Vocab 3 Flashcards
level production method
Make accurate forecast of average demand for a period and then set a level production rate to match the average.
level schedule
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
liabilities
Accounting/Financial terms representing debts or obligations owed by a company to creditors
line haul costs
Within physical distribution, cost elements that vary by distance traveled and not by weight carried
load
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
load leveling
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
lot
A quantity produced together and sharing the same production costs and specifications
lot control
A set of procedures used to maintain lot integrity from raw materials, from the supplier through manufacturing to consumers
lot-for-lot
A lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period
lot size
Standard quantity of an item that is ordered or issued
lot-size inventory
Inventories resulting from economical order sizes instead of what is actually needed to meet current demand
make-to-order (MTO)
Production doesn’t begin on a good or service until after the receipt of a customer’s order
make-to-stock (MTS)
A production environment where products can be and usually are finished before receipt of a customer order
manufacturing lead time
Total time required to manufacture an item. Not including lower-level purchasing lead times.
manufacturing order
A document, group of documents, or schedule conveying authority for the manufacture of specified parts or products in specified quantities
manufacturing philosophy
Set of guiding principles, driving forces, ingrained attitudes that help communicate goals/plans/policies to all employees
manufacturing resource planning (MRP II)
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.
mass customization
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
master planning
A group of business processes that includes the following activities: Demand management, production and resource planning, and master scheduling
master production schedule (MPS)
What the company plans to produce expressed in specific configurations, quantities, and dates
master schedule
A format that includes time periods, the forecast, customer orders, projected available balance (PAB), ATP, and the MPS
material requirement planning (MRP)
Set of techniques using BOM, inventory data, and master production schedule to calculate requirements for materials
material management
Grouping of management functions supporting complete cycle of material flow (from purchase of materials to storage, usage, and shipping/distribution)
mean absolute deviation (MAD)
The average of the absolute values of the deviations of observed values from some expected value
milk run
A regular route for pickup of mixed loads from several suppliers
mixed-model production
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
modularization
In product development, use of standardized parts for flexibility and variety. Use same items to build variety of finished goods
multilevel bill of material
A display of all of the components directly or indirectly used in a parent, together with the quantity required of each component
mura
A Japanese word meaning unevenness or variability
muri
Japanese word meaning strain or overburden
nesting
The act of combining several small processes to form one larger process
net requirements
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
one-card kanban sytem
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
open order
A released manufacturing order or purchase order. An unfilled customer order.
operating expense
All the money spent in generating goal units
operations management
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
operator flexibility
Machine operators having the flexibility to solve problems and to do other tasks beyond their immediate responsibilities
ordering cost
Used in calculating order quantities, the costs that increase the number of orders placed increases
order picking
The basic plan marketing expects to use to achieve its business and marketing objectives in a particular market
overlapped schedule
When order partially complete at one work station is started at next station before first station is entirely done with it
owner’s equity
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
pacemaker
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
package to order
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
pallet positions
Calculation determining space needed for number of pallet for inventory storage or transportation. Based on standard pallet size
Pareto’s law
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
participative design/engineering
Simultaneous participation of all functional areas of a company in the product design activity. Usually suppliers & customers also included
pegging
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
periodic replenishment
Method of aggregating requirements to place deliveries of varying quantities at evenly spaced time intervals
period order quantity
A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods
perpetual inventory record
A computer record or manual document on which each inventory transaction is posted so that a current records of the inventory is maintained.
