Exam 1 - Key Terms 1 Flashcards
Advance ship notice (ASN)
An electronic data interchange (EDI) notification of shipment of product
Advanced planning and scheduling (APS)
Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods
Andon
A sign board with signal lights used to make workers and management aware of a quality, quantity, or process problem
Anticipation inventories
Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations
Available inventory
The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called beginning available balance
Available-to-promise
Read sheet for this.
Average inventory
One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time.
Back scheduling
A technique for calculating operation start dates and due dates characterized by starting with the due date and working backward to determine due dates for each operation
Backorder
An unfillled customer order or commitment
Balance sheet
A financial statement showing the resources owned, the debts owed, and the owner’s share of a company at a given point in time
Bar code
A series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers
Batch
A quantity scheduled to be produced in production
Big data
Collecting, storing, and processing massive amounts of data for the purpose of converting it into useful information
Bill of material (BOM)
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
Break-even point
The level of production or the volume of sales at which operations are neither profitable nor unprofitable
Buffer management
In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, assembly)
Bullwhip effect
An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain
Capable-to-promise (CTP)
The process of committing orders against available capacity as well as inventory
Capacity available
The capability of a system or resource to produce a quantity of output in a particular time period
Capacity management
The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules
Capacity planning
The process of determining the amount of capacity required to produce in the future
Carrying cost
The cost of holding inventory, usually defined as a percentage of the dollar value of inventory per unit of time (generally one year)
Cash flow
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
Cause-and-effect diagram
A tool for analyzing process dispersion. Also referred to as a the Ishikawa diagram
Centralized inventory control
Inventory decision making for all stockkeeping units exercised from one office or department for an entire company
Chase production method
A production planning method that maintains a stable inventory level while varying production to meet demand
Closed-loop MRP
A system built around material requirements planning that includes the additional planning processes of production planning, master production scheduling, and capacity requirements planning
Configure-to-order (CTO)
A production environment where a good or service is determined at order entry by customers who select from a pre-defined list of features, options, and attributes.
CTO key components
Bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing
Synonymous to Configure-to-order (CTO)
Assemble-to-order (ATO). Also see: make-to-order (MTO), make-to-stock (MTS)
