or departments.O

Question 4463

Deck 9

production materials requisition

Answer 4463

Syn: materials requisition.P

Question 4464

Deck 9

data integrity

Answer 4464

Assurance that data accurately reflects the environment it is representing.D

Question 4465

Deck 9

80-20

Answer 4465

A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, 80 percent of the effects (or sales or costs) come from 20 percent of the possible causes (or items). See: ABC classification.8

Question 4466

Deck 9

packing slip

Answer 4466

A document that itemizes in detail the contents of a particular package, carton, pallet, or container for shipment to a customer. The detail includes a description of the items, the shipper’s or customer’s part number, the quantity shipped, and the stockkeeping unit (SKU) of items shipped.P

Question 4467

Deck 9

aesthetics

Answer 4467

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

Question 4468

Deck 9

cost driver

Answer 4468

Syn: driver (first definition).C

Question 4469

Deck 9

blanket order release

Answer 4469

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

Question 4470

Deck 9

shortage gaming

Answer 4470

When suppliers ration or apportion supplies, and buyers, in response, inflate their orders in an attempt to receive what they actually need.S

Question 4471

Deck 9

reserve

Answer 4471

Contingency funds set aside to mitigate risk.R

Question 4472

Deck 9

new product introduction

Answer 4472

The development and release of an item that is new to a company’s set of offerings.N

Question 4473

Deck 9

detailed planning and control

Answer 4473

The planning of a project in the short term, covering the present time up until a few weeks out.D

Question 4474

Deck 9

floating inventory location system

Answer 4474

Syn: random-location storage.F

Question 4475

Deck 9

aggregation

Answer 4475

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

Question 4476

Deck 9

COFC

Answer 4476

Abbreviation for container on a railroad flatcar.C

Question 4477

Deck 9

accessibility

Answer 4477

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

Question 4478

Deck 9

per one million defect opportunities

Answer 4478

a potential problem that is important to the customer.D

Question 4479

Deck 9

market demand

Answer 4479

In marketing, the total demand that would exist within a defined customer group in a given geographical area during a particular time period given a known marketing program.M

Question 4480

Deck 9

IP)

Answer 4480

The communication protocol used by the internet.T

Question 4481

Deck 9

agglomeration

Answer 4481

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

Question 4482

Deck 9

Box-Jenkins model

Answer 4482

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

Question 4483

Deck 9

spot buy

Answer 4483

A purchase made for standard off-the-shelf material or equipment, on a one-time basis.S

Question 4484

Deck 9

average inventory

Answer 4484

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

Question 4485

Deck 9

implied authority

Answer 4485

The right of an agent, when directed by a principal to accomplish a task, to do what is reasonably necessary to accomplish it.I

Question 4486

Deck 9

discrete order picking

Answer 4486

A method of picking orders in which the items on one order are picked before the next order is picked. See: batch picking, order picking, zone picking.D

Question 4487

Deck 9

mixed loads

Answer 4487

A load having both regulated and exempt items in the same vehicle.M

Question 4488

Deck 9

profitability index

Answer 4488

In financial management, the net present value of a projected stream of income from a project (potential investment) divided by the investment in the project. It is used to select among competing potential investments.P

Question 4489

Deck 9

EDI

Answer 4489

Abbreviation for electronic data interchange.E

Question 4490

Deck 9

nonsignificant part number

Answer 4490

A part number that is assigned to each part but does not convey any information about the part. Nonsignificant part numbers are identifiers, not descriptors. Ant: significant part number.N

Question 4491

Deck 9

part number

Answer 4491

Syn: item number.P

Question 4492

Deck 10

retail method

Answer 4492

A method of inventory valuation in which the value is determined by applying a predetermined percentage based on retail markup to the retail price, to determine its inventory value based on cost.R

Question 4493

Deck 10

parent

Answer 4493

Syn: parent item.P

Question 4494

Deck 10

allocated material

Answer 4494

Syn: reserved material.A

Question 4495

Deck 10

evaporating cloud

Answer 4495

In the theory of constraints, a logicbased tool for surfacing assumptions related to a conflict or problem. Once the assumptions are surfaced, actions to break an assumption and hence solve (evaporate) the problem can be determined.E

Question 4496

Deck 10

backflush

Answer 4496

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

Question 4497

Deck 10

TRP

Answer 4497

Abbreviation for transportation requirements planning.T

Question 4498

Deck 10

commercial invoice

Answer 4498

An official document indicating the names of the seller and buyer, the product being shipped, and its value. The document is provided by the seller.C

Question 4499

Deck 10

resource-limited scheduling

Answer 4499

The scheduling of activities so that predetermined resource availability pools are not exceeded. Activities are started as soon as resources are available (with respect to logical constraints), as required by the activity. When not enough of a resource exists to do all tasks on a given day, a priority decision is made. Project finish may be delayed, if necessary, to alter schedules constrained by resource usage.R

Question 4500

Deck 10

constrained optimization

Answer 4500

Achieving the best possible solution to a problem in terms of a specified objective function and a given set of constraints.C

Question 4501

Deck 10

optimization

Answer 4501

Achieving the best possible solution to a problem in terms of a specified objective function.O

Question 4502

Deck 10

and transportation

Answer 4502

that is aligned with the overall business strategy. See: strategic plan.L

Question 4503

Deck 10

operating leverage

Answer 4503

Comparing an organization’s annual sales to its annual costs.O

Question 4504

Deck 10

letter of credit

Answer 4504

An assurance by a bank that payment will be made as long as the sales terms agreed to by the buyer and seller are met. This method of payment for sales contracts provides a high degree of protection for the seller.L

