ABC Classification – a method for determining level of control and frequency of review
of inventory items
Histogram - ANSWER - A chart that shows the frequency distribution of observed
values of a variable
Holding costs - ANSWER - include the variable expenses incurred by the plant related
to the volume of inventory held
Hybrid aggregate plan - ANSWER - a planning approach that uses a combination of level
and chase approaches while developing the aggregate plan
Hybrid layouts - ANSWER - Layouts that combine characteristics of process and product
layouts.
Immediate predecessor - ANSWER - A task that must be performed immediately before
another task.
Incoming inspection - ANSWER - verifies the quality of incoming goods
Indented bills of materials - ANSWER - Shows the highest-level "parents" closet to the
left margin and the "children" indented toward the right. Subsequent levels are
indented farther to the right.
pg. 1
,Independent Demand - ANSWER - the demand for an item is unrelated to the demand
for other items
Industry Consortia - ANSWER - Industry-owned markets that enable buyers to purchase
direct inputs from a limited set of invited suppliers.
Infinite loading - ANSWER - scheduling that calculates the capacity needed at work
centers in the time period needed without regard to the capacity available to do the
work
Information Technology (IT) - ANSWER - Technology that enables storage, processing,
and communication of information within and between firms.
Checklist - ANSWER - A list of common defects and the number of observed
occurrences of these defects.
Closed-loop MRP - ANSWER - An MRP system that includes production planning,
master production scheduling, and capacity requirements planning
Common - ANSWER - Random causes that cannot be identified
Components - ANSWER - Raw materials, purchased items, or sub assemblies that are
part of a larger assembly
computer-aided design (CAD) - ANSWER - A system that uses computer graphics to
design new products.
pg. 2
,computer-integrated manufacturing (CIM) - ANSWER - A term used to describe the
integration of product design, process planning, and manufacturing using an
integrated computer system.
Concurrent Engineering - ANSWER - An approach that brings together multifunction
teams in the early phase of product design in order to simultaneously design the
product and the process.
Conformance to specifications - ANSWER - How well a product or service meets the
targets and tolerances determined by its designers.
Consumer's Risk - ANSWER - The chance of accepting a lot that contains a greater
number of defects than the LTPD limit
Continuous Improvement - ANSWER - A philosophy of never-ending improvement
Continuous Processes - ANSWER - A type of process that operates continually to
produce a high volume of a fully standardized product.
Acceptable Quality Level (AQL)
- The small percentage of defects that consumers are willing to accept.
Acceptable Sampling -
The process of randomly inspecting a sample of goods and deciding whether to accept the entire lot
based on the results
Back orders - ANSWER - unfilled customer orders
Back-order - ANSWER - Delaying delivery to the customer until the item becomes available.
pg. 3
, Backward integration - ANSWER - Owning or controlling sources of raw materials and components.
backward scheduling - ANSWER - scheduling method that determines when the job must be started to
be done on the due date
Balance Delay - ANSWER - The amount by which the line efficiency falls short of 100 percent.
Batch processes - ANSWER - A type of process used to produce a small quantity of products in groups or
batches based on customer orders or specifications.
Behavioral Feasibility - ANSWER - degree to which the job is intrinsically satisfying to the employee
Beliefs that help define JIT Philosophy - ANSWER - Broad view operations, simplicity, continuous
improvements, visibility, and flexibility
Benchmarking - ANSWER - The process of studying the practices of companies considered 'best-in-class'
and comparing your company's performance against theirs.
Best operating level - ANSWER - The volume of output that results in the lowest average unit cost.
beta probability distribution - ANSWER - typically represents project activities
Bill of Material (BOM) - ANSWER - lists all the subassemblies, component parts, and raw materials that go
into an end item and shows the usage quantity of each required
Block Plan - ANSWER - schematic showing the placement of resources in a facility
Bottleneck - ANSWER - Longest Task in the process
Bottom-round management - ANSWER - Consensus management by committees or teams
pg. 4
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