APICS Deck 2 OO

Question 1

Card 2

Term

Answer 1

Definition

Question 2

Card 2

research and development (R&D)

Answer 2

A function that performs basic and applied research and develops potential new products.R

Question 3

Card 2

file

Answer 3

An organized collection of records.F

Question 4

Card 2

aftermarket

Answer 4

A secondary market for parts and accessories used to repair or enhance an item.A

Question 5

Card 2

hybrid layout

Answer 5

This layout combines two or more layout types.H

Question 6

Card 2

sample standard deviation

Answer 6

A key measure that represents the spread or dispersion of a sample.S

Question 7

Card 2

extended enterprise

Answer 7

The notion that supply chain partners form a larger entity. See: supply chain community.E

Question 8

Card 2

output standard

Answer 8

The expected number of units from a process against which actual output will be measured.O

Question 9

Card 2

mean squared error (MSE)

Answer 9

A measure of statistical variation in a forecast. Computed by squaring the forecast errors and then taking the average of the sum of the squared errors.M

Question 10

Card 2

FIFO

Answer 10

Acronym for first in, first out.F

Question 11

Card 2

modular design strategy

Answer 11

The strategy of planning and designing products so that components or subassemblies can be used in current and future products or assembled to produce multiple configurations of a M product. Automobiles and personal computers are examples of modular designs.M

Question 12

Card 2

company stock

Answer 12

generally tied into the compensation/ benefits package. The intention is to give workers a feeling of participation in the management and direction of the company.E

Question 13

Card 2

cold chain

Answer 13

A term referring to the storage, transfer, and supply chain of temperature-controlled products. Industries in the cold chain include food and agriculture, pharmaceuticals, and chemicals.C

Question 14

Card 2

normal and proper usage

Answer 14

Operation of the equipment with a program of regular maintenance in accordance with generally accepted practices and within the rated capacity and service classification for which it was specified and designed.N

Question 15

Card 2

SBQ

Answer 15

Abbreviation for standard batch quantity.S

Question 16

Card 2

CPIM

Answer 16

Abbreviation for Certified in Production and Inventory Management.C

Question 17

Card 2

effectivity date

Answer 17

Syn: effective date.E

Question 18

Card 2

standard service

Answer 18

Service that is the same for most customers.S

Question 19

Card 2

production reporting and status control

Answer 19

A vehicle to provide feedback to the production schedule and allow for corrective action and maintenance of valid on-hand and on-order balances. Production reporting and status control normally include manufacturing order authorization, release, acceptance, operation start, delay reporting, move reporting, scrap and rework reporting, order close-out, and payroll interface. Syn: manufacturing order reporting, shop order reporting.P

Question 20

Card 2

OC curve

Answer 20

Abbreviation for operating characteristic curve.O

Question 21

Card 2

economic value added

Answer 21

In managerial accounting, the net operating profit earned above the cost of capital for a profit center.E

Question 22

Card 2

buffer

Answer 22

1) A quantity of materials awaiting further processing. It can refer to raw materials, semifinished stores or hold points, or a work backlog that is purposely maintained behind a work center. 2) In the theory of constraints, buffers can be time or material and support throughput and/or due date performance. B Buffers can be maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points.B

Question 23

Card 2

FTP

Answer 23

Abbreviation for file transfer protocol.F

Question 24

Card 2

conference room pilot

Answer 24

Simulation of all business processes from end-to-end within the new information system in a controlled environment.C

Question 25

Card 2

attribute data

Answer 25

Go/no-go information. The control charts based on attribute data include percent chart, number of affected units chart, count chart, count-per-unit chart, quality score chart, and demerit chart. See: attribute, attribute inspection.A

Question 26

Card 2

critical path lead time

Answer 26

Syn: cumulative lead time.C

Question 27

Card 2

minimum order quantity

Answer 27

An order quantity modifier, applied after the lot size has been calculated, that increases the order quantity to a pre-established minimum.M

Question 28

Card 2

market research

Answer 28

Syn: marketing research.M

Question 29

Card 2

dividend

Answer 29

A payment to stockholders either in cash or stock.D

Question 30

Card 2

JIT supplier environment

Answer 30

To effectively participate as a supplier under just in time (JIT), a company must supply components and subassemblies in exact quantities, delivery time, and quality. Shipments are made within narrow time windows that are rigidly enforced. Virtually every component must be delivered on time and be within specifications.J

Question 31

Card 2

assignable cause

Answer 31

A source of variation in a process that can be isolated, especially when it’s significantly larger magnitude or different origin readily distinguishes it from random causes of variation. Syn: special cause. See: common causes, assignable variation.A

Question 32

Card 2

DBR

Answer 32

Abbreviation for drum-buffer-rope.D

Question 33

Card 2

indirect costs

Answer 33

Costs that are not directly incurred by a particular job or operation. Certain utility costs, such as plant heating, are often indirect. An indirect cost is typically distributed to the product through the overhead rates.I

Question 34

Card 2

category management

Answer 34

In marketing, an organizational structure giving managers responsibility for planning and implementing marketing systems for certain product lines.C

Question 35

Card 2

business service

Answer 35

The software aspect of electronic commerce. It performs activities, such as encryption, that are required to support business transactions.B

Question 36

Card 2

labor rate variance

Answer 36

Labor rate variance is the sum of the actual wage rate minus the standard wage rate multiplied by the actual number of labor hours. The variance is unfavorable if the actual rate is greater than the standard rate.L

Question 37

Card 2

mixed production strategy

Answer 37

Syn: hybrid production method. See: chase production method, level production method.M

Question 38

Card 2

unit load concept

Answer 38

Waiting for a container or pallet to be filled before the material is moved.U

Question 39

Card 2

pure services

Answer 39

Services that result in few or no tangible products to the customer (e.g., education).P

Question 40

Card 2

return material authorization (RMA)

Answer 40

1) A form that must be completed that describes the product returned and why it was returned. 2) A number given to authorize the acceptance of returned items. 3) Should require signatory authorization to return the goods.R

Question 41

Card 2

run size

Answer 41

Syn: standard batch quantity.R

Question 42

Card 2

short-term planning

Answer 42

The function of adjusting limits or levels of capacity within relatively short periods of time, such as parts of a day, a day, or a week.S

Question 43

Card 2

neural network

Answer 43

A software system loosely based on how the brain works. It tries to simulate the multiple layers of elements called neurons. Each neuron is tied to several neighbors with a value that signifies the strength of the connections. Learning is accomplished by changing the values to cause the network to report appropriate results. Neural networks have been used for market forecasts and other applications.N

Question 44

Card 2

unit-size

Answer 44

To combine a number of packages into one unit by attaching them together.U

Question 45

Card 2

monitoring

Answer 45

The process of comparing actual to planned progress.M

Question 46

Card 2

item

Answer 46

Any unique manufactured or purchased part, material, intermediate, subassembly, or product.I

Question 47

Card 2

purchasing lead time

Answer 47

The total lead time required to obtain a purchased item. Included here are order preparation and release time; supplier lead time; transportation time; and receiving, inspection, and put-away time. See: lead time, supplier lead time, time-to-product.P

Question 48

Card 2

shipping lead time

Answer 48

The number of working days normally required for goods to move between a shipping and receiving point, plus acceptance time in days at the receiving point.S

Question 49

Card 2

line item

Answer 49

One item on an order, regardless of quantity.L

Question 50

Card 2

Pareto chart

Answer 50

A bar graph that displays the results of a Pareto analysis. It may or may not display the 80-20 varPareto P iation, but it does show a distinct variation from the few compared to the many.P

Question 51

Card 2

Deming circle

Answer 51

The concept of a continuously rotating wheel of plan-do-check-action (PDCA) used to show the need for interaction among market research, design, production, and sales to improve quality. See: plan-docheck- action.D

Question 52

Card 2

QCD

Answer 52

Abbreviation for quality, cost, delivery.Q

Question 53

Card 2

algorithm

Answer 53

A prescribed set of well-defined rules or processes for solving a problem in a finite number of steps (e.g., the full statement of the arithmetic procedure for calculating the reorder point).A

Question 54

Card 2

methods-time measurement (MTM)

Answer 54

A system of predetermined motion-time standards, a procedure that analyzes and classifies the movements of any operation into certain human motions and assigns to each motion a predetermined time standard selected by the nature of the motion and the conditions under which it will be made.M

Question 55

Card 2

material-dominated scheduling (MDS)

Answer 55

A technique that schedules materials before processors (equipment or capacity). This technique facilitates the efficient use of materials. MDS can be used to schedule each stage in a process flow scheduling system. MRP systems use material-dominated scheduling logic. See: processordominated scheduling.M

Question 56

Card 2

Pareto’s law

Answer 56

A concept developed by Vilfredo Pareto, an Italian economist, that states that a small percentage of a group accounts for the largest fraction of the impact, value, and so on. In an ABC classification, for example, 20 percent of the inventory items may constitute 80 percent of the inventory value. See: ABC classification, 80-20.P

Question 57

Card 2

LIFO

Answer 57

Acronym for last in, first out.L

Question 58

Card 2

customer/order fulfillment process

Answer 58

A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting.C

Question 59

Card 2

customer partner

Answer 59

A customer organization with which a company has formed a customer-supplier partnership. See: outpartnering.C

Question 60

Card 2

industrial trucks

Answer 60

Vehicles powered by hand, electricity, or propane for material handling activities in a warehouse. More flexible but slower and less constant than conveyors, they are not in a fixed position. Industrial trucks are the most-common form of materials handling equipment.I

Question 61

Card 2

learning curve

Answer 61

A curve reflecting the rate of improvement in time per piece as more units of an item are made. A planning technique, the learning curve is particularly useful in project-oriented industries in which new products are frequently phased in. The basis for the learning curve calculation is that workers will be able to produce the product more quickly after they get used to making it. Syn: experience curve, manufacturing progress curve.L

Question 62

Card 2

feasibility study

Answer 62

An analysis designed to establish the practicality and cost justification of a given project and, if it appears to be advisable to do so, to determine the direction of subsequent project efforts.F

Question 63

Card 2

spread

Answer 63

Variability of an action. Often measured by the range or standard deviation of a particular dimension.S

Question 64

Card 2

overstated master production schedule

Answer 64

A schedule that includes either past due quantities or quantities that are greater than the ability to produce, given current capacity and material availability. An overstated MPS should be made feasible before MRP is run.O

Question 65

Card 2

flexible automation

Answer 65

Automation that provides short setup times and the ability to switch quickly from one product to another.F

