Manufacturing, ROA, Purchasing, Vertical Integration, Outsourcing, Insourcing, Supplier Certification, RFI, RFP, RFQ, Purchase Order, Total Cost of Manufacturing, Spend Analysis, Six Sigma, Strategic Sourcing, Preferred Suppliers, Sourcing Sustainability,
Multiple Sourcing
Obtaining the same items from multiple suppliers.
Sole Sourcing
Procuring goods or services from a single supplier.
Manufacturing
The process of converting raw materials into finished goods.
Supplier Certification
The process of evaluating and verifying suppliers to ensure they meet quality, safety, ethical, and performance standards.
Supplier Performance Evaluation
The systematic assessment of a supplier's ability to meet predefined criteria and standards.
E-Procurement
The use of electronic systems and technologies for procurement processes.
Scorecarding
The use of performance metrics and key performance indicators (KPIs) to assess and monitor the effectiveness of processes, suppliers, or overall business operations.
RFI (Request for Information)
A document used in the procurement process to gather information from potential suppliers about their capabilities, products, or services.
RFQ (Request for Quotation)
A document used to solicit price quotes and proposals from potential suppliers for specific goods or services.
Return on Assets (ROA)
A financial ratio indicating a company's efficiency in generating profit from its average total assets.
RFP (Request for Proposal)
A formal request to vendors inviting them to submit proposals, providing details on requirements and criteria for the selection of goods or services.
Purchase Order (PO)
A legally binding document issued by a buyer to a seller, outlining the details of a transaction.
Total Quality Management (TQM)
A management approach that focuses on continuous improvement, customer satisfaction, and employee involvement to enhance the quality of products and services.
ATO (Assemble to Order)
A manufacturing strategy where products are assembled based on predefined configurations or options.
ETO (Engineer to Order)
A manufacturing strategy where products are customized or engineered to meet the unique specifications of a customer's project.
MTS (Make to Stock)
A manufacturing strategy where products are produced in anticipation of demand and inventory is built up in stock.
MTO (Make to Order)
A manufacturing strategy where products are produced only after receiving customer orders.
Strategic Sourcing
A procurement strategy that focuses on aligning purchasing decisions with overall business goals.
Lean Manufacturing
A production philosophy that emphasizes the elimination of waste and efficient use of resources.
7 Tools of Quality Management
A set of statistical techniques used for process improvement.
Six Sigma
A set of techniques and tools for process improvement, aiming to reduce defects and variations in manufacturing and business processes.
Kanban
A visual scheduling system that uses cards or signals to manage and control the flow of work in a production process.
Forward Vertical Integration
Acquiring distributors or retailers to gain control over distribution channels.
Purchasing
Acquiring goods or services to meet organizational needs, aiming for quality products at optimal prices, stable supply chains, and enhanced overall value.
DMAIC
An acronym for Define, Measure, Analyze, Improve, and Control, representing a structured problem-solving methodology within the context of Six Sigma.
Reverse Auction
An online procurement process where suppliers compete to win business by bidding down prices.
8 Wastes of Lean
Areas for improvement in lean processes: Defects, Overproduction, Waiting, Non-utilized Talent, Transportation, Inventory excess, Motion waste, and Excess Processing.
Insourcing
Bringing in-house previously outsourced functions to gain control, reduce risks, or enhance organizational capabilities.
Manufacturing Processes - Project/Batch
Categorization of manufacturing processes as project-based or batch-based.
Sourcing Strategies
Determining the most effective methods for procuring goods or services.
Spend Analysis
Evaluating and understanding an organization's expenditures to identify cost-saving opportunities and improve efficiency.
Total Cost of Manufacturing
Includes all direct and indirect costs associated with producing a product.
Backward Vertical Integration
Integrating with suppliers or producers to gain control over supply chains.
Preferred Suppliers
Vendors that a company has identified as reliable, high-quality partners.
Sourcing Sustainability
Considering environmental, social, and ethical factors when selecting suppliers and materials.
Total Cost of Ownership (TCO)
Considers all costs associated with acquiring, operating, and maintaining a product or service throughout its lifecycle.
Outsourcing
Contracting business functions to external service providers to enhance efficiency and focus on core competencies.
Supply Management
The coordination and optimization of all activities related to the sourcing, procurement, and management of goods and services throughout the supply chain.
Voice of Customer (VOC)
The preferences, needs, and expectations of customers.
