APICS Deck 8 OO

Question 1

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shipping

Answer 1

The function that performs tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.S

Question 2

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non-vessel-operating common carrier (NVOCC)

Answer 2

Carrier that uses ocean liners and works similarly to freight forwarders.N

Question 3

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tactical buying

Answer 3

The purchasing process focused on transactions and nonstrategic material buying. It is closely aligned with the “ordering” portion of executing the purchasing transaction process. The characteristics for tactical buying include stable, limited fluctuations, defined standard specifications, noncritical to production, no delivery issues, and high reliability concerning quality-standard material with very little concern for rejects. See: strategic sourcing.T

Question 4

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block scheduling

Answer 4

An operation scheduling technique where each operation is allowed a “block” of time, such as a day or a week.B

Question 5

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perpetual inventory

Answer 5

An inventory recordkeeping system where each transaction in and out is recorded and a new balance is computed.P

Question 6

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purchasing performance measurement

Answer 6

Syn: supplier measurement.P

Question 7

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lean

Answer 7

Syn: lean production.L

Question 8

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two-card kanban system

Answer 8

A kanban system where a move card and production card are employed. The move card authorizes the movement of a specific number of parts from a source to a point of use. The move card is attached to the standard container of parts during movement to the point of use of the parts. The production card authorizes the production of a given number of parts for use or replenishment. Syn: dualcard kanban system. See: one-card kanban system.T

Question 9

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automated storage/retrieval system (AS/RS)

Answer 9

A highdensity, rack inventory storage system with vehicles automatically loading and unloading the racks.A

Question 10

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planning board

Answer 10

Syn: control board.P

Question 11

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single-factor productivity

Answer 11

The average amount of a given product (output) attributed to a unit of a given resource (input). Factors include labor and capital. Syn: partial productivity factor. See: multiple-factor productivity.S

Question 12

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correlation

Answer 12

The relationship between two sets of data such that when one changes, the other is likely to make a corresponding change. If the changes are in the same direction, there is positive correlation. When changes tend to occur in opposite directions, there is negative correlation. When there is little correspondence or random changes, there is no correlation.C

Question 13

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single smoothing

Answer 13

Syn: first-order smoothing.S

Question 14

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level of service

Answer 14

A measure (usually expressed as a percentage) of satisfying demand through inventory or by the current production schedule in time to satisfy the customers’ requested delivery dates and quantities. In a make-to-stock environment, level of service is sometimes calculated as the percentage of orders picked complete from stock upon receipt of the customer order, the percentage of line items picked complete, or the percentage of total dollar demand picked complete. In make-to-order and design-to-order environments, levlevel L el of service is the percentage of times the customerrequested or acknowledged date was met by shipping complete product quantities. Syn: measure of service, service level. See: cycle service level.L

Question 15

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process average

Answer 15

Expected value of the percentage defective of a given manufacturing process.P

Question 16

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average payment period

Answer 16

The average time between receipt of materials and payment for those materials.A

Question 17

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manufacturing automation protocol (MAP)

Answer 17

An application-specific protocol based on the International Standards Organization’s open systems interconnection (OSI) standards. It is designed to allow communication between a company’s computers and computers from different vendors in the manufacturing shop floor environment.M

Question 18

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cost-based contract

Answer 18

A type of purchasing contract where the price of goods or services is tied to the cost of key inputs or other economic factors, such as interest rates.C

Question 19

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functional silo syndrome

Answer 19

Suboptimization of an organization’s goals due to members of specific functions developing more loyalty to the function’s group goals than to the organization’s goals.F

Question 20

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supplier measurement

Answer 20

The act of measuring the supplier’s performance to a contract. Measurements usually cover delivery reliability, lead time, and price. Syn: purchasing performance measurement. See: vendor measurement.S S

Question 21

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jury of executive opinion

Answer 21

A forecast given by a group of executives who are knowledgeable about the industry, competition, and the firm.J

Question 22

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law of diminishing marginal returns

Answer 22

A principle that as the quantity of a variable factor applied to a fixed factor is increased, the additional units of the variable factor will result in smaller and smaller increases in output. See: marginal product.L

Question 23

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TEU

Answer 23

Abbreviation for twenty-foot equivalent unit.T

Question 24

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time-now date

Answer 24

Syn: data date.T

Question 25

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tactical plan(s)

Answer 25

The set of functional plans (e.g., production plan, sales plan, marketing plan) synchronizing activities across functions that specify production levels, capacity levels, staffing levels, funding levels, and so on, for achieving the intermediate goals and objectives to support the organization’s strategic plan. See: aggregate planning, operational plan, production plantactical T ning, sales and operations planning, strategic plan, tactical planning.T

Question 26

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time to reliably replenish (TRR)

Answer 26

The time in which a part can reliably be obtained if necessary.T

Question 27

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modular bill of material

Answer 27

A type of planning bill that is arranged in product modules or options. It is often used in companies where the product has many optional features (e.g., assemble-to-order companies such as automobile manufacturers). See: pseudo bill of material.M

Question 28

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quality tree

Answer 28

An analytical tool that visualizes that quality is composed of four layers of achievement: (1) inspection, (2) process measurement and improvement, (3) process control, and (4) design for quality.Q

Question 29

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demand rate

Answer 29

A statement of requirements in terms of quantity per unit of time (hour, day, week, month, etc.).D

Question 30

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bin transfer

Answer 30

An inventory transaction to move a quantity from one valid location (bin) to another valid location (bin).B B

Question 31

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stock

Answer 31

1) Items in inventory. 2) Stored products or service parts ready for sale, as distinguished from stores, which are usually components or raw materials.S

Question 32

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earned volume

Answer 32

Syn: earned hours.E

Question 33

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certificate of compliance

Answer 33

A supplier’s certification that the supplies or services in question meet specified requirements. C

Question 34

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virtual trading exchange

Answer 34

An online trading exchange that enables both information integration and collaboration between multiple trading partners.V

Question 35

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receivable, and inventory

Answer 35

or a long-term value (such as equipment, land, and buildings). See: balance sheet, liabilities, owner’s equity.A

Question 36

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materials handling

Answer 36

Movement and storage of goods inside the distribution center. This represents a capital cost and is balanced against the operating costs of the facility.M

Question 37

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mission statement

Answer 37

The company statement of purpose.M

Question 38

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zone picking

Answer 38

A method of subdividing a picking list by areas within a storeroom for more efficient and rapid order picking. A zone-picked order must be grouped to a single location before delivery or must be delivered to different locations, such as work centers. See: batch picking, discrete order picking, order picking.Z

Question 39

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GATT

Answer 39

Acronym for general agreement on tariffs and trade.G

Question 40

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appraisal

Answer 40

1) An evaluation of employee performance. 2) In total quality management, the formal evaluation and audit of quality.A

Question 41

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online service

Answer 41

The processing of transaction data as soon as the transaction occurs. It is real-time processing as opposed to batch processing. See: real time.O

Question 42

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SCEM

Answer 42

Abbreviation for supply chain event management.S

Question 43

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quantity-based order system

Answer 43

Syn: fixed reorder quantity inventory model.Q

Question 44

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current price

Answer 44

The price currently being paid as opposed to standard cost.C

Question 45

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process stocks

Answer 45

Raw ingredients or intermediates available for further processing into marketable products.P

Question 46

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bullwhip effect

Answer 46

An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain. Inventory can quickly move from being backordered to being excess. This is caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving product down the chain. The bullwhip effect can be eliminated by synchronizing the supply chain.B

Question 47

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lead-time offset

Answer 47

A technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on the lead time for the item. Syn: component lead-time offset, offsetting.L

Question 48

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CAM

Answer 48

Acronym for computer-aided manufacturing.C

Question 49

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core process

Answer 49

That unique capability that is central to a company’s competitive strategy.C

Question 50

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short shipment

Answer 50

A situation in which a piece of freight designated by the shipping document is missing from delivery.S

Question 51

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paperless purchasing

Answer 51

A purchasing operation that does not employ purchase requisitions or hard-copy purchase orders. In actual practice, a small amount of paperwork usually remains, normally in the form of the supplier schedule.P

Question 52

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product structure

Answer 52

The sequence of operations that components follow during their manufacture into a product. A typical product structure would show raw material converted into fabricated components, components put together to make subassemblies, subassemblies going into assemblies, and so forth.P

Question 53

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with the correct line items

Answer 53

must arrive on time.C

Question 54

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ASQ

Answer 54

Abbreviation for American Society for Quality.A

Question 55

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turnaround

Answer 55

Syn: setup.T

Question 56

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composite yield

Answer 56

A condition where loss occurs along several operations resulting in a decreased yield for the end item. Syn: cumulative yield.C

Question 57

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constant

Answer 57

A quantity that has a fixed value. Ant: variable.C

Question 58

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lap phasing

Answer 58

Syn: overlapped schedule.L

Question 59

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late finish date (LF)

Answer 59

In the critical path method of project management, the last date upon which a given activity can be completed without delaying the completion date of the project.L

Question 60

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activity ratio

Answer 60

A financial ratio to determine how an organization’s resources perform relative to the revenue the resources produce. Activity ratios include inventory turnover, receivables conversion period, fixed-asset turnover, and return on assets.A

Question 61

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factory within a factory

Answer 61

A technique to improve management focus and overall productivity by creating autonomous business units within a larger physical plant. Syn: plant within a plant.F

Question 62

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calendar unit

Answer 62

The smallest unit of time in a project plan.C

Question 63

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design for maintainability

Answer 63

Syn: design for service.D

Question 64

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clock card

Answer 64

Syn: time card.C

Question 65

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purchasing capacity

Answer 65

The act of buying capacity or machine time from a supplier. A company can then schedule and use the capacity of the machine or a part of the capacity of the machine as if it were in its own plant.P

Question 66

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intermediately positioned warehouse

Answer 66

A warehouse located between customers and manufacturing plants to provide increased customer service and reduced distribution cost.I

Question 67

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order losers

Answer 67

Capabilities of an organization in which poor performance can cause loss of business. Failure to meet customer expectations with delivery of the product is an order loser. See: order qualifiers, order winners.O

Question 68

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venture team

Answer 68

A set of individuals assigned outside normal channels to develop ideas for new products.V