Question 4505

Deck 10

strategic variables

Answer 4505

The most important variables that effect the business environment and business strategy. These are typically the economic situation, population demographics, changes in technology, and government policies.S

Question 4506

Deck 10

time series forecasting

Answer 4506

A forecasting method that projects historical data patterns into the future. It involves the assumption that the near-term future will be like the recent past.T

Question 4507

Deck 10

advanced planning system (APS)

Answer 4507

Syn: advanced planning and scheduling.A

Question 4508

Deck 10

freight carriers

Answer 4508

Companies that move cargo via truck, rail, air, or sea.F

Question 4509

Deck 10

encryption

Answer 4509

Changing readable words into another form, called a cipher, which hides the text’s meaning.E

Question 4510

Deck 10

functional requirements

Answer 4510

Syn: critical characteristics.F

Question 4511

Deck 10

residual income

Answer 4511

The net operating income that an investment center earns above the minimum required return on its operating assets.R

Question 4512

Deck 10

global marketing

Answer 4512

The use of one marketing strategy in all countries in which a company operates, selling a single product worldwide.G

Question 4513

Deck 10

reverse auction

Answer 4513

An internet auction in which suppliers attempt to underbid their competitors. Company identities are known only by the buyer.R

Question 4514

Deck 10

common parts bill

Answer 4514

Syn: common parts bill of material.C

Question 4515

Deck 10

sales order number

Answer 4515

A unique control number assigned to each new customer order, usually during order entry. It is often used by order promising, master scheduling, cost accounting, invoicing, and so forth. For some S make-to-order products, it can also take the place of an end item part number by becoming the control number that is scheduled through the finishing operations.S

Question 4516

Deck 10

slack time

Answer 4516

In project management, the amount of time that an activity may be delayed from its early start without delaying the project finish date. Syn: slack.S

Question 4517

Deck 10

segment customers

Answer 4517

Grouping customers by common characteristics to facilitate sales.S

Question 4518

Deck 10

seasonal component

Answer 4518

A component of demand, usually describing the impact of variations that occur because of the time of year (quarter, month, week) on demand. See: decomposition, time series analysis.S

Question 4519

Deck 10

vertically integrated firm

Answer 4519

An organization with functions that were previously performed by suppliers but are now done internally. See: horizontally integrated firm.V

Question 4520

Deck 10

random numbers

Answer 4520

A sequence of integers or group of numbers (often in the form of a table) that show absolutely no relationship to each other anywhere in the sequence. At any point, all values have an equal chance of occurring, and they occur in an unpredictable fashion.R

Question 4521

Deck 10

probability distribution

Answer 4521

A table of numbers or a mathematical expression that indicates the frequency with which each of all possible results of an experiment should occur.P

Question 4522

Deck 10

mixed-model assembly line

Answer 4522

An assembly line with more than one type of model passing through it.M

Question 4523

Deck 10

hypothesis testing

Answer 4523

Use of statistical models to test conclusions about a population or universe based on sample information.H I

Question 4524

Deck 10

is secured are changed

Answer 4524

as opposed to value analysis, in which the item itself is actually changed to produce a lower cost.C

Question 4525

Deck 10

Management (CFPIM)

Answer 4525

The APICS designation that is a recognition of superior knowledge and performance in contributing to the profession.C

Question 4526

Deck 10

campaign

Answer 4526

A series of batches of the same product run together (back to back).C

Question 4527

Deck 10

production report

Answer 4527

A statement of the output of a production facility for a specified period. The information normally includes the type and quantity of output; workers’ efficiencies; departmental efficiencies; costs of direct labor, direct material, and the like; overtime worked; and machine downtime.P P

Question 4528

Deck 10

multidomestic strategy

Answer 4528

Syn: multicountry strategy.M

Question 4529

Deck 10

material flexibility

Answer 4529

The ability of the transformation process to handle unexpected variations in material inputs.M

Question 4530

Deck 10

incentive

Answer 4530

A reward, financial or otherwise, that compensates a worker for high or continued performance above standard. An incentive is also a motivating influence to induce effort above normal.I

Question 4531

Deck 10

acceptable sampling plan

Answer 4531

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

Question 4532

Deck 10

net change MRP

Answer 4532

An approach in which the material requirements plan is continually retained in the computer. Whenever a change is needed in requirements, open order inventory status, or bill of material, a partial explosion and netting is made for only those parts affected by the change. Ant: regeneration MRP.N

Question 4533

Deck 10

DOE

Answer 4533

Abbreviation for design of experiments.D

Question 4534

Deck 10

GAAP

Answer 4534

Acronym for generally accepted accounting principles.G

Question 4535

Deck 10

gateway work center

Answer 4535

A work center that performs the first operation of a particular routing sequence.G

Question 4536

Deck 10

production part approval process (PPAP)

Answer 4536

A Big Three automotive process outlining requirements for approval of production parts. Its purpose is to measure whether a supplier can, with regularity, fulfill these requirements.P

Question 4537

Deck 10

contract date

Answer 4537

The date when a contract is accepted by all parties.C

Question 4538

Deck 10

design for service

Answer 4538

Simplification of parts and processes to improve the after-sale service of a product. Syn: design for maintainability.D

Question 4539

Deck 10

external environment

Answer 4539

All the factors that exist outside the boundary of the organization that have the possibility of affecting any part of the organization. See: internal environment, organizational environment.E

