ABC system:
a method for classifying inventory items according to their dollar value to the firm based on the principle that only a few items account for the greatest dollar value of total inventory.

acceptable quality level (AQL):
the fraction of defective items deemed acceptable in a lot.

acceptance sampling:
a statistical procedure for taking a random sample in order to determine whether or not a lot should be accepted or rejected.

activity-on-arrow (AOA):
a convention for constructing a CPM/PERT network in which the branches between nodes represent project activities.

activity-on-node (AON):
a convention for constructing a CPM/PERT network in which the nodes represent project activities.

performance of an individual job or work effort that requires labor, resources, and time and is subject to management control.

adjusted exponential smoothing:
an exponential smoothing forecast adjusted for trend.

aggregate production planning (APP):
the process of determining the quantity and timing of production over an intermediate time frame.

call lights installed at workstations to notify management and other workers of a quality problem in production

appraisal costs:
costs of measuring, testing, and analyzing materials, parts, products, and the productive process to make sure they conform to design specifications.

arrival rate:
the rate at which customers arrive at a service facility during a specified period of time.

artificial intelligence:
a computer system that attempts to replicate human thought processes to diagnose and solve problems.

1. products or services created in standard modules to which options are added according to customer specifications.
2. a manufacturing environment in which major subassemblies are produced in advance of a customer's order and are then configured to order.

assembly chart:
a schematic diagram of a product that shows the relationship of component parts to parent assemblies, the groupings of parts that make up a subassembly, and the overall sequence of assembly.

a product characteristic that can be evaluated with a discrete response such as yes or no, good or bad.

average error:
the cumulative error averaged over the number of time periods.

average outgoing quality (AOQ):
the expected number of defective items that will pass on to the customer with a sampling plan.
Back to top


backward pass:
starting at the end of a CPM/PERT network, a procedure for determining latest activity times.

balance delay:
the total idle time of the line.

barriers of entry:
factors such as economies of scale, capital investment, access to supply and distribution channels, and learning curves that make it difficult for a new firm to enter an industry.

batch production:
a type of process that produces a variety of jobs in groups or batches.

batch production:
the low-volume production of customized products.

a level of quality achievement established by one company that other companies seek to achieve, i.e., a goal.

finding the best-in-class product or process, measuring one's performance against it, and making recommendations for improvements based on the results.

measuring current performance against where a company wants performance to be or against a competitor's performance.

best operating level:
the percent of capacity utilization at which unit costs are lowest.

beta distribution:
a probability distribution traditionally used in CPM/PERT for estimating the mean and variance of project activity times.

bill of material (BOM):
a list of all the materials, parts, and assemblies that make up a product, including quantities, parent-component relationships, and order of assembly.

block diagram:
a schematic layout diagram that includes the size of each work area.

break-even analysis:
a technique that determines the volume of demand needed to be profitable; it takes into account the trade-off between fixed and variable costs.

breakdown maintenance:
a maintenance activity that involves repairs needed to make a failed machine operational.
Back to top


a control chart based on the number of defects in a sample.

calling population:
the source of customers to a waiting line.

capacity cushion:
a percent of capacity held in reserve for unexpected occurrences.

capacity planning:
a long-term strategic decision that establishes the overall level of productive resources for a firm.

capacity requirements planning (CRP):
a computarized system that projects the load from a given material plan onto the capacity of a system and identifies underloads and overloads.

the productive capability of a worker, machine, work center, or system.

carrying costs:
the cost of holding an item in inventory including lost opportunity costs, storage, rent, cooling, lighting, interest on loans, and so on.

cause-and-effect diagram:
a graphical description of the elements of a specific quality problem.

cellular layout:
a layout that groups dissimilar machines into cells that process parts with similar shapes or processing requirements.

center-of-gravity techniques:
a quantitative method for locating a facility at the center of movement in a geographic area based on weight and distance.

the number of parallel servers.

chase demand:
an aggregate planning strategy that schedules production to match demand and absorbs variations in demand by adjusting the size of the workforce.

