APICS Deck 9 OO Flashcards

Question 1

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uniform-delivered pricing

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A type of geographic pricing policy in which all customers pay the same delivered price regardless of their location. A company allocates the total transportation cost among all customers.U

Question 2

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prototyping

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1) A specialized product design and development process for developing a working model of a product. 2) A specialized system development process for performing a determination where user needs are extracted, presented, and developed by building a working model of the system. Generally, these tools make it possible to create all files and processing programs needed for a business application in a matter of days or hours for evaluation purposes.P

Question 3

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shortage cost

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The marginal profit that is lost when a customer orders an item that is not immediately available in stock.S

Question 4

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excess issue

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The removal from stock and assignment to a schedule of a quantity higher than the schedule quantity. Syn: overissue.E

Question 5

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Baldrige lite

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A state or company quality award program modeled after the Malcolm Baldrige National Quality Award but with a simplified application process.B

Question 6

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run diagram

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Syn: run chart.R

Question 7

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accident prevention

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The application of basic scientific

Question 8

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planned start date

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Syn: scheduled start date.P

Question 9

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semipassive tag

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An RFID tag that sends out data, is self-powered, and widens its range by harnessing power from the reader. See: radio frequency identification (RFID).S

Question 10

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fixed order quantity

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A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a predetermined fixed quantity, or multiples thereof, if net requirements for the period exceed the fixed order quantity.F

Question 11

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checking

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Verifying and documenting the order selection in terms of both product number and quantity.C

Question 12

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support costs

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In activity-based cost accounting, activity costs not directly related with producing a product, such as the cost of the information system.S

Question 13

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cost equalization point (CEP)

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A point or quantity at which the cost curves of two manufacturing methods have an equal value.C

Question 14

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least total cost

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A dynamic lot-sizing technique that calculates the order quantity by comparing the setup (or ordering) costs and the carrying cost for various lot sizes and selects the lot size where these costs are most nearly equal. See: discrete order quantity, dynamic lot sizing.L

Question 15

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redundant component

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A backup part of a machine or product.R

Question 16

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operation/process yield

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The ratio of usable output from a process, process stage, or operation to the input quantity, usually expressed as a percentage.O

Question 17

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unplanned repair

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Repair and replacement requirements that are unknown until remanufacturing teardown and inspection.U

Question 18

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OEE

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Abbreviation for overall equipment effectiveness.O

Question 19

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critical ratio

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A dispatching rule that calculates a priority index number by dividing the time to due date remaining by the expected elapsed time to finish the job. For example, critical ratio

Question 20

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SWOT

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Abbreviation for strengths, weaknesses, opportunities, and threats.S

Question 21

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pre-expediting

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The function of following up on open orders before the scheduled delivery date, to ensure the timely delivery of materials in the specified quantity.P

Question 22

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process flow production

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A production approach with minimal interruptions in the actual processing in any one production run or between production runs of similar products. Queue time is virtually eliminated by integrating the movement of the product into the actual operation of the resource performing the work.P

Question 23

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split-case order picking

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A process for filling less-thanfull- case orders. This requires items to be picked from a case or other container.S

Question 24

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JIT master schedule

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Syn: level schedule (second definition).J

Question 25

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import broker or sales agent

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Purchasing agent who charges a fee for transactions but does not take the title of the goods.I

Question 26

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tool number

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The identification number assigned to reference and control a specific tool.T

Question 27

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fault tree analysis

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A logical approach to identify the probabilities and frequencies of events in a system that are most critical to uninterrupted and safe operation. This analysis may include failure mode effects analysis (determining the result of component failure interactions toward system safety) and techniques for human error prediction.F

Question 28

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order preparation

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All activities relating to the administration, picking, and packaging of individual customer or work orders.O

Question 29

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six sigma quality

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The six sigma approach is a set of concepts and practices that key on reducing variability in processes and reducing deficiencies in the product. Important elements are (1) Producing only 3.4 defects for every one million opportunities or operations; (2) Process improvement initiatives striving for six sigmalevel performance. Six sigma is a business process that permits organizations to improve bottom-line performance, creating and monitoring business activities to reduce waste and resource requirements while increasing customer satisfaction.S

Question 30

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survey research

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A form of research (frequently used in marketing research) where data are collected by mailing questionnaires to a group of people within a target audience. See: marketing research.S

Question 31

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debt-to-equity ratio

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The amount of bonds and preferred stocks relative to the owners’ equity position. The debt to equity ratio is a measurement of the use of borrowed funds to leverage owners’ equity.D

Question 32

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observational research

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A form of research (frequently used in marketing research) where data are gathered by direct observation of consumers in the market place. See: marketing research.O

Question 33

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total float

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In project management, the length of time an activity can be late without delaying succeeding activities. See: float, free float, independent float.T

Question 34

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demand-driven supply network

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A situation where a customer purchase initiates real-time information flows through the supply chain which then causes movement of product through the network.D

Question 35

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cash cow

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A highly profitable product in a low-growth market. See: growth-share matrix.C

Question 36

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plan-do-check-act cycle

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Syn: plan-do-check-action.P

Question 37

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upcharges

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Additional charges that are added to a delivered bill that are not included in the original contract. These occur because of unforeseen increases to the deliverer’s cost base.U

Question 38

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deployment planning and scheduling

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Planning how to use existing inventory to meet demand requirements.D

Question 39

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deterministic models

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Models where no uncertainty is included (e.g., inventory models without safety stock considerations).D

Question 40

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annual inventory count

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Syn: physical inventory.A

Question 41

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anticipation inventories

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Additional inventory above basic pipeline stock to cover projected trends of increasing sales, planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations.A

Question 42

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promotional product

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A product that is subject to wide fluctuations in sales because it is usually sold at a reduced price or with some other sales incentive.P

Question 43

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cost estimation

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(1) Specification of the relationship between cost and the underlying cost drivers. (2) In project management, creating an approximation of the resources and associated costs needed to complete a project.C

Question 44

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confidence interval

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The range on either side of an estimated value from a sample that is likely to contain the true value for the whole population.C

Question 45

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net sales

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Sales dollars the company receives; gross sales minus returns and allowances.N

Question 46

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National Labor Relations Board (NLRB)

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In the United States, the federal agency that regulates labor law.N

Question 47

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branch warehouse demand

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Syn: warehouse demand.B

Question 48

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pick date

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The start date of picking components for a production order. On or before this date, the system produces a list of orders due to be picked, pick lists, tags, and turnaround cards.P

Question 49

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indirect materials

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Syn: supplies.I

Question 50

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bill of lading (uniform)

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A carrier’s contract and receipt for goods the carrier agrees to transport from one place to another and to deliver to a designated person. In case of loss, damage, or delay, the bill of lading is the basis for filing freight claims.B

Question 51

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five Ws

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Syn: five whys.F

Question 52

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short-cycle manufacturing

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Syn: just in time.S

Question 53

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diversification strategy

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An expansion of the scope of the product line to exploit new markets. A key objective of a diversification strategy is to spread the company’s risk over several product lines in case there should be a downturn in any one product’s market.D

Question 54

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labor efficiency variance

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Labor efficiency variance is (actual number of hours worked minus standard number of hours worked) multiplied by standard labor wage rate. The variance is unfavorable if the actual hours exceed the standard hours. Syn: labor usage variance.L

Question 55

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UN Global Compact Management Model

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A framework for guiding companies through the process of formally committing to, assessing, defining, implementing, measuring, and communicating the United Nations Global Compact and its principles.U

Question 56

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competitive differentiator

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A characteristic that makes a company or product unique within a marketplace.C

Question 57

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euro

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Official currency of the Eurozone, which forms a large part of the European Union.E

Question 58

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inspection ticket

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Frequently used as a synonym for an inspection order; more properly a reporting of an inspection function performed.I

Question 59

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backup support

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An alternate location or maintainer that can provide the same service response or support as the primary location or maintainer.B

Question 60

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routing

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1) Information detailing the method of manufacture of a particular item. It includes the operations to be performed, their sequence, the various work centers involved, and the standards for setup and run. In some companies, the routing also includes information on tooling, operator skill levels, inspection operations and testing requirements, and so on. Syn: bill of operations, instruction sheet, manufacturing data sheet, operation chart, operation list, operation sheet, route sheet, routing sheet. See: bill of labor, bill of resources. 2) In information systems, the process of defining the path a message will take from one computer to another computer.R

Question 61

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process batch

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The quantity or volume of output that is to be completed at a workstation before switching to a different type of work or changing an equipment setup.P

Question 62

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FEFO

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Abbreviation for first expiry first out.F

Question 63

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setup time

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The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B. Syn: setup lead time.S

Question 64

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total employee involvement (TEI)

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An empowerment program in which employees are invited to participate in actions and decision making that were traditionally reserved for management.T

Answer 65

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When the inventory count is accurate at specific locations.I

Answer 66

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In the theory of constraints: The maximum of the output capabilities of a resource (or series of resources) or the market demand for that output for a given time period. See: excess capacity, idle capacity, protective capacity.P

Answer 67

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The process of having suppliers provide goods and services that were previously provided internally.

