APICS Deck 1 OO Flashcards

Question 1

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Term

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Definition

Question 2

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demand manager

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Person who assists sales and marketing in the development and maintenance of sales forecasts and reconciles volume and mix variations in the forecast.D

Question 3

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product audit

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The reinspection of any product to verify the adequacy of acceptance or rejection decisions made by inspection and testing personnel.P

Question 4

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twenty-foot equivalent unit (TEU)

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A measure of cargo capacity equivalent to a standard container (i.e., 20-feet long, 8-feet wide, and approximately 8-feet high).T

Question 5

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cash-to-cash cycle time

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An indicator of how efficiently a company manages its assets to improve cash flow. Inventory days + accounts receivable days – accounts payable days = cash-to-cash cycle time. See: cash conversion cycle.C

Question 6

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process flexibility

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The design of the manufacturing system, including operators and machinery, that allows quick changeovers to respond to near-term changes in product volume and mix. A necessary tool in lean and just in time.P

Question 7

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product engineering

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The discipline of designing a product or product line to take advantage of process technology and improve quality, reliability, and so forth.P

Question 8

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assembly

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A group of subassemblies and/or parts that are put together and that constitute a major subdivision for the final product. An assembly may be an end item or a component of a higher level assembly.A

Question 9

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net weight

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The weight of an article exclusive of the weights of all packing materials and containers.N

Question 10

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growth rate; and (4) Question marks

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low market share, high growth rate. Sometimes this same set of terms is used to categorize products by market share and profitability. See: cash cow, dog, question mark, star.G

Question 11

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operation

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1) A job or task, consisting of one or more work elements, usually done essentially in one location. 2) The performance of any planned work or method associated with an individual, machine, process, department, or inspection. 3) One or more elements that involve one of the following: the intentional changing of an object in any of its physical or chemical characteristics; the assembly or disassembly of parts or objects; the preparation of an object for another operation, transportation, inspection, or storage; planning, calculating, or giving or receiving information.O

Question 12

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multinational strategy

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A strategy that focuses on opportunities to achieve cross-business and cross-country coordination, thereby enabling economies of scope and an improved competitive position with regard to reducing costs, cross-country subsidization, and so on, to outcompete rivals. See: global strategy. multiphase system Syn: multiple-phase queuing system.M

Question 13

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nonlinear programming

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Programming similar to linear programming but incorporating a nonlinear objective function and linear constraints or a linear objective function and nonlinear constraints or both a nonlinear objective function and nonlinear constraints.N

Question 14

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deadhead

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The return of an empty transportation container to its point of origin. See: backhauling.D

Question 15

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countertrade

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Any transaction in which partial or full payment is made with goods instead of money. This often applies in international trade.C

Question 16

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production cycle elements

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Elements of manufacturing strategy that define the span of an operation by addressing the following areas: (1) the established boundaries for the firm’s activities, (2) the construction of relationships outside the firm’s boundaries (i.e., suppliers, distributors, and customers), (3) circumstances under which changes in established boundaries or relationships are necessary, (4) the effect of such boundary or relationship changes on the firm’s competitive position. The production cycle elements must explicitly address the strategic implications of vertical integration in regard to (a) the direction of such expansion, (b) the extent of the process span desired, and (c) the balance among the resulting vertically linked activities.P

Question 17

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planned receipt

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1) An anticipated receipt against an open purchase order or open production order. 2) Syn: planned order receipt.P

Question 18

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gatekeeping

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A group technique applied by a team leader to effectively manage a situation, discussion, or meeting. For example, in a situation where a dominant spokesperson or person of authority monopolizes a discussion, the gatekeeper will intervene by requesting additional group member’s input.G

Question 19

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idle inventory

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The inventory generally not needed in a system of linked resources. From a theory of constraints perspective, idle inventory generally consists of protective inventory and excess inventory. See: excess inventory, productive inventory, protective inventory.I

Question 20

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plan make

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

Question 21

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material index

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The total of raw material weights divided by final product weight.M

Question 22

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seven tools of quality

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Syn: basic seven tools of quality.S

Question 23

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enterprise

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Any undertaking, venture, initiative, or business organization with a defined mission.E

Question 24

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cloud computing

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An emerging way of computing where data is stored in massive data centers which can be accessed from any connected computers over the internet.C

Question 25

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decision theory

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A systematic approach to making decisions, particularly when uncertainty is present.D

Question 26

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sampling distribution

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The distribution of values of a statistic calculated from samples of a given size.S

Question 27

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clearinghouse

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An entity restricted to providing services such as settling accounts.C

Question 28

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forty-foot equivalent unit

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A measure of container capacity that is equivalent to two 20-foot equivalency units; that is, a unit equivalent to 40-feet long, 8-feet wide, and approximately 8-feet high.F

Question 29

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equal employment opportunity (EEO)

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In the United States, the laws prohibiting discrimination in employment because of race or color, sex, age, handicap status, religion, and national origin.E

Question 30

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any-quantity rate

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A situation in which no quantity discount is available for large shipments.A

Question 31

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work sequence

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Ordered activities performed to accomplish work.W

Question 32

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direct-deduct inventory transaction processing

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A method of inventory bookkeeping that decreases the book (computer) inventory of an item as material is issued from stock, and increases the book inventory as transactions processed for each item. The key concept here is that the book record is updated coincidentally with the movement of material out of or into stock. As a result, the book record is a representation of what is physically in stock. Syn: discrete issue.D

Question 33

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funnel experiment

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An experiment that demonstrates the effects of tampering. Marbles are dropped through a funnel in an attempt to hit a flat-surfaced target below. The experiment shows that adjusting a stable process to compensate for an undesirable result or an extraordinarily good result will produce output that is worse than if the process had been left alone. See: tampering.F

Question 34

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harmonic smoothing

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An approach to forecasting based on fitting some set of sine and cosine functions to the historical pattern of a time series. Syn: seasonal harmonics.H

Question 35

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futures

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Contracts for the sale and delivery of commodities at a future time, made with the intention that no commodity be delivered or received immediately.F

Question 36

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range

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In statistics, the spread in a series of observations. For example, the anticipated demand for a particular product might vary from a low of 10 to a high of 500 per week. The range would therefore be 500 – 10, or 490.R

Question 37

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pre-receiving

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Paying for materials before receipt to prepare for incoming products and goods.P

Question 38

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lateness

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Delivery date minus due date. Lateness may be positive or, in the case of early jobs, negative. See: earliness, tardiness.L

Question 39

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order entry

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The process of accepting and translating what a customer wants into terms used by the manufacturer or distributor. The commitment should be based on the available-to-promise (ATP) line in the master schedule. This can be as simple as creating shipping documents for finished goods in a make-to-stock environment, or it might be a more complicated series of activities, including design efforts for make-to-order products. See: master schedule, order service.O

Question 40

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electronic commerce application

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A computer interface between two organizations that is used to carry out business transactions electronically.E

Question 41

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business process management (BPM)

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A business discipline or function that uses business practices, techniques, and methods to create and improve business processes. BPM is a holistic approach to the use of appropriate process-related business disciplines to gain business performance improvements across the enterprise or supply chain. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. Most process improvement disciplines or activities can be considered as BPM.B

Question 42

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priority control

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The process of communicating start and completion dates to manufacturing departments in order to execute a plan. The dispatch list is the tool normally used to provide these dates and priorities based on the current plan and status of all open orders.P

Question 43

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proxy

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1) A written document authorizing an agent to vote a shareholder’s stock at a shareholder meeting. 2) The agent designated in 1).P

Question 44

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organizational development (OD)

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The process of building and strengthening core competencies and organizational capabilities that enable the execution of the business strategy and provide a sustainable competitive advantage over time. Organizational development includes staffing the organization, building core competencies and organizational capabilities, and continuous improvement initiatives in response to the changing business environment.O O

Question 45

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failure mode effects analysis (FMEA)

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A procedure in which each potential failure mode in every sub-item of an item is analyzed to determine its effect on other subitems and on the required function of the item.F

Question 46

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bar code

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A series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers. A bar code is used to facilibar B tate timely and accurate input of data to a computer system.B

Question 47

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contestable market

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A market having low entry costs.C

Question 48

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open-end purchase order

Answer

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A purchase agreement similar to a blanket purchase order that provides the added convenience of being able to negotiate additional items and expiration dates.O

Question 49

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MRP nervousness

Answer

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See: nervousness.M

Question 50

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customer-defined attributes

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The characteristics of a good or service that are viewed as being important in addressing the needs of the customer. See: house of quality.C

Question 51

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horizontal dependency

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The relationship between the components at the same level in the bill of material, in which all must be available at the same time and in sufficient quantity to manufacture the parent assembly. See: vertical dependency.H

Question 52

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resource-constrained schedule

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Syn: resource-limited schedule. See: drum-buffer-rope.R

