The Inventory a company holds above normal needs as a buffer against delays in receipt of supply or changes in customer demand.

 

Scenario planning

 

 

 

Seven wastes

The categorization of the seven major wastes typically found in mass production:
1. Overproduction: Producing ahead of what's actually needed by the next process or customer. The worst form of waste because it contributes to the other six.
2. Waiting: Operators standing idle as machines cycle, equipment fails, needed parts fail to arrive, etc.
3. Conveyance: Moving parts and products unnecessarily, such as from a processing step to a warehouse to a subsequent processing step when the second step instead could be located immediately adjacent to the first step.
4. Processing: Performing unnecessary or incorrect processing, typically from poor tool or product design.
5. Inventory: Having more than the minimum stocks necessary for a precisely controlled pull system.
6. Motion: Operators making movements that are straining or unnecessary, such as looking for parts, tools, documents, etc.
7. Correction: Inspection, rework and scrap.

The negative difference between actual available ordelivered quantity and the required quantity.

Utilizing the operational data to perform "what-if"evaluations of alternative plans relating to resourcesand materials.

A method of analyzing the activities needed for exchange of die or tool aiming to shorten the exchangetime by separating the activities to be done when themachine has been stopped (Inside Exchange of Die) and the activities which can be performed inadvance during run of the machine or after (OutsideExchange of Die).

Selecting of and working with one supplier for a certainproduct.

A product delivered or used in production with a lowfrequency or in relatively low numbers per period.

Standardized work

Establishing precise procedures for each operator's work in a production process, based on three elements:
1. Takt time, which is the rate at which products must be made in a process to meet customer demand.
2. The precise work sequence in which an operator performs tasks within takt time.
3. The standard inventory, including units in machines, required to keep the process operating smoothly.

The systematic regulation of stock levels with respect to time and quantity.

Numbering system which makes a product or item distinguishable from all others.

A system where all places within a warehouse are named and numbered to facilitate storage and retrieval ofstock.

Merchandise that is requested by a customer but is temporarily unavailable. Also referred to Out of Stocks (OOS).

A count of products actually held in stock as a basis forverification of the stock records and accounts.

A person, department or organization, both inside or outside the Company, which delivers goods and/or services to one or more customers.

The delivery of goods by a supplier to a customer in a particular time period and expressed in quantitative or financial terms.

SCMis the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. SCM spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.