Answer 68

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Abbreviation for mean time between failures.M

Answer 69

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A formal organization and indexing of a firm’s procedures. Manuals are usually printed and distributed to the appropriate functional areas.P

Answer 70

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The discipline of designing quality into the product and manufacturing processes by understanding the needs of the customer and performance capabilities of the equipment. See: design for quality.T

Answer 71

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A Latin phrase meaning “Let the buyer beware.” (i.e., the purchase is at the buyer’s risk.)C

Answer 72

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the diagnostic journey team journeys from the symptom of a chronic problem

Answer 73

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A designated location in an active area of operation into which material is placed and from which it is taken. Not necessarily a stockroom isolated from activity, it is a way of tracking and controlling active material.S

Answer 74

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The situation where the supply of a product is available from only one organization. Usually technical barriers such as patents preclude other suppliers from offering the product. See: single sourcing.S

Answer 75

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Earnings before interest and taxes minus interest charges.E

Answer 76

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Computer systems in multiple locations throughout an organization, working in a cooperative fashion, with the system at each location primarily serving the needs of that location but also able to receive and supply information from other systems within a network.D

Answer 77

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In project management, a project activity with a low slack or float value.N

Answer 78

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An arithmetic average of a certain number (n) of the most recent observations. As each new observation is added, the oldest observation is dropped. The value of n (the number of periods to use for the average) reflects responsiveness versus stability in the same way that the choice of smoothing constant does in exponential smoothing. There are two types of moving average, simple and weighted. See: simple moving average, weighted moving average.M

Answer 79

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Usually a large piece of graph paper used in the same manner as a control board. Where the control board often uses strings and markers to represent plans and progress, the schedule chart is typically filled in with pencil. See: control board.S

Answer 80

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A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom. Although this random method requires the use of a locator file to identify part locations, it often requires less storage space than a fixedrandom R location storage method. Syn: floating inventory location system, floating storage location. See: fixed-location storage.R

Answer 81

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A ratio of an organization’s operating profit to revenues, measuring management’s ability to control operating expenses.M

Answer 82

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The cost required to obtain one or more units of an item. It is order quantity times unit cost. See: ordering cost.A

Answer 83

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The information flow or information system (electronic, mechanical, logical) that controls an industrial process.C

Answer 84

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Syn: customer service ratio.O

Answer 85

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The receiver of a transmission notifies the sender that the transmission was received error free.T transmission control protocol/internet protocol (TCP/

Answer 86

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The neutralizing of the effects of production just completed. It may involve cleaning residues, sanitation, equipment refixturing, and so on.C

Answer 87

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The confidence that a supplier’s goods or services will fulfill its customers’ needs. This confidence is achieved by creating a relationship between the customer and supplier that ensures that the product will be fit for use with minimal corrective action and inspection. According to J.M. Juran, nine primary activities are needed: (1) define product and program quality requirements, (2) evaluate alternative suppliers, (3) select suppliers, (4) conduct joint quality planning, (5) cooperate with the supplier during the execution of the contract, (6) obtain proof of conformance to requirements, (7) certify qualified suppliers, (8) conduct quality improvement programs as required, and (9) create and use supplier quality ratings.S

Answer 88

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what the seller

Answer 89

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Financial statements that are based on an assumed scenario rather than an actual experience.P

Answer 90

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In project management, the amount of float on an activity that does not affect float on preceding or succeeding activities. See: float, free float, total float.I

Answer 91

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The complete set of all work centers, processes, and inventory points, from raw materials sequentially to finished products and product families. It represents the logical system that provides the framework to attain the strategic objectives of the firm based on its resources and the products’ volumes and processes. It provides the general sequential flow and capacity requirement relationships among raw materials, parts, resources, and product families.P

Answer 92

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A manufacturing order to a component-making department authorizing it to produce component parts. See: batch card, manufacturing order.F

Answer 93

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Occurs when customers buy additional products or services after the initial purchase.C

Answer 94

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Costs that vary in total in proportion to changes in activity.T

Answer 95

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An order for the replacement of material that has been scrapped.R

Answer 96

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In project management, graphic display of cumulative project attributes such as costs, labor hours, or percentage of work. The name derives from the typical shape of the curve.S

Answer 97

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Acronym for computer-integrated manufacturing.C

Answer 98

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The basic plan marketing expects to use to achieve its business and marketing objectives in a particular market. This plan includes marketing expenditures, marketing mix, and marketing allocation.M

Answer 99

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The current estimate of the date when an activity will begin.P

Answer 100

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Syn: manufacturing calendar.P

Answer 101

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The practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing. Traditional segmentation focuses on identifying customer groups based on demographics and attributes such as attitude and psychological profiles.C

Answer 102

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A system in which sets of numerical control machines are connected to a computer, allowing direct control of machines by the computer without use of external storage media.D

Answer 103

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A long-term debt of a firm.B

Answer 104

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An inventory control approach based on the ABC classification.A

Answer 105

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Syn: Q chart.Q

Answer 106

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that continue even if products are not produced. Although fixed overhead is necessary to produce the product, it cannot be directly traced to the final product.F

Answer 107

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Sole control of a market by a company. In the United States, a monopoly is a violation of Article 2 of the Sherman Act.M

Answer 108

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The United States governmental agency charged with protecting businesses and consumers from unfair business practices. It also regulates advertising and promotion at the national level.F

Answer 109

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Syn: distribution center.F

Answer 110

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Selecting or “picking” the required quantity of specific products for movement to a packaging area (usually in response to one or more shipping orders) and documenting that the material was moved from one location to shipping. Syn: order selection. See: batch picking, discrete order picking, zone picking.O

Answer 111

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A safety stock that is based on usage over a designated time frame. The period can be set as days, weeks, or months. Safety stock varies directly with the demand. This differs from statisticalbased safety stocks in that the amount is not based on deviation from demand.T

Answer 112

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The need for an item to replenish stock at a branch warehouse. Syn: branch warehouse demand.W warehouse management and transportation execution

Answer 113

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The planning and controlling of the processes of moving goods from the point of consumption back to the point of origin for repair, reclamation, recycling, or disposal. See: reverse logistics.R

Answer 114

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Abbreviation for theory of constraints.T

Answer 115

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The production planning and control techniques used to sequence and prioritize production quantities across operations in a job shop.J

Answer 116

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All the customer orders received but not yet shipped. Sometimes referred to as open orders or the order board. See: order backlog, past due order.B

Answer 117

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activity A must start before activity B can finish.L

Answer 118

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Data are collected from physical measurements, or customer surveys, and plotted on a chart so that conformance to specifications or customer satisfaction can be tracked and improved.S

Answer 119

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Abbreviation for Interstate Commerce Commission.I I

Answer 120

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A set inventory level where, if the total stock on hand plus on order falls to or below that point, action is taken to replenish the stock. The order point is normally calculated as forecasted usage during the replenishment lead time plus safety stock. Syn: reorder point, statistical order point, trigger level. See: fixed reorder quantity inventory model.O

Answer 121

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A calculation based on the available-to-promise figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For all other periods, if a quantity has been scheduled for that time period then the ATP is this quantity minus all customer commitments for this and other periods until another quantity are scheduled in the MPS. For those periods where the quantity scheduled is zero, the ATP is zero (even if deliveries have been promised). The promised customer commitments are accumulated and shown in the period where the item was most recently scheduled. Syn: incremental available-to-promise. See: available-to-promise.D

