# |
A |
B |
C
| D
| E
|
F |
G |
H
|
I |
J |
K |
L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
W |
X |
Y |
Z
ERP/supply chain education
need to define a term that's not here? ask us
F
fabless-
An organization that outsources 100% of its manufacturing to a
third party. A term often used in the semiconductor industry.
fabrication-
Manufacturing processes that transform materials such as bar stock
or rolled sheet metal into individual components.
failsafe-
A process that uses controls and logic to stop an improper
operation or transaction before it occurs and creates an error
condition or defect. ex.- an entry program for distributing a single
charge to several departments by percent that will not update if the
individual entries don't add up to 100%. (syn:
poka-yoke).
failure modes and effects analysis (FMEA)- A bottomup
process or function analysis that examines the effects and interaction
of failures at the micro level that may combine to create failure in
an end item.
fair
share allocation- An allocation of available inventory to customer
and interplant orders, when the availability is less than the total
required. If the total available quantity is 80% of the total
required, it may allocate 80% of the amount requested on each
individual order, instead of a scheme that prioritizes the
availability based on the order date, most important customer,
etc.
family-
A group of individual items considered to have the same
characteristics for purposes of creating aggregate production,
capacity, financial or sales plans.
fault
tolerance- Characteristics of a process that allow it to continue
operation or produce acceptable output when faced with a condition
outside its normal design parameters.
favorable
variance- A variance created by using or spending less of a given
resource than specified by the standard, often categorized as rate
(spending less per hour for labor for a given amount of production),
efficiency (using less hours for a given amount of production), usage
(using less materials for a given amount of production) or price
(paying less to a vendor for a given purchased item).
features and options- In
assemble to order (ATO) environments,
the available standard set of product attributes that will be combined
to create the finished product. For example, in configuring a desktop
computer, available features might include monitor size, hard drive
size, CPU speed, and bundled software, among others. The options are
the individual choices within the feature categories, such as a
5, 10 or 20 GB hard drive. The options usually can only be selected
from a predefined menu, and when combined create the final customer selling
price and cost to the manufacturer.
field
service- Repair and test activities typically performed for a
customer at their site based on warranty or other contractual
agreements.
field
size- The length of a data record field for item number, on-hand
quantity, order quantities, customer number, etc. that specifies the
maximum allowable number of characters. Typically reviewed when
selecting software to verify
compatibility and conversion requirements.
fill rate- A customer order delivery performance measurement of
the percentage of times line item shipments met requested dates and
quantities. Whole order shipments may be used instead of individual
line items for customers who require the entire order to be shipped
complete.
final
assembly- A highest level, end-item assembly that fills customer
order or interplant demand and is not used as a subassembly for other
items.
final
assembly schedule (FAS)- A schedule for the completion of a final
assembly from previously-stocked subassemblies based on the receipt of
a customer order. Typically used in
assemble-to-order (ATO) or
make-to-order (MTO) environments, it may include finishing operations
such as labeling, packing and adding accessories.
finished
goods- syn:
end items.
finite
capacity planning- Capacity planning systems that stay within
defined capacity limits when loading proposed production schedules
against resources. Finite systems rearrange the initial dates for
planned and open production orders by moving them forward or backward
in time as far as needed in order not to exceed the available
capacity.
Infinite capacity planning systems leave orders on the
existing dates and merely show whether the load on a resource is over
or under its defined capacity, without recommending
changes.
finite
scheduling- Creating production schedules that automatically take
resource availability into account. Schedule dates are moved forward
or backward in time as far as necessary to stay within prescribed
capacity, and some systems also contain rules to move orders for
certain products to approved alternate facilities when the initial
resource is full. Finite scheduling systems normally do not ensure
that material plans are automatically revised in conjunction with
production rescheduling.
firm
planned order (FPO)- A manufacturing order that reserves capacity
and allocates material but, unlike a work order, has not been
authorized for release to the production floor. MRP
planned orders are
automatically changed by the system at each regeneration; FPOs are
manually controlled by the planner and are normally either turned into
actual work orders, or cancelled. A tool for what-if capacity
analysis, and also sometimes used to allocate known components on a
bill of material that is not complete and requires finalization before
releasing to production orders for the floor.