Question 4540

Deck 10

assembly chart

Answer 4540

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

Question 4541

Deck 10

significant part number

Answer 4541

A part number that is intended to convey certain information, such as the source of the part, the material in the part, or the shape of the part. Using numbers to represent this information usually makes these part numbers longer than corresponding nonsignificant part numbers. Ant: nonsignificant part number.S

Question 4542

Deck 10

booked orders

Answer 4542

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

Question 4543

Deck 10

supply chain resilience

Answer 4543

The ability of a supply chain to anticipate, create plans to avoid or mitigate, and/or to recover from disruptions to supply chain functionality.S

Question 4544

Deck 10

project risk management

Answer 4544

In project management, a systematic process of controlling project risk. It includes maximizing the likelihood and effect of positive events and minimizing the likelihood and effect of negative events.P

Question 4545

Deck 10

fixed-position manufacturing

Answer 4545

Similar to project manufacturing, this type of manufacturing is mostly used for large, complex projects, where the product remains in one locations for its full assembly period or may move from location to location after considerable work and time are spent on it. Examples of fixed position manufacturing include shipbuilding or aircraft assembly, where the costs of frequent movement of the product are very high.F

Question 4546

Deck 10

AS/RS

Answer 4546

Abbreviation for automated storage/retrieval system.A

Question 4547

Deck 10

NLRB

Answer 4547

Abbreviation for National Labor Relations Board.N

Question 4548

Deck 10

operating expense

Answer 4548

All the money an organization spends in generating “goal units.”O

Question 4549

Deck 10

pipeline inventory

Answer 4549

Syn: pipeline stock.P

Question 4550

Deck 10

normal time

Answer 4550

In time study, adjusting the actual time observed by a factor called pace rating. See: pace rating.N

Question 4551

Deck 10

leveling

Answer 4551

Syn: resource leveling.L

Question 4552

Deck 10

push technology

Answer 4552

The automatic updates in selected services, such as news or weather, that occur periodically as information is sent via the internet. The source of the information “pushes” it upon the customer. Syn: webcasting.P

Question 4553

Deck 10

external setup time

Answer 4553

The time associated with elements of a setup procedure performed while the process or machine is running. Ant: internal setup time.E

Question 4554

Deck 10

MRO

Answer 4554

1) Abbreviation for maintenance, repair, and operating. 2) Abbreviation for maintenance, repair, and overhaul.M

Question 4555

Deck 10

eBPP

Answer 4555

Abbreviation for electronic bill presentment and payment.E

Question 4556

Deck 10

secondary highways

Answer 4556

Highways that are predominantly rural in nature.S

Question 4557

Deck 10

continuous process

Answer 4557

Syn: continuous production.C

Question 4558

Deck 10

comptroller

Answer 4558

Syn: controller.C

Question 4559

Deck 10

breakdown maintenance

Answer 4559

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

Question 4560

Deck 10

item demand

Answer 4560

Demand disaggregated into specific configurations of goods or services. See: item.I

Question 4561

Deck 10

extrinsic forecasting method

Answer 4561

A forecast method on a correlated leading indicator, such as estimating furniture sales based on housing starts. Extrinsic forecasts tend to be more useful for large aggregations, such as total company sales, than for individual product sales. Ant: intrinsic forecast method. See: quantitative forecasting technique.E F F

Question 4562

Deck 10

contribution margin

Answer 4562

An amount equal to the difference between sales revenue and variable costs.C

Question 4563

Deck 10

contract reporting

Answer 4563

Reporting of and the accumulation of finished production against commitments to a customer.C contracts for the international sale of goods (CISG) Govern the sale of goods in the international environment. They enable exporters to avoid choice-of-law issues.C

Question 4564

Deck 10

build cycle

Answer 4564

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

Question 4565

Deck 10

green reverse logistics

Answer 4565

The responsibility of the supplier to dispose of packaging materials or environmentally sensitive materials such as heavy metals.G

Question 4566

Deck 10

distribution inventory

Answer 4566

Inventory, usually spare parts and finished goods, located in the distribution system (e.g., in warehouses, in-transit between warehouses and the consumer).D

Question 4567

Deck 10

field

Answer 4567

A specified area of a record used for a particular category of data.F

Question 4568

Deck 10

Project Management Body of Knowledge (PMBOK®)

Answer 4568

All the knowledge within the project management profession; this includes all published and unpublished material, knowledge that rests with practitioners and academics, and practices that range from traditional to innovative.P

Question 4569

Deck 10

shipping tolerance

Answer 4569

An allowable deviation that the supplier can ship over or under the contract quantity.S

Question 4570

Deck 10

supplier audit

Answer 4570

Auditing supplier processes as part of a supplier development system.S

Question 4571

Deck 10

job costing

Answer 4571

A cost accounting system in which costs are assigned to specific jobs. This system can be used with either actual or standard costs in the manufacturing of distinguishable units or lots of products. Syn: job order costing.J

Question 4572

Deck 10

actual cost system

Answer 4572

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

Question 4573

Deck 10

total cost curve

Answer 4573

1) In cost-volume-profit (breakeven) analysis, the total cost curve is composed of total fixed and variable costs per unit multiplied by the number of units provided. Breakeven quantity occurs where the total cost curve and total sales revenue curve intersect. See: break-even chart, break-even point. 2) In inventory theory, the total cost curve for an inventory item is the sum of the costs of acquiring and carrying the item. See: economic order quantity.T

Question 4574

Deck 10

inventory visibility

Answer 4574

The extent to which inventory information is shared within a firm and with supply chain partners.I