Question 53

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FPO

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Abbreviation for firm planned order.F

Question 54

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design for quality

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A product design approach that uses quality measures to capture the extent to which the design meets the needs of the target market (customer attributes), as well as its actual performance, aesthetics, and cost. See: total quality engineering.D

Question 55

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parametric estimating

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The use of statistical and historical data to estimate activity parameters such as time or budget.P

Question 56

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ISO certification

Answer

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In quality management, denotes that a company has obtained an ISO9000 quality standard. Also, it is the process by which a firm achieves such certification. I

Question 57

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product differentiation

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A strategy of making a product distinct from the competition on a nonprice basis such as availability, durability, quality, or reliability.P

Question 58

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backward integration

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The process of buying or owning elements of the production cycle and channel of distribution back toward raw material suppliers. See: vertical integration.B

Question 59

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QRM

Answer

A

Abbreviation for quick-response manufacturing.Q

Question 60

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part type

Answer

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A code for a component within a bill of material (e.g., regular, phantom, reference).P P

Question 61

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total cost of quality

Answer

A

A sum that includes costs associated with rework, scrap, warranty costs, and other costs associated with preventing or resolving quality problems.T

Question 62

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authorized deviation

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Permission for a supplier or the plant to manufacture an item that is not in conformance with the applicable drawings or specifications.A

Question 63

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engineering drawings

Answer

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A visual representation of the dimensional characteristics of a part or assembly at some stage of manufacture.E

Question 64

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weight confirmation

Answer

A

The process of confirming a shipment arrival only by confirming the correct weight has been delivered.W

Answer 65

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The variety of possible events and their outcomes that could have a negative effect on the flow of goods, services, funds, or information resulting in some level of quantitative or qualitative loss for the supply chain.S

Answer 66

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The activity of releasing materials to a production process to support a manufacturing order. See: planned order release.O

Answer 67

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Organizations intermediate in the manufacturing and distribution process, such as wholesalers and retailers.R

Answer 68

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Syn: cumulative lead time.A

Answer 69

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The moment when something unique becomes common. The term often refers to the popular acceptance of new technologies. The concept has been applied to any process in which beyond a certain point, the rate at which the process (chemical, sociological, environmental, etc.) proceeds increase dramatically.T

Answer 70

A

An easy-to-read management tool similar to an automobile’s dashboard designed to address a wide range of business objectives by combining business intelligence and data integration infrastructure. See: executive dashboard.D

Answer 71

A

The inventory level made up of aggregate lot-size inventory plus the aggregate safety stock inventory. It does not take into account the anticipation inventory that will result from the production plan. The base inventory level should be known before the production plan is made. Syn: basic stock. See: aggregate inventory.B

Answer 72

A

A label to track pallet-sized quantities of end items produced to identify the specific sublot with specifications determined by periodic sampling and analysis during production.P

Answer 73

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Individual items in inventory at the simplest level in manufacturing (e.g., bolts and washers).P

Answer 74

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In remanufacturing, the bill of material defining the actual work required to return a product to service. This bill is constructed based on inspection and determination of actual requirements. See: disassembly bill of material.R

Answer 75

A

Abbreviation for failure mode effects and criticality analysis.F

Answer 76

A

A list of team member names, roles, and communication information.P

Answer 77

A

The lead time between when a raw material or component arrives and when the items are available in the store. Syn: dock-to-stock time.P

Answer 78

A

A worldwide network of computers belonging to businesses, governments, and universities that enables users to share information in the form of files and to send electronic messages and have access to a tremendous store of information.I

Answer 79

A

Unscheduled maintenance performed to return a product or process to a specified performance level after a failure or malfunction.R

Answer 80

A

A lower rate given to specific parts of a shipment, instead of the entire rate being charged for only one part of the shipment.P

Answer 81

A

A cumulative number, or running total, as a count of parts received in a series or sequence of shipments. The cumulative receipts provide a number that can be compared with the cumulative figures from a plan developed by cumulative MRP.C

Answer 82

A

Syn: traveling purchase requisition.T

Answer 83

A

A plan that includes an estimate of future costs and revenues related to expected activities. The budget serves as a pattern for and a control over future operations.B

Answer 84

A

Periods during which a machine is unavailable due to tool breakage, worker unavailability, machine breakdown, maintenance, teardown, setup, and other factors.M

Answer 85

A

Syn: profit.I

Answer 86

A

1) The classification of quantities of items that have been assigned to specific orders but have not yet been released from the stockroom to production. It is an “uncashed” stockroom requisition. 2) A process used to distribute material in short supply. Syn: assignment. See: reservation.A

Answer 87

A

A type of layout where resources are arranged sequentially according to the steps required to make a particular complex product.P

Answer 88

A

A measure of the design of a product or process in terms of its ability to be produced easily, consistently, and with high quality.M

Answer 89

A

The ability of a system to automatically trace requirements for a given component all the way up to its ultimate end item, customer, or contract number. Syn: contract pegging.F

Answer 90

A

The concept of setup times of less than 10 minutes, developed by Shigeo Shingo in 1970 at Toyota. See: single-digit setup.S

Answer 91

A

An organizational structure based on functional specialization, such as sales, engineering, manufacturing, finance, and accounting.F

Answer 92

A

The assigned location where a worker performs the job; it could be a machine or a workbench.W

Answer 93

A

See: blocking.B

Answer 94

A

Syn: lean production.L

Answer 95

A

The inside usable cubic volume of a container.C

Answer 96

A

production planning and sales and operations planning. See: operational planning, strategic planning, tactical plan.T

Answer 97

A

The process of designating stock for a specific order or schedule. See: allocation.R

Answer 98

A

Syn: cross-docking.D D

Answer 99

A

Self-employed individuals or firms contracted by an organization to perform specific services on an intermittent or short-term basis.C

Answer 100

A

A methodical verification of the location records for an item or group of items in inventory to ensure that when the record shows an item’s location, it is, in fact, in that location.L

Answer 101

A

Abbreviation for non-vessel-operating common carrier.N O

Answer 102

A

A custom-made product or service. The term originally was applied to clothing, but now applies to software as well.B

Answer 103

A

An agreement among the United States, Canada, and Mexico to promote economic prosperity by reducing trade barriers.N

Answer 104

A

Products that have been stored uncompleted awaiting final operations that adapt them to different uses or customer specifications.S

Answer 105

A

Syn: engineering change.E

Answer 106

A

The highest level assembled product, as it is shipped to customers.F

Answer 107

A

A program for planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation.P

Answer 108

A

See hoshin planning.S

Answer 109

A

Units sold per period.P

Answer 110

A

In project management, a network requirement that activity A must be finished before activity B can start. See: logical relationship.F

Answer 111

A

A choice or feature added to the good or service offered to the customer for customizing the end product. An accessory enhances the capabilities of the product but is not necessary for the basic function of the product. In many companies, an accessory means that the choice does not have to be specified before shipment but can be added at a later date. In other companies, this choice must be made before shipment. See: feature.A

Answer 112

A

The concept of packing products on the incoming shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination. The items are carried from the incoming vehicle docking point to the outgoing vehicle docking point without being stored in inventory at the warehouse. Cross-docking reduces inventory investment and storage space requirements. Syn: direct loading.C

Answer 113

A

The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.C

Answer 114

A

A six sigma improvement process comprised of five stages: (1) Determine the nature of the problem, (2) Measure existing performance and commence recording data and facts that offer information about the underlying causes of the problem, (3) Study the information to determine the root causes of the problem, (4) Improve the process by effecting solutions to the problem, and (5) Monitor the process until the solutions become ingrained.D

Answer 115

A

A study of the number of units, or amount of time, required to recoup an investment.B

Answer 116

A

A measure of actual work content versus cycle time of the limiting operation in a production line. Line efficiency (percentage) is equal to the sum of all station task times divided by the longest task time multiplied by the number of stations. In an assembly line layout, the line efficiency is 100 percent minus the balance delay percentage.L

Answer 117

A

The amount of a particular item that is ordered from the plant or a supplier or issued as a standard quantity to the production process. Syn: order quantity.L

Answer 118

A

Finished goods kept in distribution centers or warehouses.F

Answer 119

A

Material processed beyond raw material and used in higher level items. See: component.I

Answer 120

A

Extra capacity that is added to a system after capacity for expected demand is calculated. Syn: safety capacity. See: protective capacity.C

Answer 121

A

Planning for the phase-out of one product and the phase-in of a new product to avoid both the excessive inventory of and an out-of-stock situation with the old product before the replacement product is available.E

Answer 122

A

A point in a flow of material or sequence of operations at which parts, subassemblies, or assemblies are counted as being complete. Count points may be designated at the ends of lines or upon removal from a work center, but most often they are designated as the points at which material transfers from one department to another. Syn: pay point.C