CNC machines:
NC machines that are controlled by software instructions stored in the memory of a computer.

coefficient of determination:
the correlation coefficient squared; it measures the portion of the variation in the dependent variable that can be attributed to the independent variable.

coefficient of optimism (a):
a measure of a decision maker's optimism, from 0 (completely pessimistic) to 1 (completely optimistic), used in the Hurwicz decision criterion.

the degree to which a nation can produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens.

computer-aided design (CAD):
a software system that uses computer graphics to assist in the creation, modification, and analysis of a design.

computer-aided engineering (CAE):
engineering analysis performed at a computer terminal with information from a CAD database.

computer-aided manufacturing (CAM):
the use of programmable automation in the manufacture of a product.

computer-aided process planning (CAPP):
a specialized software system that attempts to automate the development of process plans.

computer-integrated manufacturing (CIM):
the total integration of design, manufacture, and delivery of a product through the use of computer technology.

concurrent design:
a new approach to design that involves the simultaneous design of products and processes by design teams.

linear relationships of decision variables representing the restrictions placed on the decision situation by the operating environment.

consumer's risk (b ):
the probability of accepting a lot in which the fraction of defective items exceeds the most (LTPD) the consumer is willing to accept.

continuous inventory system:
a system in which the inventory level is continually monitored; when it decreases to a certain level, a fixed amount is ordered.

continuous process:
the production of a very high-volume commodity product with highly automated equipment.

continuous production:
a type of process used to produce very high volume commodity products.

continuous replenishment:
supplying orders in a short period of time according to a predetermined schedule.

control chart:
a graph that visually shows if a sample is within statistical limits for defective items.

control limits:
the upper and lower bands of a control chart.

core competencies:
the essential capabilities that create a firm's sustainable competitive advantage.

a measure of the strength of the causal relationship between the independent and dependent variables in a linear regression equation.

cost index:
the ratio of quality cost to manufacturing cost.

craft production:
The process of hand-crafting products or services for individual customers.

crash cost:
the cost of reducing the normal activity time.

crash time:
the amount of time an activity is reduced.

a method for shortening the project duration by reducing the time of one or more critical activities at a cost.

critical path method (CPM):
a project scheduling technique in which activities are shown as a network of precedence relationships, traditionally using single-activity time estimates and activity-on-node network construction.

critical path:
the longest path through a CPM/PERT network, indicating the minimum time in which a project can be completed.

cumulative error:
a sum of the forecast errors; also known as bias.

cumulative lead time:
the total length of time required to manufacture a product; also, the longest path through a product structure.

an up-and-down movement in demand over time.

cycle counting:
a method for auditing inventory accuracy that counts inventory and reconciles errors on a cyclical schedule rather than once a year.

cycle time:
the maximum amount of time an item is allowed to spend at each workstation if the targeted production rate is to be achieved; also, the time between successive product completions.
Back to top


decision analysis:
a set of quantitative decision-making techniques to aid the decision maker in dealing with decision situations in which uncertainty exists.

decision support system (DSS):
an information system with which a manager interacts in order to reach a decision through an iterative process.

decision variables:
mathematical symbols that represent levels of activity of an operation.

Delphi method:
a procedure for acquiring informed judgments and opinions from knowledgeable individuals to use as a subjective forecast.

dependent demand:
typically component parts or materials used in the process to produce a final product.

design for assembly (DFA):
a set of procedures for reducing the number of parts in an assembly, evaluating methods of assembly, and determining an assembly sequence.

design for environment (DFE):
designing a product from material that can be recycled or easily repaired rather than discarded.

design for manufacture (DFM):
designing a product so that it can be produced easily and economically.

DFM guidelines:
statements of good design practice.

the process of breaking down the aggregate plan into more detailed plans.

diseconomies of scale:
when higher levels of output cost more per unit to produce.

dispatch list:
a shop paper that specifies the sequence in which jobs should be processed; it is often derived from specific sequencing rules.

DNC machines:
several NC machines under direct or distributed numerical control of a single computer.

an activity in a network that shows a precedence relationship but represents no passage of time.
Back to top


earliest finish time (EF):
the earliest time an activity can be completed.

earliest start time (ES):
the earliest time an activity can begin subject to preceding activities.

economic order quantity (EOQ):
a fixed order quantity that minimizes total inventory costs.

economies of scale:
an advantage that accrues from high-volume production; as the number of units produced increases, the cost of producing each individual unit decreases.

economies of scale:
when higher levels of output cost less per unit to produce.

how well a machine or worker performs compared to a standard output level.

elemental standard time files:
company files containing historical data of elemental time studies that can be used to develop a standard time.

the authority and responsibility of the workers to alert management about job-related problems.

enterprise planning systems:
software that orchestrates the activities of an entire enterprise at distributed locations around the globe.

