|
Definition of Terms
 | Continuous Improvement - A never ending effort to expose and eliminate
root causes of business problems; typically seen as small step improvements
as opposed to big-step improvements or projects. |
 | Distribution Requirements Planning - The function of
determining the needs to replenish inventory at distribution centers. A
time-phased order point approach is used, based on regional forecasts,
customer orders and inventories. The planned orders at the distribution
center level are "exploded" via MRP logic to become gross requirements on
the supplying source. In the case of multi-level distribution networks, this
explosion process can continue down through the various levels of regional
distribution center, factory, warehouse, etc., and become input to the
Master Production Schedule. Demand on the supplying source(s) is recognized
as dependent, and standard MRP logic applies. |
 | Enterprise Resource Planning - The planning, execution, control and measurement functions required to
effectively operate an enterprise. |
 | Just-In-Time - In the broad
sense, Just-in-Time is an approach to achieving excellence in a
manufacturing company based on continuing elimination of waste and
consistent improvement in productivity. Waste is then defined as those
things which do not add value to the product. Waste is then defined into two
categories: necessary and unnecessary. Unnecessary waste should be
eliminated and necessary waste should be made unnecessary so that it too can
be eliminated. In the narrow (and less correct) sense, Just-in-Time is considered by some as a production and
logistics method designed to result in minimum inventory by having material
arrive at each operation just in time to be used. |
 | MANUFACTURING RESOURCE PLANNING (MRP II) - A method for the
effective planning of the resources of a manufacturing company. Ideally, it
addresses operational planning in units, financial planning in dollars, and
has a simulation capability to answer "what if" questions. It is made up of
a variety of functions, each linked together: Business Planning, Production
Planning, Master Production Scheduling, Material Requirements Planning,
Capacity Requirements Planning and the execution support systems for
capacity and material. Output from these systems would be integrated with
financial reports such as the business plan, purchase commitment reports,
shipping budget, inventory projections in dollars, etc. Manufacturing
Resource Planning is a direct outgrowth and extension of closed loop MRP.
MRP II has also been defined, validly, as a management system based on
network scheduling. Also, and perhaps best, as organized common sense. |
 | People Involvement - The management approach to problem solving that
uses the experience, creative energy and intelligence of all employees. |
 | Supplier Partnerships - Creating a working relationship between a
customer and supplier organizations where they can work together for
improvements and problem solving.
|
 | Supply Chain Management - The design, planning, execution, control and monitoring of supply chain
activities with the objective of creating net value by looking outside the
boundaries of your own business and linking with your suppliers and
customers. This will allow you to build a an infrastructure, leverage
logistics, synchronize total supply with demand, and measuring performance
globally. |
 | Synchronous Flow Manufacturing - An approach to
manufacturing that evaluates every action as it relates to the global
system. |
 | Total Quality Management - A management approach for long term success
based on customer satisfaction that is focused on the participation of
everyone in an organization in improving every aspect of the organization.
 | Value Chain Management - The design, planning, execution, control and
measurement of all links a company uses to produce and deliver its products
and services starting from the point of origination all the way to delivery
to the final end-user customer.
| |
|