firm
zone- The period of time in an existing production schedule,
normally the MPS, when changes are not allowed due to the impact on
lower level items already in process and on vendors. It usually starts
with the current date and extends into the future as far as required
based on lead time. The same logic is also sometimes used in vendor
scheduling.
first
article inspection- The analysis of the first item manufactured in
a production run to verify correct setup and process alignment.
first
in, first out (FIFO)- A usage rule in accounting and other systems
(job queues) that assumes the first or oldest item placed into
inventory is also the first one used. In periods of rising prices, it
has the effect of charging increases to the next or subsequent periods
instead of the current period.
first
order smoothing- Forecasting
exponential smoothing systems that do
not contain parameters or adjustments for the effects of trends and
seasonality.
first
pick ratio- The percentage of time items are successfully picked
to satisfy order requirements based on the initial location and
quantity recommended by the system; an inventory accuracy and
efficiency measurement.
fishbone
diagram- A systematic analysis tool that organizes the
effects of a problem and its possible causes, in a graphical display
that often resembles the skeleton of a fish. Developed by Dr. Kaoru
Ishikawa, it is sometimes referred to as an Ishikawa
diagram.
five
focusing steps- A thinking process tool used in the
theory of
constraints to focus attention on the management and improvement of a
system and its constraint. The steps include 1) identify the
constraint 2) exploit the constraint 3) subordinate other activities
to the constraint 4) elevate the performance of the constraint 5)
prevent inertia from setting in.
five
nines- The definition of system uptime or availability as 99.999%,
or an approximate downtime of 5 minutes per year.
five
why's- A Japanese problem-analysis technique that asks 'why' five
times when reviewing a problem or situation, with the belief that by
the fifth 'why' the root cause will be discovered.
fixed asset- A tangible, nonmonetary asset used in normal
business operations that exists in and is depreciated over multiple
fiscal periods.
fixed
budget- A budget tied to a specific volume or level of production,
distribution or other activity.
fixed
cost-
Costs that do not change in the short term as a function of
changes in production volumes, distribution volumes, labor or machine
hours.
fixed interval order- A purchase or production order that
occurs at a regular time interval and covers the variable demand
during that period.
fixed lead time- A
lead time that does not vary because of quantity changes. A
manufacturing process such as curing, drying or baking may require a
set amount of time regardless of the volume being processed.
fixed location- A
storage system that assigns a permanent inventory location for a given
item, usually based on its physical size and usage volume. Seasonal
stock level variations may mean the dedicated location sometimes takes
up more space than needed, or that temporary random locations will
also be required.
fixed lot
size- A
lot size that always uses the same quantity (or a multiple) for a
reorder; the timing of the order varies while the size of the order is
constant. Fixed lots are sometimes used when a process may require
stamping out 100 pieces at a time, or when a vendor will only ship a
carton of 500 items. Using fixed lots may mean placing fewer orders,
at the tradeoff of carrying more inventory for a period of time than
may be required.
fixed overhead- Overhead
costs incurred in support of the manufacturing process that can not be
directly allocated to specific items, and do not vary with production
changes as do direct material and labor costs.
flat bill of
material-
A bill of material with a single, or few levels. Intermediate
levels in a bill require activities related to opening orders, moving
material in and out of stock, and creating associated routings and
bills for each level. Reducing the number of levels can reduce costs
by eliminating those activities and often contributes to a
corresponding reduction in lead time.
flexible budget- A
budget that presents projected costs and revenues over a range of
production, sales or distribution volumes.
flexible manufacturing
system (FMS)- A group of computer-controlled independent
workstations or machines linked by material handling systems that are
able to accommodate wide variations in types and quantities of
products.
float- 1) In
project management, the amount of time a task can slip past its
scheduled duration without delaying the entire project 2) In inventory
control, the amount of stock placed between two manufacturing
operations
floor stock- Material
and components stored on the production floor used as needed for
multiple production orders, and not pegged or issued to individual
orders. Normally lower-dollar value, backflushed items.
