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ERP/supply chain education
need to define a term that's not here? ask us
R
rack-
A multi-tier storage system normally designed to handle pallets,
cartons or other standard containers and designed for manual or
automated pick/putaway access.
radio frequency
automatic identification (RFID)-
A location and identification system using radio frequency signals
that employs a transceiver, antenna and tag associated with a product
and location to transmit data. The systems do not require a direct
line of sight or contact and can transmit at high speed, but are more
costly than other data collection technologies such as bar coding.
RFID systems are often used for inventory tracking in large warehouse
and distribution center facilities.
random location- A stocking location chosen on an as-needed
basis and not preassigned to a specific product. Random locations may
be used in addition to the
primary location when required by seasonal
fluctuations.
random
sample- The selection of items or data for verification or
measurement that is not predetermined on a value, location or any
other basis.
range-
The difference between the minimum value and the maximum value in
a set of data. The range helps identify best and worst case and
process variability.
rapid
prototyping- The process of creating physical models and solid
objects from computer aided design (CAD), stereolithography or other
specifications. It normally uses a series of layers to build a
physical object, and aims to reduce design cycle time and enable
multiple test iterations at lower cost before moving to volume
production.
rate-based
scheduling- The creation of a production schedule based on the
capacity or usage rate for a specified shift, date, week or other
timeframe and not by individual order or item.
rated
capacity- The net or factored capacity measure that reduces
planned or available hours by utilization (hours actually worked) and
efficiency ( percent of standard rate achieved) to arrive at most
likely availability.
rate
variance- The difference between the planned and actual output or
production rates for a given period.
raw material- Purchased items, such as bar stock or food
ingredients, transformed by manufacturing operations into an
intermediate or finished item. Often used in reference to bulk
or commodity items but may include individual components (piece parts)
such as nuts, bolts and screws.
r
chart- A range control chart.
readiness
assessment- The review of project task and resource status
immediately prior to cutover that assesses risks and the probability
of success.
real-time-
The processing and visibility of transactions and information as
they occur, and not on a periodic or batch basis.
reason
code- A code that classifies scrap, inventory writeoffs, order
changes or other transactions into categories for analysis and
corrective action.
receiving-
The functions and department that process incoming material
against purchase orders, interplant orders and customer returns,
verify proper item, quantity and physical condition, move to stocking
locations and perform receipt update and documentation duties.
receiving
disposition- A stocking location used in the receiving process,
which may include the receiving dock, inspection, hold or material
review, final primary or random location and others.
recipe-
Used synonymously with
bill of material in process
industries.
reconciliation-
The process of comparing two or more sets of data to resolve
discrepancies and demonstrate proof of accuracy.
recurring
payables- Ongoing expenses that occur at regular intervals and
normally have the same dollar amount, such as rent or insurance
payments. Accounts payable systems may automatically generate invoices
for recurring payments for a single or multiple periods to avoid
manual entry.
redundancy-
The process of avoiding failure in a system or network by
providing additional capacity or building in replacement material or
facilities.
regeneration-
The batch processing of a complete set of records, such as in
MPS,
MRP or
CRP, that does not provide a net update based on a selected
subset of records such as those with activity only.
regression
analysis- The method of estimating relationships between dependent
variables and one or more independent variables that measures how the
distribution of a variable changes as input conditions are
changed.
relationship-
The link between two entities in a system or network, such as the
relationship between a vendor and a customer or two activities in a
project.
release-
The authorization to pick, ship or produce against a
previously-created order.
remanufacturing-
The extensive remake of an existing product into one with like
functionality that can be resold. It often involves breaking down a
product into main, or core, subsystems and modules and adding
extensive parts and labor.
remote
synchronization- The centralized update of distributed devices and
systems with separate databases that brings them up to the same status.
reorder
point (ROP)-
syn: order point.
repair
part- syn: service part.
repetitive
manufacturing- A
manufacturing environment often characterized by discrete, solid
units, high individual unit volumes, low manufacturing
variation, production line facility layout and use of a schedule
instead of individual orders.
replacement cost- A
valuation method based on the current market price to replace a given
item, rather than its initial or previous cost.
replenishment
order- Generally, any order used to resupply an item to its
desired stock position. Often refers to an
interplant
or
intercompany
order that does not generate payables and receivables, as opposed to
the placement of a purchase order with a vendor.
report writer- A
database query tool used to create ad hoc reports that does not
require the knowledge and use of programming.
request date- The
order shipment date requested by a customer, or the initial target
date evaluated by a vendor when determining their actual
promise
date.