Answer 122

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An agreement between countries intended to reduce or remove barriers to trade within member countries. Frequently, but not always, those countries are geographically close. Examples of trade blocs are the European Economic Community and the North American Free Trade Agreement (NAFTA). Syn: trading bloc.T

Answer 123

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Syn: theory of constraints accounting.C

Answer 124

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A formal notification that a purchase order or shop order must be modified in some way. This change can result from modifications such as a revised quantity, date, or customer specification; an engineering change; or a change in inventory requirement date.C

Answer 125

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The business process that coordinates and monitors all changes to the business processes and applications operated by the business as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk C of problems that will affect the operating environment and service delivery to the users.C

Answer 126

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A condition with two related processes run to finish independently of each other.A

Answer 127

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1) A specific physical space for the manufacture of a product that in a flow shop layout is represented by a straight line. In actuality, this may be a series of pieces of equipment connected by piping or conveyor systems. 2) A type of manufacturing process used to produce a narrow range of standard items with identical or highly L similar designs. Production volumes are high, production and material handling equipment is specialized, and all products typically pass through the same sequence of operations. See: assembly line.L

Answer 128

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Syn: single-factor productivity.P

Answer 129

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Syn: competitive advantage.C

Answer 130

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A normal time value increased by appropriate allowances.A

Answer 131

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Syn: resource planning.R

Answer 132

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Abbreviation for demand time fence.D

Answer 133

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A person whose main job is working with suppliers regarding what is needed and when. Supplier schedulers are in direct contact with both MRP and the suppliers. They do the material planning for the items under their control, communicate the resultant schedules to their assigned suppliers, do follow-up, resolve problems, and advise other planners and the master scheduler when purchased items will not arrive on time to support the schedule. The supplier schedulers are normally organized by commodity, as are the buyers. By using the supplier scheduler approach, the buyers are freed from day-to-day order placement and expediting, and therefore have the time to do cost reduction, negotiation, supplier selection, alternate sourcing, and so forth. Syn: planner/buyer, vendor scheduler.S

Answer 134

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The degree of freedom from error or the degree of conformity to a standard. Accuracy is different from precision. For example, four-significant-digit numbers are less precise than six-significant-digit numbers; however, a properly computed four-significant-digit number might be more accurate than an improperly computed six-significant-digit number.A

Answer 135

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A method of economic analysis in which the cost of a single additional unit is compared to its revenue. When the net contribution of an additional unit is zero, total contribution is maximized.I

Answer 136

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To reschedule or use alternate routings to reduce the workload on a machine, work center, or facility.O

Answer 137

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Founded in 1946, a not-for-profit educational organization with more than 100,000 individual and organizational members who are interested in quality improvement.A American Standard Code for Information Interchange

Answer 138

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Abbreviation for over, short, and damaged.O

Answer 139

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An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.C

Answer 140

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Syn: listserver.L L

Answer 141

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Hours when a machine is not generally available to be scheduled for operation; for example, nights, weekends, holidays, lunch breaks, major repair, and rebuilding.N

Answer 142

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Abbreviation for standard industrial classification.S S

Answer 143

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Syn: participative design/engineering.N

Answer 144

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The movement of persons or property across one or more state lines for business purposes.I

Answer 145

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A distribution network that deals with change of ownership of goods and services including the activities of negotiation, selling, and contracting.T

Answer 146

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Methods for forecasting sales data when a definite upward or downward pattern exists. Models include double exponential smoothing, regression, and triple smoothing. See: trend analysis.T

Answer 147

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A dispatching rule that selects the job having the earliest due date for the impending operation. See: earliest due date.E

Answer 148

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Approvals for deviation from normal product specifications.F

Answer 149

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A standard product price which applies to all geographic locations within a zone.Z

Answer 150

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A method of inventory bookkeeping where the book (computer) inventory of components is reduced before issue, at the time a scheduled receipt for their parents or assemblies is created via a bill-of-material explosion. This approach has the disadvantage of a built-in differential between the book record and what is physically in stock. See: backflush.P

Answer 151

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Abbreviation for vendor-owned inventory.V

Answer 152

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The ratio of the interest payment to the principal for a given unit of time. It is usually expressed as a percentage of the principal.I

Answer 153

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The smallest segment of an organization for which costs are collected and formally reported, typically a department. The criteria in defining cost centers are that the cost be significant and that the area of responsibility be clearly defined. A cost center is not necessarily identical to a work center; normally, a cost center encompasses more than one work center, but this may not always be the case.C

Answer 154

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1) The actual inventory itself. 2) The determination of inventory quantity by actual count. Physical inventories can be taken on a continuous, periodic, or annual basis. Syn: annual inventory count, annual physical inventory. See: periodic inventory.P

Answer 155

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Abbreviation for management by objectives.M

Answer 156

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Syn: lead time.T

Answer 157

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Work required to support production in general without being related to a specific product (e.g., floor sweeping).I

Answer 158

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The function of maintaining, analyzing, and explaining the financial records and status of an organization.A

Answer 159

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An MRP, DRP, or other time-phased system in which all time-phased data are processed, stored, and usually displayed using dated records rather than defined time periods (buckets).B

Answer 160

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Acronym for binary digit. It can have only the values 0 or 1.B

Answer 161

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Integrating computer systems; this enables faster data retrieval and better information system responsiveness.S

Answer 162

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Syn: run time.R

Answer 163

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A judicial ruling that no essential facts are in dispute and that one party to the suit merits judgment as a matter of law.S

Answer 164

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A lot-sizing technique that sets the order quantity to the demand for a given number of periods. See: discrete order quantity.F

Answer 165

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A method of exponential smoothing that accounts for accelerating or decelerating trends, such as would be experienced in a fad cycle. Syn: thirdorder smoothing.T

Answer 166

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A stream of fixed payments for a stipulated time, yearly or at other intervals.A

Answer 167

A

The more that variability exists in a process, the less productive that process will be.L

Answer 168

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Abbreviation for late finish date.L

Answer 169

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A statement reflecting the standard hour assigned for actual production reported during the period. Syn: earned volume.E

Answer 170

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Syn: excess issue.O

Answer 171

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In project management, a hierarchical description of a project in which each lower level is more detailed. See: project summary work breakdown structure.W

Answer 172

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Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Ant: private carrier.C

Answer 173

A

Acronym for lot-size inventory management interpolation technique.L

Answer 174

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A mathematical relationship of the safety factor to service level (i.e., the fraction of demand routinely met from stock).S

Answer 175

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Syn: delivery lead time.D

Answer 176

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Any increase in the capacity of a plant, facility, or unit, usually by added investment. The scope of this increase extends from the elimination of problem areas to the complete replacement of an existing facility with a larger one.E

Answer 177

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Stock held to reduce delivery time.C

Answer 178

A

Abbreviation for structured query language.S

Answer 179

A

A method of economic analysis in which a model expresses the dependent variable of interest as a function of independent variables, some of which are controllable.T

Answer 180

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The use of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring, and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured good, or service are achieved. See: project.P

Answer 181

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All activities needed to fill customer orders.O

Answer 182

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A form of business in which one person has ownership and control. See: corporation, partnership.S

Answer 183

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

Answer 184

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The fraudulent taking of another’s property while acting in a fiduciary capacity.E

Answer 185

A

The repeated production of the same discrete products or families of products. Repetitive methodology minimizes setups, inventory, and manufacturing lead times by using production lines, assembly lines, or cells. Work orders are no longer necessary; production scheduling and control are based on production rates. Products may be standard or assembled from modules. Repetitive is not a function of speed or volume. Syn: repetitive process, repetitive production. See: project manufacturing.R

Answer 186

A

The shared perception of the organization’s future what the organization will achieve and a supporting philosophy. This shared vision must be supported by strategic objectives, strategies, and action plans to move it in the desired direction. See: vision statement.V

Answer 187

A

The worth of an item, good, or service.V

Answer 188

A

A collection of parts grouped for some managerial purpose.P

Answer 189

A

1) An action taken in an attempt to shield the company from an uncertain event such as a strike, price increase, or currency reevaluation. 2) In master scheduling, a scheduled quantity to protect against uncertainty in demand or supply. The hedge is similar to safety stock, except that a hedge has the dimension of timing as well as amount. A volume hedge or market hedge is carried at the master schedule or production plan level. The master scheduler plans excess quantities over and above the demand quantities in given periods beyond some time fence such that, if the hedge is not needed, it can be rolled forward before major resources must be committed to produce the hedge and put it in inventory. A product mix hedge is an approach where several interrelated optional items are overplanned. Sometimes, using a planning bill, the sum of the percent mix can exceed 100 percent by a defined amount, thus triggering additional hedge planning. 3) In purchasing, any purchase or sale transaction having as its purpose the elimination of the negative aspects of price fluctuations. See: market hedge, option overplanning, planning bill of material, safety stock, time fence, two-level master.H

