Vocab Flashcards
Classification of a group of items in decreasing order of annual dollar volume or other criteria
ABC CLASSIFICATION
An electronic data interchange (EDI) notification of shipment of product.
ADVANCE SHIP NOTICE (ASN)
1) An electronic board that provides visibility of floor status and supplies information to help coordinate the efforts to linked work centers;
2) A visual signaling system
ANDON
Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations
ANTICIPATION INVENTORIES
A production environment where a good or service can be assembled after receipt of a customer’s order.
ASSEMBLE-TO-ORDER
An assembly process in which equipment and work centers are laid out to follow the sequence in which raw material and parts are assembled
ASSEMBLY LINE
A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation
ASSIGNABLE CAUSE
The on-hand inventory balance minus allocations, reservations, backorders, and (usually) quantities held for quality problems. Often called “beginning available balance”
AVAILABLE INVENTORY
The uncommitted portion of a company’s inventory and planned production maintained in the master schedule to support customer-order promising.
The ___ quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled.
AVAILABLE-TO-PROMISE (ATP)
One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time.
AVERAGE INVENTORY
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 BOM and allocation records.
BACKFLUSH
The process of a transportation vehicle returning from the original destination point to the point of origin
BACKHAULING
All of the customer orders received but not yet shipped. Sometimes referred to as open orders or the order board
BACKLOG
An unfulfilled customer order or commitment. A ____ is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand
BACKORDER
A technique for calculating operation start 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
BACK SCHEDULING
BACKWARDS SCHEDULING
A financial statement showing the resources owned, the debts owed, and the owner’s share of a company at a given point in time.
BALANCE SHEET
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
BAR CODE
A quantity scheduled to be produced or in production.
For discrete products, the ____ is planned to be the standard batch quantity, but during production, the standard batch quantity may be broken into smaller lots
For nondiscrete products, the ____ 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
BATCH
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
BATCH (MANUFACTURING PROCESS)
A method of picking orders in which order requirements are aggregated by produce 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.
BATCH PICKING
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.
BIAS
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 ____ is the basis for filing freight claims.
BILL OF LADING (UNIFORM)
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
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
AKA: formula, recipe, ingredients list.
BILL OF MATERIAL
Some display formats for ____ are:
1) Single-level ____
2) Indented ____
3) Modular (planning) ____
4) Transient ____
5) Matrix ____
6) Costed ____
BILL OF MATERIAL (FORMATS)
Builders or parts of builders designated by the U.S. Secretary of Treasury for storing imported merchandise, operated under U.S. Customs supervision
BONDED WAREHOUSE
A facility, function, department, or resource whose capacity is less than the demand placed upon it. For example, a ____ machine or work center exists where jobs are processed at a slower rate than they are demanded
BOTTLENECK
truckloads of homogeneous items into smaller, more appropriate quantities for use
BREAK-BULK
BREAK-EVEN POINT
BREAK-EVEN POINT
A quantity of materials awaiting further processing. Can refer to raw materials, semifinished stores or hold points, or a work backlog that is purposely maintained behind a work center
BUFFER
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)
BUFFER MANAGEMENT
- 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. To eliminate—synchronize the supply chain.
BULLWHIP EFFECT
A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow statements.
BUSINESS PLAN
1) A ____ is usually stated in terms of dollars and grouped by product family
2) It is then translated into synchronized tactical functional plans through the production planning process
3) Though frequently stated in different terms (dollars vs. units), these tactical plans should agree with each other and the ____
BUSINESS PLAN
A document consisting of the business details (organization, strategy, and financial tactics) prepared by an entrepreneur to plan for a new business
BUSINESS PLAN
CAPABLE-TO-PROMISE (CTP)
CAPABLE-TO-PROMISE (CTP)
The capacity of a system or resource to produce a quantity of output of a particular time period.
CAPACITY AVAILABLE
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
CAPACITY CONTROL
The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules.
The four levels at which ____ is executed are:
1) Resource requirements planning
2) Rough-cut capacity planning (RCCP)
3) Capacity requirements planning (CRP)
4) Input/output control
CAPACITY MANAGEMENT
CAPACITY PLANNING
CAPACITY PLANNING
- The capacity of a system or resource needed to produce a desired output in a particular time period.
