Vocab 4 Flashcards
physical inventory
Determination of inventory quantity by actual count
physical supply
The transportation of goods from supplier to buyer
pickup and delivery costs
Carrier charges for each shipment pickup and the weight of that shipment.
pipeline stock
Inventory in the transportation network and the distribution system, including the flow through intermediate stocking points
plan-do-check-action (PDCA)
4 step process for quality improvement. 1) Develop a plan 2) Plan is carried out 3)Effects of the plan observed 4)Results are studied
planned order
A suggested order quantity, release date, and due date created by the planning system’s logic when it encounters net requirements in processing MRP
planned order receipt
The quantity planned to be received at a future date as a result of a planned order release
planned order release
A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time
planning bill of material
Artificial grouping of items or events in a BOM format. Used to facilitate master scheduling and material planning.
point of sale (POS)
Inventory adjustment and computing of sales data at time and place of sale.
postponement
Product design or supply chain strategy that deliberately delays final differentiation until the latest possible time. Reduces anticipatory risk by eliminating finished goods inventory
priority control
The process of communicating start and completion dates to manufacturing departments in order to execute a plan
priority planning
The function of determining what material is needed and when. Uses master scheduling and MRP to plan and replan to maintain proper due dates for purchased and manufactured components
process batch
The quantity or volume of output that is to be completed at a workstation before switching to a different type of work or changing an equipment setup
process flexibility
Design of manufacturing system (operators & machinery) that allow quick changeovers to respond to near-term demand changes
process flow diagram
A graphic, symbolic representation of the work performed, or to be performed, on a product as it passed through some or all of the stages of a process
procurement
The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations
procurement lead time
Time required to design the product, modify/design equipment, conduct marketing research, and obtain all necessary materials.
product cost
Cost allocated by some method to the products being produced. Initially recorded in asset (inventory) accounts, product costs become an expense (cost of sales) when the product is sold
production activity control (PAC)
The function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control
production planning
Process to develop tactical plans based on setting the overall level of manufacturing output and other activities to best satisfy current planned sales levels while meeting general business objectives (profitability, productivity, etc)
productive capacity
In the Theory of Constraints – the maximum output capability of a resource (or series of resources). Or the market demand for that output for a given time period
productivity
Overall measure of the ability to produce a good or a service. Actual output of production compared to actual input of materials
product layout
Layout of resources arranged sequentially based on the product’s routing
product life cycle (3 definitions)
1) Stages a new product goes through from beginning to end
2) Time from initial research and development to time when sales and support to customers is withdrawn
3) period of time during which a product can be produced and marketed profitably
profit margin
The difference between the sales and Cost of goods sold (COGS) for an organization, sometimes expressed as a percentage of sales
protective capacity
The resource capacity needed to protect the system throughput-ensuring that some capacity above capacity req’d to exploit the constraint is available to catch up when disruptions inevitably occur
protective inventory
In the Theory of constraints (TOC) the amount of inventory required relative to the protective capacity in the system to achieve a specific throughput rate at the constraint
pull system
The withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user
purchase requisition
An authorization to the purchasing department to purchase specified materials in specific quantities within a specified time
push system
A system for replenishing field warehouse inventories where replenishment decision making is centralized, usually at the manufacturing site or central supply facility
quality costs
Overall costs associated with prevention activities and improvement before, during and after production of a product
quality function deployment (QFD)
Methodology designed to ensure all major customer requirements are identified and then met or exceeded
random-location storage
A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom
rated capacity
Expected output capability of a resource or item. Rated capacity = hours available X efficiency X utilization
remanufacturing
Industrial process in which worn-out products are restored to like-new condition
repetitive flow manufacturing
Assembly line that assembles discrete units (ie automobiles) at a constant rate without delays. Machinery is dedicated to limited range of products. Capital intensive. Require high volumes of production
replenishment led time
Total period of time from when it is decided an product should be reordered until product is back on the shelf and available for use
requirements explosion
The process of calculating the demand for the components of a parent item by multiplying the parent item requirements by the component usage quantity specified in the BOM
resource planning
Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long range capacity.
reverse auction
Thumtack
Internet auction where suppliers attempt to underbid their competitors. Company identities known only by the buyer
reverse logistics
Complete supply chain dedicated to the return, repair, remanufacturing, or recycling of products/materials
rough-cut capacity planning (RCCP)
The process of converting the MPS into requirements for key resources, including labor, machinery, warehouse space, suppliers’ capacity, and money
run time
Time required to process of piece or lot at a specific operation
sales and operations planning (S&OP)
Process to develop tactical plans to provide management with ability to strategically direct its businesses and achieve competitive advantage
sales plan
A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item
sawtooth diagram
Quality vs time graphic for order point and order quantity. Shows inventory being received, used up, and reordered
scatter chart
AKA Scatterplot
Graph technique to analyze relationship between 2 variables. Y axis is for the variable to be predicted. X axis if for variable used to make the prediction
scheduled receipt
Open order with assigned due date
seasonality
A repetitive pattern of demand from year to year with some periods considerably higher than others
