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2. Component and Supplier Management - Part number cross references, supplier catalogs, approved vendor lists.
3. Inventory Management - Perpetual and physical inventory controls and tools.
MAKE
1. Manufacturing Planning - MRP, production scheduling, tracking, manufacturing engineering, manufacturing documentation management, inventory/obsolescence tracking.
2. Inventory Management - Perpetual and physical inventory controls and tools.
3. Manufacturing Execution - MES detailed and finite interval scheduling, process controls, and machine scheduling. DELIVER
1. Order Management - Order entry/maintenance, quotes, customer database, product/price database, accounts receivable, credits and collections, invoicing.
2. Distribution and Transportation Management - DRP, shipping, freight management, traffic management.
3. Inventory Management - Perpetual and physical inventory controls and tools.
4. Warehouse Management - Finished goods, receiving and stocking, pick/pack.
5. Channel Management - Promotions, pricing and discounting, customer satisfaction surveys.
6. Field Service/Support - Field service, customer and field support, technical service, service/call management, returns, warranty tracking.
EXTERNAL ELECTRONIC INTERFACES
Plan/Source/Make/Deliver - Interfaces, gateways, and data repositories created and maintained to exchange supply chain-related information with the outside world. E-commerce initiatives. Includes development and implementation costs.
Note: Accurate assignment of IT-related cost is challenging. It can be done using activity-based costing methods or using other approaches, such as allocation based on user counts, transactions counts, or departmental headcounts. The emphasis should be on capturing all costs. Costs for any outsourced IT activities should be included.
Supply Chain Strategic Planning: The process of analyzing, evaluating, and defining supply chain strategies, including network design, manufacturing and transportation strategy, and inventory policy.
Supply Planning: The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon, and interval.
Supply Warehouse: A warehouse that stores raw materials. Goods from different suppliers are picked, sorted, staged, or sequenced at the warehouse to assemble plant orders.
Support Costs: Costs of activities not directly associated with producing or delivering products or services. Examples are the costs of information systems, process engineering, and purchasing. Also see: Indirect Cost.
Surrogate [item] Driver: In ABC costing, a substitute for the ideal cost driver, but closely correlated to the ideal driver, where [item] is Resource, Activity, or Cost Object. A surrogate driver is used to significantly reduce the cost of measurement while not significantly reducing accuracy. For example, the number of production runs is not descriptive of the material-disbursing activity, but the number of production runs may be used as an activity driver if material disbursements correlate well with the number of production runs.
Sustaining Activity: An activity that benefits an organizational unit as a whole, but not any specific cost object.
SWOT: See SWOT Analysis (SWOT).
SWOT Analysis: An analysis of the strengths, weaknesses, opportunities, and threats of and to an organization. SWOT analysis is useful in developing strategy.
Synchronization: The concept that all supply chain functions are integrated and interact in real time; when changes are made to one area, the effect is automatically reflected throughout the supply chain.
24/7/365: Referring to operations that are conducted 24 hours a day, 7 days a week, 365 days per year, with no breaks for holidays, etc.
24/7: Referring to operations that are conducted 24 hours a day, 7 days a week.
3D Loading: 3D loading is a method of space optimizing designed to help quickly and easily plan the best compact arrangement of any 3D rectangular object set (boxes) within one or more larger rectangular enclosures (containers). It's based on three-dimensional, most-dense packing algorithms.
3PL: *See Third Party Logistics (3PL)
T
Tactical Planning: The process of developing a set of tactical plants (e.g., production plan, sales plan, marketing plan, and so on). Two approaches to tactical planning exist for linking tactical plans to strategic plans - production planning and sales and operations planning. Also see: Sales and Operations Planning.
Tact Time: See Takt Time
Taguchi Method: A concept of offline quality control methods conducted at the product and process design states in the product development cycle. This concept, expressed by Genichi Taguchi, encompasses three phases of product design, parameter design, and tolerance design. The goal is to reduce quality loss by reducing the variability of a product's characteristics during the parameter phase of product development.
Takt Time: Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It's computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The takt time = 420 minutes per day/500 units per day = 0.84 minutes per unit. This takt time means that a unit should be planned to exit the production system on average every 0.84 minutes.
Tare Weight: The weight of a substance obtained by deducting the weight of the empty container from the gross weight of the full container.
Target Costing: A target cost is calculated by subtracting the desired profit margin from an estimated or market-based price to arrive at a desired production, engineering, or marketing cost. This may not be the initial production cost, but one expected to be achieved during the mature production stage. Target costing is a method used in the analysis of product design that involves estimated a target cost, then designing the product/service to meet that cost.
Tariff: A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.
Tasks: The breakdown of the work in an activity into smaller elements.
T's & C's: See Terms and Conditions.
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