Answer 190

A

Syn: flow shop.F

Answer 191

A

In project management, a dependency between two activities or between a milestone and an activity. The four possible relationships are (1)

Answer 192

A

A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the MPS and determines (1) the quantity of all components and materials required to fabricate those items and (2) the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the net requirements by the appropriate lead times.M

Answer 193

A

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

Answer 194

A

A network-based organization that pioneered the world’s most widely used sustainability reporting framework.G Global Reporting Initiative (GRI) Reporting Framework The framework that sets out the principles and perforglobal G mance indicators organizations can use to measure and report their human rights, labor, environment, and anticorruption practices and outcomes.G

Answer 195

A

A budget of money or time allowed over an initial estimate to reduce the likelihood of overruns.C

Answer 196

A

A statistic that is used to determine efficiency for costing/pricing functions. A touch is anytime that a labor activity is utilized during the manufacturing or service creation process. This brought about the term “touch labor” for direct labor personnel.T

Answer 197

A

Analyzing the customers who have stopped buying to determine why.C

Answer 198

A

The quantity of a parent that is used as the basis for specifying the material requirements for production. The quantity per is expressed as the quantity to make the SBQ, not to make only one of the parent. Often used by manufacturers that use some components in standard quantities or by process-related manufacturers. Syn: run size.S

Answer 199

A

Occurs when more outputs are required than the efficient quantity that the facility is designed to produce; this causes an increase in unit cost.D

Answer 200

A

The earliest date an operation or order can start. It may be restricted by the current date, material availability, or management-specified “maximum advance.”E

Answer 201

A

Communities of people who communicate exclusively electronically.E

Answer 202

A

Syn: lead-time offset.O

Answer 203

A

In lean, the distribution of work between work stations so that the time required for each station to complete all tasks is as close to equal as possible. See: line balancing.U

Answer 204

A

The range of activity planned for a firm.R

Answer 205

A

Inventory of material that has not undergone processing at a facility.R

Answer 206

A

A planning/forecasting time frame encompassing a few days to at most a few weeks.S

Answer 207

A

Those modules, components, and elements that are planned to be used without modification to replace an original part. Syn: repair parts, spare parts.S

Answer 208

A

The point at which two options create the same costs for a specific output level.I

Answer 209

A

Employees not meeting the test of executive, supervisory, or administrative personnel who are paid overtime, as defined by the Fair Labor Standards Act. See: nonexempt employee.N

Answer 210

A

Abbreviation for frequently asked questions.F F

Answer 211

A

The operations or stages within the manufacturing cycle required to transform components into intermediates or finished goods. From a larger perspective, the operations or stages within any business required to turn inputs into outputs.P

Answer 212

A

The raw material, part, or subassembly that goes into a higher level assembly, compound, or other item. This term may also include packaging materials for finished items. See: ingredient, intermediate part.C

Answer 213

A

The date when an operation should be started so that its order due date can be met. It can be calculated based on scheduled quantities and lead times or on the work remaining and the time remaining to complete the job.O

Answer 214

A

Syn: phantom bill of material.T

Answer 215

A

Syn: request for proposal.I

Answer 216

A

The noninflation-adjusted interest rate.N

Answer 217

A

A lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period. See: discrete order quantity.L

Answer 218

A

A plan by which employees receive compensation, above their normal wages, based on company profitability. The purpose is to motivate employees and recognize their efforts.P

Answer 219

A

A property of a product or service that is important enough to count or measure. See: performance measurement system.Q

Answer 220

A

The total fixed cost divided by units produced. This value declines as output increases.A

Answer 221

A

The process of developing the production schedule.P

Answer 222

A

Dividing truckloads of homogeneous items into smaller, more appropriate quantities for use.B

Answer 223

A

The condition that occurs when the output of a process is not consistently repeatable either in quantity, quality, or combinations of these.V

Answer 224

A

Syn: cascading yield loss, composite yield.C

Answer 225

A

A ledger card that contains inventory status for a given item.S

Answer 226

A

Acronym for computer-aided process planning.C

Answer 227

A

Definitive statements of what should be done in the business.P

Answer 228

A

The ability for a change to a different product to be made with little delay.S

Answer 229

A

A strategy of offering the lowest prices in the market to gain share and increase sales volume in industries composed by numerous players offering the same type of products.L

Answer 230

A

A pull system diverting products in response to customer requirements while keeping distribution costs low.C

Answer 231

A

Syn: quality circle.Q

Answer 232

A

Profit divided by sales.P

Answer 233

A

See: nervousness.S

Answer 234

A

A ratio (represented as a percentage) of the actual output of a piece of equipment, department, or plant as compared to the planned or standard output.O

Answer 235

A

A description of an organization owned by a small number of people.C

Answer 236

A

In layout analysis, to begin yielding. In layout analysis, measures of how beneficial it would be for one department to be located near another.C

Answer 237

A

A software program that allows users to obtain information drawn from two or more datarelationship R bases that are made up of two-dimensional arrays of data.R

Answer 238

A

A document that is part of the materials information system and accompanies the product. Prepared by the manufacturer, the MSDS provides information regarding the safety and chemical properties and (if necessary) the long-term storage, handling, and disposal of the product. Among other factors, the MSDS describes the hazardous components of a product; how to treat leaks, spills, and fires; and how to treat improper human contact with the product.M

Answer 239

A

A ratio, usually expressed as a percentage, of the standard processing time for a part divided by its actual processing time. Setups are excluded from this calculation to prevent distortion. A traditional definition includes setup time as part of operation time, but significant distortions can occur as a result of dependent setups.P

Answer 240

A

Basic rules that can be used consistently in a scheduling system. Scheduling rules usually specify the amount of time to allow for a move, queue, load calculation, and so forth. Syn: scheduling algorithm.S

Answer 241

A

A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory. Syn: wholesaler.D

Answer 242

A

An estimate, made by a knowledgeable manager, of the labor required for an operation.S

Answer 243

A

The effort and discipline required to continually enforce changes made in an organization. See: five Ss.S S

Answer 244

A

A backup supply of an item that either acts as a substitute or is used with alternate equipment.A

Answer 245

A

Customer services that are provided after a product or service is sold, including warranties, returns, and complaint resolution.P

Answer 246

A

An abbreviation for forty-foot equivalent unit.F

Answer 247

A

The probability of not having a stockout in any one ordering cycle, which begins at the time an order is placed and ends when the goods are placed in stock. Syn: measure of service, service level.C

Answer 248

A

The accumulation by workstation, machine, or machine group of the hours generated from the scheduling of operations for released orders by time period. Machine loading differs from capacity requirements planning in that it does not use the planned orders from MRP but operates solely from released orders. It may be of limited value because of its limited visibility of resources.M

Answer 249

A

The chosen domain or scope of activities within which an organization operates, for example, the tasks associated with goods or services to be delivered by the organization. See: external environment, organizational environment.I

Answer 250

A

A financial statement showing the flow of cash and its timing into and out of an organization or project. Syn: cash flow statement, statement of cash flows.F

Answer 251

A

The quantity expected to be consumed during a given time period when usage is at the forecast rate. See: demand during lead time.E

Answer 252

A

Estimating the profit retained on business with a specific customer.C

Answer 253

A

An element of time added to normal lead time to protect against fluctuations in lead time so that an order can be completed before its real need date. When used, the MRP system, in offsetting for lead time, will plan both order release and order completion for earlier dates than it would otherwise. Syn: protection time, safety time.S

Answer 254

A

Syn: finished goods inventory.F

Answer 255

A

Technical and financial assistance given to existing and potential suppliers to improve quality and/or due date/performance.S

Answer 256

A

Syn: material planner.P

Answer 257

A

A manager involved in managing a department that is directly involved in making a product.L

Answer 258

A

All functions concerned with the movement of materials and finished goods on a global scale.I International Organization for Standardization (ISO) Group of cooperating institutes from 155 countries working to develop and publish international standards. It acts as a bridge between public and private sectors.I

