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67 Cards in this Set
- Front
- Back
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Just-In-Time (JIT) Philosophy |
The belief that waste can be eliminated by cutting unnecessary capacity or inventory and removing non value added activities in operations |
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JIT System |
A system that organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles |
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Lot |
A quantity of items that are processed together |
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Single-Digit Setup |
The goal of having a setup time of less than 10 minutes |
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Pull Method |
A method in which customer demand activates production of the service or item |
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Jidoka |
Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur |
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Poka-Yoke |
Mistake-proof methods aimed at designing fail-safe systems that minimize human error |
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Takt Time |
Cycle time needed tomatch the rate of production to the rate of sales or consumption |
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Heijunka |
The leveling of production load by both volume and product mix |
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Five S (5S) |
A methodology consisting of five workplace practices - sorting, straightening, shining, standardizing, and sustaining - that are conducive to visual controls and lean production |
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One-Worker, Multiple-Machine Cell (OWMM) |
A one-person cell in which a worker operates several different machines simultaneously to achieve a line flow |
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Kanban |
A Japanese word meaning "card" or "visible record" that refers to cards used to control the flow of production through a factory |
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Project |
An interrelated set of activities with a definite starting and ending point, which results in a unique outcome for a specific allocation of resources |
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Projcect management |
A systemized, phased approach to defining, organizing, planning, monitoring, and controlling projects |
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Program |
An interdependent set of projects that have a common strategic purpose |
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Work Breakdown Structure (WBS) |
A statement of all work that has to be completed |
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Activity |
The smallest unit of work effort consuming both time and resources that the project manager can schedule and control |
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Network Diagram |
A network planning method, designed to depict the relationships between activities, that consists of nodes (circles) and arcs (Arrows) |
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Program evaluation and review Technique (PERT) |
A network planning method created for the US Navy's polaris missile project in the 1950s, which involved 3000 separate contractors and suppliers |
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Critical Path Method (CPM) |
A network planning method developed in the 1950s as a means of scheduling maintenance shutdowns at chemical processing plants |
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Precedence Relationship |
A relationship that determines a sequence for undertaking activities; it specifies that one activity cannot start until a preceding activity has been completed |
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Path |
The sequence of activities between a projects start and finish |
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Critical Path |
The sequence of activities between a projects start and finish that takes the longest time to complete |
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Earliest Finish Time (EF) |
An activity's earliest start time plus its estimated duration, t, or EF = ES + t |
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Earliest Start Time (ES) |
The earliest finish time of the immediately preceding activity
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Latest Finish Time (LF) |
The latest start time of the activity that immediately follows |
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Latest Start Time (LS) |
The latest finish time minus its estimated duration, t, or LS =LF - t |
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Activity Slack |
The maximum length of time that an activity can be delayed without delaying the entire project, calculated as S = LS - ES or S= LS - EF |
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Gantt Chart |
A project schedule, usually created by the project manager using computer software, that superimposes project activities, with their precedence relationships and estimated duration times, on a time line |
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Normal Time (NT) |
In the context of project management, the time necessary to complete an activity under normal conditions |
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Normal Cost (NC) |
The activity cost associated with the normal time |
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Crash Time (CT) |
The shortest possible time to complete an activity |
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Crash Cost (CC) |
The activity cost associated with the crash time |
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Minimum-Cost Schedule |
A schedule determined by starting with the normal time schedule and crashing activities along the critical path, in such a way that the costs of crashing do not exceed the savings in indirect and penalty costs |
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Risk-Management Plan |
A plan that identifies the key risks to a projects success and prescribes ways to circumvent them |
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Optimistic Time (a) |
The shortest time in which an activity can be completed, if all goes exceptionally well |
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Most Likely Time (m) |
The probable time required to perform an activity |
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Pessimistic time (b) |
The longest estimated time required to perform an activity |
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Inventory Management |
The planning and controlling of inventories to meet the competitive priorities of the organization |
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Lot Size |
The quantity of an inventory item management either buys from a supplier or manufactures using internal processes |
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Inventory |
A stock of materials used to satisfy customer emand or to support the production of services or goods |
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Inventory Holding Cost |
The sum of the cost of capital and the variable costs of keeping items on hand, such as storage and handling, taxes, insurance, and shrinkage |
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Ordering Cost |
The cost of preparing a purchase order for a supplier or a production order for manufacturing |
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Setup Cost |
The cost involved in changing over a machine or workspace to produce a different item |
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Quantity Discount |
A drop in the price per unit when an order is sufficiently large |
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Raw Materials (RM) |
The inventories needed for the production of services or goods |
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Work in Process (WIP) |
Items, such as components or assemblies, needed to produce a final product in manufacturing or service operations |
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Finished Goods (FG) |
The items in manufacturing plants, warehouses, and retail outlets that are sold to the firms customers |
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Cycle Inventory |
The portion of total inventory that varies directly with lot size |
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Lot sizing |
The determination of how frequently and in what quantity to order inventory |
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Safety Stock Inventory |
Surplus inventory that a company holds to protect against uncertainties in demand, lead time, and supply changes |
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Anticipation Inventory |
Inventory used to absorb uneven rates of emand or supply |
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Pipeline Inventory |
Inventory that is created when an order for an item is issued but not yet receieved |
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Stock Keeping Unit (SKU) |
An individual item or product that has an identifying code and is held in inventory somewhere along the supply chain |
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ABC analysis |
The process of dividing SKUs into three classes, according to their dollar usage, so that managers can focus on items that have the highest dollar value |
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Economic Order Quantity (EOQ) |
The lot size that minimizes total inventory holding and ordering costs |
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Continuous Review System (q) |
A system designed to track the remaining inventory of a SKU each time a withdrawal is made to determine whether it is time to reorder |
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Inventory Position (IP) |
The measurement of a SKU's ability to satisfy future demand |
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Scheduled Receipts (SR) |
Orders that have been placed but have not yet been received |
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Reorder Point (R) |
The predetermined minimum level that an inventory position must reach before a fixed quantity of Q of the SKU is ordered |
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Service Level |
The desired probability of not running out of stock in any one ordering cycle, which begins at the time an order is placed and ends when it arrives in stock |
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Protection interval
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The period over which safety stock must protect the user from running out of stock
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Visual System |
A system that allows employees to place orders when inventory visibly reaches a certain marker |
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Two-bin system |
A visual system version of the Q system in which a SKU's inventory is stored at two different locations |
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Base stock system |
An inventory control system that issues a replenishment order , Q, each time a withdrawal is made, for the same amount of the withdrawal |
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Single-Bin System |
A system of inventory control in which a maximum level is marked on the storage shelf or bin, and the inventor is brought up to the mark periodically |
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Optional Replenishment System |
A system used to review the inventory position at fixed time intervals and, if the position has dropped to (or below) a predetermined level, to place a variable sized order to cover expected needs |