Question 69

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safety capacity

Answer 69

In the theory of constraints: The planned amount by which the available capacity exceeds current productive capacity. This capacity provides protection from planned activities, such as resource contention, and preventive maintenance and unplanned activities, such as resource breakdown, poor quality, rework, or lateness. Safety capacity plus productive capacity plus excess capacity is equal to 100 percent of capacity. Syn: capacity cushion. See: protective capacity.S

Question 70

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ABP

Answer 70

Abbreviation for activity-based planning.A

Question 71

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balancing operations

Answer 71

In repetitive just-in-time production, matching actual output cycle times of all operations to the demand or use for parts as required by final assembly and, eventually, as required by the market.B

Question 72

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common-size income statement

Answer 72

In accounting, an income statement having values expressed as a percentage of sales rather than dollar values.C

Question 73

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billing and collection costs

Answer 73

In transportation, the costs related to issuing invoices or bills. These amounts can be reduced by combining shipments in an order to limit transportation frequency.B

Question 74

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block diagram

Answer 74

A diagram that shows the operations, interrelationships, and interdependencies of components in a system. Boxes, or blocks (hence the name), represent the components; connecting lines between the blocks represent interfaces. There are two types of block diagrams: (1) functional block diagrams, which show a system’s subsystems and lower level products, their interrelationships, and interfaces with other systems and (2) reliability block diagrams, which are similar to functional block diagrams except they are modified to emphasize those aspects influencing reliability. See: flowchart.B

Question 75

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heel

Answer 75

In the process industry, an item used in the manufacture of itself. For example, in the manufacture of plastic, the ingredients will include the parent as well as the components.H

Question 76

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virtual reality

Answer 76

Hardware and software that create an apparently real environment.V

Question 77

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concurrency

Answer 77

Syn: resource contention.C

Question 78

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frozen master production schedule

Answer 78

The parts of a master production schedule that should not be changed or should be changed rarely.F

Question 79

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lighter

Answer 79

A short-haul flat-bottomed barge.L

Question 80

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shop floor control

Answer 80

A system for using data from the shop floor to maintain and communicate status information on shop orders (manufacturing orders) and on work centers. Shop floor control can use order control or flow control to monitor material movement through the facility. The major subfunctions of shop floor control are (1) assigning priority of each shop order; (2) maintaining working-process quantity information; (3) conveying shop order status information to the office; (4) providing actual output data for capacity control purposes; (5) providing quantity by location by shop order for work-in-process inventory and accounting purposes; and (6) providing measurement of efficiency, utilization, and productivity of the workforce and machines. The major subfunctions for flow control are based primarily on production rates and feeding work into production to meet these planned rates, then monitoring and controlling production. See: flow control, order control, production activity control.S

Question 81

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counterpurchase

Answer 81

When an exporter buys unrelated goods or services from an importer.C

Question 82

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NAFTA

Answer 82

Acronym for North American Free Trade Agreement.N National Association of Purchasing Management

Question 83

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producer market

Answer 83

Syn: industrial market.P

Question 84

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computer-aided process planning (CAPP)

Answer 84

A method of process planning in which a computer system assists in the development of manufacturing process plans (defining operation sequences, machine and tooling requirements, cut parameters, part tolerances, inspection criteria, and other items). Artificial intelligence and classification and coding systems may be used in the generation of the process plan.C

Question 85

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warranty

Answer 85

A commitment, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. The word should be distinguished from guarantee, which means a contract or promise by an entity to answer for the performance of a product or person. See: general warranty, guarantee, special warranty.W

Question 86

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multicriteria decision models

Answer 86

Models that enable decision makers to evaluate various alternatives across several decision criteria.M

Question 87

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credit period

Answer 87

The time allowed a customer to pay an invoice in full.C

Question 88

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focused factory

Answer 88

A plant established to focus the entire manufacturing system on a limited, concise, manageable set of products, technologies, volumes, and markets precisely defined by the company’s competitive strategy, technology, and economics. See: cellular manufacturing.F

Question 89

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core team

Answer 89

A cross-functional team of specialists formed to manage new product introduction. See: crossfunctional team.C

Question 90

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mixed-model scheduling

Answer 90

The process of developing one or more schedules to enable mixed-model production. The goal is to achieve a day’s production each day. See: mixed-model production.M

Question 91

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batch

Answer 91

1) A quantity scheduled to be produced or in production. See: process batch, transfer batch. 2) For discrete products, the batch is planned to be the standard batch quantity, but during production, the standard batch quantity may be broken into smaller lots. See: lot. 3) In nondiscrete products, the batch is a quantity that is planned to be produced in a given time period based on a formula or recipe that often is developed to produce a given number of end items. 4) A type of manufacturing process used to produce items with similar designs and that may cover a wide range of order volumes. Typically, items ordered are of a repeat nature, and production may be for a specific customer order or for stock replenishment. See: project manufacturing.B

Question 92

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spot demand

Answer 92

Demand, having a short lead time, that is difficult to estimate. Usually supply for this demand is provided at a premium price.S

Question 93

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supermarket approach

Answer 93

A way of managing inventory and improving picking by making all parts easy to take off of a shelf, much like the shelves of a supermarket. Inventory is then restocked in such a way that employees always have easy access.S

Question 94

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supplier partner

Answer 94

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

Question 95

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confirming order

Answer 95

A purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.C

Question 96

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fully qualified domain name

Answer 96

The complete, registered address (URL) of an internet site.F

Question 97

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cartel

Answer 97

A group of companies that agree to cooperate, rather than compete, in producing a product or service, thus limiting or regulating competition.C

Question 98

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competitive advantage

Answer 98

The advantage a company has over its rivals in attracting customers and defending against competitors. Sources of the advantage include characteristics that a competitor cannot duplicate without substantial cost and risk, such as a manufacturing technique, brand name, or human skill set. Syn: competitive edge.C

Question 99

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theoretical cycle time

Answer 99

The amount of time, eliminating all stops, waiting, and additional time due to error, that is needed for one item to go through an entire process.T

Question 100

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product configuration catalog

Answer 100

A listing of all upper level configurations contained in an end-item product family. Its application is most useful when there are multiple end-item configurations in the same product family. It is used to provide a transition linkage between the enditem level and a two-level master production schedule. It also provides a correlation between the various units of upper level product definition.P

Question 101

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contract carrier

Answer 101

A carrier that does not serve the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract.C C

Question 102

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product life cycle

Answer 102

1) The stages a new product goes through from beginning to end (i.e., the stages that a product passes through from introduction through growth, maturity, and decline). 2) The time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) The period of time during which a product can be produced and marketed profitably.P

Question 103

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public key

Answer 103

In information systems, a system where one person holds a private key (an encryption code defining access rights) but shares another key with a set of people with whom that person will communicate. See: private key.P

Question 104

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accounts payable

Answer 104

The value of goods and services acquired for which payment has not yet been made.A

Question 105

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net assets

Answer 105

Total assets minus total liabilities.N

Question 106

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movement inventory

Answer 106

A type of in-process inventory that arises because of the time required to move goods from one place to another.M

Question 107

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kanban

Answer 107

A method of just-in-time production that uses standard containers or lot sizes with a single card attached to each. It is a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers. The Japanese word kanban, loosely translated, means card, billboard, or sign but other signaling devices such as colored golf balls have also been used. The term is often used synonymously for the specific scheduling system developed and used by the Toyota Corporation in Japan. See: move card, production card, synchronized production.K

Question 108

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pseudo bill of material

Answer 108

An artificial grouping of items that facilitates planning. See: modular bill of material, phantom bill of material, planning bill of material, super bill of material.P

Question 109

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nationalization

Answer 109

public ownership and operation of a business enterprise.N

Question 110

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checklist

Answer 110

A tool used to ensure that important steps or actions in an operation have been taken. Checklists contain items that are important or relevant to an issue or situation.C

Question 111

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forecast

Answer 111

An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and it can be based on extrinsic (external) or intrinsic (internal) factors. Various forecasting techniques attempt to predict one or more of the four components of demand: cyclical, random, seasonal, and trend. Syn: sales forecast. See: Box-Jenkins model, exponential smoothing forecast, extrinsic forecasting method, intrinsic forecasting method, moving average forecast, qualitative forecasting method, quantitative forecasting method.F

Question 112

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nervousness

Answer 112

The characteristic in an MRP system when minor changes in higher level (e.g., level 0 or 1) records or the master production schedule cause significant timing or quantity changes in lower level (e.g., level 5 or 6) schedules and orders. Syn: system nervousness.N

Question 113

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gross weight

Answer 113

Vehicle weight including freight or passengers.G

Question 114

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synchronous manufacturing

Answer 114

Syn: synchronized production.S

Question 115

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engineering characteristics

Answer 115

The technical features designed into a product.E

Question 116

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focus forecasting

Answer 116

A system that allows the user to simulate the effectiveness of numerous forecasting techniques, enabling selection of the most effective one.F

Question 117

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netting

Answer 117

The process of calculating net requirements.N

Question 118

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capacity planning

Answer 118

The process of determining the amount of capacity required to produce in the future. This process may be performed at an aggregate or product-line level (resource requirements planning), at the master-scheduling level (rough-cut capacity planning), and at the material requirements planning level (capacity requirements planning). See: capacity requirements planning, resource planning, rough-cut capacity planning.C

Question 119

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TCO

Answer 119

Abbreviation for total cost of ownership.T

Question 120

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multilinear regression analysis

Answer 120

Model used for forecasting with more than one independent variable.M

Question 121

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startup costs

Answer 121

The extra operating costs to bring the plant or product on-stream incurred between the completion of construction and the start of normal operations. In addition to the difference between actual operating costs during that period and normal costs, they include employee training, equipment tests, process adjustments, salaries and travel expense of temporary labor staff and consultants, report writing, post-startup monitoring, and associated overhead. Additional capital required to correct plant problems may be included. Startup costs are sometimes capitalized.S

Question 122

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liquidity ratio

Answer 122

Financial ratios that are indicators of a firm’s ability to retire short-term financial obligations.L

Question 123

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rejected inventory

Answer 123

Inventory that does not meet quality requirements but has not yet been sent to rework, scrapped, or returned to a supplier.R

Question 124

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negotiation

Answer 124

The process by which a buyer and a supplier agree upon the conditions surrounding the purchase of an item or a service.N