flow order- Used
in a
repetitive manufacturing
environment as a cumulative schedule for
a production line that is consumed by reported production over a
period of time until the order quantity is complete.
flow process- A
process
manufacturing environment where material moves in a continuous stream
instead of a discrete batch.
flow rack- A
warehouse storage device where items are stocked at the rear and a
conveyor is used to moved the items to the front for picking.
flow rate- Used in
repetitive manufacturing environments to represent the amount of
production per shift or hour.
focused factory- A
production facility dedicated to the manufacture of a single product
line or family, and whose process and support systems have been
optimized strictly for that group.
focus forecasting- A
forecast technique that tests the performance of a variety of forecast
models and suggests the best fit for a given set of products and
demand parameters.
force field analysis-
A problem-solving technique that identifies the forces for and against
a specific problem and assigns weights to each individual force to
determine a total score on each side.
forecast- The
projection of future demand, normally to supply the independent
portion of demand such as customer or interplant orders, based on past
history and known market changes. The prime driver for systems that
manufacture items to stock, instead of to order.
forecast consumption- The
netting of actual demand from customer or interplant orders against
the forecast for a given time period. Systems for producing items to
stock often use the higher of the forecast quantity or actual demand
quantity when creating suggested schedules.
forecast error- The
difference between actual demand and the forecast for a given time
period. Past observations of forecast error are used in modifying new
projected forecasts, and sometimes in calculating desired safety stock
levels.
forecast horizon-
The future period of time for which a demand forecast is
generated, typically as long as the longest single-item cumulative
lead time (on a monthly planning basis) or for 2-5 year periods for
strategic planning.
forecast period- The
time interval for which a forecast is developed. While often months
are used, the forecast period is also the period for forecast
consumption in most systems and may be changed to weeks or quarters to
account for the extent to which demand patterns are even or lumpy.
formulation- A
listing of required ingredients, typically used in
process
manufacturing environments. It may also include detailed batch
production or test specifications.
forward
scheduling- A
scheduling method that begins with a specified start date and moves
forward into time to calculate a due or completion date based on the
lead time required. It assumes flexibility in the due date, but not
the start date.
foundry- A
contract manufacturing facility that provides production services to
customers in the semiconductor and other industries.
Fourier series- A
method that defines a periodic or discontinuous function as a series
of sine and cosine waves, and can be used to predict a value or the
level of system response.
four wall inventory- syn:
wall-to-wall inventory.
free on board
(FOB)- Trade
contract terms that specify when title passes to the buyer, typically
either when the shipment is initiated or when it is received.
front office- The
functions of an organization that interact on a daily or normal basis
with outside entities such as customers and prospects.
frozen standard- An
item cost standard created at the beginning of a fiscal period that is
retained for budget and comparison purposes even if material or
production changes occur.
fulfillment house- A
third party that performs outsourced storage, order packing, shipment
and tracking activities for the original manufacturer or
distributor.
full absorption- The
method that accounts for all costs associated with the production
process and is used for financial reporting.
full pegging- A
method that traces the source of requirements upwards through all
levels of the bill of material until the end item demand source is
reached.
full truckload (FTL)- Shipments
rated on the use of a truck's entire capacity based on weight or
volume.
functional
design- A formal documentation of a proposed system's
capabilities, processing methods, and points of integration that
serves as the basis for approval and work initiation.
functional silo- A
functional group or department within an organization that acts as a
silo or island in its lack of interaction with other groups and in not
sharing its internal data or processes.
future reality tree- A
cause and effect diagram used in the
theory of constraints
that models
the path and logic used to create positive end states, or desirable
effects (DE).
future state- The
desired future condition to be created from a planned, organized
change in the current condition.
G
Gage R&R (Gage
Repeatability and Reproducibility)- A quality technique that
analyzes variations in test results as a possible result of the gage
or measurement device used, or operator interpretation or use.