request for proposal
(RFP)- A document used to detail proposed goods or services
requirements and invites responses and bids from prospective
suppliers.
request for quotation
(RFQ)- Often used synonymously with RFP, but may involve a final
price quotation request for a precise set of requirements.
requirements
definition- The documentation for a new or proposed system
that states design strategy, provided functionality, source of inputs
and audience or target user base, and may state performance or other
targets. An overall translation of project or system requirements into
a defined specification that supports those requirements.
requisition- A
paper or electronic document that requests delivery of materials or
services and is normally initiated by the using department. It usually
includes requested dates and quantities, but may leave the
determination of pricing and vendor sourcing to a purchasing agent.
MRP generations often treat accepted requisitions as a scheduled
receipt in the same manner as a purchase order.
rescheduling
assumption- Processing logic in
MRP and other planning systems
that assumes it is easier to reschedule an existing order than to
place a new order. When requirements and supply are not aligned, the
system will suggest the reschedule of all open scheduled receipts as
needed, before suggesting a new order.
reserved- Capacity
or inventory allocated to a requirement but not yet used.
resource- An
entity, such as personnel or equipment, that performs activities or
services and normally has a cost associated with that
performance.
resource driver- In
activity based costing (ABC), the tie between a resource and the
activities that consume it that allows the assignment of costs.
response time- The
measure of the delay between a request and its
answer.
restock- The
return of goods previously moved or shipped to a stock location
without their modification or usage.
restocking
charge- A penalty charged to a customer returning goods for credit
that covers the labor charges incurred in processing the receipt.
returned goods
authorization (RGA)- The approval of a customer product return for
credit, rework or repair that normally has a unique identifier,
specifies the products involved and sometimes the original shipment
information, and serves as the authorization for processing at the
receiving location.
return on assets (ROA)-
The ratio of operating income divided by total assets employed
that indicates the relative operating efficiency of an
organization.
return on equity (ROE)-
The ratio of net income divided by net worth (equity) that
indicates the highest-level indicator of company success.
return on investment (ROI)-
The ratio of income produced by an asset divided by its investment
cost.
return to vendor- Purchased
material determined to be unacceptable by receiving inspection or
during the production process, and designated for return to the
supplier for credit or replacement.
reverse
engineering- The disassembly and analysis of a competing product
to evaluate its comparative strengths and weaknesses in preparation
for the possible manufacture of a similar item.
reverse logistics-
The systems and methods used to move previously-shipped goods from a customer back to a
manufacturer or distribution center due to repair, service, credit or
order error issues.
revision level- An
alpha or numeric character assigned to an item number,
bill
of material
or
routing that indicates
its current status in terms of number of engineering changes. The
level is normally a separate field that does not change the underlying
master
number, and is not normally segregated from other revision levels in MRP explosions and inventory counts.
rework- Purchased
or manufactured items that have failed a usability test and require
the addition of labor or materials to avoid being scrapped.
risk analysis- The
identification of possible risks, assessment of their likelihood and
impact, and creation of methods to avoid or reduce them.
robust- The
categorization of a system that has high functionality, reliability
and consistency when operating in a normal capacity and can endure
periodic stress conditions.
root cause analysis-
A process improvement and error or defect prevention tool that
examines the individual processes within a system, identifies the
control or decision points, and uses a series of why? questions to
determine the reasons for variations in the process paths.
rough cut capacity
planning (RCCP)- A high-level capacity planning system often
developed at the family level that provides an overall check of
critical resources and verifies the feasibility of the
master
production schedule and
sales and operations
plan. It uses a
bill of
resource for items or families that specifies the requirements for key
resources only, as opposed to all operations as done on the routing.
Resource requirements from the S&OP and suggested MPS are compared
to availability, on an overall weekly or monthly basis, and indicate
projected over and under capacity situations that could impact the
successful completion of the plan.
routing- The
detailed description of the requirements to produce a given item,
which includes the operations performed, the order in which they are
done, the labor or machine resources required at each operation, and
the rate those resources process the item at each operation. It may
also include tooling and process or other specifications, and serves
as the basis for manufacturing lead time calculations, detailed
capacity planning and the cost standards associated with production.