Question 125

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fixed-interval review system

Answer 125

A hybrid inventory system in which the inventory analyst reviews the inventory position at fixed time periods. If the inventory level is found to be above a preset reorder point, no action is taken. If the inventory level is at or below the reorder point, the analyst orders a variable quantity equal to M – x where M is a maximum stock level and x is the current quantity on hand and on order (if any). This hybrid system does not reorder every review interval. It therefore differs from the fixed-interval order system, which F automatically places an order whenever inventory is reviewed.F

Question 126

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production process

Answer 126

The activities involved in converting inputs into finished goods. See: manufacturing process, transformation process.P

Question 127

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CLIN

Answer 127

Abbreviation for contract line items number.C

Question 128

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advance material request

Answer 128

Ordering materials before the release of the formal product design. This early release is required because of long lead times.A

Question 129

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aggregate demand

Answer 129

Demand that is grouped (e.g., all sedans) for making forecasts or plans. See: aggregate forecast.A

Question 130

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cumulative sum

Answer 130

The accumulated total of all forecast errors, both positive and negative. This sum will approach zero if the forecast is unbiased. Syn: sum of deviations.C

Question 131

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priority

Answer 131

In a general sense, the relative importance of jobs (i.e., the sequence in which jobs should be worked on). It is a separate concept from capacity.P

Question 132

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supply chain network design systems

Answer 132

Systems created among all members of the supply chain in order to get all members on the same page and with the same goals in order to promote efficiency.S

Question 133

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calibration

Answer 133

The comparison of a measurement instrument or system of unverified accuracy with a measurement instrument or system of a known accuracy to detect any variation from the required performance specification.C

Question 134

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consumable tooling, supplies

Answer 134

Syn: consumables.C

Question 135

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forensic procurement

Answer 135

Analyzing root cause-and-effect troubleshooting.F

Question 136

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aggregate inventory

Answer 136

The inventory for any grouping of items or products involving multiple stockkeeping units. See: base inventory level.A

Question 137

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reliability engineering

Answer 137

The function responsible for the determination and application of appropriate reliability tasks and criteria during the design, development, manufacture, test, and support of a product that will result in achieving of the specified product reliability.R

Question 138

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viral marketing

Answer 138

An advertisement that is embedded into web-based technology, e.g., email or pop-up ads, that can easily move through the internet and get in front of the target audience who may never have seen it otherwise.V

Question 139

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cross-subsidy

Answer 139

In activity-based cost accounting, the situation of assigning too much or too little cost to a cost object. This may lead to poor decision making relative to the economic goals of the organization.C

Question 140

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available time

Answer 140

The number of hours a work center can be used, based on management decisions regarding shift structure, extra shifts, regular overtime, observance of weekends and public holidays, shutdowns, and the like. See: capacity available, utilization.A

Question 141

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slow-moving items

Answer 141

Those inventory items with a low turnover; items in inventory that have a relatively low rate of usage compared to the normal amount of inventory carried.S

Question 142

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usage

Answer 142

The number of units or dollars of an inventory item consumed over a period of time.U

Question 143

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alpha factor

Answer 143

Syn: smoothing constant.A

Question 144

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processing (DDP)

Answer 144

A data processing organizational concept under which computer resources of a company are installed at more than one location with appropriate communication links. Processing is performed at the user’s location generally on a smaller computer and under the user’s control and scheduling, as opposed to processing for all users being done on a large, centralized computer system.D

Question 145

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dedicated line

Answer 145

A production line permanently configured to run well-defined parts, one piece at a time, from station to station.D

Question 146

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shipping order debit memo

Answer 146

The document used to authorize the shipment of rejected material back to the supplier and create a debit entry in accounts payable.S

Question 147

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LBO

Answer 147

Abbreviation for leveraged buyout.L

Question 148

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running sum of forecast errors

Answer 148

The arithmetic sum of the differences between actual and forecasted demand for the periods being evaluated.R

Question 149

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frequency distribution

Answer 149

A table that indicates the frequency with which data fall into each of any number of subdivisions of the variable. The subdivisions are usually called classes.F

Question 150

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Products are divided as follows: (1) Cash cows

Answer 150

high

Question 151

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time buffer

Answer 151

Protection against uncertainty that takes the form of time.T

Question 152

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equipment class

Answer 152

A means to describe a group of equipment with similar characteristics for purposes of planning and scheduling.E

Question 153

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flow time efficiency

Answer 153

The ratio of theoretical flow time to the actual flow time through a process.F

Question 154

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material requirements plan

Answer 154

The result from the process of material requirements planning.M

Question 155

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imports

Answer 155

Products bought in one country and produced in another.I

Question 156

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material definition

Answer 156

A definition of the properties and characteristics of a substance. material-dominated

Question 157

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market value-added

Answer 157

In financial management, the surplus of a firm’s equity over the capital that has been invested in the firm.M

Question 158

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dunnage

Answer 158

The packing material used to protect a product from damage during transport.D

Question 159

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advanced production system (APS)

Answer 159

Syn: advanced planning and scheduling.A

Question 160

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random cause

Answer 160

Syn: common causes.R

Question 161

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piece rate

Answer 161

The amount of money paid for a unit of production. It serves as the basis for determining the total pay for an employee working in a piecework system.P

Question 162

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milk run

Answer 162

A regular route for pickup of mixed loads from several suppliers. For example, instead of each of five suppliers sending a truckload per week to meet the weekly needs of the customer, one truck visits each of the suppliers on a daily basis before delivering to the customer’s plant. Five truckloads per week are still shipped, but each truckload contains the daily requirement from each supplier. See: consolidation.M

Question 163

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Equal Employment Opportunity Commission (EEOC)

Answer 163

An administrative agency in the United States that oversees Title VII of the Civil Rights Act, which prohibits employment discrimination based on race, color, religion, sex, or national origin.E

Question 164

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activity duration

Answer 164

The planned difference between the start and finish dates of a project activity.A

Question 165

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lost time factor

Answer 165

The complement of utilization, that is one minus the utilization factor. It is the percentage of time lost to machine, tool, and worker unavailability. It can be calculated as the planned hours minus actual hours used, divided by the planned hours. See: balance delay, utilization.L

Question 166

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dispute resolution

Answer 166

The process of arbitration or mediation to settle arguments without going to court.D

Question 167

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intangible costs

Answer 167

Those costs that are difficult to quantify such as the cost of poor quality or of high employee turnover.I

Question 168

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excess capacity

Answer 168

Capacity that is not used to either produce or protect the creation of throughput.E

Question 169

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reach

Answer 169

The percentage of target customers who receive an advertising message.R

Question 170

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LTT

Answer 170

Abbreviation for longest-task-time.L

Question 171

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in-control process

Answer 171

A process in which the statistical measure being evaluated is in a state of statistical control (i.e., the variations among the observed sampling results can be attributed to a constant system of chance causes). Ant: out-of-control process.I

Question 172

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risk breakdown structure

Answer 172

A tool that helps identify potential project risks, organized by risk categories and subcategories.R

Question 173

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operation duration

Answer 173

The total time that elapses between the start of the setup of an operation and the completion of the operation. Syn: operation time.O

Question 174

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par level

Answer 174

In service operations, the maximum supply volume based on established quotas from previous use for a particular supply item, in a particular department, for a specified time period.P

Question 175

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fixed-location storage

Answer 175

A method of storage in which a relatively permanent location is assigned for the storage of each item in a storeroom or warehouse. Although more space is needed to store parts than in a randomlocation storage system, fixed locations become familiar, and therefore a locator file may not be needed. See: random-location storage.F

Question 176

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capital budgeting

Answer 176

Actions relating to the planning and financing of capital outlays for such purposes as the purchase of new equipment, the introduction of new product lines, and the modernization of plant facilities.C

Question 177

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dispatching

Answer 177

The selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers.D

Question 178

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planner

Answer 178

Syn: material planner.P

Question 179

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capital-intensive

Answer 179

A situation in which the largest expenditure in an operation is capital as opposed to labor. See: labor-intensive.C

Question 180

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job status

Answer 180

A periodic report showing the plan for completing a job (usually the requirements and completion date) and the progress of the job against that plan.J

Question 181

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enterprise resources management

Answer 181

The planning, execution, control, and measurement functions required to effectively operate an enterprise.E

Question 182

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distributed inventory

Answer 182

Maintaining inventory in a variety of locations to provide better customer service.D

Question 183

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absorption costing

Answer 183

An approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production. The fixed costs are usually allocated to units of output on the basis of direct labor hours, machine hours, or material costs. Syn: allocation costing. See: activity-based costing.A

Question 184

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capital recovery

Answer 184

1) Charging periodically to operations amounts that will ultimately equal the amount of capital expenditure. See: amortization, depletion, depreciation. 2) The replacement of the original cost of an asset plus interest. 3) The process of regaining the net investment in a project by means of revenue in excess of the cost from the project. (Usually implies amortization of principal plus interest on the diminishing unrecovered balance.)C

Question 185

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picking list

Answer 185

A document that lists the material to be picked for manufacturing or shipping orders. Syn: disbursement list, material list, stores issue order, stores requisition.P

Question 186

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annualized contract

Answer 186

A negotiated agreement with a supplier for one year that sets pricing, helps ensure a continuous supply of material, and provides the supplier with estimated future requirements.A

Question 187

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semiworks

Answer 187

Syn: pilot plant.S

Question 188

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predetermined time standards

Answer 188

A table of times of basic motions used to prepare artificial standards (i.e., without direct observation of a worker). See: therbligs.P

Question 189

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maximum demonstrated capacity

Answer 189

The highest amount of actual output produced in the past when all efforts have been made to optimize the resource; for instance, overtime, additional personnel, extra hours, extra shifts, reassignment of personnel, or use of any related equipment. Maximum demonstrated capacity is the most one could ever expect to produce in a short period of time but represents a rate that cannot be maintained over a long period of time. See: demonstrated capacity.M

Question 190

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semiprocess flow

Answer 190

A manufacturing configuration in which most jobs go through the same sequence of operations even though production is in job lots.S

Question 191

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projection

Answer 191

Syn: extrapolation.P

Question 192

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churn

Answer 192

The process of customers changing their buying preferences because they find better and/or cheaper products and services elsewhere. The internet makes it easy for customers to shop electronically in search of a better deal.C