Answer 259

A

A special class of ingredients characterized either by being used in minimal quantities or by being introduced into the processing cycle after the initial stage.A

Answer 260

A

1) A management technique used to analyze a situation in increasing detail. The full range of tasks to be accomplished to achieve a primary goal and supporting subgoal may be illustrated. 2) In the theory of constraints, a diagram relating effects to underlying causes. See: current reality tree, future reality tree.T

Answer 261

A

A brief investigation or cursory methods study of an operation, process, group, or individual to discover causes of operational difficulties or problems for which more detailed remedial studies may be feasible. An appropriate work measurement technique may be used to evaluate alternatives or to locate major areas requiring improvement.D

Answer 262

A

An inventory management technique in which material enters a plant and is processed through the plant into finished goods without ever having entered a formal stock area. Syn: four-wall inventory.W W

Answer 263

A

1) A form of business ownership that is not organized as a separate legal entity (i.e., unincorporated business), but entailing ownership by two or more persons. See: corporation, private ownership, public ownership, sole proprietorship. 2) In a supply chain, a relationship based on trust, shared risk, and rewards aimed toward achieving a competitive advantage.P

Answer 264

A

The determination of how to structure a supply chain. Design decisions include the selection of partners, the location and capacity of warehouse and production facilities, the products, the modes of transportation, and supporting information systems.S

Answer 265

A

The maximum average outgoing quality over all possible levels of incoming quality for a given acceptance sampling plan and disposal specification.A

Answer 266

A

Average cumulative processing time between a part entering a manufacturing system and completion of manufacturing activities (not including packaging).T

Answer 267

A

A measure of how intensively a machine is being used. Machine utilization compares the actual machine time (setup and run time) to available time.M

Answer 268

A

Contractual terms specifying how a company may charge a supplier for failure to perform.C

Answer 269

A

1) Interest that is not compounded (i.e., interest not added to the income-producing investment or loan). 2) The interest charged under the condition that interest in any time period is only charged on the principal.S

Answer 270

A

A form of backflush that reduces inventory of only the parts used in the next level down in an assembly or subassembly.S

Answer 271

A

The party authorizing an agent to act on his or her behalf.P

Answer 272

A

The total time required to design, build, and deliver a product (timed from concept to delivery). See: procurement lead time.T

Answer 273

A

A line item on an open customer order that has an original scheduled ship date that is earlier than the current date. Syn: delinquent order, late order, order backlog. See: backlog.P

Answer 274

A

Syn: level schedule.L

Answer 275

A

A technique based on the plan/do/check/action problem-solving process. The steps being taken and the progress toward the resolution of a problem are continuously planned and updated.P

Answer 276

A

Abbreviation for on-the-job training.O

Answer 277

A

The practice by more distant suppliers of absorbing the additional freight charges to match the freight charges of a supplier geographically closer to the customer. This is done to eliminate the competitive advantage of lower freight charges that the nearest supplier has.F

Answer 278

A

The accounting time period for which the adjusting and closing entries have been posted. Ant: open period.C

Answer 279

A

One of a few organizational objectives whose achievement should be sufficient for organizational success.C

Answer 280

A

A type of probability distribution often used to model activity times.B

Answer 281

A

Syn: forecast interval.F

Answer 282

A

A generic term for techniques that are used to plan complex projects. Two of the best known network planning techniques are the critical path method (CPM) and the program evaluation and review technique (PERT).N

Answer 283

A

Syn: manufacturing order.M

Answer 284

A

Syn: item number.S

Answer 285

A

1) Abbreviation for average outgoing quality limit. 2) Abbreviation for acceptable outgoing quality level.A

Answer 286

A

A distribution inventory management system that has two order points. The smallest equals the original order point, which covers demand during replenishment lead time. The second order point is the sum of the first order point plus normal usage during manufacturing lead time. It enables warehouses to forewarn manufacturing of future replenishment orders.D

Answer 287

A

A service that is created to meet the requirements of specific customers.C

Answer 288

A

Syn: manufacturing environment.P

Answer 289

A

In the theory of constraints, a procedure for determining the general flow of parts and products from raw materials to finished products (logical product structure). A V logical structure starts with one or a few raw materials, and the product expands into a number of different products as it flows through divergent points in its routings. The shape of an A logical structure is dominated by converging points. Many raw materials are fabricated and assembled into a few finished products. A T logical structure consists of numerous similar finished products assembled from common assemblies, subassemblies, and parts. An I logical structure is the simplest of production flows, where resources are shared between different products and the flow is in a straight line sequence, such as an assembly line. Once the general parts flow is determined, the system control points (gating operations, convergent points, divergent points, constraints, and shipping points) can be identified and managed.V

Answer 290

A

Programs and systems that participate in shop floor control, including programmed logic controllers and process control computers for direct and supervisory control of manufacturing equipment; process information systems that gather historical performance information, then generate reports; graphical displays; and alarms that inform operations personnel what is going on in the plant currently and a very short history into the past. Quality control information is also gathered and a laboratory information management system may be part of this configuration to tie process conditions to the quality data that are generated. Thereby, cause-and-effect relationships can be determined. The quality data at times affect the control parameters that are used to meet product specifications either dynamically or off line.M

Answer 291

A

An indicator of whether or not a company is generating profits at an acceptable rate. It includes such measurements as return on total assets, return on equity, and profit margin.P

Answer 292

A

A double-entry record system that shows the balance of inventory items on hand and the balances of items on order and available for future orders. Where a reserve system of materials control is used, the balance of material on reserve is also shown.B

Answer 293

A

Abbreviation for simple, measurable, achievable, reasonable, and trackable.S

Answer 294

A

Syn: rework order.R

Answer 295

A

A daily record kept by an interstate driver of driving and duty-related and non-duty-related activities.L

Answer 296

A

Conformance to requirements or fitness for use. Quality can be defined through five principal approaches: (1) Transcendent quality is an ideal, a condition of excellence. (2) Product-based quality is based on a product attribute. (3) User-based quality is fitness for use. (4) Manufacturing-based quality is conformance to requirements. (5) Value-based quality is the degree of excellence at an acceptable price. Also, quality has two

Answer 297

A

Syn: low-level code.E

Answer 298

A

Tabulation of the forecast errors according to the frequency of occurrence of each error value. The errors in forecasting are, in many cases, normally distributed even when the observed data do not come from a normal distribution.D

Answer 299

A

The period of time required for a stream of cash flows resulting from a project to equal the project’s initial investment.P

Answer 300

A

1) The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. It includes all activities related to physical distribution, as well as the return of goods to the manufacturer. In many cases, this movement is made through one or more levels of field warehouses. Syn: physical distribution. 2) The systematic division of a whole into discrete parts having distinctive characteristics.D

Answer 301

A

External factors related to the political process, including laws and regulations, taxation codes, and others, at the local, state, federal, and international levels of government.P

Answer 302

A

Syn: target inventory level.O

Answer 303

A

Analysis of any variable classified by time in which the values of the variable are functions of the time periods. Time series analysis is used in forecasting. A time series consists of seasonal, cyclical, trend, and random components. See: cyclical component, random component, seasonal component, trend component.T

Answer 304

A

A Japanese word meaning sharing information.Y Z

Answer 305

A

Syn: fixed reorder cycle inventory model.T T

Answer 306

A

A rate for a route involving two or more carriers to move a shipment.J

Answer 307

A

activity A must be finished before activity B can finish; (3) start-to-start activity A must start before activity B can start; and (4)

Answer 308

A

A system for collecting, measuring, and comparing a measure to a standard for a specific criterion for an operation, item, good, service, business, etc. A performance measurement system consists of a criterion, a standard, and a measure. Syn: metrics. See: performance criterion, performance measure, performance standard.P

Answer 309

A

The act of one organization committing to a long-term relationship with another organization based on trust and a shared concept of how to satisfy the customer.P

Answer 310

A

A contract between trading partners that describes all facets of their business together. This is a legal and binding agreement suitable for legal purposes as well as standard working agreements.T

Answer 311

A

Modems, terminals, or various pieces of equipment whose designed purpose relates to manual, mechanical, electronic, visual, or audio entry to and from the computer’s processing unit.I

Answer 312

A

A form of inventory buildup to buffer against some event that may not happen. Hedge inventory planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair a company’s strategic initiatives. Risk and consequences are unusually high, and top management approval is often required.H

