CPIM (PART 2) 501-550

released order

1) A released manufacturing order or purchase order. Syn: released order. See: scheduled receipt. 2) An unfilled customer order. Syn: open order.

sales promotion

1) Sales activities that supplement both personal selling and marketing, coordinate the two, and help to make them effective (e.g., displays). 2) More loosely, the combination of personal selling, advertising, and all supplementary selling activities. 3) Promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the marketing channel.

redundancy

A backup capability, coming either from extra machines or from extra components within a machine, to reduce the effects of breakdowns.

service level agreement (SLA)

A document that represents the terms of performance for organic support.

scrap factor

A factor that expresses the quantity of a particular component that is expected to be scrapped upon receipt from a vendor, completion of production, or while that component is being built into a given assembly.

scatter chart

A graphical technique to analyze the relationship between two variables.

repair order

A manufacturing order to rework and salvage defective parts or products. Syn: spoiled work order. Syn: rework order.

rate-based scheduling

A method for scheduling and producing based on a periodic rate (e.g., daily, weekly, monthly). This method has traditionally been applied to high-volume and process industries. The concept has also been applied within job shops using cellular layouts and mixed-model level schedules where the production rate is matched to the selling rate.

second-order smoothing

A method of exponential smoothing for trend situations that employs two previously computed averages, the singly and doubly smoothed values, to extrapolate into the future.

risk pooling

A method often associated with the management of inventory risk. Manufacturers and retailers that experience high variability in demand for their products can pool together common inventory components associated with a broad family of products to buffer the overall burden of having to deploy inventory for each discrete product.

seasonal index

A number used to adjust data to seasonal demand.

sample

A portion of a universe of data chosen to estimate some characteristics about the whole universe.

return on investment (ROI)

A relative measure of financial performance that provides a means for comparing various investments by calculating the profits returned during a specified time period.

regression analysis

A statistical technique for determining the best mathematical expression describing the functional relationship between one response and one or more independent variables.

requisition

An authorization that identifies the item and quantity required to be withdrawn from an inventory. Syn: parts requisition. See: purchase requisition.

safety lead time

An element of time added to normal lead time to protect against fluctuations in lead time so that an order can be completed before its real need date.

remanufacturing

An industrial process in which worn-out products are restored to like-new condition.

root cause analysis

Analytical methods to determine the core problem(s) of an organization, process, product, market, and so forth.

resource

Anything that adds value to a good or service in its creation, production, or delivery.

responsible procurement

Assuring the use of ethical sources of goods and services where a firm does business to bring about a positive impact and minimize the negative impact on societies and environments--including reduce, reuse, and recycle of materials.

scheduling rules

Basic rules that can be used consistently in a scheduling system.

resource planning

Capacity planning conducted at the business plan level.

setup costs

Costs such as scrap costs, calibration costs, downtime costs, and lost sales associated with preparing the resource for the next product.

self-directed work team

Generally, a small, independent, self-organized, and self-controlling group in which members flexibly plan, organize, determine, and manage their duties and actions, as well as perform many other supportive functions.

replanning frequency

In an MRP system, the amount of time between successive runs of the MRP model. If the planner does not run MRP frequently enough, the material plan becomes inaccurate because material requirements and inventory status change with the passage of time.

resiliency

In the supply chain, the ability to return to a position of equilibrium after experiencing an event that causes operational results to deviate from expectations.

safety capacity

In the theory of constraints, the planned amount by which available capacity exceeds current productive capacity. This capacity provides protection from planned activities (such as resource contention) and preventive maintenance and unplanned activities (such as resource breakdown, poor quality, rework, or lateness). Safety capacity plus productive capacity plus excess capacity equals 100 percent of capacity. Syn: capacity cushion. See: protective capacity.

routing

Information detailing the method of manufacture of a particular item. Includes operations, sequencing, involved work centers, and standards for setup and run.

scheduled downtime

Planned shutdown of equipment or plant to perform maintenance or to adjust to softening demand.

semifinished goods

Products that have been stored in an uncompleted state and are awaiting final operations that will adapt them to different uses or customer specifications.

resource-constrained schedule

Project schedule with no early or late start or finish dates. The activity and scheduled start and finish dates show the expected availability of resources. Syn: resource Iimited schedule. See: drum-buffer-rope.

rework

Reprocessing to salvage a defective item or part.

Shingo's seven wastes

Shigeo Shingo, a pioneer in the Japanese just-in-time philosophy, identified seven barriers to improving manufacturing. They are the: waste of overproduction, waste of waiting, waste of transportation, waste of stocks, waste of motion, waste of making defects, and waste of the processing itself. also waste of people skills.

shelf life

The amount of time an item may be held in inventory before it becomes unusable.

running sum of forecast errors

The arithmetic sum of the differences between actual and forecasted demand for the periods being evaluated.

required capacity

The capacity of a system or resource needed to produce a desired output in a particular time period. Syn: capacity required. See: capacity.

sampling distribution

The distribution of values of a statistic calculated from samples of a given size.

rated capacity

The expected output capability of a resource or system. Capacity is traditionally calculated from such data as planned hours, efficiency, and utilization. The _________ ___________ is equal to hours available x efficiency x utilization. Syn: calculated capacity, effective capacity, nominal capacity, standing capacity.

service function

The mathematical relationship of the safety factor to the service level (e.g., the fraction of demand routinely bet from stock).

residual income

The net operating income that an investment center earns above the minimum required return on its operating assets.

rescheduling

The process of changing order or operation due dates, usually as a result of their being out of phase with production or customer commitments.

resource leveling

The process of scheduling (and rescheduling) the start and finish dates of operations (or activities) to achieve a consistent rate of resource usage so that resource requirements do not exceed resource availability for a given time period.

repetitive manufacturing

The repeated production of the same discrete products or families of products.

resource-limited scheduling

The scheduling of activities so that predetermined resource availability pools are not exceeded. Activities are started as soon as resources are available (with respect to logical constraints), as required by the activity. When not enough of a resource exists to accommodate all activities scheduled on a given day, a priority decision is made. Project finish may be delayed, if necessary, to alter schedules constrained by resource usage.

resource profile

The standard hours of load placed on a resource by time period. Production lead-time data is taken into account to provide time-phased projections of the capacity requirements for individual production facilities. See: bill of resources, capacity planning using overall factors, product load profile, rough-cut capacity planning.

scheduled load

The standard hours of work required by scheduled receipts (i.e., open production orders).

setup time

The time required for a specific machine, resource, work center, process, or line to convert from the production of the last good piece of item A to the first good piece of item B.

run time

The time required to process a piece or lot at a specific operations. Does not include setup time.

robust design

Type of design for a product or service that plans for intended performance even in the face of a harsh environment.

remedial maintenance

Unscheduled maintenance performed to return a product or process to a specified performance level after a failure or malfunction.