Question 193

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and response

Answer 193

quality without sacrificing quantity objectives. The types of metrics are financial, behavioral, and core-process performance.L

Question 194

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experimental design

Answer 194

A formal plan that details the specifics for conducting an experiment, such as which statistical techniques and responses, factors, levels, blocks, and treatments, are to be used.E

Question 195

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environmentally responsible purchasing

Answer 195

Syn: responsible procurement.E

Question 196

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functional organization

Answer 196

A hierarchical organization in which each individual has one clear superior and staff areas are well defined.F G

Question 197

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define phase

Answer 197

A step in the six sigma DMAIC process in which project goals and customer deliverables are identified. See: design-measure-analyze-improve-control process.D

Question 198

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general warehouse

Answer 198

A location where goods usually are stored for long periods of time. The primary purpose is to protect goods until they are needed. The general warehouse is used because the producer or owner either does not have the necessary warehouse space or the cost of storage is better off-site. Usually use of a general warehouse involves minimal handling, movement, and transportation.G

Question 199

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substitutability

Answer 199

When a buyer can purchase similar products from different suppliers. This increases the buyer’s power as the buyer doesn’t have to rely on just one supplier.S

Question 200

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empowerment

Answer 200

A condition whereby employees have the authority to make decisions and take action in their work areas without prior approval. For example, an operator can stop a production process if a problem is detected, or a customer service representative can send out a replacement product if a customer calls with a problem.E

Question 201

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transfer price

Answer 201

Price that one segment (subunit, department, division, etc.) of an organization charges for a good or service supplied to another segment of the same organization.T

Question 202

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BOM

Answer 202

Abbreviation for bill of material.B

Question 203

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operating environment

Answer 203

The global, domestic, environmental, and stakeholder influences that affect the key competitive factors, customer needs, culture, and philosophy of each individual company. This environment becomes the framework in which business strategy is developed and implemented. Syn: business environment.O

Question 204

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distribution center

Answer 204

A location 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.D

Question 205

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lot operation cycle time

Answer 205

The length of time required from the start of setup to the end of cleanup for a production lot at a given operation, including setup, production, and cleanup.L

Question 206

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muri

Answer 206

A Japanese word meaning strain or overburden.M

Question 207

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bottom-up estimating

Answer 207

A method of estimation that involves disaggregating a piece of work into components, estimating each component requirement, and adding the resulting times and/or costs to arrive at the estimate for the whole.B

Question 208

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productive inventory

Answer 208

In the theory of constraints: The inventory required to meet production requirements without allowance for unplanned delays. See: idle inventory, protective inventory.P

Question 209

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tracking signal

Answer 209

The ratio of the cumulative algebraic sum of the deviations between the forecasts and the actual values to the mean absolute deviation. Used to signal when the validity of the forecasting model might be in doubt. See: forecast error, mean absolute deviation.T

Question 210

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knowledge worker

Answer 210

A worker whose job is the accumulation, transfer, validation, analysis, and creation of information. K

Question 211

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cash conversion cycle

Answer 211

1) In retailing, the length of time between the sale of products and the cash payments for a company’s resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services.C

Question 212

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seasonal index

Answer 212

A number used to adjust data to seasonal demand. Syn: seasonal adjustment. See: base series.S

Question 213

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partial order

Answer 213

Any shipment received or shipped that is less than the amount ordered.P

Question 214

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MTM

Answer 214

Abbreviation for methods-time measurement.M

Question 215

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customer service level

Answer 215

Syn: customer service ratio.C

Question 216

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physical supply

Answer 216

The movement and storage of goods from suppliers to manufacturing. The cost of physical supply is ultimately passed on to the customer.P

Question 217

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institutional market

Answer 217

A market in which most or all customers are one of the following: schools, hospitals, prisinstruction I ons, and other institutions that provide products and services to individuals who are under their care. See: consumer market, government market, industrial market.I

Question 218

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many-to-many communication

Answer 218

Communication that enables many people to exchange information with many other people.M

Question 219

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gap

Answer 219

When the actual performance level is not equal to the expected performance level.G

Question 220

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intellectual property

Answer 220

Various legal entitlements that attach to certain names, written and recorded media, and inventions.I

Question 221

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aggregate planning

Answer 221

A process to develop tactical plans to support the organization’s business plan. Aggregate planning usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist: (1) production planning and (2) sales and operations planning. See: production planning, sales and operations planning, sales plan.A

Question 222

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heijunka

Answer 222

In just-in-time philosophy, an approach to level production throughout the supply chain to match the planned rate of end product sales.H

Question 223

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group decision support system (GDSS)

Answer 223

The software designed to support groups in unstructured decision making by supporting brainstorming, conflict resolution, voting, and other techniques.G

Question 224

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misguided capacity plans

Answer 224

Plans for capacity utilization that are based on erroneous data or assumptions.M

Question 225

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single-card kanban system

Answer 225

Syn: one-card kanban system.S

Question 226

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CAD/CAM

Answer 226

The integration of computer-aided design and computer-aided manufacturing to achieve automation from design through manufacturing.C

Question 227

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nonconformity

Answer 227

Failure to fulfill a specified requirement. See: blemish, defect, imperfection.N

Question 228

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product

Answer 228

1) Any good or service produced for sale, barter, or internal use. 2) One of the four Ps (product, price, place, and promotion) that constitute the set of tools for directing the business offering to the customer. The product can be promoted as a distinctive item. See: four Ps.P

Question 229

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simultaneous engineering

Answer 229

Syn: participative design/ engineering.S

Question 230

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life cycle analogy method

Answer 230

A method for forecasting the life cycle of a new product or service, including the introduction, growth, maturity, and decline phases. In addition to time frames, this qualitative technique tries to estimate demand levels.L

Question 231

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fixed overhead

Answer 231

Traditionally, all manufacturing costs

Question 232

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basic producer

Answer 232

A manufacturer that uses natural resources to produce materials for other manufacturing. A typical example is a steel company that processes iron ore and produces steel ingots; other examples are companies that make wood pulp, glass, and rubber.B

Question 233

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materials

Answer 233

The components that are processed by an operation.M

Question 234

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CSR

Answer 234

Abbreviation for customer service representative.C

Question 235

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divergent point

Answer 235

An operation in a production process in which a single material/component enters and, after processing, can then be routed to a number of different downstream operations.D

Question 236

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degrees of freedom

Answer 236

A statistical term indicating the number of variables or data points used for testing a relationship. The greater the degrees of freedom, the greater the confidence that can be placed on the statistical significance of the results.D

Question 237

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European Union (EU)

Answer 237

An economic and political union of European countries, created to strengthen economies and lower trade barriers.E

Question 238

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CMI

Answer 238

Abbreviation for co-managed inventory.C

Question 239

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influence filter

Answer 239

In e-commerce, a device to make stakeholders better satisfied with a website.I

Question 240

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coefficient of determination

Answer 240

Used to measure the expected accuracy of a forecast; measures the variation in one variable due to a different variable.C

Question 241

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buying capacity

Answer 241

Syn: capacity buying.B

Question 242

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stop sequence

Answer 242

A loading procedure in which the first stop is loaded last.S

Question 243

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routing sheet

Answer 243

Syn: routing.R

Question 244

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service level

Answer 244

Syn: level of service.S

Question 245

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part record

Answer 245

Syn: item record.P

Question 246

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EF

Answer 246

Abbreviation for early finish date.E

Question 247

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4PL

Answer 247

Abbreviation for fourth-party logistics.F

Question 248

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risk analysis

Answer 248

A review of the uncertainty associated with the research, development, and production of a product, service, or project.R

Question 249

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involuntary services

Answer 249

Services that are not sought by customers. These include hospitals and prisons.I

Question 250

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record

Answer 250

1) A collection of data fields arranged in a predefined format. 2) A set of related data that a computer program treats as a unit.R

Question 251

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capability study

Answer 251

Syn: process capability analysis.C

Question 252

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kaizen event

Answer 252

A time-boxed set of activities carried out by the cell team during the week of cell implementation. The kaizen event is an implementation arm of a lean manufacturing program. See: kaizen blitz.K

Question 253

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stockout

Answer 253

A lack of materials, components, or finished goods that are needed. See: backorder.S

Question 254

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receiving point

Answer 254

The location to which material is being shipped. Ant: shipping point.R

Question 255

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reprocessed material

Answer 255

Goods that have gone through selective rework or recycle.R

Question 256

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bottom-up replanning

Answer 256

In MRP, the process of using pegging data to solve material availability or other problems. This process is accomplished by the planner (not the computer system), who evaluates the effects of possible solutions. Potential solutions include compressing lead time, cutting order quantity, substituting material, and changing the master schedule.B

Question 257

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processor-dominated scheduling

Answer 257

A technique that schedules equipment (processor) before materials. This technique facilitates scheduling equipment in economic run lengths and the use of low-cost production sequences. This scheduling method is used in some process industries. See: material-dominated scheduling.P

Question 258

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supply chain community

Answer 258

The set of trading partners and nominal trading partners that define a complete supply chain.S

Question 259

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finished good

Answer 259

Syn: end item.F

Question 260

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employee involvement (EI)

Answer 260

The concept of using the experience, creative energy, and intelligence of all employees by treating them with respect, keeping them informed, and including them and their ideas in decision-making processes appropriate to their areas of expertise. Employee involvement focuses on quality and productivity improvements. Syn: people involvement.E

Question 261

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stabilization stock

Answer 261

An inventory that is carried on hand above the base inventory level to provide protection against incurring overtime or downtime.S

Question 262

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material yield

Answer 262

Syn: yield.M

Question 263

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bid pricing

Answer 263

Offering a specific price for each job rather than setting a standard price that applies for all customers.B

Question 264

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rope

Answer 264

One of the three devices required for proper management of operations. (The other two are drum and buffer.) The rope is the information flow from the drum to the front of the line (material release), which chokes the release of materials to match the flow through the constraint.R

Question 265

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standard time

Answer 265

The length of time that should be required to (1) set up a given machine or operation and (2) run one batch or one or more parts, assemblies, or end products through that operation. This time is used in determining machine requirements and labor requirements. Standard time assumes an average worker following prescribed methods and allows time for personal rest to overcome fatigue and unavoidable delays. It is also frequently used as a basis for incentive pay systems and as a basis of allocating overhead in cost accounting systems. Syn: standard hours. See: standard.S