CAPACITY REQUIRED
The function of establishing, measuring, and adjusting limits or levels of capacity. The term ____ in this context refers tot he process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production
CAPACITY REQUIREMENTS PLANNING (CRP)
The cost of holding inventory, usually defined as a percentage of the dollar value of inventory per unit of time (generally one year). ____ is ultimately a policy variable reflecting the opportunity cost of alternative uses for funds invested in inventory.
The determinants of ____ are:
1) Cost of capital invested (biggest factor)
2) Taxes
3) Insurance
4) Obsolescence
5) Spoilage
6) Space occupied
CARRYING COSTS
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.
AKA: cash proceeds, cash generated
CASH FLOW
- A tool for analyzing process dispersion. Illustrates the main causes and subcauses leading to an effect (symptom)
AKA: Ishikawa diagram, fishbone diagram
CAUSE-AND-EFFECT DIAGRAM
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
CELLULAR MANUFACTURING
Inventory decision making for all stockkeeping units exercised from one office or department for an entire company
CENTRALIZED INVENTORY CONTROL
A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required
CERTIFIED SUPPLIER
A production planning method that maintains a stable inventory level while varying production to meet demand
CHASE PRODUCTION METHOD
A system built around material requirements planning (MRP) that includes the additional planning processes of production planning (S&OP), master production scheduling (MPS), and capacity requirements planning (CRP). The term ____ 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
CLOSED-LOOP MRP
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 ____ must obtain a certificate of public convenience and necessity from the FTC for interstate traffic
COMMON CARRIER
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 manufacturing technique, brand name, or human skill set
COMPETITIVE ADVANTAGE
The raw material, part, or subassembly that goes into a higher level assembly, compound, or other item. May also include packaging materials for finished items
COMPONENT
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 goods are used or sold
CONSIGNMENT
Any element or factor that prevents a system from achieving a higher level of performance with respect to its goal. Can be physical, such as a machine center or lack of material, or managerial, such as a policy or procedure
CONSTRAINT (PROCESS ENGINEERING)
One of a set of equations that cannot be violated in an optimization procedure
CONSTRAINT (OPTIMIZATION)
CONTINUOUS IMPROVEMENT PROCESS (CPI)
CONTINUOUS IMPROVEMENT PROCESS (CPI)
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 jobs is fixed and setups are seldom changed
CONTINUOUS PRODUCTION
A process by which a supplier is notified daily of actual sales or warehouse shipments or commits to replenish these sales without stockouts, and without receiving replenishment orders. Lowers associated costs and improves inventory turnover.
CONTINUOUS REPLENISHMENT
A carrier that does not service the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract
CONTRACT CARRIER
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. One of the seven tools of quality. The primary use of ____ is to detect assignable causes of variation in the process as opposed to random variations
CONTROL CHART
CONTROL LIMIT
CONTROL LIMIT
An accounting classification useful for determining the amount of direct materials (DM), direct labor (DL), and allocated overhead (OH) associated with the products sold over a given period of time
COST OF GOODS SOLD
The costs associated with providing poor quality products or services. The four categories of costs of ____ are:
1) Internal failure costs
2) External failure costs
3) Appraisal costs
4) Prevention costs
COST OF POOR QUALITY
In the Theory of constraints (TOC), 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.
CRITICAL CHAIN METHOD
A network planning technique for the analysis of a project’s completion time used for planning and controlling the activities of 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
CRITICAL PATH METHOD (CPM)
The concept of packing products on the incoming shipment 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. ____ requires inventory investment and storage space requirements
CROSS-DOCKING
The longest planned length of time to accomplish the activity in question. The ____ is found by reviewing the lead time for each BOM path below the item; whichever path adds up to the greatest number defines the ____
CUMULATIVE LEAD TIME
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 adjustment, and other functions
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
The ability of a company to address the needs, inquiries, and requests from customers. A measure of the delivery of a product to the customer at the time the customer specified
CUSTOMER SERVICE
CUSTOMS BROKER
CUSTOMS BROKER
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. Most effective ____ systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency. The key purpose of ____ is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors
CYCLE COUNTING
One of the two main conceptual components of any item inventory, the ____ is the most active component; the ____ depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. The other conceptual component of item inventory is safety stock
CYCLE STOCK
Refers to the length of time from when material enters a production facility until it exits
CYCLE TIME
DAYS OF SUPPLY
DAYS OF SUPPLY
Inventory decision making exercised at each stocking location for SKUs at that location
DECENTRALIZED INVENTORY CONTROL
An amount of inventory kept between entities in a manufacturing or distribution network to create independence between processes or entities. The objective of ____ is to disconnect the rate of use from the rate of supply of the item
DECOUPLING INVENTORY
The time from receipt of a customer order to delivery of the product.
