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ABC analysis
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Classifies inventory items into different
categories depending on their annual usage demand.
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Available capacity
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The current availability of resources
under normal operating conditions.
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Backlog
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All the customer orders received but not
yet built and shipped.
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Backward scheduling
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Starts with the date the order is
required and calculates the schedule back through lead times,
transportation times etc. to the routing to determine the proper
release dateto meet customer due date.
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Bill of materials
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Listing of all the subassemblies,
component parts, raw materials (including quantities) etc. that are
required to produce to produce an item.
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Bottleneck
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The manufacturing process for which the
available capacity is less than the required capacity.
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Buffer stock
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A quantity of stock planned to be in
inventory to protect against fluctuations in demand or supply (synonym
for Safety stock).
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Business plan
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Statement of income projections, costs
and profits (financially orientated)
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Capacity
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Aggregated volume of work available
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Capacity planning
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The process of determining the capacity
required to produce in the future.
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Capacity requirements planning
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The process of determining how much
labour / machine resources are required to accomplish production for a
given demand
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Completion date
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The planned / estimated date by which an
order will be finished.
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Critical resources
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Those resources that usually become
overloaded when the schedule is increased.
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Cumulative lead time
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The total planned length of time to carry
out all the operations.
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Customer service level
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The percentage of occasions on which the
order or qty is delivered as promised versus total number of orders or
qty ordered
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Cycle time
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The amount of time it takes to carry out
one complete end to end cycle.
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Data accuracy
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The percentage of records which are error
free.
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Database
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Data stored in a mass storage device
under the control of a software package called a database manager.
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Delivery performance
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A measure of a supplier's ability to meet
orders in full and on time.
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Demand
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Sum of orders and forecasts for a given
time
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Due date
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The date by which an operation should be
completed.
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Economic order quantity
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EOQ is calculated to balance expected
cost of acquisition for stock against the expected costs to hold the
stock.
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Effectivity date
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The date on which a component or an
operation is to be added or removed from a bill of material or assembly
process.
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Exception reports
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A flag which is raised when actual value
differs from the expected value by more than some threshold
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Expediting
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The activity of rushing or chasing
production or purchase orders that are needed in less than the normal
lead time, or because of an increase in relative priority or because
production/delivery schedules have fallen behind.
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Feedback
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The relaying back of performance related
information such that corrections / improvements can be made to the
process.
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Finish date
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The date by which an order / operation
should be completed.
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Finite capacity planning
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The planning of capacity requirements
taking into consideration the various capacity restrictions that (will)
exist (See Capacity planning).
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First in, first out (FIFO)
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A dispatching / stock issuing rule under
which the jobs / stock items are sequenced by their arrival times. For
example, stock with a shelf life will need to be issued in this way.
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First in, last out (FILO)
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A dispatching / stock issuing rule under
which the jobs / stock items are sequenced by their arrival times. For
example, this will be the case if parts received are put on the shelf
in front of those that are already in.
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Flexible labour
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Enable redeployment of workers so that
minor changes in demand can be accomodated. Typically this is done
through contract labour for peaks or overtime
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Forward scheduling
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A scheduling technique where the
scheduler proceeds from a known start date and computes the completion
date for an order, usually proceeding from the first operation to the
last.
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Frozen zone/period
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The scheduling time horizon during which
no alterations to the schedule is allowed.
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Gantt charts
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A type of planning and control chart,
designed to show graphically the relationship between planned and
actual activities over time. It is used for loading.
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Gross requirements
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The total of independent and dependent
demand for a component before the netting (subtraction) of on-hand
inventory and scheduled receipts.
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Infinite capacity planning
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The planning of capacity requirements
assuming there are no restrictions on capacity level (See Capacity
planning) can produce as much as required in any given time frame
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Inventory
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Raw material, Work In-progress, stock,
finished goods and all items required for manufacture
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Lead-time
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(Purchasing or manufacturing) Span of
time required to perform an activity (manufacturing lead-time consists
of move, queue, setup and run time)
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Multiskilled workers
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Worker with the skills to handle a number
of operations and machines
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Need date
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The date when an item is required for its
intended use. In an Material Planning system, this date is calculated
by a BOM explosion of a schedule and the netting of available inventory
against that requirement.
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Obsolescence
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The loss of usefulness or worth of a
product or facility as a result of the appearance of better or more
economical products, methods or facilities.
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On-hand inventory
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The amount of a part / sub assembly that
is expected to be available (i.e. on hand) not allocated to another job.
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Overdue work
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Work which has not been completed by the
required date.
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Overloaded capacity
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A condition when the total hours of work
allocated to a work centre exceed the work centre's capacity.
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Pareto analysis
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A statistical analysis used to classify
data by category. The analysis is used to drive decision making.
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Pegging
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In Material Planning this is the
capability to identify for a given item the sources of its gross
requirements and / or allocations. Pegging can be thought of as active
where-used information.
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Performance evaluation
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Process of measuring performance for the
purposes of feedback and reporting.
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Planned orders
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A suggested order quantity, release date,
and due date created by the planning system's logic when it encounters
net requirements in processing Material Planning.
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Planning horizon
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The amount of time the schedule extends
into the future.
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Product costing
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The activity of determining the cost
associated with a particular product.
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Productivity
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Ratio of output to input.
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Progress reporting
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Reporting of the actual current state of
an activity.
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Projected available balance
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An inventory balance projected into the
future. It is the running sum of on-hand inventory minus requirements
plus scheduled receipts and planned orders.
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Queue
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A waiting line (the jobs at a given work
centre waiting to be processed)
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Queue time
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The amount of time a job waits at a work
centre before being processed.
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Reprioritising
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A revision of existing priorities in the
light of new information.
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Routing
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Document detailing the manufacturing
sequence of a particular item (includes operations to be performed,
their sequence, work centres used etc.).
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Safety time
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Material is planned to arrive ahead of
its requirement date
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Scheduled receipt
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Items due to be received in a particular
time period. (An open order that has an assigned due date).
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Scheduling
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Activity of assigning dates to the
manufacturing steps in the process of manufacturing products (part of
planning and control not execution).
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Standard cost
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A cost estimate based on standard labour
hours, material and overhead costs.
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Standard time
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The length of time that should be
required to: setup a given machine or operation and run one part,
assembly, batch, or end product through that operation. Synonym:
standard hours.
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Start date
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The date on which an operation should be
started or was actually started.
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Stockout costs
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The costs associated with a stockout.
Those costs may include lost sales, backorder costs, expediting, and
additional manufacturing and purchasing costs.
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Storage costs
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A subset of inventory carrying costs,
including the cost of warehouse utilities, material handling personnel,
equipment maintenance, building maintenance, and security personnel.
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Subcontracting
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Sending production work outside to
another manufacturer.
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Supplier performance
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Evaluation of suppliers usually with
respect to delivery, quality and price.
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Time fences
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Point in time where various restrictions
or changes in operating procedures take place
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Time horizon
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The period of time being planned.
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Traceability
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The registering and tracking of parts,
processes, and materials used in production, by lot or serial number.
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Where-used list
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A listing of every parent item that calls
for a given component, and the respective quantity required, from a BOM
file.
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Work in progress
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Products in various stages of completion
throughout the plant
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