Question 266

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blanket rate

Answer 266

A rate that does not depend on the distance cargo is transported.B

Question 267

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nonrecurring material

Answer 267

Tooling, gauges, and facilities necessary in the manufacturing of the final product and not consumed during manufacturing or shipped with the final product.N

Question 268

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stockout percentage

Answer 268

A measure of the effectiveness with which a company responds to actual demand or requirements. The stockout percentage can be a measurement of total orders containing a stockout to total orders, or of line items incurring stockouts to total line items ordered during a period. One formula is: stockout percentage = (1 – customer service ratio) × 100 percent. Ant: customer service ratio.S

Question 269

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fault tolerance

Answer 269

The ability of a system to avoid or minimize the disruptive effects of defects by using some form of redundancy or extra design margins.F

Question 270

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consignee

Answer 270

The receiver of a shipment of freight.C

Question 271

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issue cycle time

Answer 271

The time required to generate a requisition for material, pull the material from an inventory location, and move it to its destination.I

Question 272

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simple moving average

Answer 272

A moving average where the oldest data point is dropped and the newest data point is included in the calculation. All data points are assigned equal weights. See: moving average, weighted moving average.S

Question 273

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direct delivery

Answer 273

The consignment of goods directly from the supplier to the buyer, frequently used where a third party acts as intermediary between supplier and buyer.D

Question 274

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structured problem solving

Answer 274

a defined process applied to determine, evaluate and resolve an identified problem. The methodology includes (1) the collection of factual data, (2) defining why the situation is a problem, (3) defining a concise definition of what the problem is, (4) generation of possible solutions, without discussing solutions at this time, and (5) evaluation of the pros and cons of each option within the organization’s objectives and feasibility, (6) implementation of the solution selected.S

Question 275

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adjudicate

Answer 275

To hear and decide an issue under legal dispute.A

Question 276

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LCL

Answer 276

1) Abbreviation for less than carload (lot shipment). 2) Abbreviation for lower control limit.L

Question 277

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sensitivity analysis

Answer 277

A technique for determining how much an expected outcome or result will change in response to a given change in an input variable. For example, given a projected level of resources, what would be the effect on net income if variable costs of production increased 20 percent?S

Question 278

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book inventory

Answer 278

An accounting definition of inventory units or value obtained from perpetual inventory records rather than by actual count.B

Question 279

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lead-time inventory

Answer 279

Inventory that is carried to cover demand during the lead time.L

Question 280

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SRM

Answer 280

Abbreviation for supplier relationship management.S

Question 281

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pickup and delivery costs

Answer 281

Carrier charges for each shipment pickup and the weight of that shipment. Costs can be reduced if several smaller shipments are consolidated and picked up in one trip.P

Question 282

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order penetration point

Answer 282

The key variable in a logistics configuration; the point (in time) at which a product becomes earmarked for a particular customer. Downstream from this point, the system is driven by customer orders; upstream processes are driven by forecasts and plans. Syn: principle of postponement. See: booked orders.O

Question 283

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market targeting

Answer 283

The process of developing measurements of the desirability of given market segments and deciding in which market segments to compete.M

Question 284

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put-away

Answer 284

Removing the material from the dock (or other location of receipt), transporting the material to a storage area, placing that material in a staging area and then moving it to a specific location, and recording the movement and identification of the location where the material has been placed.P

Question 285

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ABC classification

Answer 285

The classification of a group of items in decreasing order of annual dollar volume (price multiplied by projected volume) or other criteria. This array is then split into three classes, called A, B, and C. The A group usually represents 10 percent to 20 percent by number of items and 50 percent to 70 percent by projected dollar volume. The next grouping, B, usually represents about 20 percent of the items and about 20 percent of the dollar volume. The C class contains 60 percent to 70 percent of the items and represents about 10 percent to 30 percent of the dollar volume. The ABC principle states that effort and money can be saved through applying looser controls to the low-dollarvolume class items than will be applied to high-dollarvolume class items. The ABC principle is applicable to inventories, purchasing, sales, and so on. Syn: ABC analysis, distribution by value. See: 80-20, Pareto analysis, Pareto’s law.A

Question 286

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process organization structure

Answer 286

An organizational structure in which people are removed from their functional departments and placed into a group that works as a single unit to perform the entire linked process. This is in contrast to a functional organization in which the activities that make up the process are performed by people in multiple functionally oriented departments.P

Question 287

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fixed budget

Answer 287

A budget of expected costs based on a specific level of production or other activity.F

Question 288

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queue ratio

Answer 288

The ratio of the hours of slack within the job to the queue originally scheduled.Q

Question 289

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MAPI method

Answer 289

1) A procedure for equipment replacement analysis sponsored by the Machinery and Allied Products Institute. 2) A method of capital investment analysis that has been formulated by the Machinery and Allied Products Institute. This method uses a fixed format and provides charts and graphs to facilitate calculations. A prominent feature of this method is that it explicitly includes obsolescence.M

Question 290

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metrics

Answer 290

Syn: performance measurement system.M

Question 291

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hypertext markup language (HTML)

Answer 291

A language used to create web pages that permits the user to create text, hypertext links, and multimedia elements within the page. HTML is not a programming language, but a way to format text.H

Question 292

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finish-to-finish

Answer 292

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

Question 293

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electronic signature

Answer 293

An authentication that validates a transaction by means of an authorization code to identify an individual or group.E

Question 294

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recovery time

Answer 294

In periods of insufficient capacity, jobs back up indefinitely. This leads to increased lead times and missed due dates. Recovery time is a period of time when capacity exceeds demand to allow the system to empty out. If there is not enough recovery time before the next episode of insufficient capacity, in-process inventory and lead times continue to grow.R

Question 295

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profit margin

Answer 295

1) The difference between the sales and cost of goods sold for an organization, sometimes expressed as a percentage of sales. 2) In traditional accounting, the product profit margin is the product selling price minus the direct material, direct labor, and allocated overhead for the product, sometimes expressed as a percentage of selling price.P

Question 296

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everyday low prices (EDLP)

Answer 296

A retail strategy of keeping prices low across all products or services as opposed to having sales at certain times.E

Question 297

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owner’s equity

Answer 297

An accounting/financial term (balance sheet classification of accounts) representing the residual claim by the company’s owners or shareholders, or both, to the company’s assets less its liabilities. See: assets, balance sheet, liabilities.O P

Question 298

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flowchart

Answer 298

The output of a flowcharting process, a chart that shows the operations, transportation, storages, delays, inspections, and so on related to a process. Flowcharts are drawn to better understand processes. The flowchart is one of the seven tools of quality. Syn: flow diagram. See: block diagram, flow process chart.F

Question 299

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weighted-point plan

Answer 299

A supplier selection and rating approach that uses the input gathered in the categorical plan approach and assigns weights to each evaluation category. A weighted sum for each supplier is obtained and a comparison made. The weights used should sum to 100 percent for all categories. See: categorical plan.W W

Question 300

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certified fixtures

Answer 300

The inspection models that conform to known specifications.C Certified in Integrated Resource Management (CIRM) The APICS designation that is a recognition of a high level of professional knowledge in enterprise-wide processes and activities.C Certified in Production and Inventory Management

Question 301

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withdrawal kanban

Answer 301

An indicator that a container can be transported between work areas.W

Question 302

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fixed property

Answer 302

Property attached to, and not easily removed from, the location.F

Question 303

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EOQ

Answer 303

Abbreviation for economic order quantity.E

Question 304

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over, short, and damaged (OS&D) report

Answer 304

A report submitted by a freight agent showing discrepancies in billing received and actual merchandise received.O

Question 305

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vital few, useful many

Answer 305

A term used by J.M. Juran to describe his use of the Pareto principle in quality management, which he first described in 1950. (The principle was used much earlier in economics and inventory control methodologies.) The principle suggests that most effects come from relatively few causes; that is, 80 percent of the effects come from 20 percent of the possible causes. The 20 percent of the possible causes are referred to as the “vital few”; the remaining causes are referred to as the “useful many.” When Juran first defined this principle, he referred to the remaining causes as the “trivial many,” but since no problems are trivial in quality assurance, he changed it to “useful many.”V

Question 306

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lot-size system

Answer 306

Syn: fixed reorder quantity inventory model.L

Question 307

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request for quote (RFQ)

Answer 307

A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.R

Question 308

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dumping

Answer 308

Selling goods below costs in selected markets.D E

Question 309

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first-order smoothing

Answer 309

A single exponential smoothing; a weighted moving average approach that is applied to forecasting problems where the data do not exhibit significant trend or seasonal patterns. Syn: single exponential smoothing, single smoothing.F

Question 310

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knowledge management tool

Answer 310

Provides an assortment of information quickly to stakeholders for faster and better decisions.K

Question 311

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cost analysis

Answer 311

A review and an evaluation of actual or anticipated cost data.C

Question 312

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salvage value

Answer 312

1) The cost recovered or that could be recovered from used property when removed, sold, or scrapped. A factor in appraisal of property value and in computing depreciation. 2) The market value of a machine or facility at any point in time. Normally, an estimate of an asset’s net value at the end of its estimated life.S

Question 313

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exports

Answer 313

Products produced in one country and sold in another.E

Question 314

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order policy

Answer 314

A set of procedures for determining the lot size and other parameters related to an order. See: lot sizing.O O

Question 315

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changeover flexibility

Answer 315

Syn: setup flexibility.C

Question 316

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private trading exchange (PTX)

Answer 316

A trade exchange hosted by a single company to facilitate collaborative ecommerce with its trading partners. As opposed to public e-marketplaces, a private exchange provides the host company with control over many factors, including who may participate (and in what manner), how participants may be connected, and what contents should be presented (and to whom). The ultimate goal might be to improve supply chain efficiencies and responsiveness through improved process visibility and collaboration, advanced integration platforms, and customization capabilities. P

Question 317

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market share

Answer 317

The actual portion of current market demand that a company or product achieves.M

Question 318

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master planning of resources

Answer 318

A grouping of business processes that includes the following activities: demand management, which includes the forecasting of sales, the planning of distribution, and the servicing of customer orders; sales and operations planning, which includes sales planning, production planning, inventory planning, backlog planning, and resource planning; master scheduling, which includes the preparation of the master production schedule and the rough-cut capacity plan.M