Question 4575

Deck 10

quality trilogy

Answer 4575

A three-pronged approach to managing quality proposed by Joseph Juran. The three legs are quality planning (developing the products and processes required to meet customer needs), quality control (meeting product and process goals), and quality improvement (achieving unprecedented levels of performance). Syn: Juran trilogy.Q

Question 4576

Deck 10

load leveling

Answer 4576

Spreading orders out in time or rescheduling operations so that the amount of work to be done in sequential time periods tends to be distributed evenly and is achievable. Although both material and labor are ideally level loaded, specific businesses and industries may load to one or the other exclusively (e.g., service industries). Syn: capacity smoothing, level loading. See: level schedule.L

Question 4577

Deck 10

replenishment

Answer 4577

Relocating material from a bulk storage area to an order pick storage area, and documenting this relocation.R

Question 4578

Deck 10

fee

Answer 4578

The charge for the use of the contractor’s organization for the period and to the extent specified in the contract.F

Question 4579

Deck 10

transportation inventory

Answer 4579

Inventory that is in transit between locations. See: pipeline stock, transit inventory.T

Question 4580

Deck 10

planned issue receipt

Answer 4580

A transaction that updates the on-hand balance and the related allocation or open order.P

Question 4581

Deck 10

rolling forecast

Answer 4581

Moving the forecast horizon forward to new periods by adding recent data (and perhaps dropping the oldest data).R

Question 4582

Deck 10

location tag

Answer 4582

A bar-coded sign situated at a warehouse location. The location number can be read or scanned.L

Question 4583

Deck 10

debenture

Answer 4583

A bond that is backed by the general credit of the issuing firm.D

Question 4584

Deck 10

protect system throughput

Answer 4584

ensuring that some capacity above the capacity required to exploit the constraint is available to catch up when disruptions inevitably occur. Nonconstraint resources need protective capacity to rebuild the bank in front of the constraint or capacityconstrained resource (CCR) and/or on the shipping dock before throughput is lost and to empty the space buffer when it fills.P

Question 4585

Deck 10

general-purpose machinery

Answer 4585

Manufacturing resources that can perform several kinds of operations.G

Question 4586

Deck 10

batch bill of materials

Answer 4586

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

Question 4587

Deck 10

prime costs

Answer 4587

Direct costs of material and labor. Prime costs do not include general, sales, and administrative costs.P

Question 4588

Deck 10

demurrage

Answer 4588

The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time. See: detention, express.D

Question 4589

Deck 10

material constraint

Answer 4589

Usually a misnomer. Material shortages are rarely the constraint, rather temporary material shortages hinder effective constraint management by inhibiting the ability to fully exploit and/or subordinate to the constraint.M

Question 4590

Deck 10

failsafe work methods

Answer 4590

Methods of performing operations so that actions that are incorrect cannot be completed. For example, a part without holes in the proper place cannot be removed from a jig, or a computer system will reject invalid numbers or require double entry of transaction quantities outside the normal range. Called poka-yoke by the Japanese. Syn: failsafe techniques, mistake-proofing, poka-yoke.F

Question 4591

Deck 10

cycle counting

Answer 4591

An inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on a regular, defined basis (often more frequently for high-value or fast-moving items and less frequently for low-value or slow-moving items). Most effective cycle counting systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency. The key purpose of cycle counting is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors.C

Question 4592

Deck 10

automatic identification and data capture (AIDC)

Answer 4592

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 4593

Deck 10

total cost concept

Answer 4593

In logistics, the idea that all logistical decisions that provide equal service levels should favor the option that minimizes the total of all logistical costs and not be used on cost reductions in one area alone, such as lower transportation charges.T

Question 4594

Deck 10

bundling

Answer 4594

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

Question 4595

Deck 10

cultural environment

Answer 4595

The sociocultural factors of the organization’s external environment. It includes values, work ethics, education, religion, and consumer and ecological factors.C

Question 4596

Deck 10

dummy activity

Answer 4596

In activity-on-arrow diagramming, an activity with zero duration used to express a precedence relationship that can’t otherwise be diagrammed. It is shown graphically with a dashed arrow.D

Question 4597

Deck 10

independent demand

Answer 4597

The demand for an item that is unrelated to the demand for other items. Demand for finished goods, parts required for destructive testing, and service parts requirements are examples of independent demand. See: dependent demand.I independent demand item management models Models for the management of items whose demand is not strongly influenced by other items managed by the same company. These models can be characterized as follows: (1) stochastic or deterministic, depending on the variability of demand and other factors; (2) fixed quantity, fixed cycle, or hybrid (optional replenishment). See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, optional replenishment model.I

Question 4598

Deck 10

on-time delivery

Answer 4598

A metric measuring the percent of receipts that were received on time by customers. See: on-time in full.O

Question 4599

Deck 10

parts list

Answer 4599

A list of parts, materials, and components required to make an item. See: single level bill of material.P

Question 4600

Deck 10

quarantine

Answer 4600

The setting aside of items from availability for use or sale until all required quality tests have been performed and conformance certified.Q

Question 4601

Deck 10

union contract

Answer 4601

A formal contract, usually covering twoto- six years, between a union representing employees and their company that covers all aspects of pay, working conditions, and strike options.U

Question 4602

Deck 10

commodity

Answer 4602

An item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability.C

Question 4603

Deck 10

system layout planning (SLP)

Answer 4603

A facility layout methodology that develops the layout of a facility by considering the importance of proximity of each department to the other departments.S