Question 66

Card 2

travel time

Answer 66

Syn: transit time.T

Question 67

Card 2

bona fide

Answer 67

Latin for “in good faith.”B

Question 68

Card 2

materials handling system

Answer 68

The system of transportation that receives, moves, and delivers materials during the production or distribution process.M

Question 69

Card 2

collaborative transportation management

Answer 69

A method of sharing information among suppliers, buyers, and transporters to add value to the service.C

Question 70

Card 2

MTTR

Answer 70

Abbreviation for mean time to repair.M

Question 71

Card 2

export compliance

Answer 71

Cooperating with export rules regarding packaging and documentation.E

Question 72

Card 2

offset quantity

Answer 72

Syn: overlap quantity.O

Question 73

Card 2

functional test

Answer 73

Measure of a production component’s ability to work as designed to meet a level of performance.F

Question 74

Card 2

traveler

Answer 74

A copy of the manufacturing order that actually moves with the work through the shop. Syn: shop traveler.T

Question 75

Card 2

variable overhead

Answer 75

All manufacturing costs, other than direct labor and direct materials, that vary directly with production volume. Variable overhead is necessary to produce the product, but cannot be directly assigned to a specific product.V

Question 76

Card 2

finish-to-order

Answer 76

Syn: assemble-to-order.F

Question 77

Card 2

hazardous waste

Answer 77

Waste, such as chemicals or nuclear material, that is hazardous to humans or animals and requires special handling.H

Question 78

Card 2

statistical thinking

Answer 78

The ability to draw conclusions based on data.S

Question 79

Card 2

prevention vs. detection

Answer 79

A term used to contrast two types of quality activities. Prevention refers to those activities designed to prevent nonconformances in goods and services. Detection refers to those activities designed to detect nonconformances already in goods and services. Syn: designing in quality vs. inspecting in quality.P

Question 80

Card 2

backup/restore

Answer 80

The procedure of making backup copies of computer files or disks and, in case of loss of or damage to the original, using the backups to restore the files or disks. In such a case, the only work lost is that done since the backup was made.B

Question 81

Card 2

trading company

Answer 81

A company that introduces foreign buyers and sellers and arranges all product export/import details, documentation, and transportation.T

Question 82

Card 2

empathy

Answer 82

A dimension of service quality referring to caring, individualized attention from a service firm.E

Question 83

Card 2

exchange rate

Answer 83

The rate at which one currency converts to another.E

Question 84

Card 2

inventory velocity

Answer 84

The speed with which inventory passes through an organization or supply chain at a given point in time as measured by inventory turnover. See: inventory turnover.I

Question 85

Card 2

process oriented

Answer 85

A characteristic in which the focus is on the interrelated processes in a business environment. It includes the activities to transform inputs into outputs that have value.P

Question 86

Card 2

remanufactured parts

Answer 86

Components or assemblies that are refurbished or rebuilt to perform the original function. Syn: refurbished goods, refurbished parts.R

Question 87

Card 2

provisioning

Answer 87

The process of identifying and purchasing the support items and determining the quantity of each support item necessary to operate and maintain a system.P

Question 88

Card 2

container on a flatcar (COFC)

Answer 88

A specialized form of containerization in which rail, motor, and sea transport coordinate.C

Question 89

Card 2

decision variables

Answer 89

The variables that will be changed to find the optimal solution in an optimization problem.D

Question 90

Card 2

CNC

Answer 90

Abbreviation for computer numerical control.C

Question 91

Card 2

cost performance index (CPI)

Answer 91

A measure of project efficiency. Earned value over actual costs.C

Question 92

Card 2

disassembly bill of material

Answer 92

In remanufacturing, a bill of material used as a guide for the inspection in the teardown and inspection process. On the basis of inspection, this bill is modified to a bill of repair defining the actual repair materials and work required. Syn: teardown bill of material. See: repair bill of material.D

Question 93

Card 2

double smoothing

Answer 93

Syn: second-order smoothing.D

Question 94

Card 2

BPM

Answer 94

Abbreviation for business process management.B

Question 95

Card 2

implosion

Answer 95

The process of determining the where-used relationship for a given component. Implosion can be single-level (showing only the parents on the next higher level) or multilevel (showing the ultimate top-level parent). See: where-used list. Ant: explosion.I

Question 96

Card 2

obeya

Answer 96

A Japanese word meaning “big room,” a command center.O

Question 97

Card 2

managerial accounting

Answer 97

A branch of accounting that uses techniques such as break-even analysis, costvolume- profit analysis, make-buy analysis, and others to provide information used in day-to-day decision making.M

Question 98

Card 2

regen

Answer 98

Slang abbreviation for regeneration MRP. Pronounced “ree-jen.”R

Question 99

Card 2

trust

Answer 99

A fiduciary relationship in which the trustee holds ownership for the benefit of another party (benefactor).T

Question 100

Card 2

PERT

Answer 100

Acronym for program evaluation and review technique.P

Question 101

Card 2

offshore factory

Answer 101

A plant that imports or acquires locally all components and then exports the finished product.O

Question 102

Card 2

chase-demand strategy

Answer 102

Syn: chase production method.C

Question 103

Card 2

setup costs

Answer 103

Costs such as scrap costs, calibration costs, downtime costs, and lost sales associated with preparing the resource for the next product. Syn: changeover costs, turnaround costs.S

Question 104

Card 2

resiliency

Answer 104

Resiliency in the supply chain is the ability to return to a position of equilibrium after experiencing an event that causes operational results to deviate from expectations. Resiliency is increased by strategically increasing the number of response options and/or decreasing the time to execute those options. Resiliency is improved by risk monitoring and control.R

Question 105

Card 2

load projection

Answer 105

Syn: load profile.L

Question 106

Card 2

time-based competition (TBC)

Answer 106

A corporate strategy that emphasizes time as the vehicle for achieving and maintaining a sustainable competitive edge. Its characteristics are (1) it deals only with those lead times that are important to the customers; (2) the leadtime reductions must involve decreases in both the mean and the variance; and (3) the lead-time reductions must be achieved through system/process analysis (the processes must be changed to reduce lead times). TBC is a broad-based strategy. Reductions in lead times are achieved by changing the processes and the decision structures used to design, produce, and deliver products to the customers. TBC involves design, manufacturing, and logistical processes.T

Question 107

Card 2

local rate

Answer 107

A rate pertaining to two points served by a single carrier.L

Question 108

Card 2

standard industrial classification (SIC)

Answer 108

Classification codes that are used to categorize companies into industry groupings.S

Question 109

Card 2

hypertext transfer protocol (HTTP)

Answer 109

A protocol that tells computers how to communicate with each other. Most internet addresses begin with http://.H

Question 110

Card 2

business process reengineering (BPR)

Answer 110

A procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service, and speed. Any BPR activity is distinguished by its emphasis on (1) process rather than functions and products and (2) the customers for the process.B

Question 111

Card 2

throughput time

Answer 111

Syn: cycle time (second definition).T

Question 112

Card 2

primary operation

Answer 112

A manufacturing step normally performed as part of a manufacturing part’s routing. Ant: alternate operation.P

Question 113

Card 2

top management commitment (quality)

Answer 113

In the total quality management philosophy, participation of the highest-level official in the organization’s quality improvement efforts. Participation includes establishing and serving on a quality committee, establishing quality policies and goals, deploying those goals to lower levels of the organization, providing the resources and training that the lower levels need to achieve the goals, participating in quality improvement teams, reviewing organization-wide progress, recognizing those who have performed well, and revising the current reward system to reflect the importance of achieving the quality goals.T

Question 114

Card 2

supplier partnership

Answer 114

The establishment of a working relationship with a supplier organization whereby two organizations act as one. Syn: collaborative supply relationship.S

Question 115

Card 2

scope change

Answer 115

In project management, a change to a project’s scope, usually requiring an adjustment to the project’s budget and schedule.S S

Question 116

Card 2

net present value

Answer 116

The present (discounted) value of future earnings (operating expenses have been deducted from net operating revenues) for a given number of time periods.N

Question 117

Card 2

drawback

Answer 117

A refund of customs duties paid on material imported and later exported.D

Question 118

Card 2

industry analysis

Answer 118

A major study of an industry; its major competitors, customers, and suppliers; and the focus and driving forces within that industry.I

Question 119

Card 2

MSDS

Answer 119

Abbreviation for material safety data sheet.M

Question 120

Card 2

composite manufacturing lead time

Answer 120

Syn: cumulative manufacturing lead time.C

Question 121

Card 2

PLM

Answer 121

Abbreviation for product life cycle management.P

Question 122

Card 2

three-point estimate

Answer 122

A project management technique that uses three cost or duration estimates to stand for the optimistic (O), most likely (M), and pessimistic (P) situation. The mean value (MV) is often found using MV=(O+4M+P)/6. This technique can improve the accuracy of cost or duration estimates when underlying assumptions are uncertain.T

Question 123

Card 2

launch phase

Answer 123

In this last phase of product development, either the product is fed into the supply chain or the service is made available to consumers.L

Question 124

Card 2

secure server

Answer 124

In e-commerce, a web server that protects users’ messages from interception while being transmitted over the internet.S

Question 125

Card 2

earliness

Answer 125

If a job is finished before its due date, the difference between its completion date and the due date. See: lateness, tardiness.E

Question 126

Card 2

Pareto analysis

Answer 126

Use of the Pareto principle in prioritizing or ranking a range of items to separate the vital few from the trivial many.P

Question 127

Card 2

grievance

Answer 127

A complaint by an employee concerning alleged contract violations handled formally through contractually fixed procedures. If unsettled, a grievance may lead to arbitration.G

Question 128

Card 2

mean

Answer 128

The arithmetic average of a group of values. Syn: arithmetic mean.M

Question 129

Card 2

sample

Answer 129

A portion of a universe of data chosen to estimate some characteristics about the whole universe. The universe of data could consist of sizes of customer orders, number of units of inventory, number of lines on a purchase order, and so forth.S

Question 130

Card 2

control phase

Answer 130

One of the six sigma phases of quality. Process performance is observed, often with control charts, for steady results.C

Question 131

Card 2

experience curve

Answer 131

Syn: learning curve.E

Question 132

Card 2

scheduled downtime

Answer 132

Planned shutdown of equipment or plant to perform maintenance or to adjust to softening demand.S

Question 133

Card 2

channel conflict

Answer 133

Two or more agencies of one business competing for the same customer. For example, retail, catalog, or web sales.C