enterprise resource planning (ERP):
an updated MRP II system with relational database management, graphical user interface, and client/server architecture, and expanded to cover enterprise-wide activities.

equal likelihood (La Place) criterion:
a decision criterion in which each state of nature is weighted equally.

the completion or beginning of an activity in a project.

expected value of perfect information:
the maximum value that a decision maker would be willing to pay for perfect information about future states of nature.

expected value:
a weighted average of decision outcomes in which each future state of nature is assigned a probability of occurrence.

the process of speeding up orders so that they are completed in less than their average lead time.

expert system:
a computer system that uses an expert knowledge base to solve a problem.

the process of determining requirements for lower-level items by multiplying the planned orders for parent items by the quantity per assembly of component items.

exponential smoothing:
an averaging method that weights the most recent data more strongly than more distant data.

external failure costs:
costs of poor quality incurred after the product gets to the customer; that is, customer service, lost sales, and so on.

external setup:
setup activities that can be performed in advance while the machine is operating.

extreme points:
corner points, or protrusions, on the boundary of the feasible solution space in a linear programming model.
Back to top


facility layout:
the arrangement of machines, departments, workstations, and other areas within a facility.

failure mode and effects analysis (FMEA):
a systematic approach for analyzing the causes and effects of product failures.

fault tree analysis (FTA):
a visual method for analyzing the interrelationships among failures.

feasible solution space:
an area that satisfies all constraints in a linear programming model simultaneously.

finite queue:
a waiting line that has a limited capacity.

finite scheduling:
an approach to scheduling that loads jobs in priority order and delays those jobs for which current capacity is exceeded.

fitness for use:
a measure of how well a product or service does what the consumer thinks it is supposed to do and wants it to do.

fixed-order-quantity system:
also known as a continuous system; an inventory system in which a fixed, predetermined amount is ordered whenever inventory in stock falls to a certain level called the reorder point.

fixed-position layout:
a layout in which the product remains at a stationary site for the entire manufacturing cycle.

fixed-time-period system:
also known as a periodic system; an inventory system in which a variable amount is ordered after a predetermined, constant passage of time.

in operations, the ability to adjust to changes in product mix, production volume, or product or process design.

flexible manufacturing system (FMS):
programmable equipment connected by an automated material handling system and controlled by a central computer.

flexible manufacturing system:
a versatile system that results from the physical connection of programmable machine tools with an automated material handling system.

flow time:
the time that it takes for a job to "flow" through the system; that is, its completion time.

forecast error:
the difference between actual and forecasted demand.

form design:
the phase of product design concerned with how the product looks.

forward pass:
starting at the beginning of a CPM/PERT network, a procedure for determining earliest activity times.

functional design:
the phase of product design concerned with how the product performs.
Back to top


Gantt chart:
a bar chart that shows a job's progress graphically or compares actual against planned performance.

Gantt chart:
a graphical display using bars (or time lines) to show the duration of project activities and precedence relationships.

general-purpose machines:
machines that perform basic functions such as turning, drilling, and milling.

graphical solution method:
a method for determining the solution of a linear programming problem using a two-dimensional graph of the model.

group technology (GT):
the grouping of parts into families based on similar shapes or processing requirements.
Back to top


horizontal job enlargement:
the scope of a job that includes all tasks necessary to complete a product or process.

the action plans generated from the policy deployment process.

Hurwicz criterion:
a decision criterion in which the decision payoffs are weighted by a coefficient of optimism, a.
Back to top


in-process (buffer) inventory:
stocks of partially completed items kept between stages of a production process.

independent demand:
final or finished products that are not a function of, or dependent upon, internal production activity.

index numbers:
ratios that measure quality costs relative to some base accounting values such as sales or product units.

infinite queue:
a waiting line that grows to any length.

infinite scheduling:
an approach to scheduling that initially assumes infinite capacity and then manually "levels the load" of resources that have exceeded capacity.

the physical support structures in a community including roads, water and sewage systems, and utilities.

input/output (I/O) control:
a procedure for monitoring the input to and output from a work center to regulate the flow of work through a system.

internal failure costs:
costs of poor-quality products discovered during the production process; that is, scrap, rework, and the like.

internal setup:
setup activities that can be performed only when the machine is stopped.

inventory master file:
a file that contains inventory status and descriptive information on every item in inventory.

a stock of items kept by an organization to meet internal or external customer demand.
Back to top


authority given to the workers to stop the assembly line when quality problems are encountered.

a defined set of tasks that comprise the work performed by employees that contributes to the production of a product or delivery of a service.

job motions:
basic physical movements that comprise a job element.

job rotation:
the capability of workers to move to different jobs.

