Capacity Planning and Management: Key Concepts and Techniques, Exams of Engineering

Download Capacity Planning and Management: Key Concepts and Techniques and more Exams Engineering in PDF only on Docsity!

APICS CPIM Exam 1 Questions and

Answers 2024

ABC classification Correct Answer is Process of classifying items in descending order based on annual dollar volume or some other criteria. The list is then split into 3 classes - A, B, and C. A represents 10-20% of items but 50-70% of dollar volume; B represents 20% of items and 20% of dollar volume; C represents 60-70% of items but 10-30% of dollar volume. This principle states that effort and money can be saved by applying looser controls to the low dollar volume items (C class) than the higher dollar volume items (A & B classes) and applies to inventory, purchasing, sales, etc. Advance ship notice (ASN) Correct Answer is Electronic data interchange (EDI) notification of shipment of goods Andon Correct Answer is Electronic board that provides visibility of floor status and gives info to help coordinate efforts linked to work centers; green light = running, red light = stop, yellow light = needs attention Anticipation inventories Correct Answer is Any additional inventory above basic pipeline stock to cover projected trends of increased sales, planned promo programs, seasonal fluctuation, plant shutdowns, and vacations Assemble-2-order Correct Answer is Production environment where a good or service can be assembled after receipt of a customer's order. The key components (or ingredients) used in assembly or finishing process are planned and stocked in anticipation of a customer order. Receipt of order initiates assembly of the customized product. Useful strategy when a large number of end products can be assembled from common components Available inventory Correct Answer is On-hand inventory balance minus allocations, reservations, backorders, and quantities held for quality problems Backflush Correct Answer is Method of inventory bookkeeping where the book inventory is automatically reduced after completion of activity on component's upper-level parent item based on what should have been used as specified on the BOM and allocation records; disadvantage is difference between book inventory and physical OH inventory Backhauling

Correct Answer is Process of transportation returning from original destination point to point of origin; can be full, partial, or empty load Backlog Correct Answer is All customer orders received but not yet shipped (open orders or order board) Backorder Correct Answer is Unfulfilled customer order or commitment. An immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand Back scheduling Correct Answer is Technique for calculating operation start dates and due dates; start with order due date and work backwards to calculate required start date and/or due dates for each operation Batch Correct Answer is Qty scheduled to be produced or in production; type of mfg process used to produce items with similar designs & cover wide range of order volumes; items ordered are of a repeat nature Bill of lading Correct Answer is Document issued by a carrier which details a shipment of merchandise and gives title of that shipment to a specified party. Bill of material (BOM) Correct Answer is Listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required to make an assembly; used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released; list of all the materials needed to make one production run of a product, by a contract manufacturer, of piece parts/components for its customers Bonded warehouse Correct Answer is Buildings or parts of a building designated by Sec of Treasury for storing imported goods, operated under supervision of US Customs Bottleneck Correct Answer is Facility, function, department, or resource whose capacity is less than the demand placed upon it; machine or work center Break-bulk Correct Answer is Dividing truckloads of similar items into smaller, more appropriate qty's for use Buffer

Correct Answer is Qty of materials awaiting further processing; can refer to raw materials, semi-finished stores or hold points, or a work backlog that is purposely maintained behind a work center; in TOC, it can be time or material and support thruput and/or due date performance maintained at the constraint, convergent points (with a constraint part), divergent points, and shipping points Buffer management Correct Answer is In TOC, process where all expediting in a shop is driven by what is scheduled to be in the buffers (constraint, shipping, or assembly); by expediting into buffers, system avoids idleness at the constraint and prevents missed due date Business plan Correct Answer is Statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow (source and application of funds) statement; document consisting of the business details (organization, strategy, and financing tactics) Capable-2-promise Correct Answer is Process of committing orders against available capacity as well as inventory. May involve multiple manufacturing or distribution sites. Used to determine when a new or unscheduled customer order can be delivered. Employs a finite- scheduling model of manufacturing system to determine when an item can be delivered. Includes any constraints that might restrict production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, current manufacturing environment, and future order commitments. Objective is to reduce time spent by planners in expediting orders and adjusting plans because of inaccurate delivery-date promises Capacity control Correct Answer is Process of measuring production output and comparing it with the capacity plan to determine if variance exceeds pre-established limits and taking action to get back on plan if limits are exceeded Capacity management Correct Answer is Function of establishing, measuring, monitoring, and adjusting limits of capacity in order to execute all mfg schedules; executed at 4 levels: resource requirements planning, rough-cut capacity planning, capacity requirements planning, and input/output control Capacity planning Correct Answer is Process of determining amount of capacity required to produce in the future; may be performed at aggregate or product-line (RRP), master-schedule level (R-CCP), and materials requirements planning (CRP) Capacity requirements planning (CRP)