Question 134

Card 2

sales plan

Answer 134

A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item. It represents sales and marketing management’s commitment to take all reasonable steps necessary to achieve this level of actual customer orders. The sales plan is a necessary input to the production planning process (or sales and operations planning process). It is expressed in units identical to those used for the production plan (as well as in sales dollars). See: aggregate planning, production plan, production planning, sales and operations planning.S

Question 135

Card 2

contributory negligence

Answer 135

A rule under which a defendant may escape liability if it can be shown that the plaintiff was negligent to some extent.C

Question 136

Card 2

private key

Answer 136

In information systems, an encryption key that is known only by the sender and receiver of the message. See: public key.P P

Question 137

Card 2

late order

Answer 137

Syn: past due order.L

Question 138

Card 2

demand shaping

Answer 138

The practice of using the four Ps (product, pricing, placement, and promotion) and other market variables to influence the demand of a product or service so that the demand better matches the available supply. See: four Ps.D

Question 139

Card 2

SPI

Answer 139

Abbreviation for schedule performance index.S

Question 140

Card 2

marketing mix

Answer 140

The concept that marketing strategy selects product, price, promotion, and channel targets in selected markets.M

Question 141

Card 2

project manufacturing

Answer 141

A type of manufacturing process used for large, often unique, items or structures that require a custom design capability (engineer-to-order). This type of process is highly flexible and can cope with a broad range of product designs and design changes. Product manufacturing usually uses a fixed-position type layout. See: batch (fourth definition), continuous production, job shop (second definition), process manufacturing, project, repetitive manufacturing.P

Question 142

Card 2

reconciling inventory

Answer 142

Comparing the physical inventory figures with the perpetual inventory record and making any necessary corrections.R

Question 143

Card 2

econometric model

Answer 143

A set of equations intended to be used simultaneously to capture the way in which dependent and independent variables are interrelated.E

Question 144

Card 2

quantity discount model

Answer 144

A variation of the economic order quantity model in which the assumption of a single price is relaxed and there is a schedule of prices based on specific volumes. Syn: price-break model.Q

Question 145

Card 2

order policy code

Answer 145

Syn: lot-size code.O

Question 146

Card 2

accept

Answer 146

The receipt of an item as being complete and sound.A

Question 147

Card 2

return merchandise authorization

Answer 147

Syn: return material authorization.R

Question 148

Card 2

online processing

Answer 148

A method of computer processing in which data are processed immediately on entry into the computer.O

Question 149

Card 2

treasury stock

Answer 149

Common stock that has been repurchased by the issuing company.T

Question 150

Card 2

supplies

Answer 150

Materials used in manufacturing that are not normally charged to finished production, such as cutting and lubricating oils, machine repair parts, glue, or tape. Syn: general stores, indirect materials.S

Question 151

Card 2

end product

Answer 151

Syn: end item.E

Question 152

Card 2

international standards

Answer 152

Standards established by international standards-setting organizations to promote interoperability among operating environments.I

Question 153

Card 2

discrete variable

Answer 153

A variable, such as number of defects, that can take on only certain values (such as integers). See: continuous variable.D

Question 154

Card 2

inventory planner

Answer 154

Syn: material planner (first definition).I

Question 155

Card 2

software as a service

Answer 155

Computer services are provided by a third party that keeps all of the software and hardware in its place of business and the company using the services accesses them via the internet. A very common technique used to outsource technological state-of-theart costs that can be avoided.S

Question 156

Card 2

broadcast system

Answer 156

A sequence of specific units to be assembled and completed at a given rate. This sequence is communicated to supply and assembly activities to perform operations and position material so that it merges with the correct assembled unit.B

Question 157

Card 2

3D printing

Answer 157

The process of layering materials to make products and components using computer data. Syn: additive manufacturing. See: rapid prototyping.3

Question 158

Card 2

isolation

Answer 158

The determination of the location of a failure through the use of accessory support and diagnostic equipment.I

Question 159

Card 2

executive information system

Answer 159

A software application used by top managers, without assistance, to access information on the current organizational status.E E

Question 160

Card 2

post deduct

Answer 160

In a JIT system, work in process materials used to build finished goods are relieved from inventory by multiplying the number of units completed by the number of parts in the bill of material. Effective only if the bill of material is accurate and manufacturing lead times are short. See: backflushing.P

Question 161

Card 2

machine hours

Answer 161

The amount of time, in hours, that a machine is actually running. Machine hours, rather than labor hours, may be used for planning capacity for scheduling, and for allocating costs.M

Question 162

Card 2

production level

Answer 162

Syn: production rate.P

Question 163

Card 2

form utility

Answer 163

The value created by changing a good’s form through a production process.F

Question 164

Card 2

motion study

Answer 164

A type of methods study focused on therbligs, basic hand and body movements. See: therblig.M

Question 165

Card 2

internal rate of return

Answer 165

The rate of compound interest at which the company’s outstanding investment is repaid by proceeds from the project.I

Question 166

Card 2

actual demand

Answer 166

Actual demand is composed of customer orders (and often allocations of items, ingredients, or raw materials to production or distribution). Actual demand nets against or “consumes” the forecast, depending upon the rules chosen over a time horizon. For example, actual demand will totally replace forecast inside the sold-out customer order backlog horizon (often called the demand time fence) but will net against the forecast outside this horizon based on the chosen forecast consumption rule.A

Question 167

Card 2

value index

Answer 167

A measure that uses the performance and importance scores for various dimensions of performance for an item or service to calculate a score that indicates the overall value of an item or service to a customer.V

Question 168

Card 2

central limit theorem

Answer 168

A theorem that states that a distribution consisting of sample means can be assumed to be normally distributed, even if the population from C which the samples are drawn is not normally distributed.C

Question 169

Card 2

spoiled work order

Answer 169

Syn: rework order.S

Question 170

Card 2

engineering order

Answer 170

Syn: experimental order.E

Question 171

Card 2

electronic commerce (e-commerce)

Answer 171

The use of computer and telecommunication technologies to conduct business via electronic transfer of data and documents.E

Question 172

Card 2

expert system

Answer 172

A type of artificial intelligence computer system that mimics human experts by using rules and heuristics rather than deterministic algorithms.E

Question 173

Card 2

quick changeover

Answer 173

The ability to shorten machine setups between different machine operation requirements to increase process flexibility. Most concentration is on reducing external setup time first, then on internal setup issues. This reduces economic order quantity, queue and manufacturing lead times, and work in process inventory; it improves quality, process, and material flows.Q

Question 174

Card 2

root cause analysis

Answer 174

Analytical methods to determine the core problem(s) of an organization, process, product, market, and so forth. See: current reality tree, five whys, stratification analysis.R

Question 175

Card 2

cycle stock

Answer 175

One of the two main conceptual components of any item inventory, the cycle stock is the most active component; the cycle stock depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. The other conceptual component of the item inventory is the safety stock, which is a cushion of protection against uncertainty in the demand or in the replenishment lead time. Syn: cycle inventory.C

Question 176

Card 2

appellant

Answer 176

One who appeals a court decision to higher authority.A

Question 177

Card 2

double-declining-balance depreciation

Answer 177

A type of accelerated depreciation. See: depreciation.D

Question 178

Card 2

design review

Answer 178

A technique for evaluating a proposed design to ensure that the design (1) is supported by adequate materials and materials that are available on a timely basis, (2) will perform successfully during use, (3) can be manufactured at low cost, and (4) is suitable for prompt field maintenance.D

Question 179

Card 2

customer acquisition

Answer 179

In marketing, the rate at which new customers are switching to an organization’s brand.C

Question 180

Card 2

shrinkage

Answer 180

Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, and so forth.S

Question 181

Card 2

(EDIFACT)

Answer 181

A set of United Nations rules for electronic data interchange. These are international guidelines and standards for the electronic exchange of data regarding trade.E

Question 182

Card 2

economic lot size

Answer 182

Syn: economic order quantity.E

Question 183

Card 2

Toyota Production System (TPS)

Answer 183

A manufacturing methodology developed at Toyota that has evolved into the concepts of just in time and lean manufacturing.T

Question 184

Card 2

long-term planning

Answer 184

Business planning that addresses the strategic needs of the organization. See: business plan, resource planning.L

Question 185

Card 2

order promising

Answer 185

The process of making a delivery commitment (i.e., answering the question “When can you ship?”). For make-to-order products, this usually involves a check of uncommitted material and availability of capacity, often as represented by the master schedule available-to-promise. Syn: customer order promising, order dating. See: available-to-promise, order service.O

Question 186

Card 2

standard error

Answer 186

A measurement of the variability of statistics such as the sample mean. See: estimate of error.S

Question 187

Card 2

consumer

Answer 187

A person who purchases a good or service for his or her own use (not for resale). See: customer.C

Question 188

Card 2

forward flow scheduling

Answer 188

A procedure for building process train schedules that starts with the first stage and proceeds sequentially through the process structure until the last stage is scheduled.F

Question 189

Card 2

amortization

Answer 189

The process of recovering (via expensing) a capital investment over a period of time. See: capital recovery.A

Question 190

Card 2

transfer pricing

Answer 190

The pricing of goods or services transferred from one segment of a business to another. See: interplant transfer.T

Question 191

Card 2

assembly bin

Answer 191

Syn: accumulation bin.A

Question 192

Card 2

process capability analysis

Answer 192

A procedure to estimate the parameters defining a process. The mean and standard deviation of the process are estimated and compared to the specifications, if known. This comparison is the basis for calculating capability indexes. In addition, the form of the relative frequency distribution of the characteristic of interest may be estimated. Syn: capability study. See: process capability.P

Question 193

Card 2

distribution cost

Answer 193

Those items of cost related to the activities associated with the movement and storage of finished products. Distribution costs can include invendistribution D tory costs, transportation costs, and order processing costs.D

Question 194

Card 2

anticipation order

Answer 194

An order placed before an item has been made available for delivery.A

Question 195

Card 2

forward integration

Answer 195

Process of buying or owning elements of the production cycle and the channel of distribution forward toward the final customer. See: vertical integration.F

Question 196

Card 2

forecasting

Answer 196

The business function that attempts to predict sales and use of products so they can be purchased or manufactured in appropriate quantities in advance.F

Question 197

Card 2

planning horizon

Answer 197

The amount of time a plan extends into the future. For a master schedule, this is normally set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers or of key suppliers. For longer term plans the planning horizon must be long enough to permit any needed additions to capacity. See: cumulative lead time, planning time fence.P

Question 198

Card 2

gross margin

Answer 198

The difference between total revenue and the cost of goods sold. Syn: gross profit margin.G