Johnson's rule:
an algorithm for sequencing any number of jobs through two serial operations to minimize makespan.

just-in-time (JIT):
both a philosophy and an integrated system for production management that emphasizes the elimination of waste and the continuous improvement of operations.
Back to top


a Japanese term for a system of continuous improvement.

a card corresponding to a standard quantity of production (or size container) used in the pull system to authorize the production or withdrawal of goods.

kanban square:
a marked area designated to hold a certain amount of items; an empty square is the signal to produce more items.
Back to top


labor index:
the ratio of quality cost to direct labor hours.

latest finish time (LF):
the latest time an activity can be completed and still maintain the project critical path time.

latest start time (LS):
the latest time an activity can begin and not delay subsequent activities.

lead time offsetting:
the process of subtracting an item's lead time from its due date to determine when an order should be released; also called time phasing.

lean production:
a term used to describe JIT and the Toyota production system.

lean production:
an adaptation of mass production that prices quality and flexibility.

learning curve:
a graph that reflects the improvement rate of workers as a job is repeated and more units are produced.

level production:
an aggregate planning strategy that produces units at a constant rate and uses inventory to absorb variations in demand.

line balancing:
a layout technique that attempts to equalize the amount of work assigned to each workstation on an assembly line.

linear decision rule (LDR):
a mathematical technique that solves a set of four quadratic equations to determine the optimal workforce size and production rate.

linear programming:
a technique for general decision situations in which the decision is to determine a level of operational activity in order to achieve an objective, subject to restrictions.

linear regression:
a mathematical technique that relates a dependent variable to an independent variable in the form of a linear equation.

linear trend line:
a forecast using the linear regression equation to relate demand to time.

load leveling:
the process of smoothing out the work assigned across time and the available resources.

load percent:
the ratio of load to capacity.

load profile:
a chart that compares released orders and planned orders with work center capacity.

load-distance technique:
a quantitative method for evaluating various facility locations using a value that is a measure of weight and distance.

refers to the standard hours of work assigned to the facility.

the process of assigning work to individual workers or machines.

location factor rating:
a system for weighting the importance of different factors in the location decision, scoring the individual factors, and then developing an overall location score that enables a comparison of different location sites.

long-range forecast:
a forecast encompassing a period longer than two years into the future.

lot tolerance percent defective (LTPD):
the maximum percentage defective items in a lot that the consumer will knowingly accept.
Back to top


the ease with which a product is maintained or repaired.

products or services made to customer specifications after an order has been received.

products or services created in anticipation of demand.

the time that it takes for a group of jobs to be completed--that is, the completion time of the last job in a group.

management coefficients model:
an aggregate planning technique that uses regression analysis to improve the consistency of production planning decisions.

management information system (MIS):
a system specifically designed to channel large quantities and numerous types of information through an organization.

manufacturing cell:
a group of dissimilar machines brought together to manufacture a family of parts with similar shapes or processing requirements.

manufacturing resource planning (MRP II):
an extension of MRP that plans all the resources necessary for manufacturing; includes financial and marketing analysis, feedback loops, and an overall business plan.

mass production:
1. a type of process that produces large volumes of a standard product or service for a mass market.
2. the high-volume production of a standard product for a mass market.
3. the high-volume production of a standardized product for a mass market.

master production schedule (MPS):
a schedule for the production of end items (usually final products). It drives the MRP process that schedules the production of component parts.

material kanban:
a rectangular-shaped kanban used to order material in advance of a process.

material requirements planning (MRP):
a computerized inventory control and production planning system for generating purchase orders and work orders of materials, components, and assemblies.

matrix organization:
an organizational structure of project teams that includes members from various functional areas in the company.

maximax criterion:
a decision criterion that results in the maximum of the maximum payoffs.

maximin criterion:
a decision criterion that results in the maximum of the minimum payoffs.

mean (x) - chart:
a control chart based on the means of the samples taken.

mean absolute deviation (MAD):
the per-period average of the absolute difference between actual and forecasted demand.

mean absolute percent deviation (MAPD):
the absolute forecast error measured as a percent of demand.

mean squared error (MSE):
the average of the squared forecast errors.

minimax regret criterion:
a decision criterion that results in the minimum of the maximum regrets for each alternative.