Question 4604

Deck 10

EDT

Answer 4604

An abbreviation for electronic data transfer.E

Question 4605

Deck 10

terms and conditions

Answer 4605

All the provisions and agreements of a contract.T

Question 4606

Deck 10

roll-on/roll-off container ship

Answer 4606

A ship that allows trailers to be driven on and off without the use of cranes.R

Question 4607

Deck 10

cost of sales

Answer 4607

The total cost attached (allocated) to units of finished product delivered to customers during the period. See: cost of goods sold.C

Question 4608

Deck 10

enterprise resources portal

Answer 4608

A means for a company to share, exchange, or transact information with an external business partner using internet-based technologies. An enterprise resources portal is often associated with an enterprise resources planning system, which can be configured to share or present such information via an internet portal or hyperlink. An enterprise resources portal can also be one means of implementing a private trading exchange.E

Question 4609

Deck 10

schedule activity

Answer 4609

During a project, a specific piece of work performed that has estimated costs, duration, and resource requirements.S

Question 4610

Deck 10

scarcity

Answer 4610

A concept central to economics that means less of a good is freely available than consumers would like.S

Question 4611

Deck 10

annual physical inventory

Answer 4611

Syn: physical inventory.A

Question 4612

Deck 10

first-tier supplier

Answer 4612

One that supplies goods or services directly to a business.F

Question 4613

Deck 10

put-to-light

Answer 4613

A process that uses lights to ensure materials are placed in the correct locations. Also, it is used to ensure that picked items are placed correctly.P

Question 4614

Deck 10

activity analysis

Answer 4614

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

Question 4615

Deck 10

sales quota

Answer 4615

The level of sales that an individual or group is expected to meet.S

Question 4616

Deck 10

star

Answer 4616

A slang term used to refer to a high-growth, highprofit- margin product. See: growth-share matrix.S

Question 4617

Deck 10

MTFF

Answer 4617

Abbreviation for mean time for failures.M

Question 4618

Deck 10

APP

Answer 4618

Abbreviation for aggregate production plan.A

Question 4619

Deck 10

forward scheduling

Answer 4619

A scheduling technique where the scheduler proceeds from a known start date and computes the completion date for an order, usually proceeding from the first operation to the last. Dates generated by this technique are generally the earliest start dates for operations. See: forward pass. Ant: back scheduling.F

Question 4620

Deck 10

producer

Answer 4620

One who creates a good or service.P

Question 4621

Deck 10

value analysis

Answer 4621

The systematic use of techniques that identify a required function, establish a value for that function, and finally provide that function at the lowest overall cost. This approach focuses on the functions of an item rather than the methods of producing the present product design.V

Question 4622

Deck 10

product benchmarking

Answer 4622

This benchmarking is used for new product design or for a product upgrade. This often includes reverse engineering (dismantling) competing products to determine their strengths and weaknesses. See: benchmarking.P

Question 4623

Deck 10

differentiated oligopoly

Answer 4623

A market in which a few companies produce partially differentiated products or services that are marketed within a given geographical area. Differentiation may be based on quality, features, styling, or services offered along with the product. See: industry structure types.D

Question 4624

Deck 10

appreciation of a currency

Answer 4624

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

Question 4625

Deck 10

information system

Answer 4625

Interrelated computer hardware and software along with people and processes designed for the collection, processing, and dissemination of information for planning, decision making, and control.I

Question 4626

Deck 10

active data gathering

Answer 4626

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

Question 4627

Deck 10

smoothing inventories

Answer 4627

Inventories used when upstream production levels are less than downstream demand.S S

Question 4628

Deck 10

global positioning system (GPS)

Answer 4628

A system that uses satellites to locate an object’s position.G

Question 4629

Deck 10

job design

Answer 4629

The function of describing a job with respect to its content and the methods to be used. Criteria, such as the degree of job specialization, job enrichment, and job enlargement are useful in designing work content.J

Question 4630

Deck 10

system

Answer 4630

A regularly interacting or interdependent group of items forming a unified whole toward the achievement of a goal.S

Question 4631

Deck 10

line functions

Answer 4631

Areas involved in daily operations. Logistics line functions include inventory control, order processing, warehousing and packaging.L

Question 4632

Deck 10

purchasing

Answer 4632

The term used in industry and management to denote the function of and the responsibility for procuring materials, supplies, and services.P

Question 4633

Deck 10

assortment warehousing

Answer 4633

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

Question 4634

Deck 10

outside shop

Answer 4634

Suppliers. This term is used to convey the idea that suppliers are an extension of the inside shop or the firm’s production facilities.O

Question 4635

Deck 10

gross inventory

Answer 4635

The standard cost value of inventory before allowance for excess or obsolete items.G

Question 4636

Deck 10

customer convergence

Answer 4636

An internet-based marketing concept in which organizations must provide descriptions of the goods and services they offer so that potential customers locate or converge on the appropriate websites.C

Question 4637

Deck 10

book value

Answer 4637

The accounting value of an asset.B

Question 4638

Deck 10

holding company

Answer 4638

In financial management, a firm that controls the voting stock of other firms.H

Question 4639

Deck 10

import merchant

Answer 4639

Purchasing agent who buys and takes the title for goods and then resells them.I

Question 4640

Deck 10

line haul costs

Answer 4640

Basic costs of carrier operation to move a container of freight, including driver’s wages and usage depreciation. These vary with the cost per mile, the distance shipped, and the weight moved.L

Question 4641

Deck 10

client/server system

Answer 4641

A distributed computing system in which work is assigned to the computer best able to perform it from among a network of computers.C