Question 199

Card 2

churn reduction

Answer 199

Not losing as many customers to the competition.C

Question 200

Card 2

three-bin kanban

Answer 200

Simple kanban structure that focuses on cycling three bins of material continually and provides a visible method to align replenishment with consumption. One bin is ready to ship from the supplier at all times, while two are back to back in manufacturing/production at or near point of use. As the front bin empties, a signal is sent to the supplier to send a full bin and the back bin is issued forward into production. See: kanban.T

Question 201

Card 2

theory of constraints accounting

Answer 201

A cost and managerial accounting system that accumulates costs and revenues

Question 202

Card 2

synchronous scheduling

Answer 202

Scheduling processes (kanban in just in time and drum-buffer-rope in theory of constraints environments) that focus on synchronizing all operations to the constraint of the system. See: synchronized production.S

Question 203

Card 2

material sublot

Answer 203

A uniquely identifiable subset of a material lot containing quantity and location. A sublot may be a single item.M

Question 204

Card 2

planned load

Answer 204

The standard hours of work required by the planned production orders.P

Question 205

Card 2

prepaid

Answer 205

A term denoting that transportation charges have been or are to be paid at the point of shipment by the sender.P

Question 206

Card 2

on-time in full (OTIF)

Answer 206

A delivery scoring system that sets a target goal, usually in percent, and the deliverer tries to meet that goal of full deliveries and by the delivery date.O

Question 207

Card 2

mean absolute percent error (MAPE)

Answer 207

A measure of statistical variation in a forecast. Computed by dividing each absolute forecast error by the actual demand, multiplying that by 100 to get the absolute percentage error, and computing the average.M

Question 208

Card 2

backward pass

Answer 208

In the critical path method of project planning, working from the finish node backward through the network logic to the start node to determine the various late start dates and late finish dates. See: critical path method, forward pass.B

Question 209

Card 2

time utility

Answer 209

When a delivery gets to a customer at exactly the right time (not early, not late).T T

Question 210

Card 2

reorder point

Answer 210

Syn: order point.R

Question 211

Card 2

retention efficiency

Answer 211

In marketing, a measurement of how well a company creates repeat customers.R

Question 212

Card 2

parts requisition

Answer 212

An authorization that identifies the item and quantity required to be withdrawn from an inventory. Syn: requisition. See: purchase requisition.P

Question 213

Card 2

configuration

Answer 213

The arrangement of components as specified to produce an assembly.C

Question 214

Card 2

coefficient of correlation

Answer 214

A value used to express the relationship between two variables, whether there is a strong or weak correlation. The coefficient of correlation varies from 0 to 1 with values close to 0 indicating no relationship, or a weak relationship, and values close to 1 indicating a strong relationship. The existence of a relationship does not prove causality.C

Question 215

Card 2

frequently asked questions (FAQs)

Answer 215

A list of commonly asked questions pertaining to a website (or perhaps software, hardware, and so on) along with the answers to these questions.F

Question 216

Card 2

joint venture

Answer 216

An agreement between two or more firms to risk equity capital to attempt a specific business objective.J

Question 217

Card 2

risk management planning

Answer 217

The process of defining how to identify and minimize risk factors for a project.R

Question 218

Card 2

best-in-class

Answer 218

An organization, often from another industry, recognized for excellence in a specific process area. See: process benchmarking.B

Question 219

Card 2

open-to-buy

Answer 219

A control technique used in aggregate inventory management in which authorizations to purchase are made without being committed to specific suppliers. These authorizations are often reviewed by management using such measures as commodity in dollars and by time period.O

Question 220

Card 2

purchase price variance

Answer 220

The difference in price between the amount paid to the supplier and the planned or standard cost of that item.P

Question 221

Card 2

average forecast error

Answer 221

1) The arithmetic mean of the forecast errors. 2) The exponentially smoothed forecast error. See: bias, forecast error.A

Question 222

Card 2

intermodal marketing companies (IMCs)

Answer 222

Organizations that are the intermediary for shippers and intermodal rail carriers.I

Question 223

Card 2

real time

Answer 223

The technique of coordinating data processing with external related physical events as they occur, thereby permitting prompt reporting of conditions. See: online service.R

Question 224

Card 2

requirements traceability

Answer 224

The capability to determine the source of demand requirements through record linkages. It is used in analyzing requirements to make adjustments to plans for material or capacity. See: pegging.R

Question 225

Card 2

EPC

Answer 225

Abbreviation for electronic product code.E

Question 226

Card 2

arrival

Answer 226

In queuing theory, a unit that arrives for service, such as a person or part.A

Question 227

Card 2

single-channel, single-phase system

Answer 227

A queuing system that has only one channel for arrivals to enter and only one phase to completely service the arrival.S

Question 228

Card 2

point reporting

Answer 228

The recording and reporting of milestone manufacturing order occurrences, typically done at checkpoint locations rather than operations and easily controlled from a reporting standpoint.P

Question 229

Card 2

DBMS

Answer 229

Abbreviation for database management system.D

Question 230

Card 2

multinational corporation

Answer 230

A company with capital investments in more than a single country.M

Question 231

Card 2

vertical integration

Answer 231

The degree to which a firm has decided to directly produce multiple value-adding stages from raw material to the sale of the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated. See: backward integration, forward integration.V

Question 232

Card 2

multilevel bill of material

Answer 232

A display of all the components directly or indirectly used in a parent, together with the quantity required of each component. If a component is a subassembly, blend, intermediate, etc., all its components and all their components also will be exhibited, down to purchased parts and raw materials.M

Question 233

Card 2

electronic form

Answer 233

An electronic version of a paper form. These forms eliminate the cost of printing, storing, and distributing paper forms.E

Question 234

Card 2

Fourier series

Answer 234

A form of analysis useful for forecasting. The model is based on fitting sine waves with increasing frequencies and phase angles to a time series.F

Question 235

Card 2

five Ss

Answer 235

Five terms beginning with “S” used to create a workplace suitable for lean production. Sort means to separate needed items from unneeded ones and remove the latter. Simplify means to neatly arrange items for use. Scrub means clean up the work area. Standardize means to sort, simplify, and scrub daily. Sustain means to always follow the first four Ss. Sometimes referred to by the Japanese equivalents: seiri, seiton, seiso, seiketsu, and shitsuke.F

Question 236

Card 2

formula

Answer 236

A statement of ingredient requirements. A formula may also include processing instructions and ingredient sequencing directions. Syn: formulation, recipe.F

Question 237

Card 2

firm master production schedule

Answer 237

A part of the master production schedule in which changes can occur only rarely.F

Question 238

Card 2

scatter chart

Answer 238

A graphical technique to analyze the relationship between two variables. Two sets of data are plotted on a graph, with the y axis used for the variable to be predicted and the x axis used for the variable to make the prediction. The graph will show possible relationships (although two variables might appear to be

Question 239

Card 2

consignor

Answer 239

The originator of a shipment of freight.C

Question 240

Card 2

steady state

Answer 240

Waiting lines are subject to wide fluctuations when they first are created in a simulation model. A less variable (steady) state emerges after the line has existed for some time. Usually data are not collected from the simulation until after steady state is reached. See: transient state.S

Question 241

Card 2

union shop

Answer 241

A facility in which all hourly employees are unionized, or more formally a clause in a collective bargaining agreement under which membership in the union is required as a condition of employment. Union shops are illegal in some regions.U

Question 242

Card 2

permission marketing

Answer 242

Syn: relationship marketing.P

Question 243

Card 2

quality policy

Answer 243

A top-management statement of the overall quality direction of an organization as required by ISO 9001.Q

Question 244

Card 2

resource breakdown structure

Answer 244

A hierarchical structure that breaks resources into categories and types; can be useful for plan resource schedules, including human resources.R

Question 245

Card 2

radio frequency identification (RFID)

Answer 245

A system using electronic tags to store data about items. Accessing these data is accomplished through a specific radio frequency and does not require close proximity or line-ofsight access for data retrieval. See: active tag, passive tag, semi-passive tag.R

Question 246

Card 2

compound interest

Answer 246

1) The type of interest that is periodically added to the amount of investment (or loan) so that subsequent interest is based on the cumulative amount. 2) The interest charges under the condition that interest is charged on any previous interest earned in any time period, as well as on the principal.C

Question 247

Card 2

express warranty

Answer 247

A positive representation, made by a seller, concerning the nature, character, use, and purpose of goods, that induces the buyer to buy and on which the seller intends the buyer to depend.E

Question 248

Card 2

scheduled finish date

Answer 248

In project management, an activity’s planned finish time, normally between the early finish time and the late finish time. It may reflect resource limitations. Syn: planned finish date.S

Question 249

Card 2

synchronized production

Answer 249

A manufacturing management philosophy that includes a consistent set of principles, procedures, and techniques where every action is evaluated in terms of the global goal of the system. Both kanban, which is a part of the JIT philosophy, and drum-buffer-rope, which is a part of the theory of constraints philosophy, represent synchronized production control approaches. Syn: synchronous manufacturing. See: drum-buffer-rope, kanban, synchronous scheduling.S

Question 250

Card 2

earned value method

Answer 250

In project management, a comparison of planned activity time and cost to actual activity time and cost to see if a project is on schedule by time and by budget.E E

Question 251

Card 2

linearity

Answer 251

1) Production at a constant quantity. 2) Use of resources at a level rate, typically measured daily or more frequently.L

Question 252

Card 2

fixed-cost contribution per unit

Answer 252

An allocation process where total fixed cost for a period is divided by total units produced in that given time period.F

Question 253

Card 2

project scope

Answer 253

In project management, the work required to create a product with given features and options.P

Question 254

Card 2

rescheduling assumption

Answer 254

A fundamental assumption of MRP logic that existing open orders can be rescheduled in nearer time periods far more easily than new orders can be released and received. As a result, planned order receipts are not created until all scheduled receipts have been applied to cover gross requirements.R

Question 255

Card 2

project calendar

Answer 255

A calendar of working days and nonworking days that shows when scheduled activities are idle. Typically, it includes holidays and weekends. See: resource calendar.P

Question 256

Card 2

bias

Answer 256

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. See: average forecast error.B

Question 257

Card 2

equal runout quantities

Answer 257

Order quantities for items in a group that result in a supply that covers an equal time for all items. Syn: equal runout method. See: fair-share quantity logic.E