Correct Answer is Process of determining in detail amount of labor and machine resources required to complete task of production; inputs are open orders and planned orders; checks against all time periods Carrying cost Correct Answer is % of dollar value of inventory per unit of time (generally one year); depends mainly on the cost of capital invested as well as such costs of maintaining the inventory as taxes and insurance, obsolescence, spoilage, and space occupied; varies from 10% to 35% annually, depending on type of industry Cash flow Correct Answer is Net flow of dollars into or out of the proposed project; algebraic sum, in any time period, of all cash receipts, expenses, and investments Cause-and-effect diagram Correct Answer is Tool for analyzing process dispersion Cellular manufacturing Correct Answer is Mfg process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell Chase production method Correct Answer is Production planning method that maintains stable inventory level while varying production to meet demand Continuous replenishment Correct Answer is Process by which supplier is notified daily of actual sales or warehouse shipments and commits to replenish Control chart Correct Answer is Graphic comparison of process performance data with predetermined computed control limits; primary use is to detect assignable causes of variation in the process (as opposed to random ones) Control limit Correct Answer is Statistically determined line on a control chart (upper control limit or lower control limit) Cost of poor quality Correct Answer is Costs associated with providing poor quality products or services: (1) internal failure costs (2) external failure costs (3) appraisal costs (costs incurred to determine the degree of conformance to quality requirements (4) prevention costs Critical path method (CPM) Correct Answer is Network planning technique for analysis of project's completion time used for planning & controlling the activities in the project; by showing each activity and

associated time to complete identifies those elements that actually constrain the total project time, determining the critical path Cross-docking Correct Answer is Concept of packing products on the incoming shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destinations; items are carried from incoming vehicle docking point to outgoing vehicle docking point without being stored in inventory in the warehouse Cycle stock Correct Answer is Average amount of inventory a business needs to meet customer demand between the times it orders more inventory from suppliers Cycle time Correct Answer is 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. Decoupling inventory Correct Answer is Amount of inventory kept between entities in a mfg or distribution network to create independence between processes or entities; objective is to disconnect the rate of use from the rate of supply of the item Delivery lead time Correct Answer is Time from receipt of a customer order to the delivery of the product Demand lead time Correct Answer is Amount of time potential customers are willing to wait for the delivery of a good or service Demand management Correct Answer is Function of recognizing all demands for goods and services to support the marketplace; involves prioritizing it when supply is lacking Demand planning Correct Answer is Using forecasts and experience to estimate demand for various items at various points in a supply chain; several forecasting techniques may be used during the planning process; often, families of items are aggregated (geographical region or by life cycle stage) Demand pull Correct Answer is Triggering of material movement to a work center only when that work center is ready to begin the next job; in effect eliminates the queue from in front of a work center, but it can cause a queue at the end of a previous work center Demonstrated capacity

Correct Answer is Proven capacity calculated from actual performance data, usually expressed as the average # of items produced multiplied by standard hours per item Demurrage Correct Answer is Carrier charges and fees applied when rail freight and ships are retained beyond a specified loading or unloading time Detention Correct Answer is Carrier charges and fees applied when truck trailers are retained beyond a specified loading and unloading time Discrete order picking Correct Answer is Method of picking orders in which items on one order are picked before items on next order is picked Dispatching Correct Answer is Selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers Distribution Correct Answer is Activity associated with movement of material (FG or parts) from the mfg to customer; encompass transportation, warehousing, inventory control, material handling, order administration, site & location analysis, industrial packaging, data processing, and communications necessary for effective mgmt; includes all activities related to physical distribution, as well as return of goods to mfg; systematic division of a whole into discrete parts with different characteristics Distribution center Correct Answer is Warehouse with FG and/or service items Distribution channel Correct Answer is Distribution route, from raw materials thru consumption, that products travel Distribution inventory Correct Answer is Inventory, usually spare parts and finished goods, located in the distribution system (e.g., in warehouses, in transit between warehouses and the consumer) Distribution requirements planning (DRP) Correct Answer is Function of determining the need to replenish inventory at branch warehouses; time-phased order point approach is used where the planned orders at the branch warehouse level are ""exploded"" via MRP logic to become gross requirements on the supplying source; In multilevel distribution networks, this explosion process can continue down through the various levels of regional warehouses (master warehouse, factory warehouse, etc.) and become input to the master production schedule; demand