Released production orders normally include the standard routing and
bill of material, unless modified for a specific
order.
rules-based- A
system that includes if, then, not equal to, not greater than or less
than and other parameters to construct an allowable process or
product. In describing the configuration of a product from a menu of
choices, it may provide that if option X is chosen, option Y can not
be chosen and 2 of option Z must also be selected.
run chart- The
graphical display of a system's output for a given period of time that
indicates trends, individual or summarized data points, ranges and
other variables used to evaluate acceptable performance. syn: run
diagram.
run size- Used
synonymously with
lot or batch size.
run time- Time
spent processing or transforming material against an order or
schedule, and does not include setup, queue or move time.
S
safety lead time- A
hedge lead time added to the actual or calculated lead time that
initiates earlier order release. Items planned on a to-order instead
of a to-stock basis may use safety lead time instead of safety stock
to handle critical requirements when carrying additional inventory is
not desirable.
safety stock- An
inventory quantity planned to be on-hand at all times to provide a
hedge against future uncertainty. Planning systems generate planned
orders based on the quantity and timing needed to maintain the
specified safety stock.
sales and operations
plan (S&OP)- The company-wide demand and supply plan that
provides the next level of detail in fulfilling business plan
objectives by describing family-level sales, production and inventory
targets and incorporates the planned effects of new product or
promotion introductions. It usually undergoes a monthly joint review by all
departments that analyzes current status against the previous plan to
provide corrective action. The proposed S&OP is used by
rough cut
capacity planning (RCCP) to provide the initial view of aggregate
capacity requirements, and sets target production and inventory levels
for the master production schedule.
sales cycle- The
length of time needed to identify and qualify prospects, define the
goods or services, and accept and acknowledge the order. The length of
the sales cycle often depends on product complexity and degree of
custom engineering, and may include the use of
firm planned orders
based on partially- completed bills of material to order long lead
time items.
sales force automation
(SFA)- Software and systems that support sales staff lead
generation, contact, scheduling, performance tracking and other
functions. SFA functions are normally integrated with base systems
that provide order, product, inventory status and other information
and may be included as part of a larger
customer relationship
management (CRM) system.
sales history- Actual
sales shipment data that records product, quantity, customer, and
other pertinent information and can be used in future demand
calculations. It usually nets gross (outgoing) sales against customer
returns.
sales plan- The
aggregate or family-level plan used to provide the demand portion of
the
sales and operations planning process. It contains unit
projections and the associated dollar value, and provides the target
for review and corrective action if sales goals are not
met.
salvage value- The
estimated or actual residual value of items no longer able to be used
for their original purpose, or at the end of their useful life.
sampling- The use
of a predetermined, finite number of observations to project the
characteristics of a larger population.
scalability- The
ability of a system to handle increased volume or complexity.
scale count- A
physical item count using a weigh scale, usually for small parts. The
count accuracy depends on the validity of the sample provided, the
specification of container tare weight, and the scale tolerance
specification.
scatter diagram- A
chart that plots the relationship of one numeric variable to another
on a horizontal and vertical axis, and determines the degree of
dependency or interdependency.
schedule compression- Expediting
or accomplishing an operation or project task in less than its
originally-planned duration.
scheduled
receipt- A firmed (accepted) production, purchase or interplant
replenishment order that is treated as an incoming supply by planning
systems and nets against requirements based on the quantity and due
date.
scheduling- The
process of creating individual orders or time-based schedules that
serve as production or purchase authorizations.
scope- A
measurable definition of the goals, resources, timing and desired
outcome of an implementation project or activity.
scope creep- The
tendency of a project to include more tasks or to implement more
systems than originally specified, which often leads to higher than
planned project costs and an extension of the initial implementation
date.
SCOR Model- The
Supply Chain Operations Reference Model- developed by the Supply-Chain
Council to measure total supply chain performance. It includes
delivery and order fulfillment performance, supply chain response
time, production flexibility, warranty and returns processing costs,
cash-to-cash cycle time, inventory and asset turns, and other factors
in evaluating the overall effective performance of a supply
chain.
scrap- Material
designated as obsolete or out-of-specification that will be disposed
of in its current state.
scrap factor- A
percentage added to the normal or engineered usage quantity of a
component to allow for manufacturing loss, either on a global (item
master) level or by specific bill of material.
seasonality- Large
variations in product demand that reoccur during the same approximate
timeframe on a yearly basis and are not due to a trend or promotion
(as in the yearly demand for Halloween candy or snow shovels). Products that exhibit a
high degree of seasonality normally require an inventory build based
on forecast prior to the high demand period, or the flexibility to
greatly vary production and supply.
seats- The number
of concurrent or maximum users, or sometimes devices, allowed under
software license agreements.