Question 258

Card 2

operation time

Answer 258

The total of setup and run time for a specific task. Syn: operation duration.O

Question 259

Card 2

operational performance measurements

Answer 259

1) In traditional management, performance measurements related to machine, worker, or department efficiency or utilization. These performance measurements are usually poorly correlated with organizational performance. 2) In theory of constraints, performance measurements that link causally to organizational performance measurements. Throughput, inventory, and operating expense are examples. See: global performance measurements, local performance measurements, strategic performance measurements.O

Question 260

Card 2

bilateral contract

Answer 260

An agreement wherein each party makes a promise to the other party.B

Question 261

Card 2

economic order quantity (EOQ)

Answer 261

A type of fixed order quantity model that determines the amount of an item to be purchased or manufactured at one time. The intent is to minimize the combined costs of acquiring and carrying inventory. The basic formula is: quantity

Question 262

Card 2

separable cost

Answer 262

A cost that is assignable to a given portion of a business.S

Question 263

Card 2

attribute

Answer 263

1) Quality control value that is either a yes/no value or is counted rather than being measured on a continuous scale. See: variable, attribute data. 2) A description of an item or service that specifies either a presence or an absence, such as “on-time” versus “late.”A

Question 264

Card 2

external failure costs

Answer 264

The costs related to problems found after the product reaches the customer. This usually includes such costs as warranty and returns.E

Question 265

Card 2

ISO

Answer 265

Abbreviation for International Organization for Standardization.I

Question 266

Card 2

statistical inventory control

Answer 266

The use of statistical methods to model the demands and lead times experienced by an inventory item or group of items. Demand during lead time and between reviews can be modeled, and reorder points, safety stocks, and maximum inventory levels can be defined to strive for desired customer service levels, inventory investments, manufacturing and distribution efficiency, and targeted returns on investments. Syn: scientific inventory control. See: fixed reorder quantity inventory model.S

Question 267

Card 2

expedite

Answer 267

To rush or chase production or purchase orders that are needed in less than the normal lead time; to take extraordinary action because of an increase in relative priority. Syn: stockchase.E

Question 268

Card 2

bill-of-material explosion

Answer 268

The process of determining component identities, quantities per assembly, and other parent/component relationship data for a parent item. Explosion may be single level, indented, or summarized.B

Question 269

Card 2

make-or-buy cost analysis

Answer 269

A comparison of all of the costs associated with making an item versus the cost of buying the item.M

Question 270

Card 2

due date

Answer 270

The date when purchased material or production material is due to be available for use. Syn: expected receipt date. See: arrival date.D

Question 271

Card 2

program

Answer 271

In project management, a coordinated set of related projects usually including ongoing work.P

Question 272

Card 2

materiel

Answer 272

A term, used more frequently in nonmanufacturing organizations, to refer to the equipment, apparatus, and supplies used by an organization.M

Question 273

Card 2

first-article inspection

Answer 273

A quality check on the first component run after a new setup has been completed. Syn: first-piece inspection.F

Question 274

Card 2

link

Answer 274

The transportation method used in a logistics system to connect the nodes of the system.L

Question 275

Card 2

manufacturing cycle efficiency

Answer 275

The ratio of value-added time to manufacturing lead time or cycle time. Manufacturing cycle time can be improved by the reduction of manufacturing lead time by eliminating nonvalue- added activities such as inspecting, moving, and queuing.M

Question 276

Card 2

centralized marketing system

Answer 276

An organizational structure in which a central marketing group manages functionally divided areas, such as advertising, sales, and marketing research.C

Question 277

Card 2

small group improvement activity

Answer 277

An organizational technique for involving employees in continuous improvement activities. See: quality circle.S

Question 278

Card 2

differentiation strategy

Answer 278

A business strategy that focuses on setting a product or service apart from the competition focusing on making a product or service unique.D

Question 279

Card 2

load-distance analysis

Answer 279

In layout analysis, a method of choosing a facility layout based on selecting the layout with the shortest product or material travel per time period.L

Question 280

Card 2

brand plan

Answer 280

Syn: market plan.B

Question 281

Card 2

market hedge

Answer 281

Scheduling or holding an inventory quantity greater than the expected demand because of expected inaccuracy or volatility in the forecasted demand. See: hedge.M

Question 282

Card 2

cross-functional team

Answer 282

A set of individuals from various departments assigned a specific task such as implementing new computer software. See: core team.C

Question 283

Card 2

customer tolerance time

Answer 283

Syn: demand lead time.C

Question 284

Card 2

inventory usage

Answer 284

The value or the number of units of an inventory item consumed over a period of time.I

Question 285

Card 2

bond (performance)

Answer 285

A guarantee of satisfactory work completion that is executed in connection with a contract and that secures the performance and fulfillment of all the undertakings, covenants, terms, conditions, and agreements contained in the contract.B

Question 286

Card 2

node

Answer 286

In project management, a point connected by arrows in a network.N

Question 287

Card 2

graphical forecasting methods

Answer 287

The use of visual information to predict sales patterns, it typically involves plotting information in a graphical form. It is relatively easy to convert a spreadsheet into a graph that conveys the information visually. Trends and patterns of data are easier to spot, and extrapolation of previous demand can be used to predict future demands.G

Question 288

Card 2

seasonality

Answer 288

A repetitive pattern of demand from year to year (or other repeating time interval) with some periods considerably higher than others. Syn: seasonal variation. See: base series.S

Question 289

Card 2

linear layout

Answer 289

A layout of various machines in one straight line. This type of layout makes it difficult to reallocate operations among workers and machinery.L

Question 290

Card 2

continuous process control

Answer 290

The use of transducers (sensors) to monitor a process and make automatic changes in operations through the design of appropriate feedback control loops. Although such devices have historically been mechanical or electromechanical, there is now widespread use of microcomputers and centralized control.C

Question 291

Card 2

FAS

Answer 291

1) Abbreviation for final assembly schedule. 2) Abbreviation for free alongside ship.F

Question 292

Card 2

bench stocks

Answer 292

Syn: floor stocks.B

Question 293

Card 2

order dating

Answer 293

Syn: order promising.O

Question 294

Card 2

loss to society

Answer 294

According to Genichi Taguchi, a loss to society occurs whenever a dimension of a product differs from its target value. This loss increases with the square of the deviation from the target. According to this concept, a loss to society occurs even though a dimension

Question 295

Card 2

coupon

Answer 295

A promotional device offering special savings when a product is purchased.C

Question 296

Card 2

blueprint

Answer 296

In engineering, a line drawing showing the physical characteristics of a part.B

Question 297

Card 2

customer contact centers

Answer 297

Centers that combine phone centers and web contact services to enable customers to contact the center 24 hours a day via phone, web, or email.C

Question 298

Card 2

marketing channel

Answer 298

That set of organizations through which a good or service passes in going from a raw state to the final consumer. See: channels of distribution, distribution channel.M

Question 299

Card 2

outpartnering

Answer 299

The process of involving the supplier in a close partnership with the firm and its operations management system. Outpartnering is characterized by close working relationships between buyers and suppliers, high levels of trust, mutual respect, and emphasis on joint problem solving and cooperation. With outpartnering, the supplier is viewed not as an alternative source of goods and services (as observed under outsourcing) but rather as a source of knowledge, expertise, and complementary core competencies. Outpartnering is typically found during the early stages of the product life cycle when dealing with products that are viewed as critical to the strategic survival of the firm. See: customer-supplier partnership, supplier partner, and customer partner.O

Question 300

Card 2

finish date

Answer 300

The time of completion of a project or activity. It may be planned, actual, early, late, baseline, or target.F

Question 301

Card 2

primary demand

Answer 301

The demand for a category of products rather than for a specific brand.P

Question 302

Card 2

plan deliver

Answer 302

Establishing plans for action over time that project appropriation of supply resources to meet delivery requirements.P

Question 303

Card 2

dojo

Answer 303

A Japanese word meaning hall.D

Question 304

Card 2

data mining

Answer 304

The process of studying data to search for previously unknown relationships. This knowledge is then applied to achieving specific business goals.D

Question 305

Card 2

maximum order quantity

Answer 305

An order quantity modifier, applied after the lot size has been calculated, that limits the order quantity to a pre-established maximum.M

Question 306

Card 2

brainstorming

Answer 306

A technique that teams use to generate ideas on a particular subject. Each person on the team is asked to think creatively and write down as many ideas as possible. The ideas are not discussed or reviewed until after the brainstorming session.B

Question 307

Card 2

Outsourcing involves substitution

Answer 307

the replacement of internal capacity and production by that of the supplier. See: subcontracting.O

Question 308

Card 2

departmental stocks

Answer 308

An informal system of holding some stock in a production department. This action is taken as a protection from stockouts in the stockroom or for convenience; however, it results in increased inventory investment and possible degradation of the accuracy of the inventory records.D

Question 309

Card 2

certificate of origin

Answer 309

A document attesting to a shipment’s country of origin.C

Question 310

Card 2

penetration pricing

Answer 310

Introducing a product below its long-run price to secure entry into a market.P

Question 311

Card 2

production rate

Answer 311

The rate of production usually expressed in units, cases, or some other broad measure, expressed by a period of time (e.g., per hour, shift, day, or week). Syn: production level.P

Question 312

Card 2

terminal-handling costs

Answer 312

Carrier charges dependent on the number of times a shipment must be loaded, handled and unloaded. Cost can be reduced by consolidating shipments into fewer parcels or by shipping in truckload quantities.T

Question 313

Card 2

fitness for use

Answer 313

A term used to indicate that a good or service fits the customer’s defined purpose for that good or service.F

Question 314

Card 2

decryption

Answer 314

Transformation of encrypted text into a readable format.D

Question 315

Card 2

returns inventory costs

Answer 315

All of the costs associated with handling returned inventory.R R

Question 316

Card 2

inventory turns

Answer 316

Syn: inventory turnover.I

Question 317

Card 2

risk mitigation

Answer 317

Reducing the exposure to risk, either by its likelihood or its impact.R

Question 318

Card 2

logistics management

Answer 318

The part of supply chain management that oversees the planning and execution of forward and reverse flow of goods and related information between points in the supply chain to meet customer requirements.L

Question 319

Card 2

performance and event management systems

Answer 319

Systems that record and measure the performance of key supply chain processes. With these data, employees can deperformance P termine when the key processes have changed and why they have changed. These data then are utilized to adjust the existent data.P

Question 320

Card 2

market plan

Answer 320

The output of the market planning process. The market plan includes the current market position, opportunity and issue analysis, marketing objectives and strategies, action plans, programs, projects, budgets, and pro forma profit and loss statement and management controls. Syn: brand plan, product plan.M