Question 319

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assurance

Answer 319

One of the dimensions of service quality. The ability of employees to inspire trust and confidence.A

Question 320

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inspection

Answer 320

Measuring, examining, testing, or gauging one or more characteristics of a good or service and comparing the results with specified requirements to determine whether conformity is achieved for each characteristic. I

Question 321

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assured source of supply

Answer 321

A guaranteed supply source generally created by a contract.A

Question 322

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send ahead

Answer 322

The movement of a portion of a lot of material to a subsequent operation before completion of the current operation for all units of the lot. The purpose of sending material ahead is to reduce the manufacturing lead time. See: overlapped schedule.S

Question 323

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DRP II

Answer 323

Abbreviation for distribution resource planning.D

Question 324

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virtual supply chain

Answer 324

A collection of firms that typically exists for only a short period. Virtual supply chains are more flexible than traditional supply chains, but less efficient.V

Question 325

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product and market focus

Answer 325

Developing products based on dimensions like service to similar customers, volume, or customization.P

Question 326

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distribution resource planning (DRP II)

Answer 326

The extension of distribution requirements planning into the planning of the key resources contained in a distribution system (warehouse space, workforce, money, trucks, freight cars, etc).D

Question 327

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finishing lead time

Answer 327

1) The time that is necessary to finish manufacturing a good after receipt of a customer order. 2) The time allowed for completing the good based on the final assembly schedule.F

Question 328

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linear trend forecasting

Answer 328

Using simple linear regression to estimate future trends.L

Question 329

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critical chain

Answer 329

The longest sequence of dependent events through a project network, considering both technical and resource dependencies in completing the project. The critical chain is the constraint of a project.C

Question 330

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visits

Answer 330

In e-commerce, the set of requests made by one user at one website. If there is no activity within a given time frame (usually 30 minutes), the visit is considered closed.V

Question 331

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vendor lead time

Answer 331

Syn: supplier lead time.V

Question 332

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brand name

Answer 332

A word or combination of words used to identify a product and differentiate it from other prodbrand B ucts; the verbal part of a trademark, in contrast to the pictorial mark; a trademark word.B

Question 333

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flatcar

Answer 333

A railroad car without sides used for hauling machinery.F

Question 334

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failsafe techniques

Answer 334

Syn: failsafe work methods, pokayoke. F

Question 335

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global supply chains

Answer 335

Supply chains that include international partners or markets.G

Question 336

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Monte Carlo simulation

Answer 336

A subset of digital simulation models based on random or stochastic processes.M

Question 337

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target marketing

Answer 337

The process of focusing marketing activities specifically on those people who are most likely to buy a company’s products and services. Data gathered on people who use the internet are enabling companies to identify and focus on more likely candidates.T

Question 338

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shared services

Answer 338

Consolidation of support processes to form a separate unit to provide services to the parent company and external customers. This lowers costs and may improve support because the shared-services unit is more focused.S

Question 339

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random sample

Answer 339

A selection of observations taken from all the observations of a phenomenon in such a way that each chosen observation has the same possibility of selection.R

Question 340

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virtual cell

Answer 340

A logical rather than physical grouping of manufacturing resources. Resources in virtual cells can be dispersed throughout a facility. Product mix changes may change the layout of a virtual cell. This technique is used when it is not practical to move the equipment.V

Question 341

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management

Answer 341

The functions of planning, organizing, and controlling the transformation process and its utility in providing a good or service to customers.M

Question 342

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strategy

Answer 342

The strategy of an enterprise identifies how a company will function in its environment. The strategy specifies how to satisfy customers, how to grow the business, how to compete in its environment, how to manage the organization and develop capabilities within the business, and how to achieve financial objectives. See: strategic plan.S

Question 343

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flexibility responsiveness

Answer 343

The ability of the firm and its management to change rapidly in response to changes taking place in the marketplace.F

Question 344

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formulation

Answer 344

Syn: formula.F

Question 345

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generally accepted manufacturing practices (GAMP)

Answer 345

A group of practices and principles, independent of any one set of techniques, that define how a manufacturing company should be managed. Included are such elements as the need for data accuracy, frequent communication between marketing and manufacturing, top management control of the production planning process (sales and operations planning process), systems capable of validly translating high-level plans into detailed schedules, and so on. Today GAMP includes such paradigms as just-in-time, theory of constraints, total quality management, business process reengineering, and supply chain management.G

Question 346

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supplier footprint

Answer 346

Describes the supply base for a particular material, component, or service. When stratified properly for leverage, cost impact, risk, and performance can lead to a supplier footprint transition plan for consolidated leverage, supply-base reduction, and focused effort.S supplier-input-process-output-customer (SIPOC)

Question 347

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upper control limit (UCL)

Answer 347

Control limit for points above the central line in a control chart.U

Question 348

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market reach

Answer 348

Syn: market penetration.M

Question 349

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pilot order

Answer 349

Syn: experimental order.P

Question 350

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service industry

Answer 350

1) In its narrowest sense, an organization that provides an intangible product (e.g., medical or legal advice). 2) In its broadest sense, all organizations except farming, mining, and manufacturing. This definition of service industry includes retail trade; wholesale trade; transportation and utilities; finance, insurance, and real estate; construction; professional, personal, and social services; and local, state, and federal governments.S

Question 351

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tolerance stack up

Answer 351

When two or more components, all within tolerance limits but some distance from the specification itself, are assembled together the assembly may be subject to early failure because of the interaction between the components.T

Question 352

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invoice

Answer 352

A list of goods shipped by the supplier to the buyer stating prices, quantities, and other costs.I

Question 353

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newsvendor problem

Answer 353

A problem inventory management dealing with determining the single period (e.g., day or week) order quantity which will minimize the cost of sometimes having too much inventory and sometimes having too little.N

Question 354

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job rotation

Answer 354

The practice of an employee periodically changing job responsibilities to provide a broader perspective and a view of the organization as a total system, to enhance motivation, and to provide cross-training.J

Question 355

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C.P.M.

Answer 355

Abbreviation for Certified Purchasing Manager.C

Question 356

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live load

Answer 356

Syn: available work.L

Question 357

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authentication

Answer 357

In information systems, the act of identifying a person or confirming the source of a message.A

Question 358

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CASE

Answer 358

Acronym for computer-assisted software engineering.C

Question 359

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median

Answer 359

The middle value in a set of measured values when the items are arranged in order of magnitude. If there is no single middle value, the median is the mean of the two middle values.M

Question 360

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major components: (1) quality of conformance

Answer 360

quality is defined by the absence of defects, and (2) quality of

Question 361

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accessorial charges

Answer 361

A bill for services, such as inside deliveries, which are made in addition to transportation charges.A

Question 362

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distribution network structure

Answer 362

The planned channels of inventory disbursement from one or more sources to field warehouses and ultimately to the customer. There may be one or more levels in the disbursement system. Syn: bill of distribution.D

Question 363

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server address

Answer 363

The internet address of a server.S

Question 364

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interrogate

Answer 364

Retrieve information from computer files by use of predefined inquiries or unstructured queries handled by a high-level retrieval language.I

Question 365

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product grade

Answer 365

The categorization of goods based upon the range of specifications met during the manufacturing process.P

Question 366

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quantity discount

Answer 366

A price reduction allowance determined by the quantity or value of a purchase.Q

Question 367

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classification

Answer 367

The designation of the job function that

Question 368

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double-sampling plan

Answer 368

A way to control quality by taking one sample and making an accept or reject decision, and, if the decision cannot be made, taking a second sample and making the accept or reject decision by combining the results of both samples.D

Question 369

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common cost

Answer 369

A cost that is incurred by the business as a whole.C

Question 370

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negligence

Answer 370

The causing of injury to another by failure to use reasonable care.N

Question 371

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prediction

Answer 371

An intuitive estimate of demand taking into account changes and new factors influencing the market, as opposed to a forecast, which is an objective projection of the past into the future.P

Question 372

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cost-type contract

Answer 372

Syn: cost-plus contract.C

Question 373

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EI

Answer 373

Abbreviation for employee involvement.E

Question 374

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EOQ tables

Answer 374

Tables listing several ranges of monthly usages in dollars and the appropriate order size in dollars or monthly usage for each usage range.E

Question 375

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preventive maintenance

Answer 375

The activities, including adjustments, replacements, and basic cleanliness, that forestall machine breakdowns. The purpose is to ensure that production quality is maintained and that delivery schedules are met. In addition, a machine that is well cared for will last longer and cause fewer problems. Syn: periodic maintenance.P

Question 376

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equal protection clause

Answer 376

A part of the Fourteenth Amendment to the U.S. Constitution requiring similar treatment of citizens in similar circumstances.E

Question 377

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consignment

Answer 377

1) A shipment that is handled by a common carrier. 2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. See: consigned stocks.C

Question 378

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NC

Answer 378

Abbreviation for numerical control.N

Question 379

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hybrid inventory system

Answer 379

An inventory system combining features of the fixed reorder quantity inventory model and the fixed reorder cycle inventory model. Features of the fixed reorder cycle inventory model and the fixed reorder quantity inventory model can be combined in many different ways. For example, in the order pointperiodic review combination system, an order is placed if the inventory level drops below a specified level before the review date; if not, the order quantity is determined at the next review date. Another hybrid inventory system is the optional replenishment model. See: fixed reorder cycle inventory model, fixed reorder quantity inventory model, optional replenishment model, order point system.H

Question 380

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truckload lot

Answer 380

A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.T

Question 381

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overlapped schedule

Answer 381

A manufacturing schedule that “overlaps” successive operations. Overlapping occurs when the completed portion of an order at one work center is processed at one or more succeeding work centers before the pieces left behind are finished at the preceding work centers. Syn: lap phasing, operation overlapping, telescoping. See: send ahead. Ant: gapped schedule, overlapped production.O

Question 382

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stockkeeping unit (SKU)

Answer 382

1) An inventory item. For example, a shirt in six colors and five sizes would represent 30 different SKUs. 2) In a distribution system, an item at a particular geographic location. For example, one product stocked at the plant and at six different distribution centers would represent seven SKUs.S

Question 383

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strategic business unit (SBU)