second order smoothing-
A technique used for time series forecasting that begins with an
exponentially-smoothed current forecast and adjusts for trend by using
a second smoothed estimate.
seiban- The
assignment of a specific number for a top-level manufacturing order
that is carried through all succeeding levels and orders, and pegs
costs and material to a single project.
self-billing- An
application that allows customers to create their own invoices, based
on usage, date or other parameters, and provides automatic payment
remittance through Internet, EDI or other methods.
semifinished- Items
processed from an original raw state into an intermediate level, or
through a portion of the required operations on a routing.
semi-significant part
number- An item number identifier that uses a small portion of the
number, normally the first few characters, to categorize it as part of
a group and random characters for the rest.
sensitivity analysis- The
process of varying parameters in a given model to assess the level of
change in its output.
sequencing- The
arrangement of orders, jobs or activities at a specific resource based
on priority and process efficiency logic.
serial number- A
set of characters that uniquely identifies a single unit and can be
used for traceability and warranty purposes. It does not normally
refer to the use of a single identifier for a batch or lot composed of
multiple units.
service center- A
facility or department that supports customer requirements for repair,
returns and sometimes light manufacturing. A facility used strictly to
stock material at strategic points is normally referred to as a
distribution center.
service level- The
extent to which a supplying resource satisfies customer requirements,
often expressed in terms of error rate, resource availability or
accuracy in meeting requested dates.
service
part- Material
and components stocked and shipped to meet demand to replace an
original part due to failure, age, or other reason.
settlement- The
finalization of a sale as determined by the transfer of funds from one
account to another.
setup- The set of
activities required to prepare a resource for a production run that
requires different settings or tooling than the previous run. Setup
costs include the labor required for machine adjustments, consumables
used and defective items produced while finalizing the setup.
setup time- The
total time required to change settings and tooling from one production
run to another. Minimizing setup time is a key factor in reducing lot
sizes and thus lead time, and has the goal of converting internal
activities (those that require the resource to be idle) to external
activities (those that occur while usable production is still
occurring).
seven wastes-
Forms of production waste identified by Taiichi Ohno, specified as:
overproduction vs. demand, idle time, unnecessary transport,
inventory, excess processing, excess operator motion and production of
defective parts.
shelf life- The
standard amount of days a given item can be stored after a receipt
before it must be tested, or is declared unusable for shipments or
production purposes.
shop
calendar- The
definition of operating or working days available for material and
capacity planning, production order release and execution.
shop floor
control- The methods and systems used to prioritize, track and
report against production orders and schedules. They include the
procedures used to evaluate current resource status, and the update of
labor, machine hour and other associated information as required to
support the overall planning, scheduling and costing systems.
shop order- syn:
production order.
shop packet- A
printed set of documents generated for a specific production order
that often includes the bill of material, routing, pick slip, work
instructions, production and labor reporting tickets, move tickets and
other support forms.
shortage report- A
list of components or finished goods not available to meet
requirements for production or purchase orders. Normally a report that
nets available quantities against required, and does not provide a
bill of material explosion, lead time offset or suggested orders as
done by
MRP.
shrinkage- The
loss generated by comparing an actual quantity to the expected or book
amount; commonly refers to a physical count that reduces the perpetual
inventory.
significant part
number- An item number in which each individual character is coded
to represent a product family, physical characteristic or other aspect
of the part and does not use random characters. Significant part
number schemes attempt to provide identification of the item merely by
looking at the part number, and may encounter limitations when
grouping or characteristic strategies change and item numbers need to
be recoded. Separate fields that fill grouping and characteristic
functions eliminate the need for significant part numbers.
significant
variance- A reported value outside specified control limits or
tolerance levels that indicates a failure condition in the system
being measured. The sum of all significant variances are often divided
by the total number of observations to indicate the
hit/miss
ratio.
simple moving average- A
moving average calculation in which all past periods considered have
equal weight and are not factored or smoothed.
simplification- The
philosophy and methodologies that seek to reduce product and process
variation, quality problems and cost by identifying and eliminating
non-value added tasks, and standardizing component and resource
usage.
simulation- The
use of models and logic tools to test the outcomes of a proposed group
of inputs and processes, prior to or in place of their implementation
in a live system.
single level- The
display of only one level on a bill of material or
where-used report,
as in the set of immediate components for a parent or the next higher
level of parent when tracing a component.
single level backflush-
The deduction from inventory of only the immediate components when
production of the parent is reported, as opposed to also backflushing
successively-lower levels of components.