Question 4642

Deck 10

horizontally integrated firm

Answer 4642

An organization that seeks to produce or sell a type of product in numerous markets. The horizontal integration exists when an organization produces or sells similar products in various geographical locations. Horizontal integration in marketing occurs more frequently than horizontal integration in production. See: vertically integrated firm.H

Question 4643

Deck 10

statistical order point

Answer 4643

Syn: order point.S

Question 4644

Deck 10

CRP

Answer 4644

Abbreviation for capacity requirements planning.C

Question 4645

Deck 10

produce-to-stock

Answer 4645

Syn: make-to-stock.P

Question 4646

Deck 10

reliability

Answer 4646

The probability that a product will perform its specified function under prescribed conditions without failure for a specified period of time. It is a design parameter that can be made part of a requirements statement. See: mean time between failures, mean time for failures.R

Question 4647

Deck 10

improvement involving everyone

Answer 4647

managers and workers. In manufacturing, kaizen relates to finding and eliminating waste in machinery, labor, or production methods. See: continuous process improvement.K

Question 4648

Deck 10

MBWA

Answer 4648

Abbreviation for management by walking around.M

Question 4649

Deck 10

equivalent days

Answer 4649

The standard hour requirements of a job converted to days for scheduling purposes.E

Question 4650

Deck 10

assembly order

Answer 4650

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

Question 4651

Deck 10

usage variance

Answer 4651

Deviation of the actual consumption of materials as compared to the standard.U

Question 4652

Deck 10

activity-based management (ABM)

Answer 4652

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

Question 4653

Deck 10

will call

Answer 4653

A service process that allows customers to walk up to the seller’s facility and pick up the parts they have previously ordered.W

Question 4654

Deck 10

fixed assets

Answer 4654

Assets acquired for use within a company having an estimated useful life of one year or more.F

Question 4655

Deck 10

mass production

Answer 4655

High-quantity production characterized by specialization of equipment and labor. See: continuous production.M

Question 4656

Deck 10

move

Answer 4656

The physical transportation of inventory from one location to another within a facility. Movements are usually made under the direction and control of the inventory system.M

Question 4657

Deck 10

planned issue

Answer 4657

A disbursement of an item predicted by MRP through the creation of a gross requirement or allocation. Syn: controlled issue.P

Question 4658

Deck 10

MAD

Answer 4658

Acronym for mean absolute deviation.M

Question 4659

Deck 10

configuration control

Answer 4659

The function of ensuring that the product being built and shipped corresponds to the product that was designed and ordered. This means that the correct features, customer options, and engineering changes have been incorporated and documented.C

Question 4660

Deck 10

total annual material receipts

Answer 4660

The amount (in dollars) of all direct materials that were received in a calendar year. This number should fall very close to the direct material dollars that were used in a calendar year in a lean environment.T

Question 4661

Deck 10

automation

Answer 4661

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

Question 4662

Deck 10

distribution planner

Answer 4662

A person who plans inventories and schedules replenishment shipments for the distribution centers.D

Question 4663

Deck 10

electronic document

Answer 4663

The electronic representation of a document that can be printed.E

Question 4664

Deck 10

price prevailing at date of shipment

Answer 4664

An agreement between a purchaser and a supplier that the price of the goods ordered is subject to change at the supplier’s discretion between the date the order is placed and the date the supplier makes shipment and that the thenestablished price is the contract price.P

Question 4665

Deck 10

scatterplot

Answer 4665

Syn: scatter chart.S

Question 4666

Deck 10

strategic alliance

Answer 4666

A relationship formed by two or more organizations that share information (proprietary), participate in joint investments, and develop linked and common processes to increase the performance of both companies. Many organizations form strategic alliances to increase the performance of their common supply chain.S

Question 4667

Deck 10

informal culture

Answer 4667

Organizational characteristics and relationships that are not part of the formal structure but that influence how the organization accomplishes its goals.I

Question 4668

Deck 10

computer-aided engineering (CAE)

Answer 4668

The process of generating and testing engineering specifications on a computer workstation.C

Question 4669

Deck 10

gap phasing

Answer 4669

Syn: gapped schedule.G

Question 4670

Deck 10

limiting operation

Answer 4670

The operation with the least capacity in a series of operations with no alternative routings. The capacity of the total system can be no greater than the limiting operation, and as long as this limiting condition exists, the total system can be effectively scheduled by scheduling the limiting operation and providing this operation with proper buffers. See: protective capacity, protective inventory.L

Question 4671

Deck 10

accumulation bin

Answer 4671

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

Question 4672

Deck 10

demand chain management

Answer 4672

A supply chain inventory management approach that concentrates on demand pull rather than supplier push inventory models.D D

Question 4673

Deck 10

economy of scale

Answer 4673

A phenomenon whereby larger volumes of production reduce unit cost by distributing fixed costs over a larger quantity. See: economy of scope.E

Question 4674

Deck 10

multiactivity chart

Answer 4674

Shows how workers interact with each other, or with machines, for different activities.M

Question 4675

Deck 10

rate variance

Answer 4675

The difference between the actual output rate of product and the planned or standard output rate.R

Question 4676

Deck 10

stochastic models

Answer 4676

Models where uncertainty is explicitly considered in the analysis.S

Question 4677

Deck 10

distribution system

Answer 4677

A group of interrelated facilities manufacturing and one or more levels of warehousing linking the production, storage, and consumption activities for spare parts and finished goods inventory. See: pipeline stock.D

Question 4678

Deck 10

charge

Answer 4678

The initial loading of ingredients or raw materials into a processor, such as a reactor, to begin the manufacturing process.C