on the supplying sources is recognized as dependent, and standard MRP logic applies; replenishment inventory calculations, may be based on other planning approaches such as period order quantities or ""replace exactly what was used,"" rather than being limited to the time-phased order point approach Distribution warehouse Correct Answer is Facility that receives items in large lots, stores them temporarily, and breaks them into smaller lots destined for a variety of locations Dock-2-stock Correct Answer is Program where specific quality and packaging requirements are met before the product is released; prequalified goods are shipped directly into the customer's inventory; eliminates costly handling of components (receiving & inspection) and enables them to move into production Drum schedule Correct Answer is Detailed production schedule for a resource that sets the pace for the entire system; must reconcile the customer requirements with system constraint(s) Economic order quantity (EOQ) Correct Answer is Type of fixed order qty model that determines amt of item to be purchased or manufactured at one time Efficiency Correct Answer is Measurement of actual output to the standard output expected Electronic data interchange (EDI) Correct Answer is Paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized document formats Enterprise resource planning (ERP) Correct Answer is Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage External failure costs Correct Answer is Includes such costs as warranty and returns External setup time Correct Answer is Time associated with elements of a setup procedure performed while process or machine is running Extrinsic forecasting method

Correct Answer is Forecast method on a correlated leading indicator, such as estimating furniture sales based on housing starts; tends to be more useful for large aggregations, such as total company sales, than for individual product sales Field service Correct Answer is Functions of installing and maintaining a product for a customer after the sale or during the lease; may also include training and implementation assistance Final assembly schedule (FAS) Correct Answer is Schedule of end items to finish the product for specific customers' orders in a make-2-order or assemble-2-order environment Finite forward schedule Correct Answer is Equipment scheduling technique that builds a schedule by proceeding sequentially from the initial period to the final period while observing capacity limits; uses Gantt chart Finite loading Correct Answer is Assigning no more work to a work center than the work center can be expected to execute in a given time period; usually refers to a computer technique that involves calculating shop priority revisions in order to level load operation by operation Firm planned order (FPO) Correct Answer is Planned order that can be frozen in time and qty; computer isn't allowed to change it automatically, must be done by planner in charge of item; this technique can aid planners working with MRP systems to respond to material and capacity issues Flowchart Correct Answer is One of 7 tools of quality that shows the operations, transportation, storages, delays, inspections, and so on related to a process Flow processing Correct Answer is System in which work flows over a stationary path with little variance in the rate of flow; known as repetitive mfg if discrete units are produced (otherwise continuous mfg) Fluctuation inventory Correct Answer is Inventory that is carried as a cushion to protect against forecast error Freight forwarder Correct Answer is "middle man" between carrier and organization shipping the product. Often combines smaller shipments to take advantage of lower bulk costs Functional layout

Correct Answer is Facility configuration where operations of a similar nature or function are grouped together; organizational structure based on departmental specialties Gantt chart Correct Answer is Earliest and best known type of planning & control chart designed to show graphically the relationship between planed performance and actual performance over time; used for machine loading (one horizontal line is capacity and other is load against that capacity) or monitoring job progress (one horizontal line is production schedule and other is actual progress of job against schedule in time) Hedge inventory Correct Answer is Form of inventory buildup to buffer against some event that may not happen; involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impact a company's strategic initiatives Heijunka Correct Answer is JIT philosophy where level production throughout SC matches planned rate of end product sales Hoshin Correct Answer is Statement of objectives Hoshin planning Correct Answer is Breakthrough planning where a company develops up to 4 vision statements that indicate where company should be in next 5 years; goals and work plans are developed based on the vision statements; periodic audits are conducted to monitor progress Idle capacity Correct Answer is Available capacity that exists on non-constraint resources beyond the capacity required to support the constraint Incoterms Correct Answer is International Commercial Terms; created to simplify international transactions Infinite loading Correct Answer is Calculation of capacity required at work centers in time periods required regardless of capacity available to perform work Input/output control (I/O) Correct Answer is Technique for capacity control where planned and actual inputs and planned and actual outputs of a work center are monitored; planned inputs and outputs for each work center are developed by CRP and approved by mfg management; actual input is compared to planned input to identify when work center output might vary from plan because work is not available at the work center

