Exam 1 - Key Terms 2 Flashcards
Consignment
A shipment handled by a common carrier, or the process of a supplier placing goods at a customer location without receiving payment until after the good are used or sold
Constraint
A quantity that has a fixed value
Continuous process improvement (CPI)
A never-ending effort to expose and eliminate root causes of problems; small-step as opposed to big-step improvement
Continuous production
A production system in which the productive equipment is organized and sequenced according to the steps involved to produce the product
Continuous replenishment
A process by which a supplier is notified daily of actual sales or warehouse shipments and commits to replenishing these sales without stockouts and without receiving replenishment orders. This results in lower associated costs and improved turnover
Control chart
A graphic comparison of process performance data with predetermined computed control limits
Control limit
A statistically determined line on a control chart
Cost of poor quality
The costs associated with performing a task incorrectly and/or generating unacceptable output
Critical path method (CPM)
A network planning technique for the analysis of a project’s completion time used for planning and controlling the activities in a project
Cross-docking
The concept of packing products on incoming shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination
Customer relationship management (CRM)
A marketing philosophy based on putting the customer first. Includes account management, catalog and order entry, payment processing, credits and adjustments, and other functions
Cycle stock
One of the two main conceptual components of any item inventory, the cycle stock is the most active component
Cycle time - industrial engineering
The time between the completion of two discrete units of production. E.g. cycle time of 120 per hour is 30 seconds
Data governance
The overall management of data’s accessibility, usability, reliability, and security. Used to ensure data record accuracy
Decentralized inventory control
Inventory decision making exercised at each stocking location for SKUs at that location
Decoupling inventory
An amount of inventory maintained between entities in a manufacturing or distribution network to create independence between processes or entities
Delivery lead time
The time from the receipt of a customer order to the delivery of the product
Demand lead time
The amount of time potential customers are willing to wait for the delivery of a good or a service. Also known as customer tolerance time
Demonstrated capacity
Proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by the standard hours per item
Direct labor
Labor that is specifically applied to the good being manufactured or used in the performance of the service
Direct material
Material that becomes a part of the final product in measurable quantities
Discrete manufacturing
The production of distinct items such as automobiles, appliances, or computers
Discrete order picking
A method of picking orders in which the items on one order are picked before the next order is picked
Distribution center
A location used to store inventory
Distribution warehouse
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 on expeditious movement and handling
Drum schedule
The detailed production schedule for a resource that sets the pace for the entire system
Drum-buffer-rope (DBR)
The theory of constraints method for scheduling and managing operations that have an internal constraint or capacity-constrained resource
Economic order quantity (EOQ)
A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. Formula: √2AS/iC
Electronic data interchange (EDI)
The paperless exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized document formats
Cycle time - materials management
The length of time from when material enters a production facility until it exits
