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60 Cards in this Set

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andon
Japanese term for a signaling system announcing problems encountered and assistance requested, often implemented as sets of lights over workstations.
assignable variation
Deviations with a specific cause or source.
backorder
To delay order fulfillment due to inadequate supply.
bottleneck
The most heavily utilized resource within a system.
bricolage
A creation from what happened to be available during its formation.
business continuity plan
Guidelines and arrangements for response to disruption of critical business functions, to restore and maintain operation.
confirmation bias
A tendency to favor information that supports a hypothesis and to suppress or neglect information that refutes it.
consumer’s risk
The likelihood of a type II error.
crisis
The critical time prior to an impending change of great significance.
critical ratio
Time remaining until due date divided by work remaining to be done.
cycle stock
Inventory held to gain economies of scale.
defect
A single identifiable deviation from acceptable conformance.
dispatching
Assigning work in real-time, often in the context of mobile resources.
economies of scale
Decreasing average unit cost by increasing volume.
enterprise resource planning (ERP)
A strategic information system that integrates all functional areas of an organization.
finished goods
Inventory awaiting sale to consumers.
finite loading
A scheduling approach that recognizes capacity constraints.
fixed order interval policy
An inventory system in which the amount of replenishment is determined by the rate of previous demand and its timing is predetermined at an economical interval.
fixed order quantity policy
An inventory system in which the amount of replenishment is predetermined at some economical value and its timing is then determined by the rate of previous demand.
framing
Adopting too narrow a view in the analysis of a problem.
groupthink
A tendency to neglect full critical evaluation of a decision in favor of minimizing conflict within a group of decision makers.
incident command system
A predetermined structure that organizes available parties into one temporary organization to resolve an incident.
infinite loading
A scheduling approach that ignores capacity constraints.
just-in-time (JIT)
An earlier and alternate term for lean operation, in which a system implicitly operates with minimum of inventory and waste.
kaizen
Japanese term for a focus on continuous improvement.
lead time
Delay between requesting a product and receiving it.
lean
Operating without waste.
level demand strategy
Aggregate planning approach that relies on influencing demand to match capacity.
level production strategy
Aggregate planning approach that relies on fixed capacity despite changing demand.
lot-for-lot (LFL)
An ordering policy in which orders are sized to match individual demands exactly, theoretically accumulating no inventory.
makespan
The length of time required to complete a finished schedule.
master production schedule (MPS)
A statement of independent demand for all inventory items in an MRP system.
minimum constant production (MCP) rate
The lowest speed of perfectly level production that will not produce any shortages within a demand forecast.
muda
Japanese term for waste, particularly anything a customer is not willing to pay for.
newsvendor problem
Choosing a quantity to meet a single period of uncertain demand, weighing the costs of ordering too much and too little.
normalization
A tendency to accept anomalies as normal events, particularly over time.
optimization
Identification of the best alternative.
outcome bias
A tendency to assume a process is acceptable if its output is acceptable.
overbooking
Commitment or sale of resource in excess of its actual availability.
proaction
Avoidance of preventable risk, the first and most basic stage of risk management.
producer’s risk
The likelihood of a type I error.
raw materials
Inventory brought in from outside the system.
redundancy
Duplication of an element within a system.
reliability
The probability that an element or a system will perform as specified.
reorder point
An inventory level that triggers replenishment of an item.
resilience
The ability of a system to adjust to or recover from a shock or sudden change.
risk
The possibility of loss or the source of such a possibility.
safety stock
Inventory held to protect against uncertain supply or demand.
sawtooth diagram
A graph of inventory levels over time.
service level
The probability that demand for an item will be met during the lead time on replenishment of that same item.
situational awareness
An individual or organization’s comprehension of the surrounding environment and its potential near-future states.
staging
Retrieving or positioning inventory or other resources before they are required.
statistical process control (SPC)
The monitoring of overall conformance through the ongoing evaluation of samples.
stockpiling
Producing or securing goods in advance of demand.
Taguchi loss function
A proposed model of the cost of nonconformance that penalizes even small degrees of deviation from a target specification.
triage
A priority rule creating sequences intended to yield the most value from distinctly limited resources.
type I error
In quality control, concluding the process is out of control when in fact it is not.
type II error
In quality control, concluding the process is in control when in fact it is not.
vendor-managed inventory (VMI)
Transferal of ownership and management of inventory within a system to its external provider, who will be compensated after its use by the system.
yield management
Policies and practices to maximize the benefit of a perishable resource such as service capacity.