Intermittent production Correct Answer is Form of mfg where jobs pass thru functional departments in lots, and each lot may have a different routing Intermodal transport Correct Answer is Shipments moved by different types of equipment combining the best features of each mode Internal failure costs Correct Answer is Costs of things that go wrong before the product reaches the customer, usually includes rework, scrap, downgrades, re-inspection, retest, and process losses Internal setup time Correct Answer is Time associated with elements of a setup procedure performed while process or machine isn't running Intrinsic forecast method Correct Answer is A forecast based on internal factors, such as an average of past sales Jidoka Correct Answer is Practice of stopping the production line when a defect occurs Job shop Correct Answer is Organization where similar equipment is organized by function; each job follows distinct route thru shop; type of mfg process used to produce items to a customer's specifications; production operations are designed to handle a wide range of product designs and are performed at fixed-plant locations using general purpose equipment Kaizen Correct Answer is Improvement; continuing improvement involving everyone: managers and workers; in mfg, relates to finding and eliminating waste in machinery, labor, or production methods Kanban Correct Answer is Method of Just-in-Time production that uses standard containers or lot sizes with a single card attached to each; a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers; loosely translated, means card, billboard, or sign, but other signaling devices such as colored golf balls have also been used; often used synonymously for the specific scheduling system developed and used by Toyota Landed cost

Correct Answer is Product cost plus the costs of logistics, such as warehousing, transportation, handling fees, duty, taxes, and tariffs Lead-time offset Correct Answer is Technique used in MRP where a planned order receipt in one time period will require the release of that order in an earlier time period based on lead time for item Leading indicator Correct Answer is Specific business activity index that indicates future trends, such as housing starts being leading indicator for industry that supplies builders' hardware Lean production Correct Answer is Philosophy of production that emphasizes the minimization of the amount of all the resources (incl time) used in the various activities of the enterprise; involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers; contains a set of principles and practices to reduce cost through the relentless removal of waste and through the simplification of all mfg and support processes Level production method Correct Answer is Production planning method that maintains a stable production rate while varying inventory levels to meet demand Level schedule Correct Answer is Production schedule or MPS that generates material and labor requirements that are as evenly spread over time as possible Line-haul costs Correct Answer is Within physical distribution, cost elements that vary by distance traveled and not by weight carried (e.g., fuel, drivers' wages, wear and tear on the vehicle) Load Correct Answer is Amt of planned work scheduled for and actual work released to a facility, work center, or operation for a specific time period; usually expressed as standard work hours or units of production Load leveling Correct Answer is Spreading orders out in time or rescheduling operations so that the amount of work to be done in sequential time periods tends to be distributed evenly and is achievable; although material and labor are ideally level loaded, specific businesses and industries may load to one or the other exclusively Lot-4-lot

Correct Answer is Lot-sizing technique that generates planned orders in qty's equal to net requirements in each period Lot-size inventory Correct Answer is Inventory that results whenever qty price discounts, shipping costs, setup costs, or similar considerations make it more economical to purchase or produce in larger lots than are needed for immediate purposes MRO supplies Correct Answer is Items used in support of general operations and maintenance (maintenance supplies, spare parts, consumables used in mfg process and supporting operations) Manufacturing lead time Correct Answer is Total time required to mfg an item, exclusive of lower level purchasing lead time; for make-2-order, length of time between release of order to production process & shipment to final customer; for make-2-stock, length of time between release of order to production process & receipt into inventory Manufacturing resource planning (MRP2) Correct Answer is Method for the effective planning of all resources of a manufacturing company; addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer what-if questions; made up of a variety of processes, each linked together: business planning, production planning (sales and operations planning), MPS, MRP, CRP, and the execution support systems for capacity and material; output is integrated with financial reports such as the business plan, purchase commitment report, shipping budget, and inventory projections in dollars Market driven Correct Answer is Responding to customer's needs Master production schedule (MPS) Correct Answer is Line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler; master scheduler maintains schedule, and it becomes a set of planning numbers that drives MRP; represents what the company plans to produce expressed in specific configurations, quantities, and dates Master schedule Correct Answer is Format that includes time periods (dates), forecast, customer orders, projected available balance, available-2-promise, and MPS; takes into account forecast, production plan, & other important considerations like backlog, material availability, available capacity, & mgmt goals Materials requirement planning (MRP)