Question 4679

Deck 10

collaborative planning

Answer 4679

Syn: collaborative planning, forecasting, and replenishment.C C collaborative planning, forecasting, and replenishment

Question 4680

Deck 10

patent

Answer 4680

A legal document giving exclusive rights to the production, use, sale, or other action regarding a product or process.P

Question 4681

Deck 10

flow shop

Answer 4681

A form of manufacturing organization in which machines and operators handle a standard, usually uninterrupted, material flow. The operators generally perform the same operations for each production run. A flow shop is often referred to as a mass production shop or is said to have a continuous manufacturing layout. The plant layout (arrangement of machines, benches, assembly lines, etc.) is designed to facilitate a product “flow.” Some process industries (chemicals, oil, paint, etc.) are extreme examples of flow shops. Each product, though variable in material specifications, uses the same flow pattern through the shop. Production is set at a given rate, and the products are generally manufactured in bulk. Syn: flow line, flow manufacturing, flow plant.F

Question 4682

Deck 10

fast-tracking

Answer 4682

A project schedule compression technique that overlaps (or performs in parallel) activities that would ordinarily be performed sequentially.F

Question 4683

Deck 10

direct labor cost

Answer 4683

The compensation of workers who are involved in converting material into a finished product.D

Question 4684

Deck 10

participative management

Answer 4684

A system that encompasses various activities of high involvement in which subordinates share a significant degree of decision-making power with their immediate superiors. Participative management draws on the rationale that everyone in an organization is capable of and willing to help guide and direct the organization toward agreed-on goals and objectives.P

Question 4685

Deck 10

process map

Answer 4685

A diagram of the flow of a production process or service process through the production system. Standardized symbols are used to designate processing, flow directions, branching decisions, input/output, and other aspects of the process.P

Question 4686

Deck 10

tended to be limited

Answer 4686

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

Question 4687

Deck 10

distribution requirements planning (DRP)

Answer 4687

1) The function of determining the need to replenish inventory at branch warehouses. A time-phased order point approach is used where the planned orders at the branch warehouse level are “exploded” via MRP logic to become gross requirements on the supplying source. In the case of multilevel distribution networks, this explosion process can continue down through the various levels of regional warehouses (master warehouse, factory warehouse, etc.) and become input to the master production schedule. Demand on the supplying sources is recognized as dependent, and standard MRP logic applies. 2) More generally, replenishment inventory calculations, which may be based on other planning approaches such as period order quantities or “replace exactly what was used,” rather than being limited to the time-phased order point approach.D

Question 4688

Deck 10

supplier-managed inventory

Answer 4688

A relationship where the buyer maintains inventory usually at its facility and provides the supplier information about the amount of stock on hand. It is the responsibility of the supplier to monitor this information and send replacement items when the inventory reaches a particular level.S

Question 4689

Deck 10

destructive testing

Answer 4689

Inspection that renders the inspected part inoperable.D

Question 4690

Deck 10

demographics

Answer 4690

The characteristics of a specific population, such as a set of potential customers.D

Question 4691

Deck 10

process yield

Answer 4691

See: yield.P

Question 4692

Deck 10

long-term production plan

Answer 4692

Syn: aggregate production plan.L

Question 4693

Deck 10

supply chain

Answer 4693

The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.S

Question 4694

Deck 10

wait time

Answer 4694

The time a job remains at a work center after an operation is completed until it is moved to the next operation. It is often expressed as a part of move time.W

Question 4695

Deck 10

shipping lane

Answer 4695

A specific route that ocean liners take between ports to help traffic flow and to avoid the most dangerous areas of the ocean.S

Question 4696

Deck 10

entrepreneur

Answer 4696

One who organizes resources productively and bears the risk of the venture.E

Question 4697

Deck 10

Gantt chart

Answer 4697

The earliest and best-known type of planning and control chart, especially designed to show graphically the relationship between planned performance and actual performance over time. Named after its originator, Henry L. Gantt, the chart is used for (1) machine loading, in which one horizontal line is used to represent capacity and another to represent load against that capacity; or (2) monitoring job progress, in which one horizontal line represents the production schedule and another parallel line represents the actual progress of the job against the schedule in time. Syn: job progress chart, milestone chart.G

Question 4698

Deck 10

date effectivity

Answer 4698

A technique used to identify the effective date of a configuration change. A component change is controlled by effective date within the bill of material for the unchanged parent part number.D

Question 4699

Deck 10

PMBOK®

Answer 4699

Abbreviation for project management body of knowledge. A registered trademark of the Project Management Institute, Inc.P

Question 4700

Deck 10

production kanban

Answer 4700

A signal, usually a card, used to trigger the production of a part.P

Question 4701

Deck 10

conformance perspective

Answer 4701

A measure of how closely a product or service performs to its intended quality.C

Question 4702

Deck 10

controlled access

Answer 4702

Fenced or walled areas within a warehouse or yard usually monitored by security cameras. These areas are used to store high-value items.C

Question 4703

Deck 10

TCP/IP

Answer 4703

Abbreviation for transmission control protocol/ internet protocol.T

Question 4704

Deck 10

brand recognition

Answer 4704

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

Question 4705

Deck 10

trend adjusted exponential smoothing forecasting

Answer 4705

A form of exponential smoothing forecasting that includes T a factor for increasing or decreasing tendencies in the data due to things such as population growth or income changes.T

