Card Set Information
Estimating the quality of conformance of large batches through inspection of smaller samples.
Medium-term tactical capacity planning in response to changing demand.
Japanese term for a signaling system announcing problems encountered and assistance requested, often implemented as sets of lights over workstations.
Estimate of the proportion of defects that pass an acceptance sampling plan.
average outgoing quality (AOQ)
Determining the overall inventory requirements of a finished good by combining information on amount of the good produced with the requirements information in its bill of materials.
Measuring performance relative to some peer’s performance, generally identified as ‘best in class’.
A description of all raw materials and intermediate assemblies required to create a finished product.
bill of materials
A group problem-solving technique that requires collection and discussion of various ideas from group members in an effort to develop a solution to a target problem.
Aggregate planning approach that relies on changing capacity to match demand.
chase demand strategy
The likelihood of a Type II error.
Graph illustrating observed values in relationship to the allowable limits on those values.
Time remaining until due date divided by work remaining to be done.
Requirements for child items, also known as ‘component demand.’
Translation of an aggregated value into smaller individual estimates corresponding to specific products.
Assigning work in real-time, often in the context of mobile resources.
Granting an employee the authority to take independent action on behalf of the overall operation.
A scheduling approach which recognizes capacity constraints.
Visual model to clarify cause-and-effect relationships.
The length of time a job spends in the system.
In planning, a policy that does not allow changes to the Master Production Schedule within a protected interval.
The combined, overall demand for an item.
A bar chart illustrating the relative frequency of occurrences in different categories.
Requirements for an item from outside the system, also known as ‘customer demand.’
A scheduling approach which ignores capacity constraints.
A certification of compliance with an internationally recognized set of quality management standards.
The authority to stop production.
A phrase first popularized by the Bose Company, emphasizing vendor managed inventory and co-location of those vendors within a production facility.
An earlier and alternate term for lean operation, in which a system implicitly operates with minimum of inventory and waste.
Japanese term for a focus on continuous improvement.
Assigning work to resources.
Maximum proportion of defects that a consumer can tolerate.
lot tolerance percent defective (LTPD)
An ordering policy in which orders are sized to match individual demands exactly, theoretically accumulating no inventory.
A statement of independent demand for all inventory items in an MRP system.
master production schedule (MP)
A technique for scheduling the production of multiple items related by both independent and dependent demand.
material requirements planning (MRP)
The lowest speed of perfectly level production that will not produce any shortages within a demand forecast.
minimum constant production (MCP) rate
Production of a range of products with a single assembly line, primarily by varying features on an otherwise standardized product.
mixed model assembly
Japanese term for waste, particularly anything a customer is not willing to pay for.
A point of time within a forecast where aggregate demand dictates the minimum level production rate necessary to fulfill all demand specified by that forecast.
natural planning horizon
A graph of the likelihood of accepting a batch, given increasing proportion of defects within that batch.
operating characteristic (OC) curve
A schedule of the ordering of a particular item within a planning horizon, to supply its gross requirements over that same time interval.
planned order releases
Japanese term for process improvements striving to make the desired outcome of a process inevitable, largely by preventing mistakes.
The natural variation in an existing process, stated relative to the allowable variation specified in a product’s design.
The likelihood of a Type I error.
A particularly visual format for a bill of materials, in which parent/child relationships among inventory items have been illustrated as a network of connected shapes.
product structure diagram
A production system that reacts to signals of demand, relying on internal coordination instead of the implementation of explicit plans to achieve outcomes.
A production system that calculates and anticipates demand, relying on the implementation of explicit plans instead of internal coordination to achieve outcomes
A group of employees that meets regularly to discuss and develop opportunities for continuous improvement of their operation.
The degree to which the output of an operation meets the producer’s expectations.
quality of conformance
The degree to which the output of an operation meets the customer’s expectations.
quality of design
To determine the order in which requirements are met.
An individual or organization’s comprehension of the surrounding environment and its potential near future states.
A quality management program emphasizing the application of analytical tools and wide-spread involvement of employees across the organization.
The monitoring of overall conformance through the on-going evaluation of samples.
statistical process control (SPC)
A proposed model of the cost of non-conformance that penalizes even small degrees of deviation from a target specification.
Taguchi loss function
A body of knowledge focused on managing the limitations on a system for continuous improvement.
Theory of Constraints (TOC)
The smallest interval of time used in planning, such as hourly, daily or weekly.
A point in time specified by a policy to protect a master production schedule from near-term changes, dividing the planning horizon into shorter intervals with varying levels of protection.
Simultaneous and continuous pursuit of improvement in both the quality of design and conformance through the involvement of the entire organization.
total quality management (TQM)
In quality control, concluding the process is out of control when in fact it is not
Type 1 error
In quality control, concluding the process is in control when in fact it is not.
Type II error