Correct Answer is A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase Materials handling Correct Answer is Movement of items from one point to another inside a facility or between facilities Materials management Correct Answer is Grouping of management functions supporting the complete cycle of material flow, from purchase and internal control of production materials to planning and control of WIP to the warehousing, shipping, and distribution of the finished product Milk run Correct Answer is Regular route for pickup of mixed loads from several suppliers; one truck makes multiple stops at suppliers before delivering one load to customer's plant Mixed-model scheduling Correct Answer is Process of developing one or more schedules to enable mixed- model production; goal is to achieve a day's production each day Modularization Correct Answer is Using same set of components in a variety of FGs Mura Correct Answer is Unevenness or variability Muri Correct Answer is Strain or overburden Nesting Correct Answer is Act of combining several small processes to form one larger process Pacemaker Correct Answer is Resource requiring longest time to produce among the set of activities in a line or cell; determines the flow thru the line or cell at mkt rate Package-2-order Correct Answer is Production environment in which a good or service can be packaged after receipt of a customer order; item is common across many different customers; packaging determines the end product Pallet positions Correct Answer is Calculation of space needed to store certain # of pallets

Participative design/engineering Correct Answer is Concept that refers to the simultaneous participation of all the functional areas of the firm in the product design activity, often including suppliers and customers; intent is to enhance the design with inputs of all key stakeholders to ensure final design meets all needs of stakeholders and should ensure a product that can be brought to market quickly while maximizing quality and minimizing costs Pegging Correct Answer is Capability to identify for a given item the sources of its gross requirements and/or allocations Period order quantity Correct Answer is Lot-sizing technique under which the lot size is equal to the net requirements for a given # of periods; # of periods to order is variable with each order size equaling the holding cost and the ordering cost for the interval Perpetual inventory record Correct Answer is Computer record or manual doc where each inventory transaction is posted so a current record of inventory is maintained Physical supply Correct Answer is Transportation of goods from supplier to buyer Pipeline stock Correct Answer is Inventory in the transportation network and the distribution system Planned order receipt Correct Answer is Qty planned to be received as a future date as a result of a planned order release Planned order release Correct Answer is Row on MRP table that is derived from planned order receipts by taking planned receipt qty and offsetting to the left by appropriate lead time Postponement Correct Answer is Product design strategy that shifts product differentiation closer to consumer by post-poning identity changes (assembly or packaging) to last possible SC location Process batch Correct Answer is Qty or volume of output that is to be completed at a workstation before switching to a different type of work or changing an equipment setup Product layout

Correct Answer is Layout of resources arranged sequentially based on product's routing Production activity control (PAC) Correct Answer is Function of routing and dispatching work to be accomplished thru production facility and of performing supplier control; encompasses principles, approaches, and techniques needed to schedule, control, measure, and evaluate effectiveness of operations Purchase requisition Correct Answer is Authorization to purchasing department to purchase specified materials in specified qty's within specified time Quality costs Correct Answer is (1) internal failure costs (before product reaches customer), (2) external failure costs (after product reaches customer), (3) appraisal costs (formal eval & audit of quality in firm ), (4) prevention costs (improvement activities that focus on reducing failures & appraisal costs) Quick changeover Correct Answer is Having small setup time in order to have small production batches and small WIP inventory Radio frequency identification tag (RFID) Correct Answer is System using electronic tags to store data about items; accessing data is accomplished through a specific radio frequency and does not require close proximity or line-of-sight access for data retrieval Random-location storage Correct Answer is Storage technique where parts are placed in any space that is empty when they arrive at storeroom; requires use of locator file to identify part locations and uses less storage space than alternative Rated capacity Correct Answer is Expected output capability of a resource or system; capacity is traditionally calculated from such data as planned hours, efficiency, and utilization Rough-cut capacity planning (RCCP) Correct Answer is Process of converting MPS into requirements for key resources (labor, machinery, WH space, supplier capability, $); comparison to available or demonstrated capacity is done to assist master scheduler in establishing feasible MPS; 3 approaches: (1) bill of labor, (2) capacity planning using overall factors, (3) resource profile Routing

Correct Answer is Info detailing method of mfg of a particular item; includes operations to be performed, their sequence, various work centers involved, & standards for setup and run Seasonal inventory Correct Answer is Inventory built up to smooth production in anticipation of peak seasonal demand Shipping manifest Correct Answer is Document that lists the pieces in a shipment; usually covers an entire load regardless of whether the load is to be delivered to one or many destinations; lists items, qty, weight, destination name & address for each destination in load Single-level bill of material Correct Answer is Display of components that are directly used in parent item; shows only relationship one level down Six sigma quality Correct Answer is Set of concepts and practices that key on reducing variability in processes and reducing deficiencies in product; 3.4 defects per 1 million opportunities or operations Split lot Correct Answer is Mfg order qty that has been divided into two or more smaller qty's after order has been released; qty's may be worked on in parallel or portion sent ahead while remaining qty worked on in current operation; purpose is to reduce lead time Supplier certification Correct Answer is Certification procedures verifying that a supplier operates, maintains, improves, and documents effective procedures that relate to the customer's requirements; can include cost, quality, delivery, flexibility, maintenance, safety, and ISO quality and environmental standards Takt time Correct Answer is Sets pace of production to match rate of customer demand and becomes heartbeat of any lean production system; computed as available production time divided by rate of customer demand Terminals Correct Answer is Place where vehicles are loaded and unloaded; also weighs and re- routes cargo Throughput Correct Answer is Rate of production or the rate at which something can be processed

