CPIM Part 2 Module 4 Section C

labor standards

Under normal conditions, the quantity of worker minutes necessary to finish a product or process

One Piece Flow

-A concept in which items are processed directly from one step to the next, one unit at a time - This helps to shorten lead times and lines of communication, thus more quickly identifying problems

Tolerance

Allowable departure from a nominal value established by design engineers that is deemed acceptable for the functioning of the good or service over its life cycle

Standard

1) an established norm against which measurements are compared. 2) an established norm of productivity defined in terms of units of output per set time (units/hour) or in standard time (minutes per unit). 3) the time allowed to perform a specific job including quantity of work to be produced.

Variance

1) the difference between the expected (budgeted or planned) value and the actual 2) in statistics, a measurement of dispersion of data

Torrance limits

1) the upper and lower extreme values permitted by the tolerance. 2) in work measurements, the limits between which a specified operation time value or other work unit will be expected to vary

Inbound stockpoint

A defined location next to the place of use on a production floor. Materials are brought to the stock-point as needed and taken from it for immediate use. Inbound stockpoints are used with a pull system of material control.

Control charts

A graphic comparison of process performance data with predetermined computer control limits. The process performance data usually consists of groups of measurements selected in the regular sequence of production that preserve the order. The primary use of control charts is to detect assignable causes of variation in the process as opposed to random variations. The control chart is one of the seven tools of quality

Two-card kanban system

A kanban system where a move and production card are employed. The move card authorizes the movement of a specific number of parts from a source to a point of use. The move card is attached to the standard container of parts during movement to the point of use of the parts. The production card authorizes the production of a given number of parts for use or replenishment.

Visual Management

A management system whereby every metric that matters, standardized work, and improvement approaches are displayed on the shop floor and in the office.

count point

A point in a flow of material or sequence of operations at which parts, subassemblies, or assemblies are counted as being complete. Count points may be designated at the ends of lines or upon removal from a work center, but most often they are designated as the points at which material transfers from one departments to another

Capacity-constrained resource (CCR)

A resource that is not a constraint but will become a constraint unless scheduled carefully. Any resource that, if its capacity is not carefully managed, is likely to compromise the throughput of the organization.

Special cause (assignable cause)

A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation

flow control

A specific production control system that is based primarily on setting production rates and feeding work into production to meet these planned rates, then monitoring and controlling production.

earned hours

A statement reflecting the standard hours assigned for actual production reported during the period.

stores

A storage point located upstream of a work station, intended to make it easier to see customer requirements

Production reporting and status control

A vehicle to provide feedback to the production schedule and allow for corrective action and maintenance of valid on-hand and on-order balances.

supermarket approach

A way of managing inventory and improving picking by making all parts easy to take off of a shelf, much like the shelves of a supermarket. Inventory is then restocked in such a way that employees always have easy access.

conformance

An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation.

Feeder work

An area of manufacture whose products feed a subsequent area

cost control

Applying procedures that monitor the progress of operations against authorized budgets and taking action to achieve minimal costs.

Common cause (random cause)

Causes of variation that are inherent in a process over time. They affect every outcome of the process and everyone workin in the process

Upper Control Limit (UCL)

Control limit for points above the central line in a control chart.

Lower Control Limit (LCL)

Control limit for points below the central line in a control chart.

usage variance

Deviation of the actual consumption of materials as compared to the standard.

move card

In a just-in-time context, a card or other signal indicating that a specific number of units of a particular item are to be taken from a source (usually an outbound stockpoint) and taken to a point of use (usually an inbound stockpoint) and taken to a point of use (usually an inbound stockpoint). It authorizes the movement of one part number between a single pair of work centers. The card circulates between the outbound stockpoint of the supplying work center and the inbound stockpoint of the using work center.

Cost Variance

In cost accounting, the difference between what has been budgeted for an activity and what it actually costs.

pacemaker

In lean, the resource that is scheduled based on the customer demand rate for that specific value stream; this resource performs an operation or process that governs the flow of materials along the value stream

cycle time

In materials management, it refers to the length of time from when material enters a production facility until it exits; in industrial engineering, the time between completions of two discrete units of production.

Kaizen

Japanese term for continuous improvement

Takt Time

Set the pace of production to match the rate of customer demand. It becomes the heartbeat of any lean production system and is computed as available production time divided by the rate of customer demand

Floor stocks

Stocks of inexpensive production parts held in the factory, from which production workers can draw without requisitions.

Process Capability

The ability of the process to produce parts that conform to (engineering) specifications. Process capability relates to the inherent variability of a process that is in a state of statistical control.

Order release

The activity of releasing materials to a production process to support a manufacturing order.

yield

The amount of good or acceptable material available after the completion of a process.

Statistical Quality Control (SQC)

The application of statistical techniques to control quality. Includes acceptance sampling as well as statistical process control, but is often used interchangeably with statistical process control.

Statistical Process Control

The application of statistical techniques to monitor and adjust an operation. Often used interchangeably with statistical quality control, although statistical quality control includes acceptance sampling as well as statistical process control

Labor efficiency

The average of worker efficiency for all direct workers in a department or facility.

cost accounting

The branch of accounting that is concerned with the classification, recording and reporting of business expenses

visual controls

The control of authorized levels of activities and inventories in a way that is instantly and visibly obvious. A type of activity and inventory control used in a workplace organization where everything has an assigned place and is in its place.

Outbound stockpoint

The designated locations near the point of use on a plant floor to which material produced is taken until it is pulled to the next operation.

Feedback

The flow of information back into the control system so that actual performance can be compared with planned performance.

Priority Control

The process of communicating start and completion dates to manufacturing departments in order to execute a plan. The dispatch list is the tool normally used to provide these dates and priorities based on the current plan and status of all open orders.

quality control

The process of measuring quality conformance by comparing the actual with a standard for the characteristic and acting on the difference.

Throughput

The rate at which the system generates "goal units." Because throughput is a rate, it is always expressed for a given time period—such as, per month, week, day, or even minute. If the goal units are money, throughput will be an amount of money per time period. In that case, throughput is calculated as revenues received minus totally variable costs divided for the chosen time period.

Operational plan

The set of short-range plans and schedules detailing specific actions. Operational plans are more detailed than strategic and tactical plans and cover a shorter horizon

cost center

The smallest segment of an organization for which costs are collected and formally reported, typically a department. The criteria in defining cost centers are that the cost be significant and that the area of responsibility be clearly defined. A cost center is not necessarily identical to work center; normally, a cost center encompasses more than one work center, but this may not always be the case.

central tendency

This is where the process typically tends to run. It may or may not be ideal

Acceptance sampling

the process of sampling a portion of goods for inspection rather than examining the entire lot. The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample.