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Definition
| Something brought about by intellectual or physical effort. Includes the services provided by the company (customer sees both as a unit). |
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| consists of 3 time periods: design and manufacturing (using materials from nature), use, and disposal (back to nature). Recycling loops between disposal and back into design and manufacturing |
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| organization, planning and realization of the forward and reverse flow and storage of goods, data, and control along the product life cycle. |
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| Management of logistics activities (procurement from suppliers, production / transformation, and sales to clients) |
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| system in which people work together to reach an entrepreneurial objective. used synonymously with 'company' |
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| allow company to evaluate the degree to which objectives are reached an to analyze causes and effects |
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| something with an economic utility or satisfies an economic want... anything that is suitable, serviceable, convenient, or effective |
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| used by consumer to develop and manufacture other goods |
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| elements of which something can be made or is composed of. Can be raw matls. , documents, evidence, certificates |
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| one of several parts that together make a machine or a system. __s come together to form a product during manufacturing, or arise from a product during disposal |
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| something brought about by intellectual or physical effort |
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| product in a comprehensive sense |
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| product, the services, and the company itself, with its image and reputation... all seen as a unit |
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Definition
| function or a system that transforms inputs to outputs |
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| planning, scheduling, and control of the activities that transform inputs into finished goods and service |
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| design and manufacturing logistics |
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| all logistics to consumer |
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| accompanies the use phase |
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| need for a particular product or component |
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| composed of customer orders |
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| estimation of future demand... used synonymously with ___ prognosis |
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| span of time required to perform a process or series of operations... time between recognition of need for an order and receipt of goods |
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| total time to receive, fill, and deliver an order. |
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| Delivery lead time required by the customer |
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Definition
| time span the customer will tolerate between formulating need and satisfaction of the need |
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| objective delivery lead time |
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| warehouse, store, or goods store |
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| terms fro the infrastructure for goods storage |
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| life time of perishable goods |
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| locations along the value-added process, where inventory is placed to create independence between processes or entities |
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| amount of inventory kept at a decoupling point |
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| process of creating independence between use and supply of material |
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| Strategic decisions for design of decoupling points is a degree of freedom in logistics and operations management. |
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| Quality, costs, delivery, flexibility |
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Definition
| Reasons that design and manufacturing of a product requires many organizational units |
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Definition
| joining of the logistics of several "co-makers" to form comprehensive, trans-corporate logistics |
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| production/procurement/logistics network |
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Definition
| joining of the logistics of several "co-makers" to form comprehensive, trans-corporate logistics |
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| integral logistics management |
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Definition
| mgmt of the comprehensive supply chain, along the entire product life cycle |
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| internal customer or supplier |
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| order from external customer to company |
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| procurement/purchase order |
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| order from the company to an external supplier |
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| production/manufacturing/job/shop/company internal order |
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Definition
| order to manufacture an end product or a semifinished good |
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Definition
| a collective term for any good that can or must be identified or handled in the logistics of distribution, production, procurement, or recycling/disposal. |
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| end product /end item / finished good |
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Definition
| completed item that generally does not serve as a component of another product |
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| intermediate product / semifinished good |
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Definition
| is stored or awaits final operations in the production process. Can be used in the assembly of a higher level product and is thus also a component. |
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| Assembly / Product module |
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Definition
| composed of at least two components |
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| a group of products having similar features or functions / many similar components or similar processes in process plan |
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| product structure / nomenclature / bill of materials |
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| structured list of components to be used in order to manufacture a product, understood as a whole-part hierarchy |
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| lowest structure level at which an item can appear in a multilevel bill of material |
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| operation / basic manufacturing step |
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Definition
| like "cut" "stamp" or "bend", step in a process that is required for the design and manufacture of a product |
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| setup / changeover time / setup lead time |
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| time for actual work on the order |
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| the number of units of measure produced together |
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| execution time for one unit of the batch |
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| setup time + lot * run time per unit |
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Definition
| product structure AND the routing sheet(list of operations required to manufacture an item from its components) |
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Definition
| total time required to obtain a purchased item |
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| critical path / cumulative / aggregate lead time |
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Definition
| longest planned length of time to accomplish the value-adding activity in question |
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Definition
| total production structure on the time axis (time displayed as lead-time offset) |
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Definition
| moment of a resource requirement (component or capacity) relative to the completion date of a product, based on the lead time for that product... job due date - lead time |
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Definition
| display of work center load and capacity over time... could be rectangular, stair-step, continuous in shape |
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| rough-cut product structure |
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Definition
| structured makeup of the product from its components |
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| total of work centers that do not have to be further differentiated by rough-cut planning and control |
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| total of operations, not further differentiated by rough-cut planning & control |
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Definition
| overall chain of operations, |
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| planning that cannot reach a certain level of detail, and therefore relies on partial data |
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| rough cut production structure plotted on time axis |
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| listing of the required key resources needed to manufacture one unit of a selected product or product family |
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| bill of resources where the resource requirements are defined by lead-time offset |
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| Three dimensions of tasks in a company |
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Definition
| Tasks related to performance, tasks related to stakeholders, tasks along the value-adding chain |
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Definition