Answer 313

A

A means of displaying logical conditions in an array that graphically illustrates actions associated with stated conditions.D

Answer 314

A

Direct delivery of material to a specified location on a plant floor near the operation where it is to be used.P

Answer 315

A

Syn: action message.E

Answer 316

A

1) The transformation of product designs into physical prototypes. Rapid prototyping relies on techniques such as cross-functional teams, data sharing, and advanced computer and communication technology (e.g., CAD, CAM, stereolithography, data links). Rapid prototyping involves producing the prototype on production equipment as often as possible. It improves product development times and allows for cheaper and faster product testing, assessment of the ease of assembly and costs, and validation before actual production tooling. 2) The transformation of system designs into computer system prototypes with which the users can experiment to determine the adequacy of the design to address their needs. See: 3D printing.R

Answer 317

A

The condition requiring a work center that has parts to process to remain idle as long as the queue to which the parts would be sent is full or kanbans authorizing production are not present.B

Answer 318

A

1) A planned series of actions or operations (e.g., mechanical, electrical, chemical, inspection, test) that advances a material or procedure from one stage of completion to another. 2) A planned and controlled treatment that subjects materials or procedures to the influence of one or more types of energy (e.g., human, mechanical, electrical, chemical, thermal) for the time required to bring about the desired reactions or results.P

Answer 319

A

A paradigm of how the world works formed by a person’s experiences and assumptions.M

Answer 320

A

The variability in product quality that results from numerous uncontrollable everyday factors, such as temperature, humidity, and tool wear. Syn: common variation. See: common causes.C

Answer 321

A

Syn: participative design/ engineering. C

Answer 322

A

The adjusted purchase price of the asset plus any costs necessary to prepare the asset for use.A

Answer 323

A

The branch of business management concerned with planning and controlling inventories.I

Answer 324

A

The ability of the transformation process to quickly accommodate large variations in production levels.V

Answer 325

A

A set of procedures (e.g., assigning unique batch numbers and tracking each batch) used to maintain lot integrity from raw materials, from the supplier through manufacturing to consumers.L

Answer 326

A

An electronic currency equivalent of currency or coins.D

Answer 327

A

The current price of a stock relative to its earnings per share.P

Answer 328

A

The logic used to assign priorities to jobs at a work center.D

Answer 329

A

Syn: chase production method.C

Answer 330

A

The value of all sales after discounts and rebates have been applied.B

Answer 331

A

In benchmarking, the measurement or performance standard by which similar items are evaluated. Defining a best practice identifies opportunities to improve effectiveness. The process of comparing an actual result to a best practice may be applied to resources, activities, or cost objects.B

Answer 332

A

The risk introduced by flexible exchange rates when operating in the global environment, including production, storage, and buying and selling prices.O

Answer 333

A

The average time starting when an order is placed by a customer and ending when the manufacturing of that order is completed.O

Answer 334

A

The minimum acceptable rate of return on a project.H

Answer 335

A

Actual production to a level schedule, so that a plotting of actual output versus planned output forms a straight line, even when plotted for a short segment of time.L

Answer 336

A

A report that has summary information on qualitative risk analysis, quantitative risk analysis, and risk response planning. This register contains all identified risks and associated details.R

Answer 337

A

The process in a production line used to signal all other processes in line of the time to produce another unit. It generally is the final process, but it does not have to be.P

Answer 338

A

A requirement that shows the next-level parent item (or customer order) as the source of the demand.P

Answer 339

A

A contract that enables a company to borrow funds at any time up to a predetermined limit.L

Answer 340

A

An MRP, DRP, or other time-phased system in which all time-phased data are accumulated into time periods called buckets. If the period of accumulation is one week, then the system is said to have weekly buckets.B

Answer 341

A

A formal statement of duties, qualifications, and responsibilities associated with a particular job.J

Answer 342

A

The elapse of time or average delay between the initiation of a transaction and the results of the transaction.R

Answer 343

A

Syn: remanufactured parts.R

Answer 344

A

An event is an identifiable point in time among a set of related activities. Graphically, an event can be represented by two approaches: (1) in activity-on-node networks, it is represented by a node; (2) in activity-onarrow networks, the event is represented by the arrow.E

Answer 345

A

Syn: Q chart.Q

Answer 346

A

The sequence of steps for improvement projects within sixsigma quality control.D define, measure, analyze, improve, control (DMAIC)

Answer 347

A

An activity that does not add value to a product, for example, moving the product from one work center to another inside a facility. One aspect of continuous improvement is the elimination or reduction of non-value-added activities.N

Answer 348

A

Syn: supplier partnership.C

Answer 349

A

Layoffs where the employees are given the option of taking a non-paid leave from their work for a short, specified period of time.V

Answer 350

A

A type of forecasting that uses causeand- effect associations to predict and explain relationships between the independent and dependent variables. An example of a causal model is an econometric model used to explain the demand for housing starts based on consumer base, interest rates, personal incomes, and land availability.C

Answer 351

A

The activities involved in the realization of a product or service offered to customers. The responsibilities include planning, directing, and controlling one or more projects of a new or continuing nature; initiating any acquisition processes necessary to get the project work under way; and monitoring performance. See: program manager.P

Answer 352

A

Syn: participative design/engineering.S

Answer 353

A

A continuous probability distribution where the probability of occurrence either steadily increases or decreases. The steady increase case (positive exponential distribution) is used to model phenomena such as customer service level versus cost. The steady decrease case (negative exponential distribution) is used to model phenomena such as the weight given to any one time period of demand in exponential smoothing.E

Answer 354

A

The environment external to a business including technological, economic, natural, and regulatory forces that marketing efforts cannot control.M

Answer 355

A

A method to identify a product or service required; requesting by brand usually means the product or service provides some advantage over other brands.D

Answer 356

A

Key strategic relationships. By partnering with big players, via equity offerings if necessary, a company creates barriers to entry into supply chain relationships for competitors.M

Answer 357

A

A process in which an accredited, independent third-party organization conducts an on-site audit of a company’s operations against the requirements of the standard to which the company wants to be registered. Upon successful completion of the audit, the company receives a certificate indicating that it has met the standard requirements.R

Answer 358

A

1) The balancing of the assignment of the tasks to workstations in a manner that minimizes the number of workstations and minimizes the total amount of idle time at all stations for a given output level. In balancing these tasks, the specified time requirement per unit of product for each task and its sequential relationship with the other tasks must be considered. See: uniform plant loading. 2) A technique for determining the product mix that can be run down an assembly line to provide a fairly consistent flow of work through that assembly line at the planned line rate.L

Answer 359

A

The quantity of an item moved between sequential work centers during production. See: batch, overlap quantity.T

Answer 360

A

Abbreviation for statistical quality control.S

Answer 361

A

The incremental costs incurred when the level of output of some operation or process is increased by one unit.M

Answer 362

A

1) Financial share in a project or enterprise. 2) Periodic compensation for lending money. 3) In an economy study, synonymous with required return, expected profit, or charge for the use of capital. 4) The cost for the use of capital. Sometimes referred to as the time value of money.I

Answer 363

A

Syn: 3D printing.A

Answer 364

A

Syn: repetitive manufacturing.R

Answer 365

A

A file that specifically identifies the location where each item in inventory is stored.B

Answer 366

A

The level of production or the volume of sales at which operations are neither profitable nor unprofitable. The break-even point is the intersection of the total revenue and total cost curves. See: total cost curve.B

Answer 367

A

Abbreviation for early supplier involvement.E

Answer 368

A

Benchmarking how others compete. It often involves benchmarking across industries. See: benchmarking.S

Answer 369

A

A value, expressed as a percentage, giving the relationship of a measurement to a base value. A result of 100 would be average while numbers greater than 100 would be above average and those less than 100 would be below average.I

Answer 370

A

Typically, the manufacturing order or schedule number used to identify a specific instance or period of production.C

Answer 371

A

A group of products whose similarity in manufacturing procedures, marketing characteristics, or specifications enables them to be aggregated for planning; marketing; or, occasionally, costing. Syn: product family, product group.P

Answer 372

A

Syn: process time.R

Answer 373

A

Any organization external to the firm that provides an essential material or service, but whose financial success is largely independent of the financial success of the supply chain community.N

