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57 Cards in this Set
- Front
- Back
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Aggregate Planning
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intermediate-range capacity planning, usually covering 2 to 12 months
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Sales and operations planning
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intermediate-range decisions to balance supply and demand, integrating financial and operations planning
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Level capacity strategy
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maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options
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Chase demand strategy
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matching capacity to demand; the planned output for a period is set at the expected demand for that period
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Simulation models
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computerized models that can be tested under different scenarios to identify acceptable solutions to problems
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Yield management
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the application of pricing strategies to allocate capacity among various categories of demand
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Master schedule
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shows quantity and timing of specific end items for a scheduled horizon
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Master production schedule (MPS)
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this schedule indicates the quantity and timing of planned completed production
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Rough-cut capacity planning (RCCP)
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approximate balancing of capacity and demand to test the feasibility of a master schedule
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Time fences
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points in time that separate phases of a master schedule planning horizon
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Available-to-promise (ATP) inventory
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uncommitted inventory
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Inventory
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a stock or store of goods
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Inventory
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a stock or store of goods
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Little's Law
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the average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system
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Little's Law
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the average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system
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Inventory turnover
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ratio of average cost of goods sold to average inventory investment
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Inventory turnover
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ratio of average cost of goods sold to average inventory investment
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Periodic system
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physical count of items in inventory made at periodic intervals (weekly, monthly)
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Periodic system
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physical count of items in inventory made at periodic intervals (weekly, monthly)
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Perpetual Inventory system
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system that keeps track of removals from inventory continuously, thus monitoring current levels of each item
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Perpetual Inventory system
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system that keeps track of removals from inventory continuously, thus monitoring current levels of each item
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Two-bin system
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two containers of inventory; reorder when the first is empty
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Universal product code (UPC)
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bar code printed on a label that has information about the item to which it is attached
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Lead time
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time interval between ordering and receiving the order
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Poinnt-of-sale (POS) systems
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record items at the time of sale
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Holding (carrying) cost
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cost to carry an item in inventory for a length of time, usually a year
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Ordering costs
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cost of ordering and receiving inventory
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Shortage costs
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costs resulting when demand exceed the supply of inventory; often unrealized profit per unit
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ABC approach
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classifying inventory according to some measure of importance, and allocating control efforts accordingly
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cycle counting
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a physical count of items in inventory
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Economic Order Quantity (EOQ)
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the order size that minimizes total annual cost
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Quantity Discoutns
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price reductions for large orders
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Reorder Point (ROP)
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when the quantity on hand of an item drops to this amount, the item is reordered
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Safety stock
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stock that is held in excess of expected demand due to variable demand and/or lead time
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Service Level
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probability that demand will not exceed supply during lead time
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Fill Rate
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the percentage of demand filled by the stock on hand
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Fixed-order Interval (FOI) Model
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orders are placed at fixed time intervals
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Single-period model
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model for ordering of perishables and items with limited useful lives
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Shortage cost
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generally, the unrealized profit per unit
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Excess cost
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difference between purchase cost and salvage value of items left over at the end of a period
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Total quality management (TQM)
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Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
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Quality at the source
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the person who does the work is responsible for ensuring that specifications are met
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Malcolm Baldrige National Quality Award
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an award established by the US Dept of Commerce and given annually to companies that excel in quality
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Design Quality
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the inherent value of the product in the market place
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Conformance quality
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the degree to which the product or service design specifications are met
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Dimensions of quality
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criteria by which quality is meaured
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Cost of quality
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expenditures related to achieving product or service quality such as the costs of prevention, appraisal, internal failure, and external failure
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Six Sigma
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a statistical term to describe the quality goal of no more than four defects out of every million units. Also refers to a quality improvement philosophy and program.
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DPMO (defects per million opportunities)
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a metric used to describe the variability of a process
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DMAIC
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an acronym for define, measure, analyze, improve, and control improvement methodology followed by companies engaging in six-sigma programs
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PDCA cycle
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also called the "deming cycle or wheel"; refers to the plan-do-check-act cycle of continuous improvement
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Continuous improvement
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the philosophy of continually seeking improvements in processes through the use of team efforts
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Kaizen
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Japanese term for continuous improvement
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Lean Six Sigma
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combines the implementation and quality control tools of Six Sigma with the materials management concept of lean manufacturing with a focus on reducing cost by lowering inventory to an absolute minimum
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External benchmarking
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looking outside the company to examine what excellent performers inside and outside the company's industry are doing in the ways of quality
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ISO 9000
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Formal standards used for quality certification, developed by the International Organization for Standardization
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Fail-safe or Poka-yoke procedures
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simple practices that prevent errors or provide feedback in time for the worker to correct errors
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