| achievement of objectives in the areaso of quality, caosts, delivery and flexibility |
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Definition
| a listing of required key resources needed to manufacture one unit of a selected product or product family |
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Definition
| a bill of resources where the resource requirements are defined by a lead-time offset |
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Definition
| managements formulation of a plan considering the market environment, the product positioning in the market, and the company's advantages and differentiation |
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Definition
| return on capital that could have resulted had the capital been used for some purpose other than its present use |
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Definition
| minimization of all required resources... involves minimizing waste |
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Definition
| all non-value-adding activities in development and production within the logistics network |
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Definition
| ability to move; dexterity |
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Definition
| building up of potentials or scope in the right place at the right time in the right amount |
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| sales and distribution logistics |
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Definition
| sales logistics--> distribution logistics --> service and maintenance logistics |
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Definition
| moving and storing of goods, but also physical control of conten verification of the flow of goods. Automatic instruments (RFID) help control these processes |
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| admin & planning / information logistics ; planning and control |
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Definition
| handles actual tasks and decision tasks that will affect actual tasks in the future |
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| production planning and control |
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Definition
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| Goals of production planning and control |
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Definition
| evaluate production possibilities, create a detailed production program, and realize plans. |
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Term
| supply chain collaboration, supply chain coordination, supply chain transformability |
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Definition
| The 3 target areas for supply chain management as determined by logistics management |
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Term
| supply chain collaboration |
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Definition
| ability to work together to achieve optimization of the logistics network |
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| supply chain coordination |
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Definition
| ability to coordinate and communicate in daily operations effectively |
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Term
| supply chain transformability |
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Definition
| ability to achieve flexibility in reconfiguring supply chain |
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Term
| target area supply chain collaboration |
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Definition
| focusing on overally optimization of supply chain across company boundaries |
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Term
| target areas supply chain coordination |
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Definition
| focusing on seamless flow through supply chain |
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| target area supply chain transformability |
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Definition
| focusing on flexibility to achieve better responsiveness |
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| logistics performance indicator |
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Definition
| characteristic measured for estimating performance in areas of cost, delivery, quality, and flexibility |
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Definition
| indicators to measure overall company performance |
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Definition
| indicators relating to single resource or process |
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Definition
| number of rejected facts divided by number of facts |
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Definition
| # rejected facts / # of facts |
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Definition
| annual cost of inventory issues / average inventory |
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| sales / average work in process |
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Definition
| standard load / actual load = actual units produced / standard units to produce |
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Definition
| actual load / theoretical capacity |
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| fill rate or customer service ratio (PI for target area delivery) |
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Definition
| # products delivered on time / # ordered |
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| delivery reliability rate |
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Definition
| # products delivered on confirmed date / # of confirmed products |
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Definition
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| value-added rate of lead time |
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Definition
| value added portion of lead time / lead time |
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Definition
| standard deviation of operation times |
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Definition
| time of order entry / overall lead time |
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| pre confirmation --> order confirmation / total lead time |
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Definition
| something produced as a commodity or similar |
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Definition
| something created by humans, usually for a practical purpose |
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Definition
| intended for direct consumption |
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Definition
| all areas of management within the logistics network that are value adding (procurement, production, logistics, sales and distribution, operations) |
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Term
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Definition
| desing, planning, execution, control and monitoring of supply chain activities. |
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Term
| customer order penetration point |
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Definition
| the decoupling point between total lead time and customer tolerance time |
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| examples of target area delivery |
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Definition
| fill rate, delivery reliability rate, response time, order confirmation time |
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| examples of target area costs |
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Definition
| stock-inventory turnover, WIP inventory turnover, capacity utilization |
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| examples of target area flexibility |
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Definition
| bid proposal success rate, order success rate |
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| examples of target area quality |
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Definition
| scrap factor, complaint rate |
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Term
| The "brand" Airbus, which entails everything associated to the products Airbus produces. |
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Definition
| Thinking of airplanes as a product, this would be a "product" in the most comprehensive sense |
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| This would be Airbus producing the airplane, and also providing the training and mechanic services to other airlines... Product + Service |
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Definition
| Thinking of airplanes as a product, this would be a "product" in a broad sense |
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| This would be just the Airbus aircraft |
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Definition
| Thinking of airplanes as a product, this would be a the "simple product" |
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Definition
| suitability of an action in a particular situation |
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| high quality may mean long deliver times or high costs, low costs may mean low degree of flexibility |
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Definition
| An example of conflicting entrepreneurial objectives |
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Definition
| changeability of product portfolio in a production network |
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Definition
| changeability of a product within a site |
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Definition
| changeability of a sub-product within a production segment |
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Definition
| changeability of a workpiece within a cell |
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Definition
| changeability of a feature within a station |
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| Common problems with performance indicators |
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Definition
| Often general and qualitative in meaning / require additional assumptions / sometimes cannot be measured directly / measurement can affect the process being measured |
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| Common problems with performance indicators |
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Definition
| absolute value means nothing / benchmarking against other is tricky |
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Term
| delivery reliability rate (good PI for target area delivery) |
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Definition
| # products delivered on confirmed delivery date / # of confirmed products |
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