Answer 123

A

Abbreviation for total quality engineering.T

Answer 124

A

Work beyond normal established working hours that usually requires that a premium be paid to the workers.O

Answer 125

A

An ingredient list for a product in process industries. See: batch card, manufacturing order, mix ticket.B

Answer 126

A

The ability of supply chain partners to access demand and production information from trading partners.S

Answer 127

A

A term used to describe the process of designing a part or product to meet or exceed the performance requirements expected by customers.F

Answer 128

A

A holistic approach to management that considers how actions impact the production process. Included within the system are suppliers, product design, process design, the production process, distribution, and customers.S T

Answer 129

A

An assurance that the product is fit for the specific purpose for which the product will be used. See: general warranty, warranty.S

Answer 130

A

In project management, a network analysis technique in which each activity is assigned a pessimistic, most likely, and optimistic estimate of its duration. The critical path method is then applied using a weighted average of these times for each node. PERT computes a standard deviation of the estimate of project duration. See: critical path method, graphical evaluation and review technique, and network analysis.P

Answer 131

A

Pricing some products below cost to attract customers into the store, in the expectation that they will buy other items as well.L

Answer 132

A

A six sigma process that outlines the steps needed to create a completely new business process or product at six sigma quality levels.D

Answer 133

A

The process of developing a set of tactical plans (e.g., production plan, sales plan, marketing plan). Two approaches to tactical planning exist for

Answer 134

A

Estimating a firm’s future financial statements.F

Answer 135

A

Syn: item record.P

Answer 136

A

A measure of the productivity of two or more inputs, especially labor, capital costs, energy, and material. See: single-factor productivity.M

Answer 137

A

In warehousing, a system that has a hub (or center point) where sorting or transfers occur, and the spokes are outlets serving the destinations related to the hub.H

Answer 138

A

A four-step process for quality improvement. In the first step (plan), a plan to effect improvement is developed. In the second step (do), the plan is carried out, preferably on a small scale. In the third step (check), the effects of the plan are observed. In the last step (action), the results are studied to determine what was learned and what can be predicted. The plan-do-check-¬action cycle is sometimes referred to as the Shewhart cycle (because Walter A. Shewhart discussed the concept in his book Statistical Method from the Viewpoint of Quality Control) and as the Deming circle (because W. Edwards Deming introduced the concept in Japan; the Japanese subsequently called it the Deming circle). Syn: plan-do-check-act cycle, Shewhart circle of quality, Shewhart cycle. See: Deming circle.P

Answer 139

A

1) Cost added in the process of finishing an item or assembling a group of items. If the cost of the components of a given assembly equals $5 and the additional cost of assembling the components is $1, the incremental assembly cost is $1, while the total cost of the finished assembly is $6. 2) Additional cost incurred as a result of a decision.I

Answer 140

A

In six sigma, team leader for process improvement. Responsibilities include defining, measuring, and controlling the improvement process.B

Answer 141

A

Abbreviation for efficient consumer response.E

Answer 142

A

A mathematically complex, dynamic lot-sizing technique that evaluates all possible ways of ordering to cover net requirements in each period of the planning horizon to arrive at the theoretically optimum ordering strategy for the entire net requirements schedule. See: discrete order quantity, dynamic lot sizing.W

Answer 143

A

An item required to support the operation of another item.A

Answer 144

A

Assigning no more work to a work center than the work center can be expected to execute in a given time period. The specific term usually refers to a computer technique that involves calculating shop priority revisions in order to level load operation by operation. Syn: finite scheduling. See: drum-buffer-rope.F

Answer 145

A

Abbreviation for employee assistance program.E

Answer 146

A

Methods identified in a collective bargaining agreement to resolve problems that develop or to determine if a contract has been violated.G

Answer 147

A

The sequence of activities that when followed results in a product or service deliverable. See flow process chart, process chart.P

Answer 148

A

A system that tracks the configurations of parts and bills of material and also the revisions and history of product designs. It facilities the design release, distributes the design data to multiple manufacturing sites, and manages changes to the design in a closed-loop fashion. It provides the infrastructure that controls the design cycle and manages change.P

Answer 149

A

A graphic display of numerous data points showing the mean and frequency of occurrences of observations on a chart. See: normal distribution curve.D

Answer 150

A

The income received by a company from sales or other sources, such as stock owned in other companies.R

Answer 151

A

Syn: labor claim.L

Answer 152

A

A discount rate that is higher for more risky projects and lower for less risky projects.R

Answer 153

A

A storage rack using metal shelves equipped with wheels or rollers allowing product to flow from the back to the front of the rack to make the product more accessible for order picking.F

Answer 154

A

A storage device for handling material in pallets. A rack usually provides storage for pallets arranged in vertical sections with one or more pallets to a tier. Some racks accommodate more than one-pallet-deep storage.R

Answer 155

A

A potential sale that was not completed, usually due to lack of availability of the item in question.L

Answer 156

A

Key measurements of customer satisfaction. Kaizen activity strives to improve these measurements.Q Q

Answer 157

A

To position a warehouse halfway between the supplier and the customer.I

Answer 158

A

The specific work to be performed that defines a project deliverable.A

Answer 159

A

A means of locating web pages regardless of where they are on the internet.U

Answer 160

A

Syn: gapped schedule.S

Answer 161

A

Syn: service parts.S

Answer 162

A

The person in charge of the marketing program for a given brand. Syn: product manager.B

Answer 163

A

The resource capacity needed to

Answer 164

A

A data processing file-management approach designed to establish the independence of computer programs from data files. Redundancy is minimized, and data elements can be added to, or deleted from, the file structure without necessitating changes to existing computer programs.D

Answer 165

A

Components of a finished product that are easy to manufacture and are made by many suppliers, making them more of commodity to buy at low cost.S

Answer 166

A

The passage of days or weeks as in the definition of lead time or scheduling rules, in contrast with running time.C

Answer 167

A

In evaluating alternatives, the consideration

Answer 168

A

Limiting the ability to make decisions to a few managers.C

Answer 169

A

A type of weighted moving average forecasting technique in which past observations are geometrically discounted according to their age. The heaviest weight is assigned to the most recent data. The smoothing is termed exponential because data points are weighted in accordance with an exponential function of their age. The technique makes use of a smoothing constant to apply to the difference between the most recent forecast and the critical sales data, thus avoiding the necessity of carrying historical sales data. The approach can be used for data that exhibit no trend or seasonal patterns. Higher order exponential smoothing models can be used for data with either (or both) trend and seasonality.E

Answer 170

A

Legal authority for transportation companies to charge, within limits, more than their variable costs.Z

Answer 171

A

Syn: picking list.D

Answer 172

A

A process that weighs both customer demand and a firm’s output capabilities, and tries to balance the two. Demand management is made up of planning demand, communicating demand, influencing demand, and prioritizing demand.D

Answer 173

A

A calculation that determines the space needed for the number of pallets for inventory storage or transportation based on a standard pallet size. Pallet dimensions vary around the globe, but are typically a constant in regional markets. The term is frequently used to quote storage and transportation rates.P

Answer 174

A

An explanation of the characteristics of material to be produced or purchased.M

Answer 175

A

The value of total goods and services produced by an employee divided by the labor hours required to produce those goods and services.W

Answer 176

A

Syn: phantom bill of material.B B

Answer 177

A

A control chart for evaluating the stability of a process in terms of the total number of units in a sample in which an event of a given classification occurs. Syn: number of affected units chart.N

Answer 178

A

Abbreviation for Environmental Protection Agency.E

Answer 179

A

A picking methodology assuring that the usage shelf life of items is optimized. Years ago, first in, first out (FIFO) was satisfactory as the F shelf-life days for items often didn’t vary and FIFO often coincided with the expiry dates. However, re-testing is frequently done to extend shelf-life dates on some lots or batches, while other lots may have typical shelf-life dates shortened because of quality or processes. Thus, FEFO was introduced by software vendors to provide this picking methodology for use with shelf-life controlled items.F

Answer 180

A

An acronym for Supply Chain Operations Reference-model.S

Answer 181

A

The electronic processing unit of a computer, where mathematical calculations are performed.C

Answer 182

A

In cost accounting, a method of inventory valuation for accounting purposes. A weighted average (based on quantity) of item cost is used to determine the cost of goods sold (income statement) and inventory valuation (balance sheet). Average cost provides a valuation between last-in, first-out and first-in, first-out methods. See: first in, first out; last in, first out.A

Answer 183

A

The interdependence of economies globally that results from the growing volume and variety of international transactions in goods, services, and capital, and also from the spread of new technology.G

Answer 184

A

Abbreviation for equal employment opportunity.E

Answer 185

A

1) A fairly homogeneous group of customers to whom a company wishes to appeal. 2) A definable group of buyers to which a marketer has decided to market.T

