Glossary


A B C D E F G H I J K L M N O P Q R S T U V W Y

A

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.

activity:
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.

andons:
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.

assemble-to-order:
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.

attribute:
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.
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B

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.

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

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

benchmarking:
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.
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C

c-chart:
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.

capacity:
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.

channels:
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.

competitiveness:
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.

constraints:
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.

correlation:
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.

crashing:
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.

cycle:
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.
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D

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.

disaggregation:
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.

dummy:
an activity in a network that shows a precedence relationship but represents no passage of time.
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E

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.

efficiency:
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.

empowerment:
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.

event:
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.

expediting:
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.

explosion:
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.
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F

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.

flexibility:
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.
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G

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.
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H

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

hoshins:
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.
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I

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.

infrastructure:
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.

inventory:
a stock of items kept by an organization to meet internal or external customer demand.
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J

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

job:
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.
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K

kaizen:
a Japanese term for a system of continuous improvement.

kanban:
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.
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L

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.

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

loading:
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.
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M

maintainability:
the ease with which a product is maintained or repaired.

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

make-to-stock:
products or services created in anticipation of demand.

makespan:
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.
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N

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

netting:
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.
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O

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.

operations:
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.
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P

p-chart:
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.

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

poka-yoke:
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.

positioning:
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.

process:
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.

procurement:
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.

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

productivity:
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.

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

project:
a unique, one-time operational activity or effort.

project:
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.
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Q

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.

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

queue discipline:
the order in which customers are served.
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R

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.

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

reengineering
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.

reliability:
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.

robots:
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.

run:
a sequence of sample values that display the same tendency in a control chart.
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S

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.

sample:
a portion of the items produced used for inspection.

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

scheduling:
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.

sequencing:
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.

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

single-sourcing:
limiting suppliers or transportation carriers for a company to a relative few.

slack:
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.

sourcing:
the selection of suppliers.

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

standardization:
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.

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

strategy:
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.
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T

tardiness:
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.

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

therbligs:
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.

tolerances:
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.

trend:
a gradual, long-term up or down movement of demand.
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U

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.

utilization:
the percentage of available working time that a worker spends working or a machine is running.
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V

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.

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

visual control:
procedures and mechanisms for making problems visible.
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W

waste:
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.
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Y

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.

yield:
a measure of productivity; the sum of good quality and reworked units.
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