single level pegging-
Tracing the source of requirements only to the immediate next higher
level, as opposed to full pegging which traces through all higher
levels to the end item demand.
single minute exchange
of die (SMED)- The goal of reducing setup times to under ten
minutes.
six
sigma- A
quality measure and improvement program developed by Motorola that
focuses on the control of a process to the point of ｱ six sigma
(standard deviations) from a centerline, or 3.4 defects per million
items. It includes identifying factors critical to quality as
determined by the customer, reducing process variation and improving
capabilities, increasing stability and designing systems to support
the six sigma goal.
skew- A data
distribution that is not symmetric, or that shows distortion in a
positive or negative direction.
skills matrix- A
table that matches personnel, or other resources, with desired skills
to provide views of the need for additional development, training or
the acquisition of new resources.
slack
time- The
comparison of the projected completion date for an operation or
project task as compared to the required date, which indicates the
amount of time it could be delayed without impacting later operations
or tasks.
slow moving inventory- Items
in stock that have had no usage activity for a specified number of
days, or whose usage rate is significantly below the historical or
expected average.
smoothing- The
adjustment or manipulation of a data set to fit a model or curve, as
in the use of the alpha factor in
exponential
smoothing.
smoothing constant- The
number used in exponential smoothing models to give the most recent
period a different weight than the previous periods. (syn:
alpha
smoothing factor)
sourcing- The
process of identifying, conducting negotiations with, and forming
supply agreements with vendors of goods and services.
spares- syn:
service parts
special- An
ordered item that requires custom engineering, components or
processing and is not considered a standard offering.
specific gravity- A
measure of density that compares a given item or substance to the
density of water.
split lot- The
division of a single original manufacturing lot or batch into two or
lots due to processing or lead time reduction considerations, or the
requirement to modify part of the original batch into another
form.
staging- Picking
material for a production or sales order and moving to a separate area
for purposes of consolidation or identifying shortages. Staged
material is normally handled as a location transfer and not as an
issue to the destination production or sales order.
stakeholder- A
person, department or organization that holds an interest in a process
in the form of an obligation or expected return, benefit or
service.
standalone- A
program, function or system that operates on its own and has no
interfaces.
standard- The
normal or agreed-upon quantity, dollar value or time used as the base
against which actual activity is measured. Standards are changed
when ongoing, underlying changes in the associated process make
continued use of the original value impractical in evaluating
performance.
standard
container- A
box, carton or other container with specified dimensions that will be
used on an ongoing (reusable) basis to facilitate item counts, the
design of storage and transportation resources and to limit handling
damage.
standard
cost- The normal or specified cost used as the basis for measurement against an actual. Standard
costs for manufactured items include labor, material and overhead, and
vendor acquisition, freight, duty fees and other categories for
purchased items.
standard
deviation- A measure of the spread or dispersion of a data
population around a mean, as calculated by taking the variation of
each number from the mean, squaring it, averaging the result (by
dividing by n-1, or one less than sample size), and finding the square
root.
standard distribution- The
allocation of a budget, cost or other value on a predetermined
percentage basis.
standardization- The
methods used to reduce or eliminate custom, one-time and seldom-used
components and processes that introduce variability and potential
added costs and quality problems. Standardization techniques include
rationalizing product line offerings and performing cost studies to
determine the true costs associated with designing, documenting,
performing, etc. a custom or variable process.
standard operating
procedures (SOP)- Instructions and methods used for a specific
process or situation. They document the normal or accepted methodology
and help form the basis for conformance evaluation.
start date- The
date required to initiate an operation or process in order to achieve
ontime completion by the due or finish date. The start date is often
determined by establishing a required due date and backing into the
start date based on the standard lead time for a given
quantity.
startup- The
period of time starting with initial design or setup and ending with
acceptable volume production, or achieving a stable process.
static lead time- A
fixed lead time that does not vary based on process or quantity
considerations.
statistical process
control (SPC)- The ongoing measurement of a production process by
providing charts, maps and other displays of specified key attributes.