Answer 186

A

Goods stored in tanks. These goods may be raw materials, intermediates, or finished goods. The description of inventory as tank inventory indicates the necessity of calculating the quantity on hand from the levels within the tanks.T

Answer 187

A

The additional usefulness and enjoyment received from consuming one more unit of a good or service.M

Answer 188

A

A connection between the computer and the user employing a mouse and icons so that the user makes selections by pointing at icons and clicking the mouse.G

Answer 189

A

Syn: blanket purchase order.S

Answer 190

A

One of the four Ps (product, price, place, and promotion) that constitute the set of tools used to direct the business offering to the customer. Promotion is the mechanism whereby information about the product offering is communicated to the customer and includes public relations, advertising, sales promotions, and other tools used to persuade customers to purchase the product offering. See: four Ps.P

Answer 191

A

An order that for some reason must be fulfilled in less than normal lead time.R S

Answer 192

A

Important affiliations between suppliers and purchasers that improve value for everyone.C

Answer 193

A

A system in which the supplier not only controls the inventory, but owns it and keeps in close to the consumer until it is purchased by the consumer. Falls within the supplier managed inventory umbrella.S

Answer 194

A

The acquisition of the assets and liabilities of one company by another.M

Answer 195

A

Important steps in producing, marketing, and servicing goods and services.K L

Answer 196

A

A condition occurring when more personnel are on the payroll than are required to produce the planned output.U

Answer 197

A

A large box in which commodities to be shipped are placed.C

Answer 198

A

A method for sourcing requirements by using a few suppliers for the same products or services. See: multisourcing, multiple sourcing, single sourcing.D

Answer 199

A

Attribute that reflects the capability of a product to satisfy customers’ needs.P

Answer 200

A

The process of developing a strategic plan. See: operational planning, strategic plan, tactical planning.S

Answer 201

A

The function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization.T

Answer 202

A

The application of statistical techniques to control quality. Often the term statistical process control is used interchangeably with statistical quality control, although statistical quality control includes acceptance sampling as well as statistical process control.S

Answer 203

A

In statistical process control, the line that defines the maximum acceptable level of random output. See: tolerance limits.U

Answer 204

A

A number of days of data summarized into a columnar or row-wise display. A weekly time bucket would contain all of the relevant data for an entire week. Weekly time buckets are considered to be the largest possible (at least in the near and medium term) to permit effective MRP.T

Answer 205

A

Abbreviation for early start date.E

Answer 206

A

A review of the product against the engineering specifications to determine whether the engineering documentation is accurate, up-to-date, and representative of the components, subsystems, or systems being produced.C

Answer 207

A

An issue transaction that updates the quantity on hand but for which no allocation exists.U

Answer 208

A

Usually, the number of transactions per stockkeeping unit per unit of time.B

Answer 209

A

A binding agreement inferred from the actions of the parties.I

Answer 210

A

Syn: hybrid production method.H

Answer 211

A

Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage.E

Answer 212

A

Emerging international standard for using public phone lines to transmit voice and data over the same line.I

Answer 213

A

All of the costs associated with a warranty; these include shipping, receiving, repairing, replacement, and the materials needed for repair or replacement.W

Answer 214

A

A device used to control access to a company’s data from the internet or other outside sources.F

Answer 215

A

Reducing setup time and inventory to the point where it is economically sound to produce in batches with a size of one. Often EOQ = 1 is an ideal to strive for, like zero defects.E

Answer 216

A

Syn: cause-and-effect diagram.F

Answer 217

A

Syn: equal runout quantities.E

Answer 218

A

Syn: item number.P

Answer 219

A

The degree of change in buyer demand in response to changes in product price. It is calculated by dividing the percentage of change in quantity bought by the percentage of change of price. Prices are considered elastic if demand varies with changes in price. If demand changes only slightly when the price changes, demand is said to be inelastic. For example, demand for most medical services is relatively inelastic, but demand for automobiles is generally elastic.P

Answer 220

A

A standard conversion ratio that a company or its computer system uses to quickly enter in the amount delivered based on a known quantity within each unit of measure (e.g., a case of soda contains 24 cans).U

Answer 221

A

A market where most or all customers are individuals or businesses that buy products to produce other goods and services. Syn: business market, producer market. See: consumer market, government market, institutional market.I

Answer 222

A

Abbreviation for capacity-constrained resource.C

Answer 223

A

Those competitive characteristics that cause a firm’s customers to choose that firm’s goods and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm. Order winners usually focus on one (rarely more than two) of the following strategic initiatives: price/cost, quality, delivery speed, delivery reliability, product design, flexibility, after-market service, and image. See: order losers, order qualifiers.O

Answer 224

A

The ratio of the percentage change in quantity demanded (supplied) to the percentage change in price.E

Answer 225

A

The most common method of rescheduling open orders (scheduled receipts). Under this method, the MRP system provides information on the part numbers and order numbers that need to be rescheduled. Due dates and order quantity changes required are then analyzed and changed by material M planners or other authorized persons. Syn: planner intervention. Ant: automatic rescheduling.M

Answer 226

A

An automated system for order entry, where orders are keyed into a local terminal and a bill-of-material translator converts the catalog ordering numbers into required manufacturing part numbers and due dates for the MRP system. Advanced systems contain customer information, sales history, forecasting information, and product option compatibilicustomer C ty checks to facilitate order processing, “cleaning up” orders before placing a demand on the manufacturing system. Syn: configuration system, sales order - configuration.C

Answer 227

A

A series of generic environmental management standards developed by the International Organization of Standardization, which provide structure and systems for managing environmental compliance with legislative and regulatory requirements and affect every aspect of a company’s environmental operations.I

Answer 228

A

A state that allows workers to choose whether or not to join a union.R

Answer 229

A

Syn: scatter chart.C

Answer 230

A

A plan that includes budgeted levels of finished goods, inventory, production backlogs, and changes in the workforce to support the production strategy. Aggregated information (e.g., product line, family) rather than product information is used, hence the name aggregate plan.A

Answer 231

A

The percentage of total cycle time that is spent on activities that provide value to the product or customer.P

Answer 232

A

An attempt to create the most efficient complete system as opposed to the most efficient individual parts. A “whole process” or “whole company” operating system that is driven by cause and effect.S

Answer 233

A

Syn: setup.T

Answer 234

A

Critical or most significant operations whose production rates must be closely planned.P

Answer 235

A

A computer program that employs knowledge of the structure of relations and reasoning rules to solve problems by generating new knowledge from the relationships about the subject.K

Answer 236

A

The management technique of managers touring a facility on a regular basis to talk with workers and staff about problems, trends, and potential solutions.M

Answer 237

A

Collection points that receive less-than-truckload (LTL) shipments from regional sources and then ships in cargo load or truckload quantities to a manufacturing facility.C

Answer 238

A

In activity-based cost accounting, a yardstick of demands placed on an activity by given cost objects. Its purpose is to assign activity costs to cost objects.A

Answer 239

A

Controlling quality by repeatedly sampling units and each time making a decision to accept or reject a batch or to continue sampling.S

Answer 240

A

The function concerned with ensuring the availability of funds for research and development, operations, and marketing.F

Answer 241

A

The quantity of defects

Answer 242

A

In supply chain management, the supply chain is viewed as the complete system. The system constraint is the resource at any one of the trading partners that is most limiting the end-to-end throughput of the supply chain.S

Answer 243

A

A pricing strategy that allows a company to profit, but not to achieve monopolistic profits. Normally determined by industry pricing analysis.R R

Answer 244

A

Syn: performance measure.P

Answer 245

A

A number that serves to uniquely identify an item. Syn: part number, product number, stock code, stock number.I

Answer 246

A

Software that assists the browser when audio, video, or large images are requested.H

Answer 247

A

A container to hold output from one process and feed it to a subsequent process. It is used when line balancing is not possible or practical or only on a contingency basis when downstream equipment is nonoperational. S

Answer 248

A

The amount of good or acceptable material available after the completion of a process. Usually computed as the final amount divided by the initial amount converted to a decimal or percentage. In manufacturing planning and control systems, yield is usually related to specific routing steps or to the parent item to determine how many units should be scheduled to produce a specific number of finished goods. For example, if 50 units of a product are required by a customer and a yield of 70 percent is expected then 72 units (computed as 50 units divided by .7) should be started in the manufacturing process. Syn: material yield. See: scrap factor, yield factor.Y

Answer 249

A

The degree to which a list of specified items conforms to administrative specifications and with correct quantities.B

Answer 250

A

An enterprise resources planning implementation chosen entirely from one vendor.S

Answer 251

A

The cost associated with providing poor quality products or services. There are four categories of costs: (1) internal failure costs (costs associated with defects found before the customer receives the product or service); (2) external failure costs (costs associated with defects found after the customer receives the product or service); (3) appraisal costs (costs incurred to determine the degree of conformance to quality requirements); and (4) prevention costs (costs incurred to keep failure and appraisal costs to a minimum). Syn: cost of quality.C

