Definitions Flashcards
Definition for the 13 questions
Define bill of materials
A listing of all the subassemblies, intermediates, parts, and raw materials that go into making the parent assembly showing the quantities of each required to make an assembly
Define low level code
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
Define routing files/sheets
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 about tooling, operator skill levels, inspection operations and testing requirements, and so on. Syns.: bill of operations, instruction sheet, manufacturing data sheet, operation chart, operation list, operation sheet, route sheet, routing sheet
Define forecasting
FC is a projection of past information and or experience into expectation of demand in the future.
The business function that attempts to predict sales and use of products so they can be purchased or manufactured in appropriate quantities in advance.
Define procurement
The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.
(Strategic level)
Define Sourcing
The process of identifying a company that provides a needed good or service
(Tactical level)
Define purchasing
The term used in industry and management to denote the function of and the responsibility for procuring materials, supplies, and services
(Operational level)
Define Capacity
The maximum level of value-added activity that an operation, or process, or facility is capable of over a period of time
The capability of a worker, machine, work center, plant, or organization to produce output per time period.
Define Load
The amount of planned work scheduled for and actual work released to a facility, work center, or operation for a specific span of time. This is usually expressed in terms of standard hours of work or, when items consume similar resources at the same rate, units of production.
Define Outsourcing
The process of having suppliers provide goods and services that were previously provided internally. Outsourcing involves substitution—the replacement of internal capacity and production by that of the supplier
Types:
Offshoring
Partial outsourcing
Integral (Turnkey)
Define Spend management
Managing the outflow of funds in order to buy goods and services
Objectives of Supplier relationship management
- Reduced costs
- Improved quality and efficiency
- Enhanced innovation
- Reduced risks
- Increased visibility
Define safety stock
A quantity of stock planned to be in inventory to protect against fluctuations in demand or supply
Define Contract management
The process that ensures all parties comply with a contract and fully meet their obligations
The 3 main phases:
- Pre contract
- Contract execution
- Post contractual stage
What is a logical map
A logical supply chain map is a process relationship map visually represents the flow of material, information and money within a supply chain from the initial raw material suppliers to the end customers.
What is a GeoMap
GEO MAP is a node relationship map visually represents the three flow in a geographical context and can be used to show where we source material from, in which quantities and how it is being transported
Define Lead time
A span of time required to perform a process (or series of operations)
This measures the total time it takes for a product to move from raw materials or components to the final customer. It encompasses all stages, including manufacturing, transportation, and warehousing.
Define Total cost of ownership
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
Define Cost of goods sold
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
Define inventory turns
The number of times that an inventory cycles, or turns over, during the year
This KPI measures how often your inventory is sold and replaced over a specific period
Define inventory days of supply
1) 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, then there are 10 days of supply. 2) A financial measure of the value of all inventory in the supply chain divided by the average daily cost of goods sold rate
Define the price/cost dimension of PPM
the relationship between standard and actual prices paid for materials and services.
Define the product/quality dimension of PPM
Procurement’s responsibility with regard to the quality of purchased materials and services should not be defined too narrowly
Define the logistics/delivery (supply chain) dimension of PPM
Another key performance area is procurement’s role in contributing to an efficient incoming flow of purchased materials and services.
