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| (1) In an industrial context, the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities. (2) In a military sense (where it has greater usage), its meaning also can include the movement of personnel. |
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| All functions concerned with the movement of materials and finished goods on a global scale. |
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| A company that manages all or part of another company's product delivery operations. |
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| docking An approach used in consolidation warehouses where rather than making larger shipments, large shipments are broken down into small shipments for local delivery in an area. |
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| Systems that combine the idea of consolidation and that of cross-docking. |
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| A closed facility (under the supervision of government customs officials) into which foreign goods can be brought without being subject to the payment of normal import duties. |
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| A group of countries that agree on a set of special arrangements governing the trading of goods between member countries. Companies may locate in places affected by the agreement to take advantage of new market opportunities. |
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| An approach for selecting a facility location by combining a diverse set of factors. Point scales are developed for each criterion. Each potential site is then evaluated on each criterion and the points are combined to calculate a rating for the site. |
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| A special linear programming method that is useful for solving problems involving transporting products from several sources to several destinations. |
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| A technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped. |
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| The development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of a business. |
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| When a customer allows the supplier to manage an item or group of items |
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| The variability in demand is magnified as we move from the customer to the producer in the supply chain. |
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| Staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations. |
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| Products such as fashionable clothes and personal computers that typically have a life cycle of just a few months. |
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| Moving some of a firm's internal activities and decision responsibility to outside providers. |
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| Management functions that support the complete cycle of material flow: from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product. |
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| total cost of ownership (TOC) |
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Definition
| Estimate of the cost of an item that includes all the costs related to the procurement and use of the item including disposing of the item after its useful life. |
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| inventory turnover and weeks of supply |
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| Measures of supply chain efficiency that are mathematically the inverse of one another. |
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| The annual cost for a company to produce the goods or services provided to customers. |
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| average aggregate inventory value |
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Definition
| The total value of all items held in inventory for the firm, valued at cost. |
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| A measure of how many weeks' worth of inventory is in the system at a particular point in time. |
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| total quality management (TQM) |
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Definition
| Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. |
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| Malcolm Baldrige National Award |
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| An award established by the U.S. Department of Commerce and given annually to companies that excel in quality. |
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| The inherent value of the product in the marketplace. Conformance quality The degree to which the product or service design specifications are met. |
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| The person who does the work is responsible for ensuring that specifications are met. |
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| Criteria by which quality is measured. |
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| Expenditures related to achieving product or service quality such as the costs of prevention, appraisal, internal failure, and external failure. |
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| A statistical term to describe the quality goal of no more than four defects out of every million units. Also refers to a quality improvement philosophy and program |
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| DPMO (defects per million opportunities) |
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Definition
| A metric used to describe the variability of a process. |
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| An acronym for the D efine, M easure, A nalyze, I mprove, and C ontrol improvement methodology followed by companies engaging in Six-Sigma programs. |
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| Also called the "Deming cycle or wheel"; refers to the plan–do–check–act cycle of continuous improvement. |
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| The philosophy of continually seeking improvements in processes through the use of team efforts. |
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| Japanese term for continuous improvement. |
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| Combines the implementation and quality control tools of Six Sigma with the materials management concept of lean manufacturing with a focus on reducing cost by lowering inventory to an absolute minimum. |
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| black belts, master black belts, green belts |
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Definition
| Terms used to describe different levels of personal skills and responsibilities in Six-Sigma programs. |
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| fail-safe or poke-yoke procedures |
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| Simple practices that prevent errors or provide feedback in time for the worker to correct errors. |
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| Formal standards used for quality certification, developed by the International Organization for Standardization. |
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| Looking outside the company to examine what excellent performers inside and outside the company's industry are doing in the way of quality. |
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| relates to how well a product or service meets design specifications |
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| relates to how the customer views quality dimensions of a product or service |
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| the series of international quality standards |
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| what is the enemy of good quality? |
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| a six sigma process that is running at the center of the of control limits would expect a defect rate of? |
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Definition
| 2 parts per billion units |
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| the standard quality improvement methodology developed by GE? |
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Definition
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| Inventory turnover formula |
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Definition
| COGS/ Average Aggregate Inventory Value |
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| (Average aggregate Inventory Value/ COGS) x 52 weeks |
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| Refers to how common an item is or how many substitutes might be available |
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| when a firm works with suppliers to look for opportunities to save money and benefit the environment |
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| multiple sources of supply (pooling) |
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Definition
| in order to cope with high levels of supply uncertainty a firm would use this strategy to reduce risk |
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| a supply chain that must deal with high levels of both supply and demand uncertainty |
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| for the transportation model to be able to fund a feasible solution, this must always be greater than or equal to demand. |
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| a technique that is useful for screening potential locations for service |
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| aspects of demand include |
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Definition
product life cycle
predictability
lead times
product variety |
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14 points
14. create top level management that will enforce steps 1-13 |
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| basic cause of sickness of american industry and unemployment is failure of top mgmt to manage |
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two aspects
1- single minute exchange of die (SMED)
2- source inspection and poka-yoke |
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| Single minute exchange of die (SMED) |
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Definition
| simplification of set up process/ time |
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