Answer 374

A

The use of computer technology in the inspection and testing of manufactured products.C

Answer 375

A

The propensity for generating knowledge.K

Answer 376

A

Mathematical models for solving linear optimization problems through minimization or maximization of a linear function subject to linear constraints. For example, in blending gasoline and other petroleum products, many intermediate distillates may be available. Prices and octane ratings as well as upper limits on capacities of input materials that can be used to produce various grades of fuel are given. The problem is to blend the various inputs in such a way that (1) cost will be minimized (profit will be maximized), (2) specified optimum octane ratings will be met, and (3) the need for additional storage capacity will be avoided.L

Answer 377

A

Syn: product positioning.S

Answer 378

A

A process of reducing the number of pieces in a product or machine, eliminating features that are seldom needed, and eliminating steps in the production process.D

Answer 379

A

An application-specific protocol based on open systems interconnection (OSI) standards. It is designed to allow communication between computers from different suppliers in the technical development and office environments.T

Answer 380

A

Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing. Care must be taken in evaluating the nature of the demand: is it a volume change; is it a change in product mix; or is it related to the timing of the order? See: outlier.A

Answer 381

A

A tangible product, merchandise, or ware.G

Answer 382

A

Uses one or more variables that are believed to affect demand in order to forecast future demand.A

Answer 383

A

A term used to indicate a standard of excellence: the best of the best.W

Answer 384

A

A technique for looking at the lot sizes for groups of similar products to determine the effect economic lot sizes will have on the total inventory, total setup costs, and machine availability.L

Answer 385

A

The activities and techniques of maintaining the desired levels of items, whether raw materials, work in process, or finished products. Syn: material control.I

Answer 386

A

User-input parameters to suppress the reporting of insignificant or unimportant action messages.D

Answer 387

A

Forecast of the proportion of products that will be sold within a given product family, or the proportion of options offered within a product line. Product and option mix as well as aggregate product families must be forecasted. Even though the appropriate level of units is forecasted for a given product line, an inaccurate mix forecast can create material shortages and inventory problems.M

Answer 388

A

A unit of measure representing one person working for one hour. The combination of “n” people working for “h” hours produces nh man-hours. Frequent qualifications to the definition include (1) designation of work effort as normal effort; (2) designation of time spent as actual hours.M

Answer 389

A

A file containing all item master records for a product, product line, plant, or company. See: master file.I

Answer 390

A

Passing work from station to station.P

Answer 391

A

A method of tracking the specific multilevel batch composition of a manufactured item. The bill of batches provides the necessary where-used and where-from relationships required for lot traceability.B

Answer 392

A

The value of an operation or entity at the end of the period considered.T

Answer 393

A

The ability to handle a wide range of products or variants by using equipment that has short setup times.M

Answer 394

A

The inventory level on-hand and on-order for this system is checked whenever a change in inventory level occurs and when the reorder point is reached a restocking order is released. See: fixed reorder cycle inventory model.C

Answer 395

A

Designing with consideration of how a product or its packaging will ultimately be disposed.E

Answer 396

A

Values that decision makers use to translate the sales forecast into resource requirements to determine the feasibility and costs of alternative approaches.P

Answer 397

A

A manufacturing resource planning system designed for remanufacturing facilities.R

Answer 398

A

A tool designed to assess the distance that exists between a service that is offered and customer expectations.G G

Answer 399

A

Syn: trailer on a flatcar.P

Answer 400

A

A set of priorities and conditions that specify the order in which jobs are processed because of scarce resources.J

Answer 401

A

The strategy of designing a product initially intended for one market in such a way that it can also be sold in other markets. It is a form of standardization.U

Answer 402

A

The capability of the existing production system to accommodate and introduce a large variety of major design changes quickly.D

Answer 403

A

Syn: plan-do-check-action.S

Answer 404

A

An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders. Syn: projected available inventory.P

Answer 405

A

Buying in large quantities to take advantage of volume price or shipping discounts.L

Answer 406

A

1) The cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds. See: future worth, present value. 2) The interest rate that capital is expected to earn.T

Answer 407

A

The process of measuring production output and comparing it with the capacity plan, determining if the variance exceeds pre-established limits, and taking corrective action to get back on plan if the limits are exceeded. See: input/output control.C

Answer 408

A

The available capacity that exists on nonconstraint resources beyond the capacity required to support the constraint. Idle capacity has two components: protective capacity and excess capacity.I

Answer 409

A

Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through collective learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers. For example, a core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies. To illustrate, advanced casting processes for making steel require the integration of machine design with sophisticated sensors to track temperature and speed, and the sensors require mathematical modeling of heat transfer. For rapid and effective development of such a process, materials scientists must work closely with machine designers, software engineers, process specialists, and operating personnel. Core competencies are not directly related to the product or market.C

Answer 410

A

The receipt of an entire lot-size quantity in a very short period of time.I

Answer 411

A

A set of marketing tools to direct the business offering to the customer. The four Ps are product, price, place, and promotion.F

Answer 412

A

A corporation whose stock is available on a national exchange.P

Answer 413

A

In sales and operations planning, a general approach to dividing products or services into families, brands, and subfamilies for various planning levels. This ensures that a correct topdown or bottom-up approach is taken to grouping (or aggregating) demand at each subsequent level. Forecasts are more accurate the higher up the product hierarchy they are developed; consequently, forecasts should usually be driven down from the top.P

Answer 414

A

Costs of goods sold that are not created within the producing company’s manufacturing process. Instead, they are outsourced to another company and include the costs of purchasing the service from another company.O

Answer 415

A

Abbreviation for time to reliably replenish.T

Answer 416

A

Abbreviation for business-to-consumer sales.B

Answer 417

A

The warehouse space that is rented or leased by an independent business providing a variety of services for a fee or on a contract basis.P

Answer 418

A

The software designed for organizing data and providing the mechanism for storing, maintaining, and retrieving that data on a physical medium (i.e., a database). A DBMS separates data from the application programs and people who use the data and permits many different views of the data.D

Answer 419

A

Material that has been rejected by the buyer’s inspection department and is awaiting shipment back to the supplier for repair or replacement.R

Answer 420

A

A simple inventory control system where the inventory reordering is based on actually looking at the amount of inventory on hand. Usually used for low-value items, such as nuts and bolts. See: two-bin inventory system.V

Answer 421

A

A breakdown of the total demand or production that identifies different products in an aggregate demand or production run.M

Answer 422

A

A strategy of keeping capacity level and not variable with demand.L

Answer 423

A

A quantity-versus-time graphic representation of the order point/order quantity inventory system showing inventory being received and then used up and reordered.S

Answer 424

A

The process of defining and documenting dependencies among project activities.A

Answer 425

A

Abbreviation for warehouse management system.W

Answer 426

A

Individual events reported to the system (e.g., issues, receipts, transfers, adjustments).T

Answer 427

A

Abbreviation for direct store delivery.D

Answer 428

A

The condition of a product or process design that remains relatively stable with a minimum of variation even though factors that influence operations or usage, such as environment and wear, are constantly changing.R

Answer 429

A

An imposed responsibility in which a company sells imported goods at prices below what is charged in their domestic market.A

Answer 430

A

Acronym for local area network.L

Answer 431

A

A strategy that is built from the business strategy for the various business functions, such as finance, marketing, and production. See: strategic planning.F

Answer 432

A

Having parallel network paths exiting from a single node.P

Answer 433

A

A detailed, feasible calendar of specific items flowing into and through a factory.V

Answer 434

A

A U.S. nationwide system for electronic payments preferred by a myriad of banks, consumers, and corporations. This system can carry payment information in a standardized, computer accessible format.A

Answer 435

A

A U.S. regulatory agency charged with enforcing regulations controlling railroads, motor carriers, pipelines, domestic water carriers, domestic surface freight forwarders, and brokers.I

Answer 436

A

An increase in the number of tasks that an employee performs and an increase in the control over those tasks. It is associated with the design of jobs and especially the production worker’s job. Job enrichment is an extension of job enlargement.J

Answer 437

A

Syn: hold order.S

Answer 438

A

The set of measurements that relates to a resource, operation, process, or part and usually has low correlation to global organization measures. Examples are errors per printed page, departmental efficiency, and volume discounts.L

Answer 439

A

A group of interconnected nodes. This implies redundancy in connections and some means (e.g., machines) for implementing the connection.S