Question 4706

Deck 10

event-on-node network

Answer 4706

Syn: activity-on-node network.E

Question 4707

Deck 10

cost of lost sales

Answer 4707

Profit that is foregone because of a stock-out situation.C

Question 4708

Deck 10

chain of customers

Answer 4708

The sequence of customers who in turn consume the output of each other, forming a chain. For example, individuals are customers of a department store, which in turn is the customer of a producer, who is the customer of a material supplier.C

Question 4709

Deck 10

business intelligence

Answer 4709

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

Question 4710

Deck 10

wide area network (WAN)

Answer 4710

A public or private data communication system for linking computers distributed over a large geographic area.W

Question 4711

Deck 10

IFB

Answer 4711

Abbreviation for invitation for bid.I

Question 4712

Deck 10

quick ratio

Answer 4712

Syn: quick asset ratio.Q

Question 4713

Deck 10

scheduling (MDS)

Answer 4713

A technique that schedules materials before processors (equipment or capacity). This technique facilitates the efficient use of materials. MDS can be used to schedule each stage in a process flow scheduling system. MRP systems use materialdominated scheduling logic. See: processor-dominated scheduling.M

Question 4714

Deck 10

machine center

Answer 4714

A production area consisting of one or more machines (and, if appropriate for capacity planning, the necessary support personnel) that can be considered as one unit for capacity requirements planning and detailed scheduling.M

Question 4715

Deck 10

master scheduling

Answer 4715

The process where the master schedule is generated and reviewed and adjustments made to the master production schedule to ensure consistency with the production plan. The master production schedule (the line on the grid) is the primary input to the material requirements plan. The sum of the master production schedules for the items within the product family must equal the production plan for that family.M

Question 4716

Deck 10

velocity

Answer 4716

1) The rate of change of an item with respect to time. See: inventory turnover, lead time. 2) In supply chain management, a term used to indicate the relative speed of all transactions, collectively, within a supply chain community. A maximum velocity is most desirable because it indicates higher asset turnover for stockholders and faster order-to-delivery response for customers.V

Question 4717

Deck 10

cash flow

Answer 4717

The net flow of dollars into or out of the proposed project. The algebraic sum, in any time period, of all cash receipts, expenses, and investments. Also called cash proceeds or cash generated.C

Question 4718

Deck 10

can-order point

Answer 4718

An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the mustorder point, all items below their can-order point are also ordered. The can-order point is set by considering the additional holding cost that would be incurred should the item be ordered early.C

Question 4719

Deck 10

accounts receivable

Answer 4719

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 4720

Deck 10

control system

Answer 4720

A system that has as its primary function the collection and analysis of feedback from a given set of functions for the purpose of controlling the functions. Control may be implemented by monitoring or systematically modifying parameters or policies used in those functions, or by preparing control reports that inconvergent C itiate useful action with respect to significant deviations and exceptions.C

Question 4721

Deck 10

WAN

Answer 4721

Acronym for wide area network.W

Question 4722

Deck 10

customer service management process

Answer 4722

A process that enables a business to offer post-purchase service and information to the customer.C

Question 4723

Deck 10

customer order

Answer 4723

An order from a customer for a particular product or a number of products. It is often referred to as an actual demand to distinguish it from a forecasted demand. See: booked orders.C

Question 4724

Deck 10

Monopolistic competition

Answer 4724

Many competitors offer partially differentiated products or services. Most competitors focus on market segments where they can meet customers’ needs somewhat better than their competitors;

Question 4725

Deck 10

cost-ratio plan

Answer 4725

A variation of the weighted-point plan of supplier evaluation and selection. The cost ratio is obtained by dividing the bid price by the weighted scores determined by the weighted-point plan. This procedure determines the true costs by taking into account compensating factors. Suppliers are selected and/or evaluated based on the lowest cost ratio.C

Question 4726

Deck 10

gross national product (GNP)

Answer 4726

The market value of all goods and services produced in a nation in a given year.G

Question 4727

Deck 10

baseband coax

Answer 4727

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

Question 4728

Deck 10

returns management process

Answer 4728

A process of handling returns that includes environmentally sound disposal or recycling, composing repair instructions, warranty repairs, and collecting return data.R

Question 4729

Deck 10

space buffer

Answer 4729

Physical space immediately after the constraint that can accommodate output from the constraint when there is a stoppage downstream that would otherwise force the constraint to stop too.S

Question 4730

Deck 10

exception report

Answer 4730

A report that lists or flags only those items that deviate from the plan.E

Question 4731

Deck 10

order fulfillment lead times

Answer 4731

The average amount of time between the customer’s order until the customer receives delivery; this includes every manufacturing or processing step in between.O

Question 4732

Deck 10

decentralized authority

Answer 4732

The process of dispersing decision-making governance to staff people below the executive level of an organization.D

Question 4733

Deck 10

hansei

Answer 4733

A Japanese word meaning reflection.H

Question 4734

Deck 10

supplier performance evaluation

Answer 4734

Monitoring and evaluating key suppliers on cost, quality, engineering, purchasing, and so on, based on an agreed set of measurements.S

Question 4735

Deck 10

pilot plant

Answer 4735

A small-scale production facility used to develop production processes and to manufacture small quantities of new products for field testing and so forth. Syn: semiworks.P

Question 4736

Deck 10

subcontractor and supplier networks

Answer 4736

Creating longterm contracts between a manufacturer and several suppliers of parts and components.S

Question 4737

Deck 10

production line

Answer 4737

A series of pieces of equipment dedicated to the manufacture of a specific number of products or families.P

Question 4738

Deck 10

order reporting

Answer 4738

Recording and reporting the start and completion of the manufacturing order (shop order) in its entirety.O