Answer 252

A

In information systems, a key that ensures that data in an electronic business transaction A are not changed. It can also be used as a form of digital signature.A

Answer 253

A

An unfilled customer order or commitment. A backorder is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand. See: stockout.B B

Answer 254

A

1) In computer systems, a test before final acceptance of a new business system using a subset of data with engineered cases and documented results. 2) Generally, production of a quantity to verify manufacturability, customer acceptance, or other management P requirements before implementation of ongoing production. Syn: pilot, walkthrough.P

Answer 255

A

Syn: blanket purchase order.B

Answer 256

A

A list showing merchandise packed, a copy of which is sent to the consignee to help verify the shipment.P

Answer 257

A

Syn: manufacturing calendar.S

Answer 258

A

The reprioritizing of jobs to a lower level of activity. All extraordinary actions involving these jobs stop.D

Answer 259

A

A methodology that furnishes tools for the improvement of business processes. The intent is to decrease process variation and improve product quality.S

Answer 260

A

A planning process that identifies critical events before they occur and use this knowledge to determine effective alternatives.S

Answer 261

A

Activity dependencies that make up a project schedule network diagram.N

Answer 262

A

The further processing of a product to adjust specific physical and chemical properties to within specification ranges.D

Answer 263

A

An order entered for shipment at some future date.F

Answer 264

A

Two thousand two hundred and forty pounds.L

Answer 265

A

Every process that is involved in the shipping and holding of products after they are completed until they are received by the customer.O

Answer 266

A

The discipline consisting of process engineering and product engineering.D

Answer 267

A

In the theory of constraints, a logic-based tool for constructing and testing potential solutions before implementation. The objectives are to (1) develop, expand, and complete the solution and (2) identify and solve or prevent new problems created by implementing the solution.F

Answer 268

A

Refers to the logical linkage between higher and lower level items in the bill of material.P

Answer 269

A

A label on products with the date of production. In food industries, it is often an integral part of the lot number.D

Answer 270

A

A purchasing activity in which a firm explores its spending patterns to identify opportunities to reduce costs or improve quality. This process is a part of value analysis as well as cost-benefit analysis.S

Answer 271

A

A concept that items are processed directly from one step to the next, one unit at a time. This helps to shorten lead times and lines of communication, thus more quickly identifying problems.O

Answer 272

A

The dollars that are in all levels of inventory.I

Answer 273

A

Organizations that provide one or many logistics services to a customer for a fee.I

Answer 274

A

In project management, a representation of a project’s organization relating work packages to organizational units.O

Answer 275

A

A general term that may refer to such diverse items as a purchase order, shop order, customer order, planned order, or schedule.O

Answer 276

A

Abbreviation for EDI for administration, commerce, and transport.E EDI for administration, commerce, and transport

Answer 277

A

Syn: net working capital.W

Answer 278

A

Net income for the previous 12 months divided by total assets. See: return on owner’s equity (ROE).R

Answer 279

A

The collection of models dealing with waiting line problems; for example, problems for which customers or units arrive at some service facility at which waiting lines or queues may build. Syn: waiting line theory. See: queuing analysis.Q

Answer 280

A

A budget based on planned cash receipts and disbursements of a plant, division, or firm.C

Answer 281

A

The date on which a quoted price is no longer valid.Q R

Answer 282

A

A group of end items whose similarity of design and manufacture facilitates their being planned in aggregate, whose sales performance is monitored together, and, occasionally, whose cost is aggregated at this level.F

Answer 283

A

Acronym for Occupational Safety and Health Act.O

Answer 284

A

A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods (e.g., weeks into the future). The number of periods to order is variable, each order size equalizing the holding costs and the ordering costs for the interval. See: discrete order quantity, dynamic lot sizing.P

Answer 285

A

1) The planning, scheduling, execution, and control of the process of converting inproduction P puts into finished goods. 2) A field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, inventory management, accounting, and other functions as they affect the transformation process.P

Answer 286

A

Parts issued from stores to work-in-process inventory, but not based on a job order. They are issued in quantities estimated to cover requirements of individual work centers and production lines. The issue may be used to cover a period of time or to fill a fixed-size container.B

Answer 287

A

Syn: scatter chart.S

Answer 288

A

Syn: effective date.E

Answer 289

A

In project management, a system under which any changes are coordinated across the entire project.I

Answer 290

A

Carrier’s records indicating the person signing for delivery with the date, time, and other related information.P

Answer 291

A

Syn: ABC classification.D

Answer 292

A

The function that encompasses receiving, entering, and promising orders from customers, distribution centers, and interplant operations. Order service is also typically responsible for responding to customer inquiries and interacting with the master scheduler on availability of products. In some companies, distribution and interplant requirements are handled separately. See: order entry, order promising.O

Answer 293

A

The application of statistical techniques to monitor and adjust an operation. Often the term statistical process control is used interchangeably with statistical quality control.S

Answer 294

A

A closed-loop information system that includes the planning functions of production planning (sales and operations planning), master production scheduling, material requirements planning, and capacity requirements planning. Once the plan has been accepted as realistic, execution begins. The execution functions include inputoutput control, detailed scheduling, dispatching, anticipated delay reports (department and supplier), and supplier scheduling. A closed-loop MRP system is one example of a manufacturing planning and control system.M

Answer 295

A

Abbreviation for manufacturing resource planning.M

Answer 296

A

Abbreviation for plan for every part.P

Answer 297

A

An engineer whose judgment and experience are used in the application of scientific principles and techniques to problems of cost estimation and cost control in business planning, profitability analysis, project management and production planning, scheduling, and control.C

Answer 298

A

A standard written by the International Automotive Task Force that applies only to automotive companies. It includes quality management system; management responsibility; resource management; product realization; and measurement, analysis, and improvement. See: QS 9000.I

Answer 299

A

Packages and lots that move from suppliers to a carrier terminal and are sorted and then combined with similar shipments from another supplier’s container load or truckload for travel to a final destination. See: milk run.C

Answer 300

A

1) A person or organization receiving a good, service, or information. See: external customer, internal customer. 2) In project management, every project has a customer who may be internal or external to the organization and who is responsible for the final project acceptance.C

Answer 301

A

Abbreviation for national stock number.N

Answer 302

A

A performance standard developed by Philip B. Crosby to address a dual attitude in the workplace: People are willing to accept imperfection in some areas, while in other areas, they expect the number of defects to be zero. This dual attitude has developed as a result of the conditioning that people are human and humans make mistakes. However, the zerodefects methodology states that if people commit themselves to watching details and avoiding errors, they can move closer to the goal of zero defects. The performance standard that must be set is “zero defects,” not “close enough.”Z

Answer 303

A

A common misnomer. Bad measures are not the constraint. Rather, bad measures hinder effective constraint management by inhibiting the ability to fully exploit and/or subordinate to the constraint.M

Answer 304

A

The time that a job spends in transit from one operation to another in the plant.M

Answer 305

A

A project planning technique using a lead-time offset chart and a chart of required final assembly completions to graph a third bar chart showing the number of each component that should be completed to date. This bar chart forms a descending line, and aggregate component completions are then plotted against this line of balance. This is a crude form of material planning.L

Answer 306

A

Authorization to accept an item that, during production or upon inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use as is or after rework.W

Answer 307

A

An organization that is designed and managed to add utility from the viewpoint of the customer in the transformation of raw materials into a finished good or service.V

Answer 308

A

An approved plan used to compare against actual execution to identify variances for management control.P

Answer 309

A

The act of deciding whether to produce an item internally or buy it from an outside supplier. Factors to consider in the decision include costs, capacity availability, proprietary and/or specialized knowledge, quality considerations, skill requirements, volume, and timing.M

Answer 310

A

A system of linking final retail sales with production and shipping schedules back through the chain of supply; employs point-of-sale scanning and electronic data interchange, and may use direct shipment from a factory to a retailer.Q

Answer 311

A

The shipment of parts against a project or contract other than the original project or contract for which the items were purchased.I

Answer 312

A

the remedial journey the team journeys from the cause to its remedy.D

Answer 313

A

Abbreviation for total waste management.T

Answer 314

A

Deposits that can be withdrawn on demand or paid to a third party by check.D

Answer 315

A

A single- or multiple-level structure for storage used to support high stacking of palletized loads.P

Answer 316

A

The period of time that starts when the customer places an order and ends when the customer receives the order.O

Answer 317

A

A method of setting the value of inventories based upon the cost of the next purchase.R

Answer 318

A

A tax levied by a government on the importation, exportation, or use and consumption of goods.D