Answer 440

A

An award established by Congress in 1987 to raise awareness of quality management and to recognize U.S. companies that have implemented successful quality management systems. Up to four awards may be given annually in each of three categories: manufacturing company, service company, and small business. The award is named after the late Secretary of Commerce, Malcolm Baldrige, a proponent of quality management. The U.S. Commerce Department’s National Institute of Standards and Technology manages the award, and the American Society for Quality (ASQ) administers it. Syn: Baldrige Award.M

Answer 441

A

Scheduling logic that recognizes run length to be a multiple of the number of batches to be run rather than simply a linear relationship of run time to total production quantity.S

Answer 442

A

One who sells contract rights to a third person.A

Answer 443

A

A diagram showing the technological relationships among activities in a project.P

Answer 444

A

A method of picking orders in which order requirements are aggregated by product across orders to reduce movement to and from product locations. The aggregated quantities of each product are then transported to a common area where the individual orders are constructed. See: discrete order picking, order picking, zone picking.B

Answer 445

A

The time period needed to produce and sell a product, measured from procurement of raw materials to the sale of the product.I

Answer 446

A

The series of operations performed upon material to convert it from the raw material or a semifinished state to a state of further completion. Manufacturing processes can be arranged in a process layout, product layout, cellular layout, or fixed-position layout. Manufacturing processes can be planned to support make-to-stock, make-to-order, assemble-to-order, and so forth, based on the strategic use and placement of inventories. See: production process, transformation process.M

Answer 447

A

The policy that discusses allowed job absences and the penalties from too many absences.A

Answer 448

A

A material of value produced as a residual of or incidental to the production process. The ratio of by-product to primary product is usually predictable. Byproducts may be recycled, sold as-is, or used for other purposes. See: co-product.B

Answer 449

A

In MRP, the net requirements for a part or an assembly are derived as a result of applying gross requirements and allocations against inventory on hand, scheduled receipts, and safety stock. Net requirements, lot-sized and offset for lead time, become planned orders.N

Answer 450

A

Thread that weaves the entire organization and manufacturing process into one fabric in which each of the different parts serves and supports the whole. See: integrated enterprise.C

Answer 451

A

1) The planning and validation of all organizational resources. 2) The effective identification, planning, scheduling, execution, and control of all organizational resources to produce a good or service that provides customer satisfaction and supports the organization’s competitive edge and, ultimately, organizational goals. 3) An emerging field of study emphasizing the systems perspective, encompassing both the product and process life cycles, and focusing on the integration of organizational resources toward the effective realization of organizational goals. Resources include materials; maintenance, repair, and operating supplies; production and supporting equipment; facilities; direct and indirect employees; staff; administrative R and professional employees; information; knowledge; and capital. Syn: integrated resource management.R

Answer 452

A

The act of creating a schedule, such as a shipping schedule, master production schedule, maintenance schedule, or supplier schedule.S

Answer 453

A

Syn: operations scheduling.D D

Answer 454

A

Syn: demand management.M

Answer 455

A

A physical, organizational, or informational entity that allows people and functions to interact freely by transcending boundaries.I

Answer 456

A

Transmission of voice and image data at a distance by electronic means.T

Answer 457

A

Abbreviation for available-to-promise.A

Answer 458

A

A firm’s ability to achieve superior results through exceptional management of revenue generation, segmented supplier and customer management, collaboration and information sharing, risk management, data analysis, and appropriate use of technology.S

Answer 459

A

A process that performs the main value-added activities of an organization.P

Answer 460

A

When a firm has very little competition.M

Answer 461

A

Abbreviation for service level agreement.S

Answer 462

A

A report, normally issued by both manufacturing and purchasing to the material planning function, regarding jobs or purchase orders that will not be completed on time. This report explains why the jobs or purchases are delayed and when they will be completed. This report is an essential ingredient of the closed-loop MRP system. It is normally a handwritten report. Syn: delay report.A

Answer 463

A

Responding to customers’ needs.M

Answer 464

A

The parent organization of the interindustry electronic interchange of the business transaction standard. This group is the clearinghouse on U.S. electronic data interchange standards.A

Answer 465

A

An order quantity modifier applied after the lot size has been calculated that increases the order quantity to a predetermined multiple.O

Answer 466

A

1) A number used in acceptance sampling as a cutoff at which the lot will be accepted or rejected. For example, if x or more units are bad within the sample, the lot will be rejected. 2) The value of the test statistic that divides all possible values into acceptance and rejection regions.A

Answer 467

A

A method of inventory planning that measures actual inventory levels at regular intervals of time; either an order is placed every time or a check of inventory levels is made and an order placed if needed. Often the quantity ordered varies from period to period as inventory is restored to a predetermined level. See: fixed order quantity system.F

Answer 468

A

The fostering and support of people who champion new technologies, new operating practices, and new products and services that will transform the organization, maintaining its viability and improving its competitive position in step with the change in the business environment in which it functions.O

Answer 469

A

The period of product specification, design, and design review.P

Answer 470

A

The process of filling an entire order of one customer by bringing all parts of their order together in one place. These items may or may not come from different places or departments.O

Answer 471

A

Syn: materials requisition.P

Answer 472

A

Assurance that data accurately reflects the environment it is representing.D

Answer 473

A

A term referring to the Pareto principle. The principle suggests that most effects come from relatively few causes; that is, 80 percent of the effects (or sales or costs) come from 20 percent of the possible causes (or items). See: ABC classification.8

Answer 474

A

A document that itemizes in detail the contents of a particular package, carton, pallet, or container for shipment to a customer. The detail includes a description of the items, the shipper’s or customer’s part number, the quantity shipped, and the stockkeeping unit (SKU) of items shipped.P

Answer 475

A

A dimension of product quality that intends to appeal to the senses.A

Answer 476

A

Syn: driver (first definition).C

Answer 477

A

A message that is used to release a quantity from a blanket order.B

Answer 478

A

When suppliers ration or apportion supplies, and buyers, in response, inflate their orders in an attempt to receive what they actually need.S

Answer 479

A

Contingency funds set aside to mitigate risk.R

Answer 480

A

The development and release of an item that is new to a company’s set of offerings.N

Answer 481

A

The planning of a project in the short term, covering the present time up until a few weeks out.D

Answer 482

A

Syn: random-location storage.F

Answer 483

A

The concept that pooling random variables reduces the relative variance of the resulting aggregated variable. For example, the relative variance in sales of all models of automobiles sold by a firm is less than that for a single model.A

Answer 484

A

Abbreviation for container on a railroad flatcar.C

Answer 485

A

1) In transportation, the facility with which a carrier provides service from one point to another. 2) In warehousing, the ability to get to and within the point of storage easily.A

Answer 486

A

a potential problem that is important to the customer.D

Answer 487

A

In marketing, the total demand that would exist within a defined customer group in a given geographical area during a particular time period given a known marketing program.M

Answer 488

A

The communication protocol used by the internet.T

Answer 489

A

Having a common location with a variety of other companies.A

Answer 490

A

A forecasting method based on regression and moving average models. The model is based not on regression of independent variables, but on past observations of the item to be forecast at varying time lags and on previous error values from forecasting. See: forecast.B

Answer 491

A

A purchase made for standard off-the-shelf material or equipment, on a one-time basis.S

Answer 492

A

One-half the average lot size plus the safety stock, when demand and lot sizes are expected to be relatively uniform over time. The average can be calculated as an average of several inventory observations taken over several historical time periods; for example, 12-month ending inventories may be averaged. When demand and lot sizes are not uniform, the stock level versus time can be graphed to determine the average.A

Answer 493

A

The right of an agent, when directed by a principal to accomplish a task, to do what is reasonably necessary to accomplish it.I

Answer 494

A

A method of picking orders in which the items on one order are picked before the next order is picked. See: batch picking, order picking, zone picking.D

Answer 495

A

A load having both regulated and exempt items in the same vehicle.M

Answer 496

A

In financial management, the net present value of a projected stream of income from a project (potential investment) divided by the investment in the project. It is used to select among competing potential investments.P

Answer 497

A

Abbreviation for electronic data interchange.E

Answer 498

A

A part number that is assigned to each part but does not convey any information about the part. Nonsignificant part numbers are identifiers, not descriptors. Ant: significant part number.N

Answer 499

A

Syn: item number.P

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