Answer 383

An approach to strategic planning that develops a plan based on products. A company’s products are typically grouped into strategic business units (SBUs) with each SBU evaluated in terms of strengths and weaknesses vis-à-vis similar business units made and marketed by competitors. The units are evaluated in terms of their competitive strengths, their relative advantages, life cycles, and cash flow patterns.S

Question 384

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manufacturing order

Answer 384

A document, group of documents, or schedule conveying authority for the manufacture of specified parts or products in specified quantities. Syn: M job order, manufacturing authorization, production order, production release, run order, shop order, work order. See: assembly parts list, batch card, blend order, fabrication order, mix ticket, work order.M

Question 385

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machine attachments

Answer 385

Additional machine parts that decrease the time needed to complete a task and the level of human involvement.M

Question 386

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concept phase

Answer 386

In project management, the first phase in which a project is defined and the scope is planned.C

Question 387

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implied warranty

Answer 387

A warranty imposed on sellers beyond any express agreement in the contract.I

Question 388

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lean production

Answer 388

A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply L chain management, and dealing with customers. Lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in potentially enormous variety. It contains a set of principles and practices to reduce cost through the relentless removal of waste and through the simplification of all manufacturing and support processes. Syn: lean, lean manufacturing.L

Question 389

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Supply Chain Operations Reference (SCOR®) model

Answer 389

A process reference model developed and endorsed by the Supply Chain Council as the cross-industry, standard diagnostic tool for supply chain management. The SCOR model describes the business activities associated with satisfying a customer’s demand, which include plan, source, make, deliver, and return. Use of the model includes analyzing the current state of a company’s processes and goals, quantifying operational performance, and comparing company performance to benchmark data. SCOR has developed a set of metrics for supply chain performance, and Supply Chain Council members have formed industry groups to collect best practices information that companies can use to evaluate their supply chain performance.S

Question 390

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carrier

Answer 390

A company that provides air, sea, or land transportation services.C

Question 391

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e-cash

Answer 391

An electronic system that provides for deposits and withdrawals of digital money. It permits a payer using it to remain anonymous.E

Question 392

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aggregate forecast

Answer 392

An estimate of sales, often timephased, for a grouping of products or product families produced by a facility or firm. Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning (or for sales and operations planning) purposes. See: product group forecast.A

Question 393

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distinctive competency

Answer 393

A sustainable advantage that a company has over its competitors. distributed data

Question 394

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capacity smoothing

Answer 394

Syn: load leveling.C

Question 395

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flowcharting

Answer 395

A systems analysis tool that graphically presents a procedure. Symbols are used to represent operations, transportations, inspections, storages, delays, and equipment.F

Question 396

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project phase

Answer 396

In project management, a set of related project activities that usually go together to define a project deliverable.P

Question 397

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push-back rack

Answer 397

Palletized materials are stored on a wheeled rack structure and pushed up a slightly sloping ramp from which they can eventually slide down to an aisle.P

Question 398

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bar graph

Answer 398

A graphical method of displaying data by grouping observations into specific clusters.B

Question 399

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multivariate control chart

Answer 399

A control chart for evaluating the stability of a process in terms of the levels of two or more variables or characteristics.M

Question 400

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downgrade

Answer 400

The substitution of a product of lower quality, value, or status for another either in planning or in fact.D

Question 401

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flatbed

Answer 401

A type of truck trailer that has a floor but no enclosure. Sideboards or tie-downs are used to prevent cargo from falling off.F

Question 402

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serviceability

Answer 402

1) Design characteristic that facilitates the easy and efficient performance of service activities. Service activities include those activities required to keep equipment in operating condition, such as lubrication, fueling, oiling, and cleaning. 2) A measurement of the degree to which servicing of an item will be accomplished within a given time under specified conditions. See: maintainability. 3) The competitive advantage gained when an organization focuses on aspects such as the speed and courtesy in which customer complaints and questions are answered, following up with customers after the sale to ensure satisfaction, and offering on-site service for product repairs. 4) Measure of repairs and maintenance based on cost, speed, and convenience.S

Question 403

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mean time between failures (MTBF)

Answer 403

The average time interval between failures for repairable product for a defined unit of measure (e.g., operating hours, cycles, miles). See: reliability.M

Question 404

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programmable logic controller (PLC)

Answer 404

An electronic device that is programmed to test the state of input process data and to set output lines in accordance with the input state, thus providing control instructions or branching to another set of tests. Programmable controllers provide factory floor operations with the ability to monitor and rapidly control hundreds of parameters, such as temperature and pressure.P

Question 405

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repair parts demand

Answer 405

Syn: service parts demand.R

Question 406

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product tree

Answer 406

A graphical (or tree) representation of the bill of material such as is shown below: A Parent | ______________________ | | | B C(2) D(5) Components (Quantities per parent)P

Question 407

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plan stability

Answer 407

The percent difference between the production that was planned and the production that was actually completed. The numerator is the difference between actual and planned production, divided by the planned production. This information then is used to adjust production standards.P

Question 408

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design for manufacturability

Answer 408

Simplification of parts, products, and processes to improve quality and reduce manufacturing costs.D

Question 409

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I/O

Answer 409

Abbreviation for input/output control.I

Question 410

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APICS

Answer 410

Founded in 1957 as the American Production Operations Management builds operations management excellence in individuals and enterprises through superior education and training, internationally recognized certifications, comprehensive resources, and a worldwide network of accomplished industry professionals.A

Question 411

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sales mix

Answer 411

The proportion of individual product-type sales volumes that make up the total sales volume.S

Question 412

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unit of issue

Answer 412

The standard issue quantity of an item from stores (e.g., pounds, each, box of 12, package of 20, case of 144).U

Question 413

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technologies

Answer 413

The terms, concepts, philosophies, hardware, software, and other attributes used in a field, industrial sector, or business function.T

Question 414

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genchi genbutsu

Answer 414

A Japanese phrase meaning visit the shop floor to observe what is occurring.G

Question 415

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Boolean algebra

Answer 415

A form of algebra that, like ordinary algebra, represents relationships and properties with symbols. However, Boolean algebra also has classes, propositions, on-off circuit elements, and operators (and, or, not, except, if, then). Boolean algebra is useful in defining the logic of a complex system.B

Question 416

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process time

Answer 416

The time during which the material is being changed, whether it is a machining operation or an assembly. Syn: residence time.P

Question 417

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duty-free zone

Answer 417

An area where merchandise is brought into the country for further work to be done. Duty is paid only on the items brought in, normally at a lower rate than finished goods, and paid only at the time of sale.D

Question 418

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program directive

Answer 418

A report by the program manager to inform supporting departments concerning an active or planned program or project.P

Question 419

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appraisal costs

Answer 419

Those costs associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time.A

Question 420

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COTD

Answer 420

Abbreviation for complete and on-time delivery.C

Question 421

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business process

Answer 421

A set of logically related tasks or activities performed to achieve a defined business outcome.B

Question 422

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cycle inventory

Answer 422

Syn: cycle stock.C

Question 423

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allocative efficiency

Answer 423

The use of resources to produce those goods and services most wanted by consumers.A

Question 424

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capacity management

Answer 424

The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity in order to execute all manufacturing schedules (i.e., the production plan, master production schedule, material requirements plan, and dispatch list). Capacity management is executed at four levels: resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control.C

Question 425

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process list

Answer 425

A list of operations and procedures in the manufacture of a product. It may also include a statement of material requirements.P

Question 426

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silo effect

Answer 426

A departmental organization with poor communication between departments.S

Question 427

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customer service

Answer 427

1) The ability of a company to address the needs, inquiries, and requests from customers. 2) A measure of the delivery of a product to the customer at the time the customer specified.C

Question 428

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supplier

Answer 428

1) Provider of goods or services. See: vendor. 2) Seller with whom the buyer does business, as opposed to vendor, which is a generic term referring to all sellers in the marketplace.S

Question 429

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functionality

Answer 429

The degree to which a product achieves its designed purpose.F

Question 430

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manufacturing capital asset value

Answer 430

The depreciated value of manufacturing fixed assets.M

Question 431

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FOB

Answer 431

Abbreviation for free on board.F

Question 432

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prerequisite tree (PRT)

Answer 432

A necessity-based logic diagram that facilitates answering the third question in the change sequence: How do we effect the change? A PRT shows the relationship between the injections, desirable effects or ambitious target, and the obstacles that block the implementation of the injections. A PRT includes the intermediate objectives required to overcome the obstacles and shows the sequence in which they must be achieved for successful implementation.P

Question 433

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big data

Answer 433

A collection of data and technology that accesses, integrates, and reports all available data by filbig B tering, correlating, and reporting insights not attainable with past data technologies. It describes data processing beyond the human scale. In the past, databases

Question 434

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product specification

Answer 434

A statement of acceptable physical, electrical, and/or chemical properties or an acceptable range of properties that distinguish one product or grade from another.P

Question 435

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no-touch exchange of dies (NTED)

Answer 435

The exchange of dies without human intervention.N

Question 436

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standardization

Answer 436

1) The process of designing and altering products, parts, processes, and procedures to establish and use standard specifications for them and their components. 2) Reduction of the total numbers of parts and materials used and products, models, or grades produced. 3) The function of bringing a raw ingredient into standard (acceptable) range per the specification before introduction to the main process.S

Question 437

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search models

Answer 437

Operations research models that attempt to find optimal solutions with adaptive searching approaches.S

Question 438

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shop packet

Answer 438

A package of documents used to plan and control the shop floor movement of an order. The packet may include a manufacturing order, operations sheets, engineering blueprints, picking lists, move tickets, inspection tickets, and time tickets.S

Question 439

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load

Answer 439

The amount of planned work scheduled for and actual work released to a facility, work center, or operation for a specific span of time. Usually expressed in terms of standard hours of work or, when items consume similar resources at the same rate, units of production. Syn: workload.L

Question 440

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scheduled start date

Answer 440

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

Question 441

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pay for knowledge

Answer 441

A pay restructuring scheme by which competent employees are rewarded for the knowledge they acquire before or while working for an organization, regardless of whether such knowledge is actually being used at any given time.P

Question 442

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administrative contracting officer

Answer 442

A government employee who ensures compliance with the terms and conditions of contracts.A