Answer 319

A

A type of manufacturing organization in which both plant and staff management responsibilities are delineated by production process. A highly centralized staff coordinates plant activities and intracompany material movements. This type of organization is best suited to companies whose dominant orientation is to a technology or a material and whose manufacturing processes tend to be complex and capital intensive. See: product focused, process-focused organization.P

Answer 320

A

A production environment where a good or service can be assembled after receipt of a customer’s order. The key components (bulk, semi-finished, intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components. Syn: finish-to-order. See: make-to-order, make-to-stock.A

Answer 321

A

A decision rule that optimality occurs where incremental revenue equals incremental cost.M

Answer 322

A

Positions that do not require the payment of overtime because they meet the tests of executive, supervisory, or administrative activity, as defined under the Fair Labor Standards Act.E

Answer 323

A

In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership.T T

Answer 324

A

The percentage of a company’s demand that derives from continuing contracts and/or existing customers. Because this demand is well known and recurring, it becomes the basis of management’s plans. Syn: baseload demand.B

Answer 325

A

Failure occurring in either a product or a production process that is not immediately evident. This may be indicative of a faulty design.N

Answer 326

A

A purchase order that groups families of similar parts together to obtain pricing advantages and a continuous supply of material.F

Answer 327

A

Federal law that governs the definitions of management and labor and establishes wage payment and hours worked and other employment practices.F

Answer 328

A

Abbreviation for one-touch exchange of die.O

Answer 329

A

Items returned to the manufacturer as defective, obsolete, overages, and so forth. An inventory item record transaction records the return or receipt into physical stores of materials from which the item may be scrapped.I

Answer 330

A

Syn: make-to-order.P

Answer 331

A

1) Computer packages that are already prepared by a hardware manufacturer or software house and are ready to run. 2) Any system of machines that is ready for immediate use.T

Answer 332

A

A collective pattern of decisions that acts upon the formulation and deployment of manufacturing resources. To be most effective, the manufacturing strategy should act in support of the overall strategic direction of the business and provide for competitive advantages (edges).M

Answer 333

A

A component of demand, usually describing the impact of increasing or decreasing growth on demand. See: time series analysis.T

Answer 334

A

A main reference file of information, such as the item master file or work center file. See: detail file, item master file.M

Answer 335

A

The determination of a set of policies and procedures that govern the operation of a supply chain. Planning includes the determination of marketing channels, promotions, respective quantities and timing, inventory and replenishment policies, and production policies. Planning establishes the parameters within which the supply chain will operate.S

Answer 336

A

The last possible date to apply influence to a future activity.D

Answer 337

A

A bill-of-material coding and structuring technique used primarily for transient (nonstocked) subassemblies. For the transient item, lead time is set to zero and the order quantity to lot-for-lot. A phantom bill of material represents an item that is physically built, but rarely stocked, before being used in the next step or level of manufacturing. This permits MRP logic to drive requirements straight through the phantom item to its components, but the MRP system usually retains its ability to net against any occasional inventories of the item. This technique also facilitates the use of common bills of material for engineering and manufacturing. Syn: blowthrough, transient bill of material. See: pseudo bill of material.P

Answer 338

A

Those costs incurred because of a decision. The costs would not have resulted unless the decision was made and implemented. They are relevant to the decision.R

Answer 339

A

A mix of the centralized

Answer 340

A

Products that tend to have a high profit margin, be unique, have less competition, and have dynamic demand.I

Answer 341

A

Laws designed to pay employees for injuries sustained on the job.C

Answer 342

A

The time between the date of shipment (at the shipping point) and the date of receipt (at the receiver’s dock). Orders normally specify the date by which goods should be at the dock. Consequently, this date should be offset by in-transit lead time for establishing a ship date for the supplier.I

Answer 343

A

A device connected to a bar-code reader to identify a bar code.W

Answer 344

A

In queuing theory, the value or distribution describing how often a person or thing arrives for service.A

Answer 345

A

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

Answer 346

A

1) The interval of time during which a system or process, such as seasonal demand or a manufacturing operation, periodically returns to similar initial conditions. 2) The interval of time during which an event or set of events is completed.C

Answer 347

A

Benchmarking focused on the target firm’s business processes, including process flows, operating systems, and process technologies. See: benchmarking.P

Answer 348

A

Abbreviation for customer relationship management and customer relations management.C

Answer 349

A

The uncertainty or variability in demand as measured by the standard deviation, mean absolute deviation (MAD), or variance of forecast errors.D

Answer 350

A

Syn: continuous production.C

Answer 351

A

Syn: supplier scheduling.V

Answer 352

A

A listing of manufacturing orders in priority sequence. The dispatch list, which is usually communicated to the manufacturing floor via paper or electronic media, contains detailed information on priority, location, quantity, and the capacity requirements of the manufacturing order by operation. Dispatch lists are normally generated daily and oriented by work center. Syn: work center schedule, priority report.D

Answer 353

A

The scattering of the observations of a frequency distribution around its average.D

Answer 354

A

The group that produces the goods and/or services that a company sells.O

Answer 355

A

An approach used for locating facilities at the “center of gravity.” Gravity is determined by the product of the masses of two bodies divided by the square of the distance between them. In gravity models, the population of each neighborhood in the region is used as the mass, and driving time is used as the distance.G

Answer 356

A

In contract law, an obligation that is to the detriment of one party (promisee) or to the benefit of the other party (promisor).C

Answer 357

A

The name for the manufacturing department where the product is assembled. See: blending department, pack-out department.F F

Answer 358

A

A method of costing used in batch manufacturing environments when products produced have common, as well as distinguishing, characteristics; for example, suits. The products are identified and costed by batches or by production runs, based on the variations.O

Answer 359

A

A few companies produce partially differentiated products or services that are marketed within a given area. Differentiation may be based on quality, features, styling, or services offered along with the product; (4)

Answer 360

A

A technology for handling mail electronically.E

Answer 361

A

A chart that represents the sequence of work or the nature of events in process. It serves as a basis for examining and possibly improving the way the work is carried out. Syn: operations process chart. See: flow process chart, process flow.P

Answer 362

A

Syn: hybrid production method.H

Answer 363

A

1) The ability of the manufacturing system to respond quickly, in terms of range and time, to external or internal changes. Six different categories of flexibility can be considered: mix flexibility, design changeover flexibility, modification flexibility, volume flexibility, rerouting flexibility, and material flexibility (see each term for a more detailed discussion). In addition, flexibility involves concerns of product flexibility. Flexibility can be useful in coping with various types of uncertainty (regarding mix, volume, and so on). 2) The ability of a supply chain to mitigate, or neutralize, the risks of demand forecast variability, supply continuity variability, cycle time plus lead-time uncertainty, and transit time plus customs-clearance time uncertainty during periods of increasing or diminishing volume.F

Answer 364

A

The shared information between a plan-of-resources and a production rule for a specific product. It is a logical grouping of personnel resources, equipment resources, and material specifications required to carry out the production step.P

Answer 365

A

See hoshin planning.H

Answer 366

A

In information systems, an internet document containing both text and hypertext links to other pages that are stored on the server.P

Answer 367

A

An attempt at reducing/eliminating “deadheading,” or driving an empty material handling vehicle. A warehouse management system directs a material carrying vehicle to put away materials as it goes to pick up other materials.T

Answer 368

A

Measurements that relate to the long-term goals of a business. Examples include profitability, market share, growth, and productivity. See: global performance measurements, operational performance measurements.S S

Answer 369

A

1) The act of evenly distributing the work elements between the two hands performing an operation. 2) The state of having approximately equal working times among the various operations in a process, or the stations on an assembly line. See: balance delay.B

Answer 370

A

Abbreviation for transportation management system.T

Answer 371

A

The issuance of a manufacturing order into the factory.M

Answer 372

A

The average of the absolute values of the deviations of observed values from some expected value. MAD can be calculated based on observations and the arithmetic mean of those observations. An alternative is to calculate absolute deviations of actual sales data minus forecast data. These data can be averaged in the usual arithmetic way or with exponential smoothing. See: forecast error, tracking signal.M

Answer 373

A

The predetermined arrangement of the characters of data for computer input, storage, or output.F

Answer 374

A

Determining the order in which a manufacturing facility is to process a number of different jobs in order to achieve certain objectives.S

Answer 375

A

An objective comparison of actions to policies and plans.A

Answer 376

A

Questionnaires designed to get feedback from potential customers about demand for a product or service.M

Answer 377

A

A cost accounting system in which the costs are collected by time period and averaged over all the units produced during the period. This system can be used with either actual or standard costs in the manufacture of a large number of identical units.P

Answer 378

A

A point in time denoted in the planning horizon of the master scheduling process that marks a boundary inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries, and cost. Outside the planning time fence, customer orders may be booked and changes to the master schedule can be made within the constraints of the production plan. Changes inside the planning time fence must be made manually by the master scheduler. Syn: planning fence. See: cumulative lead time, demand time fence, firm planned order, planned order, planning horizon, time fence.P

