Exam 1 - Key Terms 4 Flashcards
General and administrative expenses (G&A)
The category of expenses on an income statement that includes the costs of general managers, computer systems, research and development, etc.
Green reverse logistics
The responsibility of the supplier to dispose of packaging materials or environmentally sensitive materials such as heavy metals.
Gross margin
The difference between total revenue and the cost of goods sold. Also known as gross profit margin
Gross requirement
The total of independent and dependent demand for a component before the netting of on-hand inventory and scheduled receipts.
Hedge inventory
A form of inventory buildup to buffer against some event that may not happen.
Heijunka***
JIT approach to level production throughout the supply chain to match the planned rate of end product sales.
Histogram
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. One of the seven tools of quality.
Hoshin planning
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. Characterized by goal setting, vision statement based work plans, and periodic audits to monitor progress
Idle capacity
The available capacity that exists on constraint resources beyond the capacity required to support the constraint.
Income statement
A financial statement showing the net income for a business over a given period of time. Balance sheet, funds flow statement
Incoterms
A series of pre-defined commercial terms published by the International Chamber of Commerce relating to international commercial law. These terms do not cover property rights.
Indented bill of material
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 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.
Infinite loading
Calculation of the capacity required at work centers in the time periods required regardless of the capacity available to perform this work.
Intermittent production
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
Intermodal transport
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.
Internal failure costs
The costs of things that go wrong before the product reaches the customer. Internal failure costs usually include rework, scrap, downgrades, reinspection, retesting, and process losses.
Internal setup time
The time associated with elements of a setup procedure performed while the process or machine is not running.
Interplant demand
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.
Inventory adjustment
A change made to an inventory record to correct the balance in order to bring it in line with actual physical inventory balances.
Inventory buffer
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 an incorrect quantity, and so on. Syn: inventory cushion
Inventory control
The activities and techniques of maintaining the desired levels of items, whether raw materials, work in process, or finished products. Syn: material control
Inventory ordering system
Inventory models for the replenishment of inventory. Includes Independent demand inventory ordering models and dependent inventory demanding ordering models.
Independent demand inventory ordering models
Fixed reorder cycle, fixed reorder quantity, optional replenishment, hybrid models
Dependent demand inventory ordering models
Material requirements planning, kanban, drum-buffer-rope
Inventory turnover
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 annual cost of sales by the average inventory level. See: inventory velocity
Inventory velocity
The speed with which inventory passes through an organization or supply chain at a given point in time as measured by inventory turnover.
Jidoka
The Japanese term for the practice of stopping the production line when a defect occurs.
Job costing
A cost accounting system in which costs are assigned to specific jobs. Also known as job order costing, this system can be used with either actual or standard costs in the manufacturing of distinguishable units or lots of products.
Job shop scheduling
The production planning and control techniques used to sequence and prioritize quantities across operations in a job shop.
Kaizen***
The Japanese term for improvement; refers to continuing improvement involving everyone– managers and workers. See: continuous process improvement.