Gantt chart- A
time-phased bar chart display that lists tasks or activities along the
left side and a corresponding bar for each task. The length of the bar
represents the duration of the activity, and may include both
scheduled and actual duration information.
gateway work
center- The work center that performs the initial operation or
process in a
routing.
general agreement on
tariffs and trade (GATT)- International trade agreement specifying
conditions, duties and acceptable commerce practices.
general
ledger- The
set of financial accounts used to accumulate the results of
transaction processing, create budgets, generate financial statements
and provide source financial data for reporting purposes.
generally accepted
accounting principles (GAAP)- The set of rules and standards
created by the Financial Accounting Standards Board (FASB) for
acceptable financial reporting.
good manufacturing
practices (GMP)- Description of standardized, acceptable methods,
controls and production facilities used in pharmaceutical, medical
device and food manufacturing industries.
gravity rack-
A storage system where items are stocked on an inclined rack and
move to the front via gravity as picks are made. Replenishment is made
from an aisle at the rear of the rack.
green belt- In the
six sigma
quality improvement
methodology, a person who helps lead a team but is assigned on a
project or part-time basis, as opposed to black
belts who have fulltime responsibility.
gross margin- Sales revenue minus
cost of goods sold. (syn: gross profit)
gross requirement- Demand
for an item before netting against on-hand inventory and scheduled
receipts.
group code- A
field or code that classifies an item, vendor, customer or other
entity as part of a group that has common characteristics. Many
reports, files and processing functions provide for the use of group
codes instead of requiring individual entries.
group technology- The
classification of items based on similar production processes and
resources required. Used in facility design evaluation and in some
scheduling systems.
groupware- Software
and systems that allow a distributed group of people to work on common
activities, and include functions such as group calendars, real- time
network meetings, common database access and others.
H
hazardous material- Substances
that can cause harm to people, facilities or the environment when
improperly handled. Hazardous materials require segregation from
non-hazardous items, special storage, movement and disposal systems,
and documentation that identifies them as such when being
shipped.
hedge inventory- Inventory
created to protect against a possible future event or disruption in
supply, such as a strike, major vendor shutdown, prospective trade or
government program change, or similar situation.
heijunka- An
element of the Toyota Production System that averages volume and
sequence of scheduled items to provide level production and help
enable
JIT.
help desk- A
dedicated internal organizational resource that provides technical or
functional application problem-solving advice and followup to system
users.
heuristic- Problem
analysis based on informal judgment or experience versus data
manipulation.
histogram- A graph
that uses vertical bars of varying heights to represent the proportion
or relative frequency of a given class of data within a
population.
hit or
miss- An
accuracy verification technique where each measurement is classified
as either a hit (inside acceptable limits) or a miss (outside). A
target is set for the required hit percent out of the total.
hockey stick- The
situation where the volume of shipments rises sharply at the end of
the month as represented by the size of the bottom of the hockey stick
as compared to the handle.
holding costs- Costs
incurred from holding or inventorying items; the costs for the capital
invested in an item and the insurance, taxes, storage and
handling/movement required while being held.
Holt 2 parameter- A
forecast method that incorporates
exponential smoothing
with trend
analysis.
horizontal format- A
planning or schedule report that consolidates individual data into
time groups, or buckets that are usually presented horizontally across
the page. Enables easier review when the individual detail is not
required for decision-making.
Hoshin planning- A
Japanese 1-5 year planning process to achieve quality and other
objectives that provides target statements and the corresponding means
and measurement systems, and company-wide communication methods.
hosted- A
software, functional or network system provided by a third party who
owns the underlying resource and provides access on a subscription
basis determined by usage and service levels.
human resources- The
department and support systems responsible for personnel sourcing and
hiring, applicant tracking, skills development and tracking, benefits
administration and compliance with associated government
regulations.
hurdle rate- The
minimum or required rate of return used in a discounted cash flow
analysis when evaluating a proposed investment.
TopΔ
Glossary
copyrightｩ2006 Bridgefield Group Inc. All rights reserved.
Content may not be copied, reproduced, framed or otherwise distributed
without the express permission of the Bridgefield Group Inc.