Question 321

Card 2

data dictionary

Answer 321

1) A catalog of requirements and specifications for an information system. 2) A file that stores facts about the files and databases for all systems that are currently being used or for the software involved.D

Question 322

Card 2

human-machine interface

Answer 322

The location where data is transferred from a worker to a computer, or vice-versa.H

Question 323

Card 2

leading indicator

Answer 323

A specific business activity index that indicates future trends. For example, housing starts is a leading indicator for the industry that supplies builders’ hardware.L

Question 324

Card 2

global sourcing

Answer 324

Using international sources for supplies.G

Question 325

Card 2

EEOC

Answer 325

Abbreviation for Equal Employment Opportunity Commission.E

Question 326

Card 2

external customer

Answer 326

A person or organization that receives a good, a service, or information but is not part of the organization supplying it. See: customer, internal customer.E

Question 327

Card 2

calibration frequency

Answer 327

The interval in days between tooling calibrations.C

Question 328

Card 2

progress payments

Answer 328

Payments arranged in connection with purchase transactions requiring periodic payments in advance of delivery for certain amounts or for certain percentages of the purchase price.P

Question 329

Card 2

work ticket

Answer 329

Syn: work order.W

Question 330

Card 2

data file

Answer 330

A collection of related data records organized in a specific manner (e.g., one record for each inventory item showing product code, unit of measure, production costs, transactions, selling price, and production lead time).D

Question 331

Card 2

ways

Answer 331

Paths over which a carrier operates, including right-of-way, roadbed, tracks, and other physical facilities. May be owned by the government or privately held by the carrier or provided by nature.W

Question 332

Card 2

path

Answer 332

In project management, a set of serially related activities in a network diagram.P

Question 333

Card 2

dynamic lot sizing

Answer 333

Any lot-sizing technique that creates an order quantity subject to continuous recomputation. See: least total cost, least unit cost, part period balancing, period order quantity, Wagner-Whitin algorithm.D

Question 334

Card 2

fringe benefits

Answer 334

Employer-granted compensations that are not directly tied to salary.F

Question 335

Card 2

into three areas

Answer 335

throughput, inventory, and operating expense. It does not create incentives (through allocation of overhead) to build up inventory. The system is considered to provide a truer reflection of actual revenues and costs than traditional cost accounting. It is closer to a cash flow concept of income than is traditional accounting. The theory of constraints (TOC) accounting provides a simplified and more accurate form of direct costing that subtracts true variable costs (those costs that vary with throughput quantity). Unlike traditional cost accounting systems in which the focus is generally placed on reducing costs in all the various accounts, the primary focus of TOC accounting is on aggressively exploiting the constraint(s) to make more money for the firm. Syn: constraint accounting, throughput accounting.T

Question 336

Card 2

replenishment period

Answer 336

The time between successive replenishment orders. Syn: replenishment interval. See: review period.R

Question 337

Card 2

allocated item

Answer 337

In an MRP system, an item for which a picking order has been released to the stockroom but not yet sent from the stockroom.A

Question 338

Card 2

competitive benchmarking

Answer 338

Benchmarking a product or service against competitors. Syn: performance benchmarking. See: benchmarking.C

Question 339

Card 2

subassembly

Answer 339

An assembly that is used at the next level of the bill of material to build another assembly.S

Question 340

Card 2

micro-land-bridge traffic

Answer 340

A multimodal transportation solution that moves goods over water and then land, with the final destination inland. See: mini-land-bridge traffic.M

Question 341

Card 2

trigger level

Answer 341

Syn: order point.T

Question 342

Card 2

process control

Answer 342

1) The function of maintaining a process within a given range of capability by feedback, correction, and so forth. 2) The monitoring of instrumentation attached to equipment (valves, meters, mixers, liquid, temperature, time, etc.) from a control room to ensure that a high-quality product is being produced to specification.P

Question 343

Card 2

performance measure

Answer 343

In a performance measurement system, the actual value measured for the criterion. Syn: performance measurement. See: performance criterion, performance measurement system, performance standard.P

Question 344

Card 2

sequential

Answer 344

In numeric sequence, normally in ascending order.S

Question 345

Card 2

stores ledger card

Answer 345

A card on which records of the items on hand and on order are maintained.S

Question 346

Card 2

CPOF

Answer 346

Abbreviation for capacity planning using overall factors.C

Question 347

Card 2

quality at the source

Answer 347

A producer’s responsibility to provide 100 percent acceptable quality material to the consumer of the material. The objective is to reduce or eliminate shipping or receiving quality inspections and line stoppages as a result of supplier defects.Q

Question 348

Card 2

manufacturing resource planning (MRP II)

Answer 348

A method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer what-if questions. It is made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), master production scheduling, material requirements planning, capacity requirements planning, and the execution support systems for capacity and material. Output from these systems is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars. Manufacturing resource planning is a direct outgrowth and extension of closed-loop MRP.M

Question 349

Card 2

frequency of repair

Answer 349

Syn: repair factor.F

Question 350

Card 2

service parts revenue

Answer 350

The value of sales of replacement parts to external and internal customers, net of discounts and coupons.S

Question 351

Card 2

ratification

Answer 351

The situation wherein a principal, failing to repudiate an agent’s unauthorized conduct, is bound by the conduct.R

Question 352

Card 2

group technology (GT)

Answer 352

An engineering and manufacturing philosophy that identifies the physical similarity of parts (common routing) and establishes their effective production. It provides for rapid retrieval of existing designs and facilitates a cellular layout.G

Question 353

Card 2

maintenance, repair, and overhaul (MRO)

Answer 353

An item for reprocessing in the remanufacturing industry.M

Question 354

Card 2

normal distribution

Answer 354

A particular statistical distribution where most of the observations fall fairly close to one mean, and a deviation from the mean is as likely to be plus as it is to be minus. When graphed, the normal distribution takes the form of a bell-shaped curve.N

Question 355

Card 2

e-commerce

Answer 355

Abbreviation for electronic commerce.E

Question 356

Card 2

design

Answer 356

The conversion of a need or innovation into a product, process, or service that meets both the enterprise and customer expectations. The design process consists of translating a set of functional requirements into an operational product, process, or service.D

Question 357

Card 2

AON

Answer 357

Abbreviation for activity-on-node network.A

Question 358

Card 2

convertible security

Answer 358

An asset (stock or bond) that may be changed for another asset at the owner’s request.C

Question 359

Card 2

transient state

Answer 359

In waiting line models, early behavior of a characteristic of the model, such as line length, is more erratic than eventual performance of the line. Data are usually not collected from the model until less erratic behavior emerges. See: steady state.T

Question 360

Card 2

project costing

Answer 360

An accounting method of assigning valuations that is generally used in industries where services are performed on a project basis. Each assignment is unique and costed without regard to other assignments. Examples are shipbuilding, construction projects, and public accounting firms. Project costing is opposed to process costing, where products to be valued are homogeneous.P

Question 361

Card 2

single-source supplier

Answer 361

A company that is selected to have 100 percent of the business for a part although S alternate suppliers are available. See: sole-source supplier.S

Question 362

Card 2

awareness efficiency

Answer 362

In e-commerce, a measurement of how well an organization informs people who have access to the web that the organization’s website exists.A B

Question 363

Card 2

knowledge management

Answer 363

Concept of information being used by executives, managers, and employees to more effectively produce product, interface with customers, and navigate through competitive markets.K

Question 364

Card 2

continuous production

Answer 364

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 the jobs is fixed and setups are seldom changed. Syn: continuous flow (production), continuous process, continuous manufacturing. See: mass production, project manufacturing.C

Question 365

Card 2

replacement parts

Answer 365

Parts that can be used as substitutes that differ from completely interchangeable service parts in that they require some physical modification (e.g., boring, cutting, drilling) before they can replace the original part.R

Question 366

Card 2

time-definite services

Answer 366

Delivery of goods and services where an agreement has been reached on the day and time of the delivery.T

Question 367

Card 2

MAPE

Answer 367

Abbreviation for mean absolute percent error.M

Question 368

Card 2

champion

Answer 368

(1) In quality control, sponsor of a six sigma implementation project. (2) In general, sponsor of an improvement effort.C

Question 369

Card 2

content management applications

Answer 369

Supports the evolutionary life cycle of digital-based information and makes information dynamically updatable online; includes the ability to publish content to a repository and support access to digital-based content.C

Question 370

Card 2

blocking bug

Answer 370

A defect that prevents a thorough investigation as to the cause, or that prevents shipment of a product.B

Question 371

Card 2

consuming the forecast

Answer 371

The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period. Syn: forecast consumption.C

Question 372

Card 2

earned value

Answer 372

In project management, the total value, including overhead, of approved estimates for completed activities or portions thereof.E

Question 373

Card 2

dog

Answer 373

A slang term used to refer to a low-growth, lowmarket- share product. See: growth-share matrix.D

Question 374

Card 2

single-digit setup (SDS)

Answer 374

The idea of performing setups in less than 10 minutes. See: single-minute exchange of die.S

Question 375

Card 2

activity network diagram

Answer 375

One of the seven new tools of quality. A drawing including nodes that represent operations to be performed and arrows representing precedence relationships. This drawing represents all of the activities to be finished to complete a project. Also known as a critical path diagram or PERT chart.A

Question 376

Card 2

lumpy demand

Answer 376

Syn: discontinuous demand.L M

Question 377

Card 2

periodic replenishment

Answer 377

A method of aggregating requirements to place deliveries of varying quantities at evenly spaced time intervals, rather than variably spaced deliveries of equal quantities.P

Question 378

Card 2

resource planning

Answer 378

Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long-range capacity. Resource planning is normally based on the production plan but may be driven by higher level plans beyond the time horizon for the production plan (e.g., the business plan). It addresses those resources that take long periods of time to acquire. Resource planning decisions always require top management approval. Syn: resource requirements planning. See: capacity planning, long-term planning.R

Question 379

Card 2

stock split

Answer 379

The issuance of new shares to stockholders without requiring additional equity.S

Question 380

Card 2

safety factor

Answer 380

1) The ratio of average strength to the worst stress expected. It is essential that the variation, in addition to the average value, be considered in design. 2) The numerical value used in the service function (based on the standard deviation or mean absolute deviation of the forecast) to provide a given level of customer service. For example, if the item MAD is 100 and a .95 customer service level (safety factor of 2.06) is desired, then a safety stock of 206 units should be carried. This safety stock must be adjusted if the forecast interval and item lead times differ. Syn: service factor. See: service function.S