mixed strategy:
an aggregate planning strategy that varies two or more capacity factors to determine a feasible production plan.

mixed-model assembly line:
an assembly line that processes more than one product model.

modular bill of material:
a special bill of material used to plan the production of products with many optional features.

modular design:
combining standardized building blocks or modules in a variety of ways to create unique finished products.

most likely time (m):
the subjective estimate of the time that would occur most frequently if the activity were repeated many times.

motion study:
the study of the individual human motions used in a task

moving average:
average demand for a fixed sequence of periods including the most recent period.

multifunctional workers:
workers who have been trained to perform more than one job or function.

multiple regression:
a mathematical relationship that relates a dependent variable to two or more independent variables.

Muther's grid:
a format for displaying manager preferences for department locations.
Back to top


nation groups:
nations joined together to form trading groups or partners.

the process of subtracting on-hand quantities from gross requirements to produce net requirements.

noninstantaneous receipt model:
also known as the production lot-size model; an inventory system in which an order is received gradually and the inventory level is depleted at the same time it is being replenished.

normal time:
in a time study, the elemental average time multiplied by a performance rating.

numerically controlled (NC) machines:
machines whose motion is numerically controlled by instructions contained on a punched tape.
Back to top


objective function:
a linear mathematical relationship that describes the objective of an operation in terms of decision variables.

on-demand (direct-response) delivery:
requires the supplier to deliver goods when demanded by the customer.

operating characteristic (OC) curve:
a graph that measures the probability of accepting a lot for different proportions of defective items.

operating characteristics:
measures of waiting line performance expressed as averages.

a function or system that transforms inputs into outputs of greater value.

operations management:
the design and operation of productive systems.

operations process chart:
a document that shows the series of operations necessary to make each item listed on the assembly chart.

optimal solution:
the single best solution to a problem.

optimistic time (a):
the shortest possible time to complete the activity if everything went right.

order cycle:
the time between the receipt of orders in an inventory system.

order qualifiers:
the characteristics of a product or service that qualify it to be considered for purchase.

order splitting:
the processing of a single order in separate batches at multiple machines simultaneously.

order winner:
the characteristic of a product or service that wins orders in the marketplace.

ordering costs:
the cost of replenishing the stock of inventory including requisition cost, transportation and shipping, receiving, inspection, handling, and so forth.
Back to top


a control chart based on the proportion defective of the samples taken.

Pareto analysis:
a method for identifying the causes of poor quality, which usually shows that most quality problems result from only a few causes.

participate problem solving:
involving employees directly in the quality management process to identify and solve problems.

pattern test:
a statistical test to determine if the observations within the limits of a control chart display a nonrandom pattern.

payoff table:
a means of organizing and illustrating the payoffs from different decisions given various states of nature.

perceptual map:
a visual method for comparing customer perceptions of different products or services.

periodic inventory system:
a system in which the inventory level is checked after a specific time period and a variable amount is ordered, depending on the inventory in stock.

pessimistic time (b):
the longest possible time to complete the activity given that everything went wrong.

the number of sequential servers a customer must go through to receive service.

any foolproof device or mechanism that prevents defects from occurring.

policy deployment:
planning system for converting strategy to measurable objectives throughout all levels of an organization.

determining how a firm will compete in the marketplace.

precedence relationship:
the sequential relationship of project activities to each other.

precedence requirements:
physical restrictions on the order in which operations are performed.

predetermined motion times:
normal times for basic, generic micromotions developed by an outside organization in a laboratory-type environment.

prevention costs:
costs incurred during product design and manufacturing that prevent nonconformance to specifications.

preventive maintenance:
a system of daily maintenance, periodic inspection, and preventive repairs designed to reduce the probability of machine breakdown.

primary task:
the task that is most central to the operation of a firm; it defines the business that a firm is in and is often expressed in a mission statement.

the conversion of inputs into an output of greater value.

process capability:
the capability of a process to accommodate design specifications of a product.

process flowchart:
a document that uses standardized symbols to chart the productive and nonproductive flow of activities involved in a process; it may be used to document current processes or as a vehicle for process improvement.

process flowchart:
a flowchart that illustrates, with symbols, the steps for a job or how several jobs fit together within the flow of the production process.

process layout:
a layout that groups similar activities together into work centers according to the process or function they perform.

process planning:
the conversion of designs into workable instructions for manufacture, along with associated decisions on component purchase or fabrication and process and equipment selection.