Answer 379

A

Using a worker’s full capacity by adding one task at a time (in priority order) up to the maximum capacity, or waiting for the utilization to fall and then adding more tasks.I

Answer 380

A

A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing. See: job shop.I I

Answer 381

A

A product that is made to meet the requirements of specific customers.C

Answer 382

A

A form of independent demand management model in which an order is placed every n time units. The order quantity is variable and essentially replaces the items consumed during the current time period. Let M be the maximum inventory desired at any time, and let x be the quantity on hand at the time the order is placed. Then, in the simplest model, the order quantity will be M – x. The quantity M must be large enough to cover the maximum expected demand during the lead time plus a review interval. The order quantity model becomes more complicated whenever the replenishment lead time exceeds the review interval, because outstanding orders then have to be factored into the equation. These reorder systems are sometimes called fixed-interval order systems, order level systems, or periodic review systems. Syn: fixedinterval order system, fixed order quantity system, order level system, periodic review system, time-based order system. See: fixed reorder quantity inventory model, hybrid inventory system, independent demand item management models, optional replenishment model.F

Answer 383

A

reducing costs, improving quality, reducing delivery lead time, and improving due-date performance.B

Answer 384

A

An estimate of what should be produced, given a certain level of resources. Can be stated in units per hour or units per period (day, shift, etc.).S

Answer 385

A

Abbreviation for yard management system.Y

Answer 386

A

A market/ customs alliance between Argentina, Brazil, Paraguay, and Uruguay created by the Treaty of Ascuncion (1991).S

Answer 387

A

Syn: gain sharing.G

Answer 388

A

In six sigma, quality expert capable of implementing strategic quality efforts including teaching other facilitators (black belts) the quality applications within all levels of the organization.M

Answer 389

A

The number of times an item in inventory is counted during a period of time. Generally, highvalue inventories are counted more frequently than lowvalue items, although properties other than value can influence the frequency.C

Answer 390

A

Specific items that are priced separately on a contract.C

Answer 391

A

The practice of removing a pallet of merchandise where the space is not exhausted in an orderly fashion, resulting in a vacant space not usable for storage of other items. This is one of the hidden costs of warehousing.H

Answer 392

A

A quantity that can assume any of a given set of values. Ant: constant.V

Answer 393

A

An amount owed to creditors. It is generally equal to the total assets in a company less the equity. See: liabilities.D

Answer 394

A

1) A warehouse location methodology that includes some of the characteristics of fixed and random location methods. Zone locations hold certain kinds of items, depending on physical characteristics or frequency of use. 2) The specific warehouse location assigned to an order picker. In picking items for an order, the stock picker gets only the items for each order that are within his/her zone. The picker then fills the next order for items from his/her zone.Z

Answer 395

A

The unit in which the quantity of an item is managed (e.g., pounds, each, box of 12, package of 20, case of 144).U

Answer 396

A

In project management, a document that has been approved by upper management that is to be used in executing and controlling a project. It documents assumptions, facilitates communication, and documents the approved budget and schedule. It may exist at a summary or a detailed level.P

Answer 397

A

An interactive combination of two or more of the following: text, graphics, video, audio, and animation all controlled by a personal computer.M

Answer 398

A

A production control person whose primary duty is expediting.E

Answer 399

A

A listing of every parent item that calls for a given component, and the respective quantity required, from a bill-of-material file. See: implosion.W

Answer 400

A

Syn: lot number.B

Answer 401

A

Accommodating unavailability of equipment by quickly and easily using alternate machines in the processing sequence.R R

Answer 402

A

1) A backup capability, coming either from extra machines or from extra components within a machine, to reduce the effects of breakdowns. 2) The use of one or more extra or duplicating components in a system or equipment (often to increase reliability).R

Answer 403

A

A control chart for evaluating the stability of a process in terms of the percentage of the total number of units in a sample in which an event of a given classification occurs over time. P charts are used where it is difficult or costly to make numerical measurements or where it is desired to combine multiple types of defects into one measurement. Syn: percent chart.P

Answer 404

A

in the correct quantity and

Answer 405

A

The difference between a performance standard and actual performance.P

Answer 406

A

The method of attaching additional jobs to a workstation based on priority order, with the longest task scheduled first.L

Answer 407

A

A control chart in which the deviation of the subgroup average, X-bar, from an expected trend in the process level is used to evaluate the stability of a process.T

Answer 408

A

In inventory control, a raw material that is found at all locations.U

Answer 409

A

Syn: plan-do-check-action.S

Answer 410

A

usually decentralized at the corporate level and centralized at the business unit level.H

Answer 411

A

A supplier who delivers a product to a direct supplier to the customer.S

Answer 412

A

A class of mathematical models used when the modeler wishes to find the ideal (maximum or minimum) value of some objective function subject to a set of constraints.O

Answer 413

A

A statistical analysis system that estimates what portion of variation in a dependent variable is caused by variation in one or more independent variables. It also produces a number used to infer whether any or all of the independentdependent variable relationships have statistical significance (i.e., have not been caused by randomness in the data).A

Answer 414

A

A firm in which individual plants are dedicated to manufacturing a specific product or product group.P

Answer 415

A

A movement started in the early 1900s among managers who believed that employees are humans who should be treated with respect in the workplace.H

Answer 416

A

1) An industrial process in which worn-out products are restored to like-new condition. In contrast, a repaired product normally retains its identity, and only those parts that have failed or are badly worn are replaced or serviced. 2) The manufacturing environment where worn-out products are restored to likenew condition.R

Answer 417

A

A type of contract that is a hybrid between cost-reimbursable and fixedtime contracts.T

Answer 418

A

Areas supervised by U.S. Customs and Border Protection that are considered to be outside U.S. territory. Material in the zone is not subject to duty taxes, which are payable when the material is moved outside the zone for consumption. There is no limit on the time material may remain in the zone. Internationally, similar areas are called free trade zones.F F

Answer 419

A

In repetitive manufacturing, regulating the assignments given to each workstation in order to ensure that all tasks at each workstation on the line are done in as close to the same time as possible.B

Answer 420

A

Product desirability created by marketing efforts.P

Answer 421

A

Acronym for what you see is what you get.W X

Answer 422

A

The incremental sales dollars received when the level of output of some operation is increased by one unit.M

Answer 423

A

A standard time greater than that required by a qualified worker with normal skill and effort.L

Answer 424

A

Abbreviation for material review board.M

Answer 425

A

A company incorporated in a particular state or country.D

Answer 426

A

Abbreviation for Institute of Industrial Engineers.I

Answer 427

A

Giving customers the highest rating who have bought recently, bought many times, and bought in large amounts.R

Answer 428

A

The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.R

Answer 429

A

A style of information technology (IT) design that guides all aspects of creating and using business services throughout their life cycles, as well as defining and provisioning the IT infrastructure that enables different computer applications to exchange data and participate in business processes, regardless of the operating systems or programming languages underlying those applications.S

Answer 430

A

A decrease in the buying power of a country’s currency in terms of other countries’ goods and services.D

Answer 431

A

In cost accounting, the difference between the actual volume of a resource used and the budgeted volume, multiplied by the budgeted or standard price.E

Answer 432

A

As an item is sold, scanned information is sent to the manufacturer and creates a replacement order of that item. Used often in large retail store chains as well as large volume product producers.S

Answer 433

A

A large, protective box used to contain smaller boxes. This reduces materials handling activities.M

Answer 434

A

A listing of all the raw materials, ingredients, components, and such that are required to perform a mixing, blending, or similar operation. This listing is often printed on a paper ticket, which also may be used as a turnaround document to report component quantities actually used, final quantity actually produced, etc. This term is often used in batch process or chemical industries. See: assembly parts list, batch card, blend formula, manufacturing order.M

Answer 435

A

A set of inventory bookkeeping methods that automatically adjusts computerized inventory records based on a production transaction. Examples of automatic relief methods are backflushing, directdeduct, and pre-deduct processing.A

Answer 436

A

In project management, the calculation of early and late start and finish times for those activities not yet completed. See: critical path method, graphical evaluation and review technique, and program evaluation and review technique (PERT).N

Answer 437

A

A measure of a firm’s financial stability. It is defined as (current assets – inventory)/current liabilities. A value greater than one is desirable. Syn: quick ratio, acid test, acid test ratio.Q

Answer 438

A

The time required to rework material in-house or at a supplier’s location.R

Answer 439

A

A rental agreement lasting an extended period.L

Answer 440

A

A special vessel to contain a chemical reaction.R

Answer 441

A

Activities such as accounting and information systems that do not directly participate in production but that are nevertheless essential.S