Question 443

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manufacturing ramp-up

Answer 443

The final phase of new product and process development, whereby the new product moves from pilot production to full-scale manufacturing.M

Question 444

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labor

Answer 444

The people who produce value in a product stream.L

Question 445

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OEM

Answer 445

Abbreviation for original equipment manufacturer.O

Question 446

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network diagram

Answer 446

A graphical tool that shows the dependencies between activities in a project, i.e., which activities precede other activities and which can be done in parallel.N

Question 447

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GERT

Answer 447

Acronym for graphical evaluation and review technique.G

Question 448

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platform products

Answer 448

A grouping of products to share common parts, components, and characteristics (a common platform), so that design and production resources can be used to reduce cost and time to market.P

Question 449

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vertical marketing system

Answer 449

A marketing system that focuses on the means to reduce the traditional independence of indirect channels. The system strategically seeks to increase the integration and interdependence of channels by uniting them with common objectives and team management (e.g., franchising, cooperatives, vertical integration).V

Question 450

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sales representative

Answer 450

An employee authorized to accept a customer’s order for a product. Sales representatives usually go to the customer’s location when industrial products are being marketed.S

Question 451

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engineer-to-order

Answer 451

Products whose customer specifications require unique engineering design, significant customization, or new purchased materials. Each customer order results in a unique set of part numbers, bills of material, and routings. Syn: design-to-order.E

Question 452

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horizontal marketplace

Answer 452

An online marketplace used by buyers and sellers from multiple industries. This marketplace lowers prices by lowering transaction costs.H

Question 453

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dimensions of quality

Answer 453

An aspect of quality that is specified to enhance the ability to define quality. The most commonly used list for products was created by David Garvin. His dimensions are aesthetics, conformance, durability, features, perceived quality, performance, reliability, and serviceability. The most commonly used list for service quality was created by Parasuraman, Zeithamel, and Berry. This list is assurance, availability, completeness, empathy, pleasantness, professionalism, responsiveness, service reliability, tangibles, and timeliness.D

Question 454

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plant layout

Answer 454

Configuration of the plant site with lines, buildings, major facilities, work areas, aisles, and other pertinent data, such as department boundaries.P

Question 455

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automated flow line

Answer 455

A production line that has machines linked by automated parts transfer and handling machines.A

Question 456

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Baldrige Award

Answer 456

Syn: Malcolm Baldrige National Quality Award.B

Question 457

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economy of scope

Answer 457

Using one versatile plant to produce many different products at a lower cost than making each product in different plants at a higher cost. See: economy of scale.E

Question 458

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intrinsic forecast method

Answer 458

A forecast based on internal factors, such as an average of past sales. Ant: extrinsic forecast.I

Question 459

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electronic product codes (EPCs)

Answer 459

Codes that are used with RFID tags to carry information on the product that will support warranty programs.E

Question 460

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early manufacturing involvement

Answer 460

The process of involving manufacturing personnel early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and to generate designs that are easier to manufacture. Early involvement of manufacturing, field service, suppliers, customers, and so on means drawing on their expertise, knowledge, and insight to improve the design. Benefits include increased functionality, increased quality, ease of manufacture and assembly, ease of testing, better testing procedures, ease of service, decreased cost, and improved aesthetics. See: design for manufacture and assembly, participative design/engineering.E

Question 461

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operational plan(s)

Answer 461

The set of short-range plans and schedules detailing specific actions. Operational plans are more detailed than strategic and tactical plans and cover a shorter time horizon. See: operational planning, strategic plan, tactical plan.O

Question 462

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skills matrix

Answer 462

A visual tool to show the skills/skill levels of employees. This is mostly used when forming a team so the leader knows what skills are necessary to accomplish the team’s goals. This also is used when using a full-cross training process to ensure that all workers are cross trained to the same levels.S

Question 463

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fishbone chart

Answer 463

Syn: cause-and-effect diagram.F

Question 464

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expressed for a given time period

Answer 464

such as, per month, week, day, or even minute. If the goal units are money, throughput will be an amount of money per time period. In that case, throughput is calculated as revenues received minus totally variable costs divided for the chosen time period.T

Question 465

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cumulative MRP

Answer 465

The planning of parts and subassemblies by exploding a master schedule, as in MRP, except that the master-scheduled items and therefore the exploded requirements are time phased in cumulative form. Usually these cumulative figures cover a planning year.C

Question 466

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truckload carriers

Answer 466

Carriers that deliver/charge only for full truckload shipments.T

Question 467

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job order costing

Answer 467

Syn: job costing.J

Question 468

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probability

Answer 468

Mathematically, a number between 0 and 1 that estimates the fraction of experiments (if the same experiment were being repeated many times) in which a particular result would occur. This number can be either subjective or based upon the empirical results of experimentation. It can also be derived for a process to give the probable outcome of experimentation.P

Question 469

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durability

Answer 469

1) A measurement of time or amount of use before a product needs repair or replacement. 2) One of the eight dimensions of quality that refers to the length of a product’s economic life.D

Question 470

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reconsignment

Answer 470

Permission by a carrier to alter the destination and/or consignee after the shipment has reached its original destination.R

Question 471

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product positioning

Answer 471

The marketing effort involved in placing a product in a market to serve a particular niche or function. Syn: service positioning.P

Question 472

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product focused

Answer 472

A type of manufacturing organization in which both plant and staff responsibilities are delineated by product, product line, or market segment. Management authority is highly decentralized, which tends to make the company more responsive to market needs and more flexible when introducing new products. This type of organization is best suited to companies whose dominant orientation is to a market or consumer group and where flexibility and innovation are more important than coordinated planning and tight control. See: process focused, process-focused organization.P

Question 473

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Bayesian analysis

Answer 473

Statistical analysis where uncertainty is incorporated, using all available information to choose among a number of alternative decisions.B

Question 474

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constraint theory

Answer 474

Syn: theory of constraints.C

Question 475

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performance objectives

Answer 475

Measurements that enable the firm to monitor whether or not the firm’s strategy is being accomplished. Thus, the measurement should be aligned to strategy. Performance objectives may differ based on the hierarchical level of the firm (e.g., department, business unit, corporation) and should be aligned with the corresponding strategy for that level.P

Question 476

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cascading yield loss

Answer 476

The condition where yield loss happens in multiple operations or tasks, resulting in a compounded yield loss. Syn: cumulative yield. See: composite yield.C

Question 477

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SG&A

Answer 477

Abbreviation for selling, general and administrative.S

Question 478

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co-managed inventory (CMI)

Answer 478

Continuous replenishment where the manufacture is responsible for managing the inventory of standard merchandise and the retailer manages promotional items.C

Question 479

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pay point

Answer 479

Syn: count point.P

Question 480

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bill of distribution

Answer 480

Syn: distribution network structure.B

Question 481

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source document

Answer 481

An original written or printed record of some type that is to be converted into machinereadable form.S

Question 482

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accountability

Answer 482

Being answerable for, but not necessarily personally charged with, doing the work. Accountability cannot be delegated, but it can be shared.A

Question 483

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standard ratio

Answer 483

A relationship based on a sample distribution by value for a particular company. When the standard ratio for a particular company is known, certain aggregate inventory predictions can be made (e.g., the amount of inventory increase that would be required to provide a particular increase in customer service).S

Question 484

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MPS

Answer 484

Abbreviation for master production schedule.M

Question 485

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indented where-used

Answer 485

A listing of every parent item, and the respective quantities required, as well as each of their respective parent items, continuing until the ultimate end item or level-0 item is referenced. Each of these parent items calls for a given component item in a bill-of-material file. The component item is shown closest to the left margin of the listing, with each parent indented to the right, and each of their respective parents indented even further to the right.I

Question 486

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superflush

Answer 486

A technique to relieve all components down to the lowest level using the complete bill of material, based on the count of finished units produced or transferred to finished goods inventory.S

Question 487

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rate of return on investment

Answer 487

The efficiency ratio relating profit or cash flow incomes to investments. Several different measures of this ratio are in common use.R

Question 488

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industrial facilities management

Answer 488

The installation and maintenance of the physical plant, its surroundings, and the physical assets of an organization.I

Question 489

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planned finish date

Answer 489

Syn: scheduled finish date.P

Question 490

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milestone schedule

Answer 490

In project management, a highlevel schedule displaying important deliverables.M

Question 491

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United Nations Global Compact

Answer 491

A voluntary initiative whereby companies embrace, support, and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment, and anticorruption.U

Question 492

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out of stock

Answer 492

A situation in which there is no inventory at a location available for sale to the customer. See: stockout.O

Question 493

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enterprise performance management (EPM)

Answer 493

The process of monitoring performance across the enterprise with the goal of improving business performance. An EPM system integrates and analyzes data from many sources, including e-commerce systems, front- and E back-office applications, data warehouses, and external data sources. Advanced EPM systems can support many performance methodologies, such as the balanced scorecard.E

Question 494

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uniform warehouse receipts act

Answer 494

An act that regulates public warehousing; it sets up the legal responsibilities of warehouse managers and determines the receipts that can be issued.U

Question 495

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final assembly schedule (FAS)

Answer 495

A schedule of end items to finish the product for specific customers’ orders in a make-to-order or assemble-to-order environment. It is also referred to as the finishing schedule because it may involve operations other than the final assembly; also, it may not involve assembly (e.g., final mixing, cutting, packaging). The FAS is prepared after receipt of a customer order as constrained by the availability of material and capacity, and it schedules the operations required to complete the product from the level where it is stocked (or master scheduled) to the end-item level.F

Question 496

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product or service liability

Answer 496

The obligation of a company to make restitution for loss related to personal injury, property damage, or other harm caused by its goods or services.P

Question 497

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internal supply chain

Answer 497

A structure for sharing information within a firm and creating an atmosphere for cooperation between functions to strengthen the firm.I

Question 498

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demand-based order quantity

Answer 498

An order system using forecast or derived demand for one or more future periods (rather than a fixed quantity as in economic order quantity).D

Question 499

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predetermined motion time

Answer 499

An organized body of information, procedures, techniques, and motion times employed in the study and evaluation of manual work elements. It is useful in categorizing and analyzing all motions into elements whose unit times are computed according to such factors as length, degree of muscle control, and precision. The element times provide the basis for calculating a time standard for the operations. Syn: synthetic time standard.P