process strategy:
an organization's overall approach for physically producing goods and services.

purchasing parts, materials, and service.

producer's risk (a):
the probability of rejecting a lot that has an acceptable quality level (AQL).

product layout:
a layout that arranges activities in a line according to the sequence of operations that are needed to assemble a particular product.

product structure file:
a file that contains computerized bills of material for all products.

production flow analysis (PFA):
a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements.

production index:
the ratio of quality cost to final product units.

production kanban:
a card authorizing the production of a container of goods.

a measure of effectiveness in converting resources into products, generally computed as output divided by input.

the ratio of output to input.

prohibited route:
a transportation route along which shipments cannot be transported.

project evaluation and review technique (PERT):
a project scheduling technique in which activities are shown as a network of precedence relationships, traditionally using probabilistic time estimates and activity-on-arrow network construction.

a type of process that creates a product or service one at a time to customer order.

a unique, one-time operational activity or effort.

the one-of-a-kind production of a product to customer order that requires a long time to complete and a large investment of funds and resources.

pull system:
a production system in which items are manufactured only when called for by the users of those items.

pure strategy:
an aggregate planning strategy that varies only one capacity factor in determining a feasible production plan.

push system:
a production system in which items are manufactured according to a schedule prepared in advance.
Back to top


qualitative forecast methods:
nonquantitative, subjective forecasts based on judgment, opinion, experience, and expert opinion.

quality assurance:
the management of quality throughout the organization.

quality circles:
a small, voluntary group (team) of workers and supervisors formed to address quality problems in their area.

quality function deployment (QFD):
a structured process that translates the voice of the customer into technical design requirements.

quality of conformance:
the degree to which the product or service meets the specifications required by design during the production process.

quality of design:
the degree to which quality characteristics are designed into a product or service.

quality-productivity ratio:
a productivity index that includes productivity and quality costs.

quantitative forecast methods:
forecasts derived from a mathematical formula.

quantity discount:
a pricing schedule in which lower prices are provided for specific (higher) order quantities.

a single waiting line that forms prior to a service facility.

queue discipline:
the order in which customers are served.
Back to top


random variations:
movements in demand that are not predictable and follow no pattern.

range (R-) chart:
a control chart based on the range (from the highest to the lowest values) of the samples taken.

the difference between the smallest and largest values in a sample.

the total redesign of a process.

regression forecasting methods:
a class of mathematical techniques that relate demand to factors that cause demand behavior.

relationship diagram:
a schematic diagram that denotes location preference with different line thicknesses.

the probability that a given part or product will perform its intended function for a specified period of time under normal conditions of use.

reorder point:
a level of inventory in stock at which a new order is placed.

reverse engineering:
carefully dismantling and inspecting a competitor's product to look for design features that can be incorporated into your own product.

rim requirements:
the available supply at each source and the demand at each destination in a transportation tableau.

manipulators that can be programmed to move workpieces or tools along a specified path.

robust design:
the design of a product or a service that can withstand variations in environmental and operating conditions.

a sequence of sample values that display the same tendency in a control chart.
Back to top


safety stock:
an amount added to the expected amount demanded during the lead time (the reorder point level) as a hedge against a stockout.

sales index:
the ratio of quality cost to sales.

a portion of the items produced used for inspection.

sampling plan:
the guidelines for taking a sample including the AQL, LTPD, n, and c.

the determination of when labor, equipment, and facilities are needed to produce a product or provide a service.

search decision rule (SDR):
a pattern search algorithm for aggregate planning.

seasonal factor:
a numerical value that is multiplied by the normal forecast to get a seasonally adjusted forecast.

seasonal pattern:
an oscillating movement in demand that occurs periodically in the short run and is repetitive.

the process of assigning priorities to jobs so that they are processed in a particular order.

sequential decision tree:
a graphical method for analyzing decision situations that require a sequence of decisions over time.

service level:
the probability that the amount of inventory on hand during the lead time is sufficient to meet expected demand.

service package:
the mixture of physical items, sensual benefits, and psychological benefits provided to the customer.

service time:
the time required to serve a customer.

shop floor control (SFC):
scheduling and monitoring day-to-day production in a job shop; also known as production control or production activity control.

short-range (to mid-range) forecast:
a forecast encompassing the immediate future, usually days or weeks, but up to two years.

shortage costs:
temporary or permanent loss of sales that will result when customer demand cannot be met.