DELIVERY LEAD TIME
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. Proper ____ facilitates the planning and use of resources for profitable business results
DEMAND MANAGEMENT
DEMAND PLANNING
DEMAND PLANNING
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 the previous work center. Demand pull can also occur within a supply chain, in which case it often is called a demand chain
DEMAND PULL
Proven capacity calculated from actual performance data, usually expressed as the average number of items produced multiplied by the standard hours per item
DEMONSTRATED CAPACITY
- The carrier charges and fees applied when rail freight cards and ships are retained beyond a specified loading or unloading time
DEMURRAGE
Demand that is directly related to or derived from the bill of material (BOM) 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
DEPENDENT DEMAND
- Carrier charges and fees applied when truck trailers are retained beyond a specified loading or unloading time
DETENTION
- Labor that is specifically applied to the good being manufactured or used in the performance of the service
DIRECT LABOR
- Material that becomes a part of the final product in measurable quantities
DIRECT MATERIALS
The production of distinct items such as automobiles, appliances, or computers
DISCRETE MANUFACTURING
A method of picking orders in which the items on one order are picked before the next order is picked
DISCRETE ORDER PICKING
The selection and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers
DISPATCHING
The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. It includes all activities related to physical ____, 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. Also, The systematic division of a whole into discrete parts having distinctive characteristics. The activities of ____ 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
DISTRIBUTION
A warehouse with finished goods and/or service items. _________ is synonymous with the term “branch warehouse,” although the former has become more commonly used recently. When a warehouse serves a group of satellite warehouses, it is usually called a regional____________________.
DISTRIBUTION CENTER
The distribution route, from raw materials through consumption, along which products travel
DISTRIBUTION CHANNEL
Inventory, usually spare parts and finished goods, located in the distribution system (in warehouses, in-transit between warehouses and the customers)
DISTRIBUTION INVENTORY
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.
DISTRIBUTION REQUIREMENTS PLANNING (DRP)
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 system (MPS). Demand on the supplying sources is recognized as dependent, and standard MRP logic applies.
DISTRIBUTION REQUIREMENTS PLANNING (DRP)
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
DISTRIBUTION REQUIREMENTS PLANNING (DRP)
A facility that receives items in large lots, stores them temporarily, and breaks them into smaller lots destined for a variety of locations
DISTRIBUTION WAREHOUSE
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. ____ eliminates the costly handling of components, specifically in receiving and inspection and enables products to move directly into production
DOCK-TO-STOCK
- To take the title of the product but not actually handle, stock, or deliver it
EX: to have one supplier ship directly to another or to have a supplier ship directly to the buyer’s customer
DROP SHIP
- The theory of constraints (TOC) method for scheduling and managing operations that have an internal constraint or capacity-constrained resource
DRUM-BUFFER-ROPE (DBR)
The detailed production schedule for a resource that sets the pace for the entire system. The ____ must reconcile the customer requirements with the systems’ constraint(s)
DRUM SCHEDULE
A type of fixed order quantity model that determines the total amount of an item to be purchased or manufactured at one time. The intent of ____ is to minimize the combined costs of acquiring and carrying inventory.