Question 381

Card 2

specification limits

Answer 381

Syn: tolerance limits.S

Question 382

Card 2

stickering

Answer 382

Placing manufacturer-or customer-requested stickers on the boxes of the product being sent to them. These are typically done so that the customer, typically a retailer, can more effectively track its inventory. Bar coding is commonly a part of the stickering process.S

Question 383

Card 2

operation setback chart

Answer 383

A graphical display of the bill of materials and lead-time information provided by the routing for each part. The horizontal axis provides the lead time from raw materials purchase to component manufacture to assembly of the finished product.O

Question 384

Card 2

container design

Answer 384

The characteristics of the product that make it transportable with ease of handling and stowability. Container concepts include packaging, monetary density, and physical density.C

Question 385

Card 2

operations finite loading

Answer 385

A finite loading technique that aims to minimize possible delays to individual operations and, thus, the potential delay of each scheduled order. Eligible operations from an order or a group of orders are loaded period by period onto a work center or a group of work centers, according to operation-level priority rules. Syn: operations sequencing. See: constraint-oriented finite loading, drum-buffer-rope, order-oriented finite loading.O

Question 386

Card 2

current finish time

Answer 386

In project management, the present estimate of an activity’s finish time.C

Question 387

Card 2

cost allocation

Answer 387

The assignment of costs that cannot be directly related to production activities via more measurable means (e.g., assigning corporate expenses to different products via direct labor costs or hours).C

Question 388

Card 2

manufacturing layout strategies

Answer 388

An element of manufacturing strategy. It is the analysis of physical capacity, geography, functional needs, corporate philosophy, and product-market/process focus to systematically respond to required facility changes driven by organizational, strategic, and environmental considerations.M

Question 389

Card 2

planned value

Answer 389

In project management, the total value (including overhead) of approved estimates for planned activities.P

Question 390

Card 2

cooperative training

Answer 390

An educational process in which students alternate formal studies with actual on-the-job experience. Successful completion of the off-campus experience may be a prerequisite for graduation from the program of study.C

Question 391

Card 2

dock receipt

Answer 391

A receipt recorded for a shipment received or delivered at a pier or dock.D

Question 392

Card 2

bottleneck

Answer 392

A facility, function, department, or resource whose capacity is less than the demand placed upon it. For example, a bottleneck machine or work center exists where jobs are processed at a slower rate than they are demanded. Syn: bottleneck operation.B

Question 393

Card 2

materials management

Answer 393

The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product.M

Question 394

Card 2

virtual corporation

Answer 394

The logical extension of outpartnering. With the virtual corporation, the capabilities and systems of the firm are merged with those of the suppliers, resulting in a new type of corporation where the boundaries between the suppliers’ systems and those of the firm seem to disappear. The virtual corporation is dynamic in that the relationships and structures formed change according to the changing needs of the customer.V

Question 395

Card 2

GAMP

Answer 395

Acronym for generally accepted manufacturing practices.G

Question 396

Card 2

hybrid organizational structure

Answer 396

An organizational structure that embodies multiple organizational forms (functional, product, or geographical) simultaneously. For example, some functions may be centralized (such as finance and accounting), whereas others may be duplicated geographically (such as sales).H

Question 397

Card 2

net operating income

Answer 397

The income before interest and taxes are subtracted. Syn: earnings before interest and taxes.N

Question 398

Card 2

product load profile

Answer 398

A listing of the required capacity and key resources needed to manufacture one unit of a selected item or family. The resource requirements are further defined by a lead-time offset to predict the impact of the product on the load of the key resources by specific time period. The product load profile can be used for rough-cut capacity planning to calculate the approximate capacity requirements of the master production schedule. See: bill of resources, resource profile, rough-cut capacity planning.P

Question 399

Card 2

industry

Answer 399

A set of companies providing a product or service where each company’s offering is a close substitute for its competitors’ offerings.I

Question 400

Card 2

resource leveling

Answer 400

The process of scheduling (and rescheduling) the start and finish dates of operations (or activities) to achieve a consistent rate of resource usage so that resource requirements do not exceed resource availability for a given time period. Syn: leveling.R

Question 401

Card 2

in-process inventory

Answer 401

Syn: work in process.I

Question 402

Card 2

material planner

Answer 402

1) The person normally responsible for managing the inventory levels, schedules, and availability of selected items, either manufactured or purchased. Syn: inventory planner. 2) In an MRP system, the person responsible for reviewing and acting on order release, action, and exception messages from the system. Syn: parts planner, planner.M

Question 403

Card 2

full cost pricing

Answer 403

Establishing price at some markup over the full cost (absorption costing). Full costing includes direct manufacturing as well as applied overhead.F

Question 404

Card 2

activity-based planning (ABP)

Answer 404

In activity-based cost accounting, a continuing definition of activity and resource requirements (for both financial and operational systems) based on future demand for products or services by specific customer needs. Demand for resources is related to resource availability; capacity overages and shortfalls are corrected. Activity-based budgeting derives from the outputs of ABP.A

Question 405

Card 2

process capability index

Answer 405

The value of the tolerance specified for the characteristic divided by the process capability. There are several types of process capability indices, including the widely used Cpk and Cp.P P

Question 406

Card 2

retirement of debt

Answer 406

The termination of a debt obligation by appropriate settlement with the lender. Understood to be in full amount unless partial settlement is specified.R

Question 407

Card 2

total procurement lead time

Answer 407

Syn: procurement lead time.T

Question 408

Card 2

seiso

Answer 408

A term that states that a productive workplace is found through cleanliness. See: five Ss.S

Question 409

Card 2

demand

Answer 409

A need for a particular product or component. The demand could come from any number of sources (e.g., a customer order or forecast, an interplant requirement, a branch warehouse request for a service part or the manufacturing of another product). At the finished goods level, demand data are usually different from sales data because demand does not necessarily result in sales (i.e., if there is no stock, there will be no sale). There are generally up to four components of demand: cyclical component, random component, seasonal component, and trend component. See: booked orders.D

Question 410

Card 2

free alongside ship (FAS)

Answer 410

A term of sale indicating the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used F by the vessel. Title passes to the buyer when the seller has secured a clean dock or ship’s receipt of goods.F

Question 411

Card 2

manufacturing representative

Answer 411

Syn: manufacturer’s representative. M

Question 412

Card 2

claim

Answer 412

A charge made against a company because of loss or damage.C

Question 413

Card 2

inbound stockpoint

Answer 413

A defined location next to the place of use on a production floor. Materials are brought to the stockpoint as needed and taken from it for immediate use. Inbound stockpoints are used with a pull system of material control.I

Question 414

Card 2

calculated usage

Answer 414

The determination of usage of components or ingredients in a manufacturing process by multiplying the receipt quantity of a parent by the quantity per of each component or ingredient in the bill or recipe, accommodating standard yields.C

Question 415

Card 2

five whys

Answer 415

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. Syn: five Ws. See: root cause analysis.F

Question 416

Card 2

overhead

Answer 416

The costs incurred in the operation of a business that cannot be directly related to the individual goods or services produced. These costs, such as light, heat, supervision, and maintenance, are grouped in several pools (e.g., department overhead, factory overhead, general overhead) and distributed to units of goods or services by some standard allocation method such as direct labor hours, direct labor dollars, or direct materials dollars. Syn: burden. See: expense.O

Question 417

Card 2

original equipment manufacturer (OEM)

Answer 417

A manufacturer that buys and incorporates another supplier’s products into its own products. Also, products supplied to the original equipment manufacturer or sold as part of an assembly. For example, an engine may be sold to an OEM for use as that company’s power source for its generator units.O

Question 418

Card 2

operation splitting

Answer 418

Syn: lot splitting.O

Question 419

Card 2

strict performance

Answer 419

The performance of a contract good enough for the contractor to be paid full price less the other party’s losses.S

Question 420

Card 2

discount period

Answer 420

The time allowed a customer to receive a cash discount for timely payment of an invoice.D

Question 421

Card 2

break-bulk warehousing

Answer 421

A form of cross-docking in which the incoming shipments are from a single source or manufacturer.B

Question 422

Card 2

waiting line theory

Answer 422

Syn: queuing theory.W

Question 423

Card 2

level production method

Answer 423

A production planning method that maintains a stable production rate while varying inventory levels to meet demand. Syn: level strategy, production leveling. See: level schedule.L

Question 424

Card 2

plant finished goods

Answer 424

Finished goods inventory held in plant rather than being shipped to a customer.P

Question 425

Card 2

bill of labor

Answer 425

A structured listing of all labor requirements for the fabrication, assembly, and testing of a parent item. See: bill of resources, capacity bill procedure, routing.B

Question 426

Card 2

adjustable capacity

Answer 426

Capacity, such as labor or tools, that can be changed in the short term.A

Question 427

Card 2

total cost analysis

Answer 427

In purchasing, a process by which a firm seeks to identify and quantify all of the major costs associated with various sourcing options.T

Question 428

Card 2

data acquisition

Answer 428

Obtaining data from a source, such as a database, and communicating that data to another database or a data warehouse.D

Question 429

Card 2

labor efficiency

Answer 429

1) Syn: worker efficiency. 2) The average of worker efficiency for all direct workers in a department or facility.L

Question 430

Card 2

run chart

Answer 430

A graphical technique that illustrates how a process is performing over time. By statistically analyzing a run chart, a process can be determined to be under or out of control. The most common types of data used to construct the charts are ranges, averages, percentages/counts, and individual process attributes (e.g., temperature). Syn. run diagram. See: C chart, P chart, R chart, U chart, X-bar chart.R

Question 431

Card 2

performance criterion

Answer 431

The characteristic to be measured (e.g., parts per million defective, business profit). See: performance measure, performance measurement system, performance standard.P

Question 432

Card 2

conveyor

Answer 432

A device following a fixed route that has the capability of moving material between points in a facility. This device commonly is used when there is a high volume of flow along the route.C

Question 433

Card 2

automatic identification system (AIS)

Answer 433

A system that can use various means, including bar code scanning and radio frequencies, to sense and load data in a computer.A

Question 434

Card 2

flow processing

Answer 434

In process systems development, work flows from one workstation to another at a nearly constant rate and with no delays. When producing discrete (geometric) units, the process is called repetitive manufacturing; when producing non-geometric units over time, the process is called continuous manufacturing. A physical-chemical reaction takes place in the continuous flow process.F

Question 435

Card 2

parallel implementation strategy

Answer 435

A system implementation technique whereby the current system and the new system are both executed for some period of time. The results of the two systems are compared to ensure that the new system is executing properly. When a level of confidence is built that the new system is executing properly, the old system is turned off and the new system becomes the designated business system.P