signal kanban:
a triangular kanban used as a reorder point to signal production at the previous workstation.

simplex method:
a series of mathematical steps conducted within a tabular structure for solving a linear programming model.

reducing the number of parts, assemblies, or options in a product.

limiting suppliers or transportation carriers for a company to a relative few.

the amount by which a project activity can be delayed without delaying any of the activities that follow it or the project as a whole.

slack variable:
a variable added to a linear programming constraint to make it an equality.

smoothing constant:
the weighting factor given to the most recent data in exponential smoothing forecasts.

the selection of suppliers.

standard time:
the time required by an "average" worker to perform a job once under normal circumstances and conditions.

using commonly available parts that are interchangeable among products.

statement of work:
a written description of the objectives of a project.

statistical process control (SPC):
a statistical procedure for monitoring the quality of the production process using control charts.

an inventory shortage occurring when demand exceeds the inventory in stock.

a common vision that unites an organization, provides consistency in decisions, and keeps the organization moving in the right direction.

supply chain:
the facilities, functions, and activities involved in producing and delivering a product or service, from suppliers (and their suppliers) to customers (and their customers).

surplus variable:
a variable subtracted from a model constraint in a linear programming model in order to make it an equality.

synchronous manufacturing:
a finite scheduling approach that differentiates between bottleneck and nonbottleneck resources and between transfer batches and process batches.
Back to top


the difference between a job's due date and its completion time for those jobs completed after their due date.

tariffs (duties):
taxes on imported goods.

individual, defined job activities that consist of one or more elements.

a term for the basic physical elements of motion.

time fence:
a date specified by management beyond which no changes in the master schedule are allowed.

time frame:
how far into the future is forecast.

time series methods:
a class of statistical methods that uses historical demand data over a period of time to predict future demand.

product design specifications required by the customer.

total employee involvement (TEI):
a system that involves every employee at every level in continuous improvement efforts.

total productive maintenance (TPM):
an approach to machine maintenance that combines the practice of preventive maintenance with the concepts of total quality and employer involvement.

total quality control:
a total, companywide systems approach to quality developed by Armand V. Feigenbaum.

total quality management (TQM):
the management of quality throughout the organization at all management levels and across all areas.

tracking signal:
a measure computed by dividing the cumulative error by MAD; used for monitoring bias in a forecast.

trade specialists:
specialists who help manage transportation and distribution operations in foreign countries.

transportation problem:
a class of problems in which items are transported from a number of sources that have a fixed supply, to a number of destinations with a fixed demand in order to achieve an objective such as minimum time or cost.

transportation tableau:
a table which organizes the parameters and data of a transportation problem.

a gradual, long-term up or down movement of demand.
Back to top


undercapacity scheduling:
the allocation of extra time in a schedule for nonproductive tasks such as problem solving or maintenance.

uniform production levels:
the result of smoothing production requirements on the final assembly line.

unit load:
the quantity in which material is normally moved; it could represent a single unit, pallet, or bin of material.

the percentage of available working time that a worker spends working or a machine is running.
Back to top


value analysis (VA):
an analytical approach for eliminating unnecessary design features and functions.

variable measure:
a product characteristic that can be measured, such as weight or length.

vertical integration:
the degree to which a firm produces the parts that go into a product.

vertical job enlargement:
the degree of self-determination and control allowed workers over their own work; also referred to as job enrichment.

virtual reality:
a visual form of communication in which the user experiences animation as an active participant.

what an organization sees itself becoming and how it intends to get there.

visual control:
procedures and mechanisms for making problems visible.
Back to top


anything other than the minimum amount of equipment, materials, parts, space, and time that are absolutely essential to add value to the product.

weighted moving average:
a moving average with more recent demand values adjusted with weights.

withdrawal kanban:
a card authorizing the withdrawal and movement of a container of goods.

work breakdown structure (WBS):
a methodology for subdividing a project into different hierarchical levels of components.

work package:
shop paperwork that travels with a job to specify what work needs to be done at a particular machine center and where the item should be routed next.

work sampling:
a technique for determining the proportion of time a worker or machine spends on job activities.

worker-machine chart:
a chart that illustrates on a time scale the amount of time an operator and a machine are working or are idle in a job.
Back to top


yield management:
a term used in the airline and hotel industries to describe the process of determining the percentage of seats or rooms to be allocated to different fare classes.

a measure of productivity; the sum of good quality and reworked units.
Back to top