Answer 442

A

Expressed in percent defective, the poorest quality in an individual lot that should be accepted. Note: The LTPD is used as a basis for some inspection systems and is commonly associated with a value for a small consumer’s risk.L

Answer 443

A

1) In a fixed-reorder quantity system of inventory control, the fixed quantity that should be ordered each time the available stock (on-hand plus onorder) falls to or below the reorder point. 2) In a variable reorder quantity system, the amount ordered from time period to time period will vary. Syn: replenishment order quantity.R

Answer 444

A

Production in which each unit or small group of units is managed by a project team created especially for that purpose.P

Answer 445

A

Costs that involve direct payments such as labor, freight, or insurance, as opposed to depreciation, which does not.O

Answer 446

A

Estimated cost of an activity or project when the defined scope of work will be finished. It is the actual cost-to-date plus estimate-tocomplete for uncompleted activities.E

Answer 447

A

A control chart for evaluating the stability of a process in terms of the count of events of a given classification occurring in a sample. Syn: count chart, number defective chart.C

Answer 448

A

A process to develop tactical plans based on setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned levels of sales (sales plan or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times, and so on, as expressed in the overall business plan. The sales and production capabilities are compared, and a business strategy that includes a sales plan, a production plan, budgets, pro forma financial statements, and supporting plans for materials and workforce requirements, and so on, is developed. One of its primary purposes is to establish production rates that will achieve management’s objective of satisfying customer demand by maintaining, raising, or lowering inventories or backlogs, while usually attempting to keep the workforce relatively stable. Because this plan affects many company functions, it is normally prepared with information from marketing and coordinated with the functions of manufacturing, sales, engineering, finance, materials, and so on. See: aggregate planning, production plan, sales and operations planning, sales plan.P

Answer 449

A

1) An organization in which similar equipment is organized by function. Each job follows a distinct routing through the shop. 2) A type of manufacturing process used to produce items to each customer’s specifications. Production operations are designed to handle a wide range of product designs and are performed at fixed plant locations using general-purpose equipment. Syn: jobbing. See: intermittent production, project manufacturing.J

Answer 450

A

The center of shipping in a specific area; used to determine shipping rates.R

Answer 451

A

A technical measure taken to reduce or eliminate at the source the production of any nuiscleanup ● collaborative planning C ance, pollution, or waste and to help save raw materials, natural resources, and energy.C

Answer 452

A

An amount of inventory kept between entities in a manufacturing or distribution network to create independence between processes or entities. The objective of decoupling inventory is to disconnect the rate of use from the rate of supply of the item. See: buffer.D

Answer 453

A

Syn: first-order smoothing.S

Answer 454

A

High-level decisions regarding which products or services will be produced within a company and which will be purchased from external supply chain partners. These decisions normally are based on supplier cost and capability by comparison to producing the product in house.S

Answer 455

A

Abbreviation for flexible manufacturing system.F

Answer 456

A

The fact that an item has a limited shelf life and may be fragile and require special handling.P

Answer 457

A

One distinguishing feature of pure services. Pure services cannot be inventoried or carried in stock for long periods of time.I

Answer 458

A

Syn: first-article inspection.F

Answer 459

A

Syn: standard time.S

Answer 460

A

The arrangement of tools, equipment, materials, and supplies according to their frequency of use. Those items that are never used are removed from the workplace, and those items that are used frequently are located for fast, easy access and Z replacement. This concept extends the idea of “a place for everything and everything in its place.”W

Answer 461

A

Typically, scheduling extra quantities of a master schedule option greater than the expected sales for that option to protect against unanticipated demand. This schedule quantity may only be planned in the period where new customer orders are currently being accepted, typically just after the demand time fence. This technique is usually used on the second level of a two-level master scheduling approach to create a situation where more of the individual options are available than of the overall family. The historical average of demand for an item is quantified in a planning bill of material. Option overplanning is accomplished by increasing this percentage to allow for demands greater than forecast. See: demand time fence, hedge, planning bill of material.O

Answer 462

A

A group that provides transportation exclusively within an organization. Ant: common carrier.P

Answer 463

A

An offer by an organization to buy a block of shares directly from shareholders of another organization.T

Answer 464

A

In statistics, values near the middle of results from a process.C

Answer 465

A

Abbreviation for intermodal marketing company.I

Answer 466

A

In transportation, the rate discount volume.M

Answer 467

A

The delay controlled by a worker and therefore not allowed in the job standard.A

Answer 468

A

A graphic description of the relationship between price and quantity demanded in a market, assuming that all other factors stay the same. Quantity demanded of a product is measured on the horizontal axis for an array of different prices measured on the vertical axis.D

Answer 469

A

Assigning multiple tasks to be performed concurrently, often the assignment of multiple picking orders to a single picker to pick concurrently.I

Answer 470

A

A product that is usually manufactured together or sequentially because of product or process similarities. See: by-product.C

Answer 471

A

The simulation of a product’s life under controlled real-world conditions to see if it holds up and performs as required.L

Answer 472

A

Syn: control board.D

Answer 473

A

1) The work required to change a specific machine, resource, work center, or line from making the last good piece of item A to making the first good piece of item B. 2) The refitting of equipment to neutralize the effects of the last lot produced (e.g., teardown of the just-completed production, preparation of the equipment for production of the next scheduled item). Syn: changeover, turnaround, turnaround time.S

Answer 474

A

1) The equivalent monetary value at a designated future date based on the time value of money. 2) The monetary sum, at a given future time, that is equivalent to one or more sums at given earlier times when interest is compounded at a given rate. See: time value of money.F

Answer 475

A

Syn: manufacturing lead time.P

Answer 476

A

The difference between the planned or standard requirements for materials to produce a given item and the actual quantity used for a particular instance of manufacture.M

Answer 477

A

A form of an indented whereused bill of material that shows all parents in which a given component is used, the required quantities, and all the next-level parents until the end item is reached. Unlike the indented where-used, it does not list the levels of manufacture.S

Answer 478

A

The cumulative effect of yield loss at multiple operations within the manufacturing cycle.C

Answer 479

A

An organization’s statement of its vision. See: vision.V

Answer 480

A

Classifying raw data based on experience or statistical information.P

Answer 481

A

Syn: funds flow statement.C C

Answer 482

A

Detailed manufacturing instructions issued to the plant. The instructions may include specifications on speeds, feed, temperatures, tools, fixtures, and machines and sketches of setups and semifinished dimensions.P

Answer 483

A

Syn: parts requisition.R

Answer 484

A

A group of potential customers sharing some measurable characteristics based on demographics, psychographics, lifestyle, geography, benefits, and so forth.M

Answer 485

A

A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody of materials.C

Answer 486

A

Credit cards with a predetermined credit limit issued to buyers. Syn: corporate purchasing cards.P

Answer 487

A

A form of independent demand item management model in which a review of inventory on hand plus on order is made at fixed intervals. If the actual quantity is lower than some predetermined threshold, a reorder is placed for a quantity M – x, where M is the maximum allowable inventory and x is the current inventory quantity. The reorder point, R, may be deterministic or stochastic, and in either instance is large enough to cover the maximum expected demand during the review interval plus the replenishment lead time. The optional replenishment model is sometimes called a hybrid system because it combines certain aspects of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model. See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, hybrid inventory system, independent demand item management models.O

Answer 488

A

Facilities used to store inventory. Decisions driving warehouse management include site selection, number of facilities in the system, layout, and methods of receiving, storing, and retrieving goods.W

Answer 489

A

The time period between the placement of orders.O

Answer 490

A

Syn: safety factor.S

Answer 491

A

Syn: level production method.P

Answer 492

A

A business or organization made up of individuals who have acquired the knowledge and skills to work with others to make the organization a greater success than the sum of each individual’s output. Integration includes increased communication and coordination between individuals and within and across teams, functions, processes, and organizations over time. See: cross-functional integration.I

Answer 493

A

Pulling material for an order from inventory before the material is required. This action is often taken to identify shortages, but it can lead to increased problems in availability and inventory accuracy.S

Answer 494

A

Those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace. For example, a firm may seek to compete on characteristics other than price, but in order to “qualify” to compete, its costs and the related price must be within a certain range to be considered by its customers. Syn: qualifiers. See: order losers, order winners.O

Answer 495

A

A set of activity-based cost accounting models that collectively define data on an organization’s resources, activities, drivers, objects, and measurements.A

Answer 496

A

A retailer who sells products to the public but who buys products indirectly through a third-party distributor, rather than directly from the seller.I

Answer 497

A

Syn: predetermined motion time.S

Answer 498

A

A period of time marked by long-term fluctuations in the total level of economic activity. Measures of business cycle activity include the rate of unemployment and the level of gross domestic product.B

Answer 499

A

Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It is computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The takt time = 420 minutes per day/ 500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes. Syn: tact time.T

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