ECONOMIC ORDER QUANTITY
The basic formula of ____ is:
quantity = √((2AS)/iC) A: annual usage in units S: ordering costs in dollars i: annual inventory carry cost rate C: unit cost
ECONOMIC ORDER QUANTITY
A measurement of the actual output to the standard output expected. Efficiency measures how well something is performing relative to existing standards; in contrast, productivity measures output relative to a specific input
EFFICIENCY
The paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices (ASNs), and invoices, using standardized document formats
ELECTRONIC DATA INTERCHANGE (EDI)
The practice of giving non-managerial employees the responsibility and the power to make decisions regarding their jobs or tasks. It is associated with the practice of transfer of managerial responsibilities to the employee. ____ allows the employee to take on responsibility for tasks normally associated with staff specialists
EMPLOYEE EMPOWERMENT
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 improvement. ____ focuses on quality and productivity improvements
EMPLOYEE INVOLVEMENT
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 (BOM), and routings
ENGINEER-TO-ORDER (ETO)
- 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
ENTERPRISE RESOURCE PLANNING (ERP)
To perform a bill-of-materials (BOM) explosion
EXPLODE
Costs relating to problems found after the product reaches the customer
EX: Warranties, returns
EXTERNAL FAILURE COSTS
The time associated with elements of a setup procedure performed while the process or machine is running
EXTERNAL SETUP TIME
A forecasting method on a correlated leading indicator, such as estimating furniture sales based on housing starts. ____ tend to be useful for large aggregations, such as total company sales, than for individual product sales
EXTRINSIC FORECASTING METHOD
The functions of installing and maintaining a product for a customer after the sale or during the lease. ____ may also include training and implementation assistance
FIELD SERVICE
A schedule of end items to finish the product for specific customers’ orders in a make-to-order (MTO) or assemble-to-order (ATO) environment. It is also referred to as the finishing schedule because it may involve operations other than the final assembly (EX: final mixing, cutting, packaging). The ___ 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 to the end-item level
FINAL ASSEMBLY SCHEDULE (FAS)
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
FINISHED GOODS INVENTORY
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
FINITE FORWARD SCHEDULING
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
FINITE LOADING
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, ____ are the normal method of stating the master production schedule (MPS)
FIRM PLANNED ORDER (FPO)
In the Theory of constraints (TOC), 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.
FIVE FOCUSING STEPS
The ____ are:
1) Identifying the constraint to the system
2) Deciding how to exploit the constraint to the system
3) Subordinating all non constraints 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
FIVE FOCUSING STEPS
Five terms beginning with “S” used to create a workplace suitable for lean production. The ____ are:
1) Sort
2) Simplify
3) Scrub
4) Standardize
5) Sustain
FIVE Ss
- 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
FIVE WHYS
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 random-location system, ____ become familiar, and therefore a locator file may not be needed
FIXED LOCATION STORAGE
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
- Traditionally, all manufacturing costs–other than Direct labor (DL) and Direct materials (DM)–that continue even if products are not produced. Although ____ is necessary to produce the product, it cannot be directly traced to the final product
FIXED OVERHEAD
Similar to project manufacturing, this type of manufacturing is mostly used for large, complex projects, where the product remains in one location for its full assembly period or may move from location to location after considerable work and time are spent on it.
EX: Shipbuilding, aircraft assembly
FIXED POSITION MANUFACTURING
The output of a flowcharting process, a chart that shows the operations, transportation, storages, delays, inspections, and so on related to a process. One of the seven tools of quality
FLOW CHART
A system in which work flows over a stationary path, usually with little variance in the rate of flow. This is known as repetitive manufacturing if discrete units are produced, and otherwise is referred to as continuous manufacturing
FLOW PROCESSING
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 ____ is often referred to as a mass production shop or is said to have a continuous manufacturing layout. The plant layout is designed to facilitate a product “flow”. Some process industries are extreme examples of ____. Each product, through 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
FLOW SHOP
Inventory that is carried as a cushion to protect against forecast error
FLUCTUATION INVENTORY
An estimate of future demand. Various techniques attempt to predict one or more of the four components of demand
FORECAST
The difference between actual demand and forecast demand, stated as an absolute value or as a percentage
FORECAST ERROR
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
FORWARD SCHEDULING
A set of marketing tools to direct the business offering to the customer.