Observed data is compared with preset control limits and other
parameters to designate process output as acceptable or not.
steering committee- A
cross-functional executive group that sets overall parameters and
provides high-level project guidance by interaction with the project
leader, milestone status review and approval of resource
requirements.
stochastic- A
model or equation that incorporates a random variable.
stockkeeping unit
(SKU)- The combination of a specific item and a specific physical
location, as in part number A stocked in warehouse B.
stock order- A
production order used to replenish inventory to the desired level, as
opposed to a requirement for a specific customer order.
stockout- The
condition when required material is not available for a production,
sales or interplant order.
stockroom- A
storage area physically separated from production or other areas that
has limited access. It is typically used to control critical or high
dollar value items by issuing from the stockroom only against
authorized order pick slips, as opposed to keeping them as open stock
on the production floor.
stock status report- A
report of on-hand inventory that may also include days of supply,
allocation and availability information.
storage cost- The
cost associated with inventory storage facilities, such as material
handling equipment and personnel. It does not include the costs of
holding inventory due to insurance, scrap, etc.
straight line
depreciation- A depreciation method that writes off an equal
amount of the value of an asset over all periods in its estimated
useful life.
strategic
plan- The
long range, highest-level company plan that describes its overall
goals and objectives in determining what businesses to participate in,
which strategic resources are required, assesses company strengths and
weaknesses vs. the competition, and serves as the basis or target for
the next detail level (the
business plan).
subassembly- An
intermediate level assembly used in the production of an upper
level.
subcontractor- A
person or organization who performs work and is paid on an hourly or
volume basis, but is not considered on the payroll and does not
receive company benefits.
substitution variance- A
cost variance created by using an alternative component or material on
a production order that has a higher or lower cost than the standard
component. Substitution variances should be separated from usage
variances, which track over or under quantity usage of standard
material.
suggested order- A
planned purchase, production or interplant replenishment order
generated by
MRP or other planning system in response to a projected
shortage against the specified safety stock level or order point. A
suggested order generates capacity and lower level component
requirements, but is not released and treated as an incoming receipt
until reviewed and accepted.
summarized bill of
material- A bill that totals the quantities for components used in
all levels and does not represent the structure level by level. The
requirements for a component used in more than level are added
together and shown as one number.
sunk cost- A cost
already incurred that is not able to be affected by subsequent actions
and thus has no relevance in evaluating future decisions.
Supervisory Control
and Data Acquisition (SCADA)- Software systems and algorithms used
to provide real-time instructions to plant automation equipment
such as programmable logic controllers
(PLC).
supplier- An
entity who supplies goods or services; often used synonymously with
vendor but may also indicate an internal company resource.
supplier rating- A
supplier evaluation based on quality, delivery performance, price,
involvement in process improvement programs and other parameters that
often results in vendor classifications such as preferred, approved
(qualified) or unsatisfactory.
supplier
scheduling- syn:
vendor
scheduling.
supply
chain- The
linked set of resources and processes that begins with the sourcing of
raw material and extends through the delivery of end items to the
final customer. It includes vendors, manufacturing facilities,
logistics providers, internal distribution centers, distributors,
wholesalers and all other entities that lead up to final customer
acceptance. The extended supply chain for a given company may also
include secondary vendors to their immediate vendors, and the customers of their
immediate customers.
supply chain execution-
The set of supply chain activities that focus on fulfillment
rather than planning- raw material delivery, manufacturing operations
and shipments to customers and internal and external distribution
points. Execution functions receive requirements from the planning
cycle and provide the actual data in plan vs. actual
measurements.
supply chain
management- The coordinated set of techniques to plan and execute
all steps in the global network used to acquire raw materials from
vendors, transform them into finished goods, and deliver both goods
and services to customers. It includes chain-wide information sharing,
planning, resource synchronization and global performance
measurements.
supply chain
optimization- The coordination of linked resources across all or
part of a supply chain in eliminating or reducing manufacturing and
logistics bottlenecks and creating optimized schedules based on shared
inventory and order information.
supply chain planning-
The set of supply chain activities that focus on evaluating demand
for material and capacity and formulate plans and schedules based on
meeting that demand and company goals. System functions often involved
in the planning cycle include MPS, MRP, Rough Cut Capacity, CRP, DRP
and Advanced Planning and Scheduling (APS).
supply item- A
purchased, inventoried item not usually charged to production orders
or included in product standard costs.
SWOT analysis- Strengths,
Weaknesses, Opportunities and Threats analysis- the organization and
analysis of factors that will impact organizational effectiveness;
often used in formulating strategic and business plans.
synchronize- To
bring to the same level, rate or status, as in the synchronization of
linked production resources to the same timing and volume, or in
distributing the same set of data to remote databases.
system integration test-
A project implementation activity that tests the interfaces
between sets of programs or functional areas in a proposed new system.
It verifies the ability of the system to handle data and operating
requirements common to more than area, and to verify the impacts from
one department to another. A
unit test
of a single function may show
optimization of that function at the expense of a negative impact on
other areas.
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Glossary
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