Question 436

Card 2

log normal distribution

Answer 436

A continuous probability distribution where the logarithms of the variable are normally distributed.L

Question 437

Card 2

positioning strategy

Answer 437

Within manufacturing, a plan for inventory, product design, and production process.P

Question 438

Card 2

independent action

Answer 438

In transportation, the publication of a freight rate that differs from that of the rate bureau to which the publisher is a member. This is a permitted action.I

Question 439

Card 2

protection time

Answer 439

Syn: safety lead time.P P

Question 440

Card 2

base series

Answer 440

A standard succession of values of demand-over-time data used in forecasting seasonal items. This series of factors is usually based on the relative level of demand during the corresponding period of previous years. The average value of the base series over a seasonal cycle will be 1.0. A figure higher than 1.0 indicates that the demand for that period is more than the average; a figure less than 1.0 indicates less than the average. For forecasting purposes, the base series is superimposed upon the average demand and trend in demand for the item in question. Syn: base index. See: seasonal index, seasonality.B

Question 441

Card 2

bill-of-material structuring

Answer 441

The process of organizing bills of material to perform specific functions.B

Question 442

Card 2

parts bank

Answer 442

1) In the narrow sense, an accumulation of inventory between operations that serves to keep a subsequent operation running although there are interruptions in the preceding operations. See: buffer. 2) In the larger sense, a stockroom or warehouse. The implication is that the contents of these areas should be controlled like the contents of a bank.P

Question 443

Card 2

housekeeping

Answer 443

The manufacturing activity of identifying and maintaining an orderly environment for preventing errors and contamination in the manufacturing process.H

Question 444

Card 2

work rules

Answer 444

1) Compensation rules concerning such issues as overtime, vacation, and shift premiums. 2) Employee and employer job rights and obligation rules, such as performance standards, promotion procedures, job descriptions, and layoff rules. Work rules are usually a part of a union contract and may include a code of conduct for workers and language to ensure decent conditions and health standards.W

Question 445

Card 2

tare weight

Answer 445

The weight of a substance, obtained by deducting the weight of the empty container from the gross weight of the full container.T

Question 446

Card 2

lower specification limit (LSL)

Answer 446

In statistical process control, charting the line that defines the minimum acceptable level of random output. See: tolerance limits.L

Question 447

Card 2

cyberspace

Answer 447

A common name encompassing both the internet and other forms of electronic communication.C

Question 448

Card 2

interactive customer care

Answer 448

A generic term for a variety of services provided over the internet. These services include customer service and technical support.I

Question 449

Card 2

ROE

Answer 449

Abbreviation for return on owner’s equity.R

Question 450

Card 2

manufacturing order reporting

Answer 450

Syn: production reporting and status control.M

Question 451

Card 2

process flow scheduling

Answer 451

A generalized method for planning equipment usage and material requirements that uses the process structure to guide scheduling calculations. It is used in flow environments common in process industries.P

Question 452

Card 2

cost reduction

Answer 452

The act of lowering the cost of goods or services by securing a lower price, reducing labor costs, and so forth. In cost reduction, the item usually is not changed, but the circumstances around which the item

Question 453

Card 2

five focusing steps

Answer 453

In the theory of constraints, 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. The steps consist of (1) identifying the constraint to the system, (2) deciding how to exploit the constraint to the system, (3) subordinating all nonconstraints 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.F

Question 454

Card 2

batch sensitivity factor

Answer 454

A multiplier that is used for the rounding rules in determining the number of batches required to produce a given amount of product.B

Question 455

Card 2

dividend yield

Answer 455

The ratio of dividends per share over stock price.D

Question 456

Card 2

manufacturing data sheet

Answer 456

Syn: routing.M

Question 457

Card 2

action message

Answer 457

An output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem. Examples of action messages in an MRP system include release order, reschedule in, reschedule out, and cancel. Syn: exception message, action report.A

Question 458

Card 2

work in process (WIP)

Answer 458

A good or goods in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory. Many accounting systems also include the value of semifinished stock and components in this category. Syn: in-process inventory.W

Question 459

Card 2

finite forward scheduling

Answer 459

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. See: finite loading.F

Question 460

Card 2

CSCP

Answer 460

Abbreviation for Certified Supply Chain Professional.C

Question 461

Card 2

lead time

Answer 461

1) A span of time required to perform a process (or series of operations). 2) In a logistics context, the time between recognition of the need for an order and the receipt of goods. Individual components of lead time can include order preparation time, queue time, processing time, move or transportation time, and receiving and inspection time. Syn: total lead time. See: manufacturing lead time, purchasing lead time.L

Question 462

Card 2

QFD

Answer 462

Abbreviation for quality function deployment.Q

Question 463

Card 2

unitization

Answer 463

In warehousing, the consolidation of several units into larger units for fewer handlings.U

Question 464

Card 2

nemawashi

Answer 464

A Japanese word meaning getting a group to agree on a strategy before beginning to implement it.N

Question 465

Card 2

ton-mile

Answer 465

A way to measure the transportation of freight. It is the multiplication of weight being transported (in tons) by the distance it is being transported (in miles). Heavily used in rail and ship transportation mode.T

Question 466

Card 2

punitive damages

Answer 466

The money awarded a plaintiff, not as payment for the plaintiff ’s losses, but as punishment for the defendant’s conduct.P

Question 467

Card 2

agility

Answer 467

The ability to successfully manufacture and market a broad range of low-cost, high-quality products and services with short lead times and varying volumes that provide enhanced value to customers through cusAGVS ● analog A tomization. Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility.A

Question 468

Card 2

APR

Answer 468

Abbreviation for annual percentage rate.A

Question 469

Card 2

ASC

Answer 469

Abbreviation for accredited standards committee.A

Question 470

Card 2

AD&D

Answer 470

Abbreviation for accidental death and disability.A

Question 471

Card 2

labor voucher

Answer 471

Syn: labor claim.L

Question 472

Card 2

open office

Answer 472

An office, with moveable partitions and furniture, that deemphasizes the compartmentalization of people.O

Question 473

Card 2

group layout

Answer 473

A layout in which machine groups are arranged to process families of parts with similar characteristics. G

Question 474

Card 2

electronic funds transfer (EFT)

Answer 474

A computerized system that processes financial transactions and information about these transactions or performs the exchange of value between two parties.E electronic invoice presentment and payment (EIPP) Accepting and sending invoices and payments over the internet.E

Question 475

Card 2

variable costing

Answer 475

An inventory valuation method in which only variable production costs are applied to the product; fixed factory overhead is not assigned to the product. Traditionally, variable production costs are direct labor, direct material, and variable overhead costs. Variable costing can be helpful for internal management analysis but is not widely accepted for external financial reporting. For inventory order quantity purposes, however, the unit costs must include both the variable and allocated fixed costs to be compatible with the other terms in the order quantity formula. For make-orbuy decisions, variable costing should be used rather than full absorption costing. Syn: direct costing.V

Question 476

Card 2

hard automation

Answer 476

Use of specialized machines to manufacture and assemble products. Each machine is normally dedicated to one function, such as milling.H H

Question 477

Card 2

transformation system

Answer 477

Syn: transformation process.T

Question 478

Card 2

total quality management (TQM)

Answer 478

A term coined to describe Japanese-style management approaches to quality improvement. Since then, total quality management (TQM) has taken on many meanings. Simply put, TQM is a management approach to long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work. The methods for implementing this approach are found in teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, J.M. Juran, and Genichi Taguchi.T

Question 479

Card 2

optical character recognition (OCR)

Answer 479

A mechanized method of collecting data involving the reading of handprinted material or special character fonts. If handwritten, the information must adhere to predefined rules of size, format, and locations on the form.O

Question 480

Card 2

static budget

Answer 480

Syn: master budget.S

Question 481

Card 2

third-party registration system

Answer 481

Using an outside party (rather than the buyer) to determine the adequacy of a seller’s product quality. If several buyers use the same third party system, such as ISO9000, the seller avoids having multiple audits.T

Question 482

Card 2

common law

Answer 482

Law flowing from judicial decisions over the years rather than from legislative action.C

Question 483

Card 2

formal culture

Answer 483

The visible segment of the organizational culture, such as policies and procedures, mission statement, and dress codes. See: informal culture.F

Question 484

Card 2

bar coding

Answer 484

A method of encoding data using bar code for fast and accurate readability.B

Question 485

Card 2

input/output analysis

Answer 485

Syn: input/output control.I

Question 486

Card 2

Dodge-Romig tables

Answer 486

Information about the correct sample size and maximum defective quantity in a sample to satisfy lot acceptance; a quality control measurement.D

Question 487

Card 2

nondurable goods

Answer 487

Goods whose serviceability is generally limited to a period of less than three years (such as perishable goods and semidurable goods).N

Question 488

Card 2

disbursement

Answer 488

The physical issuance and reporting of the movement of raw material, components, or other items from a stores room or warehouse. Taking a part out of inventory. See: issue.D

Question 489

Card 2

project-based layout

Answer 489

A type of layout where the good or product is stationary and the workers come to the site to work on it.P

Question 490

Card 2

hub

Answer 490

A large manufacturer or retailer doing business with many trading partners.H

Question 491

Card 2

alternate operation

Answer 491

Replacement for a normal step in the manufacturing process. Ant: primary operation.A

Question 492

Card 2

diagnostic journey and remedial journey

Answer 492

A two-phase investigation used by teams to solve chronic quality

Question 493

Card 2

RMA

Answer 493

Abbreviation for return material authorization.R

Question 494

Card 2

gross sales

Answer 494

The total amount charged to all customers during the accounting time period.G

Question 495

Card 2

merge in transit

Answer 495

Combining shipments from several vendors at an intermediate point of shipment and delivering the combined load to the customer.M

Question 496

Card 2

back scheduling

Answer 496

A technique for calculating operation start dates 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. Syn: backward scheduling. Ant: forward scheduling.B

Question 497

Card 2

cycle counter

Answer 497

An individual who is assigned to do cycle counting.C

Question 498

Card 2

discount

Answer 498

An allowance or deduction granted by the seller to the buyer, usually when the buyer meets certain stipulated conditions that reduce the price of the products purchased. A quantity discount is an allowance determined by the quantity or value of the purchase. A cash discount is an allowance extended to encourage payment of an invoice on or before a stated date. A trade discount is a deduction from an established price for goods or services made by the seller to those engaged in certain businesses. See: price break.D

Question 499

Card 2

fixture

Answer 499

A device to hold and locate a work piece during inspection or production operations. See: jig.F F