Vocab 3

Question 1

level production method

Answer 1

Make accurate forecast of average demand for a period and then set a level production rate to match the average.

Question 2

level schedule

Answer 2

A production schedule or MPS that generates material and labor requirements that are as evenly spread over time as possible. Finished goods inventories buffer the production system against season demand

Question 3

liabilities

Answer 3

Accounting/Financial terms representing debts or obligations owed by a company to creditors

Question 4

line haul costs

Answer 4

Within physical distribution, cost elements that vary by distance traveled and not by weight carried

Question 5

load

Answer 5

The amount of work scheduled for a facility, work center, or operation for a specific span of time.

Usually expressed in terms of standard hours of work or, when items consume similar resources at the same rate, units of production

Question 6

load leveling

Answer 6

Spreading orders otu in time or rescheduling operations so that amount of work to be done in sequential time periods is distributed evenly and is achievable

Question 7

lot

Answer 7

A quantity produced together and sharing the same production costs and specifications

Question 8

lot control

Answer 8

A set of procedures used to maintain lot integrity from raw materials, from the supplier through manufacturing to consumers

Question 9

lot-for-lot

Answer 9

A lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period

Question 10

lot size

Answer 10

Standard quantity of an item that is ordered or issued

Question 11

lot-size inventory

Answer 11

Inventories resulting from economical order sizes instead of what is actually needed to meet current demand

Question 12

make-to-order (MTO)

Answer 12

Production doesn’t begin on a good or service until after the receipt of a customer’s order

Question 13

make-to-stock (MTS)

Answer 13

A production environment where products can be and usually are finished before receipt of a customer order

Question 14

manufacturing lead time

Answer 14

Total time required to manufacture an item. Not including lower-level purchasing lead times.

Question 15

manufacturing order

Answer 15

A document, group of documents, or schedule conveying authority for the manufacture of specified parts or products in specified quantities

Question 16

manufacturing philosophy

Answer 16

Set of guiding principles, driving forces, ingrained attitudes that help communicate goals/plans/policies to all employees

Question 17

manufacturing resource planning (MRP II)

Answer 17

Method for the effective planning of all resources of a manufacturing company. Includes business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning, and execution support systems for capacity & material.

Question 18

mass customization

Answer 18

The creation of a high-volume product with large variety so that a customer may specify an exact model out of a large volume of possible end items, while manufacturing cost is low due to large volume

Question 19

master planning

Answer 19

A group of business processes that includes the following activities: Demand management, production and resource planning, and master scheduling

Question 20

master production schedule (MPS)

Answer 20

What the company plans to produce expressed in specific configurations, quantities, and dates

Question 21

master schedule

Answer 21

A format that includes time periods, the forecast, customer orders, projected available balance (PAB), ATP, and the MPS

Question 22

material requirement planning (MRP)

Answer 22

Set of techniques using BOM, inventory data, and master production schedule to calculate requirements for materials

Question 23

material management

Answer 23

Grouping of management functions supporting complete cycle of material flow (from purchase of materials to storage, usage, and shipping/distribution)

Question 24

mean absolute deviation (MAD)

Answer 24

The average of the absolute values of the deviations of observed values from some expected value

Question 25

milk run

Answer 25

A regular route for pickup of mixed loads from several suppliers

Question 26

mixed-model production

Answer 26

making several different parts/products in varying lot sizes so that the factory produces close to the same product mix that will be sold that day

Question 27

modularization

Answer 27

In product development, use of standardized parts for flexibility and variety. Use same items to build variety of finished goods

Question 28

multilevel bill of material

Answer 28

A display of all of the components directly or indirectly used in a parent, together with the quantity required of each component

Question 29

mura

Answer 29

A Japanese word meaning unevenness or variability

Question 30

muri

Answer 30

Japanese word meaning strain or overburden

Question 31

nesting

Answer 31

The act of combining several small processes to form one larger process

Question 32

net requirements

Answer 32

In MRP, the ____ for a part or an assembly are derived as a result of applying gross requirements and allocations against inventory on hand, scheduled receipts, and safety stock

Question 33

one-card kanban sytem

Answer 33

Kanban system where only a move card is employed. Works centers typically adjacent so no production card required. Empty square card signals supplying work center to produce a standard container of the item

Question 34

open order

Answer 34

A released manufacturing order or purchase order. An unfilled customer order.

Question 35

operating expense

Answer 35

All the money spent in generating goal units

Question 36

operations management

Answer 36

1) planning, scheduling, and control of activities that transform inputs into outputs
2) field of study focusing on effective planning, scheduling, use and control of an organization

Question 37

operator flexibility

Answer 37

Machine operators having the flexibility to solve problems and to do other tasks beyond their immediate responsibilities

Question 38

ordering cost

Answer 38

Used in calculating order quantities, the costs that increase the number of orders placed increases

Question 39

order picking

Answer 39

The basic plan marketing expects to use to achieve its business and marketing objectives in a particular market

Question 40

overlapped schedule

Answer 40

When order partially complete at one work station is started at next station before first station is entirely done with it

Question 41

owner’s equity

Answer 41

An accounting/financial term representing the residual claim by the company’s owners or shareholders, or both, to the company’s assets less its liabilities

Question 42

pacemaker

Answer 42

In lean the philosophy is to produce at the market rate of consumption. Because lines cannot be perfectly balanced, the ____ is the resource requiring the longest time to produce among the set of activities in a line or cell. This operation determines the flow through the line or cell

Question 43

package to order

Answer 43

Production environment where good or service is packaged after receipt of customer order. Items are common across many customers and packaging determines the end product

Question 44

pallet positions

Answer 44

Calculation determining space needed for number of pallet for inventory storage or transportation. Based on standard pallet size

Question 45

Pareto’s law

Answer 45

States a small percentage of a group accounts for the largest fraction of its impact or value. In ABC classification then 20% of inventory items may constitute 80% of inventory value

Question 46

participative design/engineering

Answer 46

Simultaneous participation of all functional areas of a company in the product design activity. Usually suppliers & customers also included

Question 47

pegging

Answer 47

In MRP and MPS, the capability to identify for a given item the sources of its gross requirements and/or allocations. ____ can be thought of as active where-used information

Question 48

periodic replenishment

Answer 48

Method of aggregating requirements to place deliveries of varying quantities at evenly spaced time intervals

Question 49

period order quantity

Answer 49

A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods

Question 50

perpetual inventory record

Answer 50

A computer record or manual document on which each inventory transaction is posted so that a current records of the inventory is maintained.