Vocab 4

Question 1

physical inventory

Answer 1

Determination of inventory quantity by actual count

Question 2

physical supply

Answer 2

The transportation of goods from supplier to buyer

Question 3

pickup and delivery costs

Answer 3

Carrier charges for each shipment pickup and the weight of that shipment.

Question 4

pipeline stock

Answer 4

Inventory in the transportation network and the distribution system, including the flow through intermediate stocking points

Question 5

plan-do-check-action (PDCA)

Answer 5

4 step process for quality improvement. 1) Develop a plan 2) Plan is carried out 3)Effects of the plan observed 4)Results are studied

Question 6

planned order

Answer 6

A suggested order quantity, release date, and due date created by the planning system’s logic when it encounters net requirements in processing MRP

Question 7

planned order receipt

Answer 7

The quantity planned to be received at a future date as a result of a planned order release

Question 8

planned order release

Answer 8

A row on an MRP table that is derived from planned order receipts by taking the planned receipt quantity and offsetting to the left by the appropriate lead time

Question 9

planning bill of material

Answer 9

Artificial grouping of items or events in a BOM format. Used to facilitate master scheduling and material planning.

Question 10

point of sale (POS)

Answer 10

Inventory adjustment and computing of sales data at time and place of sale.

Question 11

postponement

Answer 11

Product design or supply chain strategy that deliberately delays final differentiation until the latest possible time. Reduces anticipatory risk by eliminating finished goods inventory

Question 12

priority control

Answer 12

The process of communicating start and completion dates to manufacturing departments in order to execute a plan

Question 13

priority planning

Answer 13

The function of determining what material is needed and when. Uses master scheduling and MRP to plan and replan to maintain proper due dates for purchased and manufactured components

Question 14

process batch

Answer 14

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

Question 15

process flexibility

Answer 15

Design of manufacturing system (operators & machinery) that allow quick changeovers to respond to near-term demand changes

Question 16

process flow diagram

Answer 16

A graphic, symbolic representation of the work performed, or to be performed, on a product as it passed through some or all of the stages of a process

Question 17

procurement

Answer 17

The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations

Question 18

procurement lead time

Answer 18

Time required to design the product, modify/design equipment, conduct marketing research, and obtain all necessary materials.

Question 19

product cost

Answer 19

Cost allocated by some method to the products being produced. Initially recorded in asset (inventory) accounts, product costs become an expense (cost of sales) when the product is sold

Question 20

production activity control (PAC)

Answer 20

The function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control

Question 21

production planning

Answer 21

Process to develop tactical plans based on setting the overall level of manufacturing output and other activities to best satisfy current planned sales levels while meeting general business objectives (profitability, productivity, etc)

Question 22

productive capacity

Answer 22

In the Theory of Constraints – the maximum output capability of a resource (or series of resources). Or the market demand for that output for a given time period

Question 23

productivity

Answer 23

Overall measure of the ability to produce a good or a service. Actual output of production compared to actual input of materials

Question 24

product layout

Answer 24

Layout of resources arranged sequentially based on the product’s routing

Question 25

product life cycle (3 definitions)

Answer 25

1) Stages a new product goes through from beginning to end 2) Time from initial research and development to time when sales and support to customers is withdrawn 3) period of time during which a product can be produced and marketed profitably

Question 26

profit margin

Answer 26

The difference between the sales and Cost of goods sold (COGS) for an organization, sometimes expressed as a percentage of sales

Question 27

protective capacity

Answer 27

The resource capacity needed to protect the system throughput-ensuring that some capacity above capacity req'd to exploit the constraint is available to catch up when disruptions inevitably occur

Question 28

protective inventory

Answer 28

In the Theory of constraints (TOC) the amount of inventory required relative to the protective capacity in the system to achieve a specific throughput rate at the constraint

Question 29

pull system

Answer 29

The withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user

Question 30

purchase requisition

Answer 30

An authorization to the purchasing department to purchase specified materials in specific quantities within a specified time

Question 31

push system

Answer 31

A system for replenishing field warehouse inventories where replenishment decision making is centralized, usually at the manufacturing site or central supply facility

Question 32

quality costs

Answer 32

Overall costs associated with prevention activities and improvement before, during and after production of a product

Question 33

quality function deployment (QFD)

Answer 33

Methodology designed to ensure all major customer requirements are identified and then met or exceeded

Question 34

random-location storage

Answer 34

A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom

Question 35

rated capacity

Answer 35

Expected output capability of a resource or item. Rated capacity = hours available X efficiency X utilization

Question 36

remanufacturing

Answer 36

Industrial process in which worn-out products are restored to like-new condition

Question 37

repetitive flow manufacturing

Answer 37

Assembly line that assembles discrete units (ie automobiles) at a constant rate without delays. Machinery is dedicated to limited range of products. Capital intensive. Require high volumes of production

Question 38

replenishment led time

Answer 38

Total period of time from when it is decided an product should be reordered until product is back on the shelf and available for use

Question 39

requirements explosion

Answer 39

The process of calculating the demand for the components of a parent item by multiplying the parent item requirements by the component usage quantity specified in the BOM

Question 40

resource planning

Answer 40

Capacity planning conducted at the business plan level. The process of establishing, measuring, and adjusting limits or levels of long range capacity.

Question 41

reverse auction

Answer 41

Thumtack Internet auction where suppliers attempt to underbid their competitors. Company identities known only by the buyer

Question 42

reverse logistics

Answer 42

Complete supply chain dedicated to the return, repair, remanufacturing, or recycling of products/materials

Question 43

rough-cut capacity planning (RCCP)

Answer 43

The process of converting the MPS into requirements for key resources, including labor, machinery, warehouse space, suppliers' capacity, and money

Question 44

run time

Answer 44

Time required to process of piece or lot at a specific operation

Question 45

sales and operations planning (S&OP)

Answer 45

Process to develop tactical plans to provide management with ability to strategically direct its businesses and achieve competitive advantage

Question 46

sales plan

Answer 46

A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item

Question 47

sawtooth diagram

Answer 47

Quality vs time graphic for order point and order quantity. Shows inventory being received, used up, and reordered

Question 48

scatter chart

Answer 48

AKA Scatterplot Graph technique to analyze relationship between 2 variables. Y axis is for the variable to be predicted. X axis if for variable used to make the prediction

Question 49

scheduled receipt

Answer 49

Open order with assigned due date

Question 50

seasonality

Answer 50

A repetitive pattern of demand from year to year with some periods considerably higher than others