Total line-haul cost Correct Answer is Essential costs to move freight cargo including driver's wages and depreciation of vehicle Total productive maintenance (TPM) Correct Answer is Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows; operator-oriented maintenance with involvement of all qualified employees in maintenance activities Total quality management (TQM) Correct Answer is Mgmt approach to long-term success thru customer satisfaction; based on participation of all members of an organization on improving processes, goods, services, and culture in which they work U-lines Correct Answer is Production lines shaped like letter "u" to allow workers to easily perform several non-sequential tasks without much walk time; # of workstations is usually determined by line balancing Uniform plant loading Correct Answer is Distribution of work between work stations so that the time required for each station to complete all tasks is as close to equal as possible Unitization Correct Answer is Consolidation of several units into larger units for fewer handlings Velocity Correct Answer is Rate of change of an item with respect to time; speed of all transactions, collectively, within SC community; faster is better because it indicates higher asset turnover for stockholders and faster order-2-delivery response for customers Voice of the customer (VOC) Correct Answer is Actual customer descriptions in words for the functions and features customers desire for goods and services Wait time Correct Answer is Time a job remains at a work center after an operation is completed until it is moved to the next operation Wall-2-wall inventory Correct Answer is Inventory management technique where material enters a plant and is processed thru the plant into FGs without ever entering a formal stock area Warehousing

Correct Answer is Activities related to receiving, storing, and shipping materials to and from production or distribution locations Wave picking Correct Answer is Method of selecting and sequencing picking lists to minimize waiting time of delivered material; shipping orders in waves of common carrier or destination with mfg orders related to work centers Waybill Correct Answer is Document containing list of goods with shipping instructions related to a shipment Ways Correct Answer is Paths over which transportation company moves cargo, including right-of-way, roadbed, and RR tracks What-if analysis Correct Answer is Process of evaluating alternate strategies by answering the consequences of changes to forecasts, mfg plans, inventory levels, etc. Where-used list Correct Answer is Listing of every parent item that calls for a given component and the respective qty required from BOM file Work cell Correct Answer is Dissimilar machines grouped together into a production unit to produce a family of parts having similar routings Work center Correct Answer is Specific production area, consisting of one or more people and/or machines with similar capabilities, that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling Work order Correct Answer is Order to machine shop for tool manufacture or equipment maintenance; authorization to start work on an order Yield Correct Answer is Amount of good or acceptable material available after the completion of a process; usually computed as final amount divided by initial amount converted to decimal or % Yokoten Correct Answer is Sharing information Zone

Correct Answer is Warehouse location methodology that includes some characteristics of fixed and random location methods; holds certain kinds of items, depending on physical characteristics or frequency of use Zone picking Correct Answer is Method of subdividing a picking list by areas within a storeroom for more efficient and rapid order picking; must be grouped to a single location before delivery or must be delivered to different locations such as work centers United Nations Global Compact Correct Answer is Voluntary initiative whereby companies embrace, support, and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment, and anticorruption United Nations Compact Management Model Correct Answer is Framework for guiding companies thru the process of formally committing to, assessing, defining, implementing, measuring, and communicating the UN Global Compact and its principles VATI Analysis Correct Answer is In TOC, procedure for determining the general flow of parts and products from raw materials to finished products (logical product structure). (1) V logical structure - starts with one or few raw materials, and the product expands into a number of different products as it flows thru divergent points in its routings; (2) A logical structure - dominated by converging points. Many raw materials are fabricated and assembled into a few finished goods; (3) T logical structure - consists of numerous similar finished products assembled from common assemblies, subassemblies, and parts; (4) I logical structure - simplest of production flows, where resources are shared between different products and the flow is in a straight line sequence, such as an assembly line. Once general parts flow is determined, the system control points (gating operations, convergent points, divergent points, constraints, and shipping points) can be identified and managed