FOUR P’s
The grouping of shipments to obtain reduced costs or improved utilization of the transportation function
FREIGHT CONSOLIDATION
FREIGHT FORWARDER
FREIGHT FORWARDER
A facility configuration in which operations of a similar nature or function are grouped together; an organization structure based on departmental specialty (EX: saw, lathe, mill, press)
FUNCTIONAL LAYOUT
- 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 it’s originator, Henry L. Gantt
GANTT CHART
The two reason why a ____ is used are:
1) Machine loading: one horizontal line is used to represent capacity and another is used to represent load against that capacity
2) Monitoring job progress: one horizontal line represents the production schedule and another parallel line represents the actual progress of the job against the schedule in time
GANTT CHART
A Japanese word meaning “shop floor”
GEMBA
A Japanese phrase meaning “visit the shop floor to observe what is occurring”
GENCHI GENBUTSU
GENERAL AND ADMINISTRATIVE EXPENSES (G&A)
GENERAL AND ADMINISTRATIVE EXPENSES (G&A)
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
The responsibility of the supplier to dispose of packaging materials or environmentally sensitive materials such as heavy metals
GREEN REVERSE LOGISTICS
The difference between total revenue and the Costs of goods sold (COGS)
GROSS MARGIN
The total of independent and dependent demand for a component before the netting of on-hand inventory and scheduled receipts
GROSS REQUIREMENTS
A Japanese word meaning “reflection”
HANSEI
A form of inventory buildup to buffer against some event that may not happen. ____ 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 consequence are unusually high, and top management approval is often required
HEDGE INVENTORY
In Just-in-time philosophy, an approach to level production throughout the supply chain to match the planned rate of end product sales
HEIJUNKA
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 lets people see patterns that are difficult to see in a simple table of numbers
HISTOGRAM
A Japanese word meaning “statement of objectives”
HOSHIN
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
HOSHIN PLANNING
- The available capacity that exists on nonconstraint resources beyond the capacity required to support the constraint.
IDLE CAPACITY
The two components of ____ are:
1) Protected capacity
2) Excess capacity
IDLE CAPACITY
A financial statement showing the net income for a business over a given period of time
INCOME STATEMENT
INCOTERMS
INCOTERMS
INDENTED BILL OF MATERIAL
INDENTED BILL OF MATERIAL
The demand for an item that is unrelated to the demand for other items.
Some examples of ____ are:
1) Finished goods
2) Parts required for destructive testing
3) Service parts requirements
INDEPENDENT DEMAND
Material handling devices used in warehouses. Unlike conveyors, ____ are not confined to a fixed route
INDUSTRIAL TRUCKS
Calculation of the capacity required at work centers int eh time period regardless of the capacity required to perform the work
INFINITE LOADING
A technique for capacity control where planned and actual inputs and planned and actual outputs of a work center are monitored
INPUT/OUTPUT CONTROL (I/O)
A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing
INTERMITTENT PRODUCTION
What are the 6 steps in the House of Quality?
The 6 steps in the ____ are:
1) Identify customer requirements
2) Identify supporting technical design requirements
3) Compare customer requirements to the technical design requirements and assign relationship ratings
4) Assign importance to the customer requirements
5) Evaluate competitors
6) Identify technical features to be deployed in the final design of the product
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.
INTERMODAL TRANSPORT
Costs relating to problems before the product reaches the customer
EX: Rework, scrap, downgrades, reinspection
INTERNAL FAILURE COSTS
INTERNAL SETUP TIME
INTERNAL SETUP TIME
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
INTERPLANT DEMAND
Material moving between two or more locations, usually separated geographically
IN-TRANSIT INVENTORY
A forecast based on internal factors, such as an average of past salesQ
INTRINSIC FORECAST METHOD
INVENTORY ACCURACY
INVENTORY ACCURACY
A change made to an inventory record to correct the balance, to bring it in line with actual physical inventory balances. A ____ either increases or decreases the item record on-hand balance
INVENTORY ADJUSTMENT
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, etc
INVENTORY BUFFER
The activities and techniques of maintaining the desired level of items, whether raw materials, WIP, or finished goods
INVENTORY CONTROL
The branch of business management concerned with planning and controlling inventories
INVENTORY MANAGEMENT
Inventory models for the replenishment of inventory. Independent demand inventory ordering models include
INVENTORY ORDERING SYSTEM
The number of times that an inventory cycles, or “turns over” during the year
INVENTORY TURNOVER
The Japanese term for the practice of stopping the production line when a defect occurs
JIDOKA
A Japanese word meaning voluntary study groups
JISHUKEN
A cost accounting system in which costs are assigned to specific jobs. The system can be used with either actual or standard costs in the manufacturing of distinguishable units or lots of products
JOB COSTING
An organization in which similar equipment is organized by function. each job follows a distinct routing through the shop
JOB SHOP
The production planning and control techniques used to sequence and prioritize production quantities across operations in a job shop
JOB SHOP SCHEDULING
The Japanese term for improvement; continuing improvement involving everyone-managers and workers. Finding and eliminating waste in machinery, labor, or production methods
KAIZEN
